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External trade weakness persists in July

PHILIPPINE international trade performance further contracted in July as trade activity remains subdued in the country and in the rest of the world, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary data by the PSA showed merchandise exports in July declined by 9.6% to $5.654 billion compared to a revised 12.5% decline in June and a 4.8% growth recorded in July 2019.

The July result marked the fifth straight month of decline for exports, as well as the slowest decline so far this year following double-digit declines that started in March.

Meanwhile, merchandise imports declined for the 15th consecutive month in July by 24.4% to $7.481 billion, worsening from the year-on-year declines of 23.1% in June and 0.9% in July last year.

The trade deficit in July stood at $1.827 billion, lower than the $3.641-billion gap in the same month last year. This was, however,  the biggest in four months, or since March’s shortfall of $2.368 billion.

The country’s total external trade in goods — the sum of export and import goods — was $13.134 billion in July, 18.6% less than the $16.145-billion total in the same month last year. So far, total trade amounted to $80.771 billion, 23.6% less than $105.725 billion in January-July 2019.

For the seven months to July, exports were down 16.4% to $34.135 billion, which is above the Development Budget Coordination Committee’s (DBCC) revised projection of a 16% fall for the year.

Meanwhile, the import bill declined by 28.1% to $46.636 billion on a cumulative basis against the DBCC’s revised target of an 18% contraction for 2020.

Year to date, trade balance amounted to a $12.501-billion deficit, narrower than the $24.066-billion trade gap in 2019’s comparable seven months. – Lourdes O. Pilar

Pag-IBIG Fund earns COA’s highest opinion anew for 8th straight year

For the eighth consecutive year, Pag-IBIG Fund has again earned the highest opinion from the Commission on Audit (COA) for the presentation of its financial statements, top officials announced on Tuesday (Sept.8).

State auditors, in a letter dated August 28, informed the agency that it has rendered its highest rating – referred to as an unmodified opinion – on the fairness of the presentation of Pag-IBIG Fund’s financial statements for the year 2019.

“This is yet another milestone in Pag-IBIG Fund’s history. Consistently earning the highest opinion from COA for eight consecutive years serves as proof that Pag-IBIG Fund – the Filipino workers’ fund – is being managed properly. We have been true to our promise of upholding excellence and integrity in serving our members and other stakeholders as we heed the call of President Duterte in ensuring that public offices, especially those that provide social services like ours, are corruption-free,” said Secretary Eduardo D. del Rosario, Chairman of the Department of Human Settlements and Urban Development (DHSUD) and of the 11-member Pag-IBIG Fund Board of Trustees.

From 2012 to 2017, COA has rendered unqualified opinions on Pag-IBIG Fund’s financial statements and unmodified opinions for the years 2018 and 2019. Auditors use both the unqualified opinion and unmodified opinion, which are the highest opinions that COA can give to a government agency or corporation, to mean that the financial statements of a company or agency are presented, in all material respects, in accordance with applicable financial reporting frameworks.

“We have been saying for several years that we have achieved our best year ever. But 2019 stands out as the most special. In terms of performance, we reached our highest ever net income of P34.37 billion. We also posted a record-highs in housing loan takeout worth P86.74 billion which benefitted 95,276 borrowers, and in short-term loans totaling P53.83 billion which assisted 2.59 million members. With our 2019 performance capped by this unmodified opinion from COA, this shows that we have achieved our best performance ever in terms of both numbers and the integrity in our operations. In 2020, with the economic slowdown, we may not see such record-breaking numbers but two things are for sure –first, the economic slowdown will not stop us from extending benefits to our members and second, is that we will remain transparent in our operations and in serving our members with excellence and integrity,” Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said.

BSP to issue own securities next week

The Bangko Sentral ng Pilipinas will launch its maiden securities offering on Sept. 18. — BLOOMBERG

THE central bank is set to begin selling its own securities on Sept. 18, saying this will become an additional tool in managing liquidity in the financial system.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno on Wednesday said it will initially offer P20 billion worth of 28-day BSP bills. The final offer volume will be confirmed on Sept. 16.

“As part of its initiative to shift to a more market-based monetary operations, the BSP will offer its own securities via auction in the form of bills and bonds, starting Sept. 18,” he said on Twitter.

The central bank said the auction volume for the debt papers will be small at the start, but this will be gradually increased based on market response and consistent with liquidity forecast.

“The inclusion of BSP Securities issuance in the standard monetary operations of the BSP provides an additional instrument for managing liquidity in the financial system and support the implementation of monetary policy under the Interest Rate Corridor (IRC) framework,” the BSP said in a statement.

It said the issuance of BSP securities does not mean there will be a change in the central bank’s monetary policy stance.

In 2016, the BSP adopted the IRC system to guide short-term market interest rates through the overnight reverse repurchase rate, which is currently at a record low of 2.25%. It also includes the overnight lending and deposit rates of 2.75% and 1.75%, respectively, applicable to banks when borrowing or depositing to the BSP.

The BSP bills will have the same tenor as the 28-day term deposit papers that are auctioned every Wednesday.

“They will be offered simultaneously at first, but on different days. Eventually, the 28-day TDF (term deposit facility) will be phased out,” Mr. Diokno said.

The sale of the securities is allowed under Republic Act 11211 or The New Central Bank Act, which was signed into law in February 2019.

“The issuance of securities by the BSP will add to the existing supply of risk-free financial instruments in the banking system, which in turn could help in the development of the local bond market,” the BSP said.

National Treasurer Rosalia V. de Leon said there will be “no crowding out effect” as even the BSP’s TDF remains oversubscribed.

“We closely coordinate with BSP on our respective issuance including segment of curve. No crowding out effect,” Ms. De Leon said in a Viber message to reporters.

On Wednesday, the BSP’s weekly TDF auction garnered bids worth P541.442 billion going beyond the P360-billion offer. This was also higher than the P502.084 billion in bids logged the previous week for the P310-billion offering.

“The BSP bond issuance would be one of the main monetary policy tools to mop (up) excess liquidity, eventually with much longer tenors and to complement the weekly TDF auctions,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

He added timing of the issuance of BSP securities is acceptable given the “large excess liquidity” in the financial system.

Domestic liquidity or M3, which is considered to be the broadest measure of money supply, grew 14.5% year on year in July, easing from the 14.9% pace in June, preliminary data from the BSP showed. — Luz Wendy T. Noble

Meralco rates fall for fifth straight month

Consumers in Metro Manila will see lower electricity bills this month. — BW FILE PHOTO

POWER RATES in Metro Manila will go down again this month with typical households likely to see a P12 cut in their bills, Manila Electric Co. (Meralco) said on Wednesday.

In a statement, the utility giant said the September electricity rate fell by P0.0623 per kilowatt-hour (kWh) to P8.4288/kWh from last month’s level. The rate is its lowest since September 2017.

Meralco power rates continue to drop for the fifth month as the generation charge remains low with supply contracts still relaxed due to the impact of the global coronavirus pandemic on power consumption.

