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Duterte accepts apology of network’s president

PRESIDENT Rodrigo R. Duterte said on Wednesday that he had accepted the apology of ABS-CBN Corp. after the top official of the network said in a Senate hearing on Monday that they were sorry if they had offended him.

“I accept the apology, of course,” he told reporters when asked to respond to the apology of Carlo L. Katigbak, the company’s president and chief executive officer.

Asked whether he supports the renewal of ABS-CBN’s franchise, he said: “I said I will leave it up to Congress.”

But he declined to accept the P2.6 million being refunded by the company for not airing his campaign ad during the 2016 presidential elections.

Wag na (Never mind). Ibigay nila sa ano (They should just donate it to) any charitable institution of their choice.”

When asked whether he would instruct the Solicitor General about his stand, he said he could not tell the state lawyer to stop once an official statement had been issued.

“The SolGen does not clear with me unlike the Secretary of Justice,” he said.

Meanwhile, the Supreme Court deferred action on the pleadings of broadcast company ABS-CBN and ABS-CBN Convergence, Inc. and the Office of the Solicitor General (OSG).

Public Information Chief Brian Keith F. Hosaka said the pleadings of both parties on the petitions for quo warranto and gag order will be taken up again on March 10.

“This is to give the Justices time to go over the pleadings submitted by the parties, including the comments recently filed by the respondents,” he told reporters in a mobile-phone message.

ABS-CBN filed its comments on the petitions of the state lawyers. The network said if the petition for quo warranto would be granted, it will send a “chilling effect” to the press as it could compromise freedom of speech and of the press.

It also denied the law violations it allegedly committed as claimed by the OSG.

The network said that issuance of a gag order is a violation of rights to free speech and free press. It also said that the state lawyer failed to show how its reports may “create a clear and present danger of impairing the proceedings before this Honorable Court” and it is just performing its mandate on information dissemination.

In the