Households consuming 300 kWh, 400 kWh, and 500 kWh can expect their bills to decrease by P18.69, P24.92, and P31.15, respectively

Meralco’s generation charges, which form the bulk of consumer bills, were trimmed by P0.0381/kWh to P4.0860/kWh this month.

The company said its force majeure claims in September saved P463 million, which is equal to P0.1710/kWh. This as supply contract charges, which make up 54.8% of its energy requirements, were down by P0.3032/kWh.

Overall, Meraclo’s savings from relaxed supply contracts reached P2.4 billion since March. Power players are able to invoke a force majeure claim in their supply deals if an unexpected event makes it impossible for them to fulfill contract obligations.

Power charges from the Wholesale Electricity Spot Market (WESM), where Meralco sources 11.6% of its supplies, were lower at P0.0147/kWh, attributed to the slump in electricity usage during the return to a strict lockdown in the first two weeks of August.

Further, charges from independent power producers, which deliver 33.6% of the utility’s energy needs, slightly increased by P0.0601/kWh because of the drop in average plant dispatch.

Charges for transmission also declined by P0.0112/kWh due to lower ancillary service rates, while taxes and other charges levied on customers dropped by P0.0130/kWh.

Last month, Meralco was ordered by the government to provide subsidies amounting to P275 million to more than two million poor customers with below 100 kWh monthly usage. The amount represents the cut in their distribution, supply, and metering charges, which make up 22.4% of their total bills.

The listed utility was also slapped with a P19-million fine over alleged violations of the Energy Regulatory Commission’s (ERC) advisories on billings during the lockdown months.

In a recent House hearing, the company said it is extending until end-October its self-imposed moratorium on sending disconnection notices to customers who are unable to settle their arrears since the lockdown started.

Meralco will also continue to waive the P47 convenience fee imposed on customers who pay their bills via the company’s app or website.

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

Senators question 2021 budget’s priorities amid coronavirus crisis

The Health department’s budget for 2021 is 14% lower than this year, despite the ongoing pandemic. — PHILIPPINE STAR/MICHAEL VARCAS

SENATORS on Wednesday questioned the economic team’s priorities under the proposed P4.5-trillion national budget for 2021 as allocations for health and social safety nets were cut and funds for infrastructure projects increased despite the ongoing pandemic.

Senator Franklin M. Drilon asked economic managers why the Department of Health (DoH) budget was slashed by 14% to P131 billion in 2021, when the agency’s role in restoring confidence in the public health system is crucial for economic recovery.

“It’s P153 billion for this year as adjusted with Bayanihan I and II and yet for next year, we are only allocating P131 billion. Isn’t there something wrong with this? When in fact we should recognize that economic recovery depends upon protecting public health because that is where the confidence of the consumer has weakened,” he said during the Development Budget Coordination Committee (DBCC) briefing at the Senate on Wednesday.

Even if there are questions over the DoH’s handling of the health crisis, Mr. Drilon said it is still important for the government to give a bigger budget to improve testing, contact tracing and treatment of those infected by the coronavirus disease 2019 (COVID-19).

Budget Secretary Wendel E. Avisado said the DoH’s budget was higher this year because they made substantial investments such as buying testing machines and other equipment to deal with the health crisis.

“Next year, what will be covered mostly are the consumables, the test kits and therefore, that is where we wanted to ensure that there will be more than enough consumables to be able to correspond the capital investments that we had this year, and other accompanying items,” Mr. Avisado said.

Senator Cynthia A. Villar also pointed out only 30 out of 70 DoH-operated hospitals have set up COVID-19 testing facilities despite the increased budget.

“Apart from testing, there is also the question of contact tracing and our ability to treat and therefore this is an issue that I take with you because the budget didn’t sufficiently address the protection of public health which for this budget is key for economic recovery,” Mr. Drilon added.

Senator Risa N. Hontiveros-Baraquel also raised concerns the estimated P20 billion to be set aside for the free vaccination program against COVID-19 may not be enough.

Ms. Hontiveros estimated around P189 billion would be needed to subsidize the vaccines for 18 million poor families, assuming there are five members in a family and three doses worth P700 each would be needed.

Finance Secretary Carlos G. Dominguez III said the budget for the vaccination program was only based on estimates given by the Health department. In July, he said P20 billion will be able to provide free vaccines worth P1,000 each for 20 million Filipinos.

Pati ang Secretary ng Health ina-underestimate ’yung kailangan ng department nila para magsagawa ng isang seryosong (Even the Health Secretary is underestimating the budget they need to implement this) vaccination program. P20 billion is only one-ninth of the P189 billion that we initially computed on this end… At pag kaharap ang isang napakatinding virus tulad nito (and if we are facing a serious virus like this), ideally, it’s universal vaccination so malayong malayo pa tayo,” Ms. Hontiveros said.

There is P2.5 billion allocated for the purchase of COVID-19 vaccines under next year’s budget and another P10 billion in standby funds under the proposed Bayanihan to Recover as One Act (Bayanihan II).

Mr. Dominguez said the program will be funded through the state-run banks, which is “outside of the budget” for next year but will be paid in future spending plans of the government.

NO MORE SAP
Mr. Drilon also expressed concern over the lack of funding for a Social Amelioration Program (SAP) next year, given that the poverty incidence in the country is expected to worsen because of the pandemic.

Mr. Avisado said while the cash aid program has already been discontinued once lockdown was eased, the government still has other job-generating programs and social safety net programs.

The government rolled out a P200-billion emergency cash aid program to 18 million poor families in April during the lockdown.

Under the 2021 budget, P149 billion was allotted for social protection programs, 16% lower than the P177.2 billion for this year.

Meanwhile, Senator Panfilo M. Lacson asked the economic team to explain why the country’s two major infrastructure agencies still received substantial budget allocations despite their history of underspending.

His presentation showed the Department of Public Works and Highways (DPWH) had the biggest unused budget in 2019 worth P83.7 billion, while the Department of Transportation (DoTr) ranked fourth with P21.65 billion.

The DPWH received the second-largest budget allocation for next year worth P667.3 billion, up 52% from the P438.9 billion it has this year. The Transportation department ranked seventh with a P143.6 billion budget, up 71% from the P84 billion in 2020.

“With the performances of the two BBB (Build, Build, Build) frontline departments, will the two agencies be able to deliver in 2021? Although construction works [for this year only] resumed in May, ’yung efficiency remains low due to the protocols and restrictions being implemented,” Mr. Lacson said.

Mr. Avisado said the DPWH and DoTr committed to ramping up the implementation of all infrastructure projects.

“Hopefully they do their best to comply. In terms of policy, I think we all agree that we cannot afford delays especially at this time given that we have already suffered enough under the current conditions,” he said.

The budget for infrastructure projects was increased to P1.107 trillion next year from the reduced P785.5-billion budget this year as the implementation of the “Build, Buid, Build” program was seen to help with economic recovery.

“In your planning and projections, have you considered the efficiency of the construction in relation to the infrastructure strategy under the present pandemic? Kasi if things remain constant in 2021, how do we foresee the efficacy of the rebound strategy,” Mr. Lacson said. — Beatrice M. Laforga

Duterte needs to put policy reforms in place by yearend — analyst

By Luz Wendy T. Noble, Reporter

THE Duterte administration needs to put policy reforms in place to attract more foreign investments by end-2020, before the presidential election campaign gets underway, according to an analyst.

“With elections approaching in 2022, policy reforms are needed before end-2020, to bear fruit and pre-empt rising political uncertainty as presidential campaigning begins,” Michael Langham, Senior Asia Country Risk Analyst at Fitch Solutions, said in an e-mail to BusinessWorld.

“A cross-party commitment to attracting FDI (foreign direct investments), with a clear policy path would prove particularly effective in reducing uncertainty for foreign investors.”

Several key reform measures are still pending before Congress, which is also tackling the 2021 national budget. Legislators will soon be preoccupied with campaigning, with general elections scheduled on May 9, 2022. President Rodrigo R. Duterte’s term ends on June 30, 2022.

“In the very near term, the delays in containing the COVID-19 outbreak will hamper FDI into the Philippines. However, looking ahead to 2021 and 2022, when we expect both domestic and foreign investment into the country to rebound, reforms which liberalize barriers to investment could lure in some investment,” Mr. Langham said.

The government has been pushing for amendments to the Retail Trade Liberalization Act (RTLA) and Public Service Act (PSA), both of which have been approved by the House of Representatives but remain pending at the Senate.

The proposed revisions to the RTLA will lower the required minimum paid-up capital for foreign companies that seek to enter the local retail market, while amendments to the PSA would lift restrictions on foreign ownership in some sectors.

Mr. Langham noted the retail sector would be attractive to investors, especially since private consumption is a key driver of domestic growth.

“As such, FDI into the sector could ramp up over the coming years given the strong fundamentals driving the sector, namely a growing population and relatively fast-paced levels of economic growth,” he added.

However, Mr. Langham said FDI inflows that could come in from such reforms would not likely boost the Philippine economy’s long-term growth prospects.

“We believe reforms targeted at opening up export-oriented sectors or encouraging investment into infrastructure, including telecoms and utilities, would prove more effective for boosting longer-term growth. Delays over tax reforms, poor logistics and uncertainty surrounding government attitudes towards PPPs (public private partnerships) have hindered FDI inflows into these sectors,” he said.

Mr. Langham said the Philippines will need to catch up with regional peers that have acted swiftly with tax incentives to attract FDIs amid the pandemic and the continued US-China trade war.

Another key piece of legislation being pushed by the Duterte administration is the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill, which would immediately reduce corporate income tax to 25% from 30%. It is still pending at the Senate.

Meanwhile, Christian de Guzman, senior vice-president at Moody’s Investors Service, said the country’s underdeveloped infrastructure as well as the “complex regulatory environment” are some factors that hurt its attractiveness to foreign investors, albeit some progress has been made in recent years.

“To the extent that the Philippines has shown improvement in these areas… there has been an uptick in FDI over the past few years versus the earlier part of this decade,” Mr. De Guzman said. He pointed out the country’s improved ranking in the World Bank’s Ease of Doing Business report last year where it ranked 95th from 124th in 2018.

Mr. De Guzman said “a more definitive containment“ of the pandemic will be significant to investor sentiment as well.

The Philippines’ rules on FDI remained one of the most restrictive in the world. The country ranked fourth out of 84 economies on the FDI Regulatory Restrictiveness Index compiled by the Organization for Economic Cooperation and Development (OECD), using 2019 data.

In May, net inflows of FDI rose 28% year on year to $399 million from $280 million, reversing three months of decline due to the crisis. However, FDI inflows are still down by an annual 25% to $2.379 billion in the first five months of 2020.

FDI inflows were already in a slump in 2019, falling 23.1% to $7.647 billion as investor sentiment was clouded by global uncertainty, regulatory risks and delays in the Philippines’ tax reform program.

Ayala firms plan permanent ‘hybrid’ work setup

THE Ayala Group is considering making hybrid work arrangements permanent as it increases its focus on digital transformation for its operations.

In a speech at the Ayala-FINEX Finance Summit held virtually on Wednesday, Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala said the conglomerate is currently evaluating the need for office spaces.

“Over the last few months, we’ve been conducting extensive research and consultations on the feasibility of a hybrid work arrangement for our employees. We’re making this relatively permanent,” he said.

“We’re applying the principle of outcomes-based evaluation and task-based approach with the way we work… We’re beginning to think in concrete terms rather than just in an impulsive and reactionary way,” he added.

Since the start of the coronavirus pandemic in March, companies across the country have been forced to implement work-from-home arrangements to comply with government protocols that restrict mobility.

The Ayala Group had to adjust by allowing the majority of its over 50,000 employees to stay at home, Mr. Zobel said. As of end-August, around 38% of the group’s workforce continue to work from home.

He noted the changing landscape for workspaces is a consideration for its own business, Ayala Land, Inc., which is a major real estate player in the country.

“Reimagining the future of work is just one element of this larger digital transformation journey that’s beginning to take place. As it stands, redesigning the relationship between work and the office already requires a high degree of openness, flexibility and trust in the institution that you’re working for,” Mr. Zobel said.

The Ayala Group formalized its digital transformation in mid-2019 when it established AC Analytics as a data science unit. It also opened a $195-million venture capital fund to scout for startups that it may invest in.

These strides were in congruence with the company’s belief that digital transformation requires more than just adapting new tools and equipment, but also institutionalizing a “mindset of experimentation”, Mr. Zobel said.

Learning from the group’s alternative work arrangements in the past months, the Ayala chief executive said work flexibility does not necessarily lead to a huge drop in productivity.

“I think productivity should not be the key focus at this point in time. It’s too much shift, too much change. Productivity will come at a later stage,” Mr. Zobel said. “I think more important right now is the ability to adjust, to change, and to do it in a healthy way where we are all in a mentally good place.”

The Ayala Group has businesses in real estate, banking, telecommunications and utility, among others.

In the first semester, Ayala Corp.’s net income dropped 79% to P7.9 billion, due to loan loss provisions from its banking unit, suspension of mall operations of its real estate unit, and one-time gains in 2019 from divesting in power and education.

Shares in the company lost P2 or 0.28% to close at P716 each on Wednesday. — Denise A. Valdez

Globe’s partner tower companies to build 900 more cell sites

GLOBE Telecom, Inc. expects 900 more cell sites to be built soon as its partnerships with tower builders are now in advanced stages, the Ayala-led telecommunications services provider said.

In a statement, Globe said its partnerships with tower companies Aboitiz InfraCapital Inc. (AIC), ISOC-edotco, Transcend Towers Infrastructure (Philippines), CREI Philippines (CREI), and Frontier Towers & Associates (FTA) “have advanced to active acquisition and build phases.”

Globe said AIC is expected to build about 200 more sites in Cebu, Davao, and Subic. It added it had already finalized a pole lease agreement with the Aboitiz Group unit.

The telco also expects the completion of 300 macro sites in Luzon and the assignment of 400 more sites to cover more areas, including Visayas and Mindanao, within this year.

“The count is projected to increase expansively once the pilot sites of these projects are launched,” Globe said.

“First to deliver a tower for activation is ISOC-edotco, a collaboration between ISOC Infrastructure and edotco, a Malaysia-based tower company, with more currently underway and are expected to be completed shortly,” it added.

Globe Chief Finance Officer and Chief Risk Officer Rizza Maniego-Eala said: “These infrastructure partnerships demonstrate Globe’s commitment to improve the network quality experience of our customers.  It is, likewise, highly supportive of the government’s initiative to increase ICT infrastructure in the country.”

In December last year, ISOC-edotco announced its plan to build 70 common towers in Cavite province.

The joint venture has committed to spend $100 million for the construction of common towers in the country “in the next three to five years.”

The Department of Information and Communications Technology has been pushing for telcos to share infrastructure since 2017, saying every tower in the country serves more than 7,000 subscribers, as opposed to the ideal of having 1,000 subscribers per tower, and the usual 2,000 subscribers per tower in countries with faster internet.

The government is hoping 50,000 shareable towers will be built within the next seven to 10 years to keep up with the tower density in neighboring countries. — Arjay L. Balinbin

Smart 4G/LTE now on Pag-asa Island, West Philippine Sea

SMART COMMUNICATIONS, Inc., the wireless unit of PLDT Inc., said the controversial Pag-asa Island in the West Philippine Sea is now covered by its 4G/LTE network service, enabling the island’s residents to communicate via chat apps and video calls.

Pag-asa Island in the municipality of Kalayaan, Palawan Province, is the Philippines’ “most remote cell site,” Smart said in a statement on Tuesday.

News reports in June said visitors of the island, including government officials, had received “welcome messages” from foreign telecommunications service providers, particularly from China and Vietnam.

On Tuesday, Smart said its engineer, Edbert Aquitania, received a “Welcome back to the Philippines!” message “upon firing up the LTE site.”

To recall, the Philippine government filed a diplomatic protest against China last year after the Armed Forces of the Philippines-Western Command spotted the presence of at least 275 Chinese vessels near Pag-asa Island.

“This development marks another step towards improved communications for the people of Pag-asa, who were first connected via mobile communication in 2005, when Smart turned on its 2G service on the island,” Smart said.

Smart also said it would continue to rollout its LTE services nationwide.

“To date, Smart’s high-speed broadband service is available in 93% of the country’s cities and municipalities and serves 95% of the population,” it noted.

PLDT and Smart have already spent about P260 billion since 2015 to improve and expand the reach of their services.

“Amid the regained momentum of its network rollout efforts following the easing of lockdown restrictions, PLDT has leveled up its target capital expenditures for 2020 back up to about P70 billion,” Smart noted.

On Monday, Smart announced that it is working to increase by 40% the number of its LTE base stations in South Cotabato, North Cotabato, Sarangani, and Sultan Kudarat or the SOCCSKSARGEN region.

“By making LTE more available and increasing our network capacity, our customers in General Santos City and other areas in the region can use our network to stay connected with loved ones, access online learning platforms, work remotely, and run their businesses from the safety of their homes, especially in the New Normal,” PLDT-Smart Senior Vice President for Network Planning and Engineering Mario G. Tamayo said in a statement.

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

Food diplomacy

When COVID-19 canceled a festival, the ladies turned to the virtual

FOOD diplomacy takes center stage this month for the Department of Foreign Affairs (DFA) and The ASEAN Ladies Foundation, Inc. (ALF).

Because strict quarantine measures have restricted many activities, the annual festival marking ASEAN Month had to be called off. To fill in the gap left by the festival’s cancellation, the ALF commissioned a series of video tutorials that celebrate cuisines from ASEAN member countries. It also serves to benefit the people stuck at home throughout the varying degrees of quarantine. The videos can be seen on the Facebook page of the ASEAN Ladies Foundation (@aseanladiesfoundation.ph), as well as on YouTube.

Noraimi Rosli, spouse of Khairul Hazwan Mohd Nor, the Second Secretary of the Embassy of Brunei Darussalam, introduced the dish Ambuya during an online launch last week. The starchy staple is usually dipped in a sauce. The representative from Cambodia, Loy Chetana, a Cambodian national married to a Filipino, introduced their version of Steamed Fish Curry (called Trey Amok), and will also prepare it on the video.

Meanwhile, Linda Rahmanto, spouse of Widya Rahmanto, Deputy Chief of Mission of the Indonesia Embassy, and current president of the organization, talked about grilled chicken in rujak sauce (Ayam Bakar Bumbu Rujak), and Jamu Kunyit Usam, a herbal drink. The dish will be prepared in the video by chef Untung Taurut.

Over at Laos, they’re preparing a chicken salad (Larp Kai), while over at Malaysia, they’re making Amas Masak Merah (a spicy tomato chicken dish), with Iza Karmila Ramli, spouse of Mohd Nor Azrin, Minister Counsellor of the Malaysian embassy preparing the dish. In Myanmar, Myint Thandar, spouse of the Ambassador of Myanmar Lwin Oo, will prepare Mohinga, a popular Burmese noodle soup.

At the homefront, Maria Lourdes Locsin, spouse of DFA Secretary Teodoro Locsin, is getting help from chef Myrna Segismundo to prepare Adobo sa Gata (Adobo with Coconut Milk). Singapore will offer a Hokkien Mee, a noodle dish, to be prepared by David Lee of the Defense Attaché’s Office in Singapore. Sirintra Ruangprateepsaeng, the spouse of Ambassador of Thailand Vasin Ruangprateepsaeng, will prepare a creamy Tom Yum Goong, and finally, Tran Hong Linh, the spouse of the Vietnamese embassy’s First Secretary Vu Anh Son, will prepare fresh spring rolls filled with fried chicken.

Asked why they chose those particular dishes to represent their nations, Mrs. Locsin spoke of her choice — “Can you imagine a dish that there are 100 versions of [it]? Aren’t you curious? I’d like to learn like 50 more. I chose adobo because of that. It’s the most common thing. I think in every household practically, adobo is cooked. In every Filipino restaurant, adobo’s on the menu.” Meanwhile, Mrs. Rahmanto said, “I think everybody knows about rendang, satay, and gado-gado. Grilled chicken is also popular in Indonesia. I know a lot of Filipinos here love grilled chicken. I want to introduce this version of grilled chicken.”

“Food brings people together,” said Mrs. Locisn. “We noticed that a lot of people have become creative and productive in the kitchen, especially during this pandemic. So we thought that creating cooking videos highlighting some of the most beloved dishes from our respective countries was a good way to share a little bit of home with everyone.”

The videos can be seen on YouTube via the DFA Special Projects Unit’s page (https://www.youtube.com/channel/UCGMYMRAtFH7JkCtKKpkQUaA), and on Facebook (@aseanladiesfoundation.ph ). The recipes themselves can be found in the online version of this story. 

BRUNEI

AMBUYAT

Ingredients:

Hot boiling water in a kettle

2 cups water, room temperature

1 (or more) packet of ambulung (sago)

Directions:

1. Bring the water in the kettle to a rolling boil

2. Pour 1 packet of ambulung (sago) into a bowl.

3. Add 2 cups room temperature water to the bowl and mix with the ambulung

4. Keep stirring until the liquid becomes firm and sticky.

5. Slowly pour the hot boiling water in a clockwise motion towards the center until you see white particles appearing.

6. Stir until everything comes translucent.

*Best served with cacah (a sour and spicy dip) and the following Bruneian side dishes:

a. Ikan rumahan (fried mackerel with asam jawa [tamarind])

b. Belutak (made up of salted minced meat stuffed into casings of cow or buffalo’s

small intestines)

c. Cacah binjai (made from Binjai and sambal)

d. Daging kunyit (beef with turmeric)

e. Udang Rabus (steamed prawns)

CAMBODIA

TREY AMOK (steamed fish curry)

Ingredients:

For the curry paste:

3 cloves garlic, finely chopped

1 large shallot bulb, finely chopped

3 stalks lemongrass (to use the inner tender stalk only, ends trimmed), finely chopped

½ inch galangal (Siamese ginger), peeled and finely chopped

2 Kaffir lime leaves, finely chopped (may substitute with lime zest)

1 tsp turmeric powder

1 tsp light brown sugar, packed

1 tsp salt

2 tsp chili paste (like Sambal Oelek)

1 tbsp vegetable oil

½ tsp shrimp paste, optional (may substitute with anchovy paste)

1 cup coconut milk, well shaken

1 tbsp white sugar

1 tsp salt

½ kg firm fish, tilapia fillet or cream dory fillet

1 egg

1 tbsp fish sauce

1 tsp cornstarch

1 cup Chinese broccoli leaves, cut into ½ inch thick ribbons

For garnish (optional):

Sliced red bell pepper

Kaffir lime leaves

1 large coconut to use as bowl

Directions:

1. Using a mortar and pestle, pound the first 5 ingredients to make a paste.

2. Add the remaining curry paste ingredients and pound until all spices are well incorporated.

3. Thinly slice the fish into ½ inch thick bite size pieces and set aside.

4. Heat the oil in a saucepan over medium-high heat. Add the curry paste and cook for 1 minute.

5. Add the shrimp paste, coconut milk, sugar and salt, whisking to combine.

6. Turn the heat to medium and simmer for 2 minutes, whisking occasionally.

7. Add the fish, gently folding it into the curry sauce with a wooden spoon or rubber spatula.

8. Let the amok simmer for 3 to 4 minutes, or until the fish is just cooked through. Turn the heat off.

9. In a small bowl, whisk the egg and fish sauce. Add 2 tablespoons of the curry sauce from the pan and 1 teaspoon of cornstarch and mix together.

10. Pour the egg mixture with cornstarch into the saucepan and gently fold it into the curry.

11. In another pan, saute the Chinese broccoli leaves until a little bit cooked.

12. Put the Chinese broccoli into the coconut bowl first then put the fish amok on top of it.

13. Serve the amok in a coconut bowl with a spoonful of coconut cream (the thick cream that rises on the top of the remaining coconut milk)

14. Garnish with a few sliced red pepper and a sprinkle of Kaffir lime leaf ribbons or lime zest.

INDONESIA

AYAM BAKAR BUMBU RUJAK (grilled marinated chicken in rujask sauce)

Ingredients:

1500 grams chicken (ideally whole, but you may use cuts as well)

1 ⅔ cups bumbu rujak (a sweet spicy hot dressing; recipe is below)

1 tbsp salt

6 cups water

3 tbsp coconut oil

Preparation:

1. Clean the whole chicken and blot it dry

2. Butterfly the chicken

3. Pour cold water in a bowl

4. Add in salt and stir until dissolved

5. Place the chicken in the bowl and marinate it in the salt brine in a fridge for 20 minutes. This process helps to keep the chicken juicy while grilling and adds additional flavor to the meat inside

6. Take the chicken out of the brine and blot dry

7. Generously cover the chicken with the bumbu rujak, or use a ziplock bag and massage the bumbu rujak onto the chicken

8. Marinate for another 30 minutes or for more flavor, overnight

9. Preheat your oven at 350°F or start up your grill until the charcoal has no flame but is glowing

10. Take the chicken out of the marinade and brush lightly with oil

11. Place chicken on a grill rack and bake in the oven for 20 minutes, or grill both sides over charcoal until golden brown

12. Brush the chicken with the bumbu rujak and place back in the oven or on the grill

13. Repeat the brushing of the marinade every 5-10 minutes

14. If using a grill, the chicken must be turned after every brushing.

15.  Serve with the remaining bumbu rujak and steamed rice, sliced cucumber and tomato and a lime wedge

For the Bumbu Rujak:

4 tbsp palm sugar

2 tsp terasi* (Indonesian shrimp paste)

6 pcs small bird’s eye chili

2 tsp salt

6 tbsp tamarind pulp

30g garlic

50g shallot

6 pcs Kaffir lime leaves

30g galangal

1 stalks lemongrass

½ cup water

* Bagoong or Thai shrimp paste can also be used, but the flavor of the dish will change slightly

Directions:

1. Chop the palm sugar.

2. Toast the shrimp paste in the oven or under a salamander broiler.

3. Chop the bird’s eye chili, with the seeds for extra spice.

4. Peel the garlic, shallot and galangal. Chop finely.

5. Remove stalks of the lemongrass, and remove the outer layer. With the back of a knife or meat tenderizer, crush the lemongrass until the oils are extracted. Chop the crushed lemongrass.

6. Remove the stems of the Kaffir lime leaves and slice it finely.

7. In a mortar, grind the following ingredients in order:

a. Salt

b. Lemongrass

c. Galangal

d. Kaffir lime leaves

e. Garlic

f. Shallot

g. Toasted shrimp paste

h. Palm sugar

i. Chili

j. Tamarind pulp

1. Once all the ingredients are combined, add the half cup of water gradually.

2. The bumbu rujak may be served cooked or fresh/raw. If cooked, this may be stored in the fridge for up to a week; if served fresh, it must be eaten within the day.

INDONESIA

JAMU KUNYIT ASAM (turmeric and tamarind herbal drink)

Ingredients:

2 liters drinking water

4 pcs pandan leaves

4 tablespoons fresh turmeric

½ cup tamarind pulp

1 cup palm sugar

2 tsp salt

Directions:

1. Pour water in a large pot.

2. Combine all the ingredients and bring to a boil over low heat.

3. Strain the liquid and discard the solids.

4. Set aside to cool.

*This drink may be served warm or cold.

LAOS

LARP / LARB KAI (chicken salad)

Ingredients:

½ kg chicken

3 tbsp banana heart, shredded

2 tbsp roasted rice powder

1 tbsp fresh red chili, chopped

1 tbsp fish sauce

1 tbsp lemongrass, chopped

1 tbsp lemon juice

2 tbsp fried red onion, sliced

2 tbsp fresh red onion, chopped

2 tbsp cilantro, chopped

2 tbsp spring onion, chopped

½ tbsp salt

1 tbsp olive oil

2 tbsp mint leaves, chopped Cucumber

Directions:

1. Sauté the ground chicken, liver and skin with a little oil, lemongrass and red onion until cooked, over low heat.

2. Once cooled, add the fish sauce, lemon juice, chili, and roasted rice powder and mix well.

3. Add the shredded banana heart and mix well.

4. Garnish with mint leaves, chopped cilantro and spring onion.

MALAYSIA

AYAM MASAK MERAH (spicy tomato chicken)

Ingredients:

1 ½ kg chicken, cut into 8 pieces

20 dried chili, soaked

2 red onions

5 cloves garlic

2 ½ tbsp ginger

3 ½ tbsp galangal

5 pcs lemongrass, crushed

2-3 pcs star anise

4 pcs cloves

3 inches cinnamon

3 pcs cardamom

1 can tomato paste

300 ml coconut milk or evaporated milk

2 tbsp tomato ketchup

2 tbsp chili sauce or spicy tomato ketchup

1 tbsp oyster sauce

Salt, sugar and seasoning to taste

1 pc chicken cube or chicken stock

Vegetable oil for deep frying

1 cup peas, optional

1 onion, round-sliced

3 tomatoes, each cut into 4

Coriander or scallion for garnish

Directions:

1. Prepare the chicken by rubbing it with turmeric and salt. Set aside for 30 minutes, then deep fry until golden brown. Set aside.

2. Roughly chop red onion, ginger and galangal then blend using a blender or food processor. Add in chili and garlic. Process until it turns into a paste.

3. Heat ½ cup of oil in a wok. Saute the following spices until fragrant: cinnamon, star anise, cloves, cardamom, and crushed lemongrass.

4. Add in the blended paste.

5. Cook in medium-high heat until the paste bubbles, then lower the heat. Let it simmer until paste is thoroughly cooked, fragrant, and the oil separates from paste.

6. Add in tomato paste, tomato ketchup, chili sauce, oyster sauce, chicken cube/stock and the cooked chicken pieces.

7. Bring up the heat to a quick boil then lower to a simmer until the sauce is thickened.

8. Add coconut milk and peas. Season with salt and sugar to taste.

9. Turn off the heat, then add round-sliced onions and tomatoes. Mix well.

10. Garnish with some coriander leaves or spring onion before serving.

MYANMAR

MONHINGA

Ingredients:

⅔ cup oil

1 cup yellow chickpeas or garbanzo beans

500g catfish

½ salt

8 pcs shallots

2 pcs hard boiled eggs, sliced

3 stalks lemongrass

3 cloves garlic

2 tbsp fish sauce

1 tbsp turmeric powder

2 tbsp ginger

1 tbsp paprika powder

2 packs (500g each) of thin rice noodles

1 pc banana stem (around 6 inches)

5 tablespoon Rice flour

½ tbsp pepper

Directions:

For the chickpea paste:

1. Put yellow chickpeas in a bowl. Add enough water and cook until soft and tender.

2. Add a pinch of turmeric powder and mix with the chickpeas. Sieve into the pot and boil for 10-15 minutes.

For the garlic and ginger paste:

1. Slice garlic, ginger and the remaining lemongrass (only the tender white part) and pound together until a fine paste is formed.

2. Heat oil in a pan over a medium-low fire.

3. Fry the pounded garlic and ginger paste until fragrant (2-3 minutes).

4. Add the paprika powder and a pinch of tumeric.

5. Add the shredded catfish and continue frying for another 5-7 minutes.

6. Transfer the catfish mixture into the soup pot. Add more water and bring it to a rolling boil.

7. Add the chickpea paste and pepper and continue boiling, removing any scum that rises to the top.

8. Add the shallots and the sliced hard boiled eggs into the soup.

9. Add more fish sauce (optional) and salt as required. Let it simmer for 15-20 minutes.

For the soup:

1. Peel the outer layer of the banana stem and cut into small pieces.

2. Crush garlic, ginger and 2 lemongrass stalks until you have a paste

3. Add 2 tbsp of fish sauce and a pinch of turmeric powder.

4. Boil the catfish, banana stem and the paste in 2 cups of water for 10 minutes.

5. Remove the cooked catfish and set aside to cool.

6. Remove the lemongrass from the pot.

7. Once the catfish has cooled, carefully remove the bones and skin.

8. In the same bowl, add about 6 more cups of water and bring it to a boil.

9. In a separate bowl, mix the rice flour with warm water.

10. Then, put the rice flour mixture into the soup pot and let it simmer uncovered

For the fritters:

1. Put the cooked chickpea in a bowl and add some flour, a pinch of turmeric powder, and 1 ½ cups of warm water. Mix well.

2. Heat a generous amount of oil in a pan on medium-low temperature.

3. Add one spoonful the fritter batter mixture at a time.

4. When the fritters begin floating in the oil, increase heat to medium-high temperature until the fritter turns golden-brown and crispy.

Assembly:

1. Put some rice noodles in a bowl and crush a chickpea fritter over the noodles.

2. Add the catfish soup mixture

3. Add coriander and chili powder on top (optional)

PHILIPPINES

ADOBONG MANOK AT BABOY (pork and chicken adobo)

Ingredients:

½ kg chicken, cut into stewing pieces

½ kg pork belly, cut into stewing pieces

½ kg pork shoulder, cut into stewing pieces

6 cloves garlic, pounded

½ tbsp cracked peppercorns

½ cup vinegar (cane, palm or coconut)

¼ cup soy sauce

2 pcs bay leaf

Enough water to cover meat

1 tsp annatto seeds diluted in ¼ cup water (optional)

Directions:

1. In a wok, combine the chicken, pork garlic, peppercorns, vinegar, soy sauce and bay leaf. Let it marinate for 30 minutes.

2. Place wok over medium heat and add enough water to cover the meat.

3. Simmer the mixture for about 15-20 minutes until the chicken is cooked and the liquid has reduced into a thicker sauce.

4. Remove the chicken from the wok and spoon out most of the adobo sauce and set aside together with the chicken.

5. Increase the heat and fry the pork in the remaining sauce until nice and brown, then add back the chicken and pour the sauce into the wok.

6. Gently toss the meats in the sauce while scraping off the toasted bits on the sides and bottom of the wok and stir them into the mixture.

7. Stir in the annatto water. (Optional)

8. Serve warm.

PHILIPPINES

ADOBONG MANOK SA GATA (chicken adobo in coconut milk)

Ingredients:

½ kg whole chicken, cut into stewing pieces

6 cloves garlic, pounded

½ tsp cracked peppercorns

½ cup vinegar (cane, palm or coconut)

2 pcs bay leaf

1 cup fresh coconut milk, 2nd extraction diluted with water

2 pcs finger chili

1/2 cup fresh coconut cream, 1st pressing

1 tbsp rock salt

1 tsp annatto seeds diluted in ¼ cup water (optional)

Directions:

1. In a pot, combine garlic, peppercorns, vinegar, bay leaf and chicken, and marinate for 30 minutes.

2. Place pot over medium heat, then add the coconut milk and finger chilis and allow mixture to simmer for 10-15 minutes.

3. Stir in the coconut cream and stir constantly until the cream is incorporated smoothly into the sauce.

4. Season with salt.

5. Serve warm.

SINGAPORE

HOKKIEN MEE

Ingredients:

1 kg Hokkien noodles (yellow noodles)

600g Bee Hoon (rice vermicelli)

6 to 8 eggs

1 ½ cup pork lard

8 cloves garlic, minced

1 cup Chinese chives (gu chai)

Fish sauce to taste (optional)

Calamansi limes

Sliced chili

Pork and Prawn Stock:

1 kg prawns (deshelled and deveined, the prawn heads should be retained.)

3 pcs squid

300g pork belly

Pork bones

Directions:

Rendering the pork lard

1. Render the pork lard by adding the lard cubes to the wok under medium heat, until the lard cubes become crispy and brown. This will take approximately 30 minutes.

2. Strain the melted lard from the lard cubes and set aside.

Preparing the pork and prawn stock

1. Bring a pot of water to boil and add the pork bones.  Boil for 5 minutes to remove the impurities from the bones and discard the water.

2. Add water to the blanched pork bones and bring it to a boil. Lower the heat and continue simmering for at least 1 hour. You can add pork bouillon cubes to enhance the flavor of the stock.

3. Heat up another soup pot, and add melted lard from Step 2 to oil the pot. You may also use cooking oil instead of melted lard.

4. Sauté the minced garlic and add in the prawn heads. Stir-fry the prawn heads until cooked (reddish-brown).

5. Crush the prawn heads to bring out the flavour and the roe.

6. Add the pork stock from Step 4 and more water to cover the prawn heads and boil for 1 ½ to 2 hours.

7. Once the pork and prawn stock starts to simmer, blanch the prawns and squid in the stock. The prawns should turn red in colour while the squid will become white and no longer translucent. Remove from the stock and let cool.

8. Add the pork belly into the stock and cook for 8 minutes. Remove the pork belly and let cool.

9. Once cooled, slice the prawns, squid and pork belly and set aside.

Stir-frying the Hokkien Mee

1. Blanch the Hokkien noodles with warm water, then rinse with tap water. Drain and set aside. This will get rid of excess “kee” (alkaline) smell.

2. Heat up the wok and add ½ cup of melted lard.

3. Add the eggs and scramble.

4. Add the minced garlic and fry until fragrant.

5. Add the Bee Hoon and toss together with the eggs in the wok.

6. Add the Hokkien noodles and stir-fry together with the Bee Hoon and the eggs. Try not to break the noodles in the process.

7. Add fish sauce to taste. (Optional)

8. Add sufficient pork and prawn stock to cover about ¾ of the noodles. Cover the wok and allow to simmer for a few minutes.

9. Add prawns, sliced squid and pork belly and chives and toss together with the noodles to mix.

10. Serve with sambal chili, calamansi/lime and pork lard cubes.

Variations

Instead of making a pork and prawn stock, you can replace the pork with chicken.

Cooking oil can be used in place of pork lard.

THAILAND

TOM YUM GOONG

Ingredients:

6 pcs prawns

2 cups of water or chicken stock

3 pcs Kaffir lime leaves

2 stalks lemongrass

2 pcs galangal

2 tbsp lemon juice

2 ½ tbsp fish sauce

3 pcs tomato cherries

1 can straw mushroom

1 tsp sugar

4 tbsp evaporated milk

2 tbsp chili paste

Coriander leaves

Fresh chili (optional)

Directions:

1. Place the water/chicken stock in a pot and bring to boil.

2. Add lemongrass, galangal, and Kaffir lime leaves.

3. Add fish sauce, sugar, tomato, mushroom, prawns, and lemon juice. Stir to combine then turn off the heat when shrimp turns red.

4. In a separate bowl, mix the chili paste and evaporated milk.

5. Add the milk mixture to the soup.

6. Garnish with coriander and serve.

VIETNAM

GOI CUON (fresh spring rolls)

Ingredients:

For the spring roll:

300g pork belly

200g shrimps

200g vermicelli

15 pcs Rice Paper

Lettuce, fresh mint leaves, cilantro, chives, cucumber

For the dipping sauce:

1 tsp oil

1 tbsp minced garlic

5 tbsp Hoisin sauce

5 tbsp broth from the boiled pork belly

1 tbsp peanut butter

1 tbsp sugar

Directions:

1. Boil the pork belly with 1 tsp of salt. When it boils, turn the heat to medium-low and cook for 25-35 minutes more. You can test to see if it is well cooked by piercing through the meat with a chopstick — if no red water is coming out, then it is ready.

2. Soak in cold water after cooking to avoid blackening. Keep the broth for later use. Cut the pork into thin slices.

3. Next, fry the prawns without oil in medium heat for 2-3 minutes or until they turn orange. Peel and devein. Cut into two halves vertically.

4. Boil and cook the rice noodles for 3-5 minutes and drain.

Assembly:

1. Dip the rice paper into the warm water to soften it, then shake gently to get rid of the excess water.

2. Lay the rice paper on a flat surface. Place the vegetables in a row in the center, leaving a gap of 2-3 inches on each side.

3. Place 2 cucumber slices (cut vertically, around 2 inches), 2 slices of pork, and 2 shrimp halves (keep the orange side of the shrimp facing down).

4. Roll once or twice, then fold both sides inward. Continue rolling the rice paper gently but tightly. Repeat for the remaining ingredients.

For the dipping sauce:

1. In a heated pan, fry garlic in oil until golden brown.

2. Add Hoisin sauce, leftover broth, peanut butter and sugar.

3. Stir well and let it simmer until thick. Around 1-2 minutes.

4. Transfer mixture into a small bowl and top with fresh chili and crushed peanuts.

VIETNAM

FRIED CHICKEN SPRING ROLLS

Ingredients:

500g ground chicken

150g bean sprouts

50g glass noodles

10g wood ear mushrooms

1 carrot

1 egg

2 onions (about 150g)

3tbsp fish sauce

½ tsp salt

½ tsp pepper

30 rice papers

1 tsp cornstarch

Oil

Directions:

1. In advance, soak the mushrooms in water for 1 hour. Remove the foot of the mushrooms once ready.

2. Hydrate as well the glass noodles while preparing the ingredients

3. Finely chop onions and mushroom

4. Grate the carrot

5. Drain the glass noodles and cut them into 2-3 inch sections.

6. To make the filling, mix in a bowl the ground chicken, onions, mushrooms, bean sprouts, carrot, glass noodles, salt, pepper and egg, fish sauce

7. Dilute the cornstarch with 1tbsp of water

8. Briefly soak the rice paper in warm water, drain and lay it on the towel.

9. Put 1 tbsp of the filling near the edge of rice paper, and wait about 10 seconds before handling the rice paper.

10. Fold both sides towards the center, then start rolling the rice paper tightly.

11. To seal the roll, stamp the top edge of the rice paper with the diluted starch. This will prevent the roll from opening up during frying.

12. Fry the spring rolls at 150°C heat for 5 minutes. After, remove and let them cool. Freeze them first before the second frying. This will make the rolls crispy.

13. For the second frying, fry the rolls in 160°C heat for about 4 minutes. Drain after.

Joseph L. Garcia

AgriNurture extends due diligence for Pay8

LISTED agricultural firm AgriNurture, Inc. (ANI) has decided to extend the due diligence period for its acquisition of information technology company Pay8, Inc.

In a disclosure to the stock exchange on Wednesday, the company said that it had not completed its due diligence because of “supervening events” such as the anticipated listing of Pay8’s major shareholder and parent company Hatchasia, Inc. (HAI) in the Australia Stock Exchange.

The three companies have decided to extend the period for another 60 days.

“HAI and Pay8 have executed written consent for the company to assign to its affiliate, subsidiary or nominee, its rights and obligations under the Memorandum of Agreement,” the disclosure said.

On July 20, AgriNurture signed a memorandum of agreement with Hatchasia and Pay8 for the acquisition of 51% for P377.91 million of the latter’s authorized capital stock.

AgriNurture’s decision to acquire the Pay8 stake is part of its efforts to introduce an “agricultural ecosystem” that aims to reach farmers in rural areas.

“Under the ecosystem, there will be accredited merchants that will initially be the company and its subsidiaries where the farmers can purchase their farm inputs and other supplies, and the company has the option to buy the produce,” the disclosure said.

AgriNurture said Pay8 will be the financial technology unit of its planned ecosystem, with plans to create a platform for more efficient and faster transactions.

“A platform will be set up wherein orders and payments will be facilitated,” it said.

It said Pay8 is involved in the information technology sector that focuses on business and financial applications and products.

On Wednesday, shares in AgriNurture at the stock exchange fell 0.62% or P0.05 to close at P7.99 apiece. — Revin Mikhael D. Ochave

Crackers and milk: New products aim to fill market needs

FOOD companies are always looking for ways to fill the needs of their customers, looking for new niches that they can satisfy. One company decided to tackle a perceived need for a healthy cracker for mindful snacking, while a milk giant now offers an “organic” product for parents looking for healthier options.

MINDFUL SNACKING
Food, beverage, and snack food company Mondelez Philippines is taking a stab at the country’s cracker market by introducing Tiger Crackers while touting the company’s new philosophy of making snacking mindful, according to a regional executive.

“The cracker market in the Philippines is quite large… what we found is that there is a market for something that is healthy, portionable so we made this very unique cracker,” Nikhil Rao, marketing director for cakes, biscuits, and snacks at Mondelez Southeast Asia, told BusinessWorld during a digital interview on Sept. 1.

Mr. Rao figured that the cracker market in the country is worth “a million dollars and growing,” making it a worthwhile segment to invest in.

Tiger Crackers are made by double fermentation to “make it easy to digest,” according to Mr. Rao, but in order to appeal to the Filipino palate, they introduced “unique Filipino flavors:” ensaymada and leche flan, alongside plain crackers.

And because the company is all about “mindful snacking” or making snacking healthier, each snack pack contains three crackers that come to less than 120 calories. A package of 10 snack packs is priced at P50.

The company has also introduced portion control to Oreo cookies, with each snack pack containing just three cookies.

Tiger Crackers were launched in the country in June and Mr. Rao said that the reception has been “very good” and “considering the pandemic and the category being impacted, we have been doing very well [with] the first two months hitting its targets.”

The overall snacking category has declined “by about low single digits” and according to Mr. Rao, this was caused by the lockdowns imposed in the second quarter of the year.

“People didn’t know how to react and a lot of supply to the stores were impacted,” he explained.

Mondelez, he said, has kept its head above water because it is a big company with a lot of big brands under its portfolio. And despite the decline in the snacking category, Mondelez is still seeing 2020 end “handsomely by gaining market share in most of the categories we operate in.”

Aside from Tiger and Oreo, Mondelez also produces Eden Cheese, Tang powdered drinks, Cadbury chocolate, and Cheez Whiz.

The pandemic has disrupted the daily lives of much of the world and the Philippines is no exception and with disruption comes changes, and Mr. Rao said that in the past few months he has noticed several changes in consumer behavior: people are gravitating towards big name brands, are being more conscious of their health and well-being, and are buying in bulk.

“[Families] have kids at home with them. When they’re in school the mother wouldn’t know what the child is eating so when the kids are at home they want to consciously load the pantry or the fridge with stuff they know will be okay for kids to keep eating,” he said, thus explaining the company’s pivot to healthier portion sizes.

Despite the success of Tiger Crackers in the Philippines (even though it has only been a few months since the launch), Mr. Rao said they will not be introducing Tiger Crackers in other Southeast Asia countries yet as they are “focusing on the Philippines because that’s the biggest market, and we want to get it right in the Philippines.”

PROMIL GOES ORGANIC
Due to a growing number of parents looking for healthier options for their children, Promil has introduced an organic variant of its milk product to help parents “as they start this kind of lifestyle,” said a local executive.

“The organic base is still relatively small, but growing steadily. More parents are looking for healthier options,” Maria Cheska Cornelio, associate product manager for Promil Organic, told BusinessWorld via an e-mail interview on Aug. 28.

“It is more for parents who choose to have an organic lifestyle with their children — choosing some aspects of their life to be organic. In case [they are] interested to have this kind of lifestyle, they can easily start the smart way, step-by-step. It does not have to be a drastic change right away. They can start going organic with their child’s milk first,” she added.

But what makes something “organic?” Fruits, vegetables, and grains are labelled “organic” if they are non-GMO (made using genetically modified organisms), if they have not been treated with synthetic pesticides or fertilizers, and “has no chemical additives or sewage sludge,” Dr. Celeste Gomez of The Medical City pediatrics section and the Institute of Functional Medicine, said during a digital briefing on Aug. 13.

For meat, dairy, poultry, and fish to be labelled “organic,” the animals should not have been treated with hormones and antibiotics and should have been fed organic grains or vegetables and no animal by-products. They also must have had access to pasture, while the fish should be wild caught and not farmed.

Conventional food, according to Dr. Gomez, is still nutritious and “isn’t entirely bad” but the presence of pesticide residues and antibiotic-resistant bacteria growth add stress on our body systems.

Promil Organic is said to be made with 100% organic milk sourced from certified organic dairy farms and has a formula with higher levels of DHA (docosahexaenoic acid) and AA (arachidonic acid) “versus previous formulation to help support the development of children over three years old,” according to a company release.

The milk formula contains DHA, AA, iron, iodine, and Vitamin B12 to help the child with mental and visual development; Vitamin A and C to boost immunity; Calcium, Vitamin D, K, and Zinc to promote proper growth; and dietary fiber (oligofructose) to improve digestive health, said the release.

Promil Organic retails at P1,069 for a 900 gm can and can be bought in physical stores and online via Promil’s official stores in Lazada and Shopee. — Zsarlene B. Chua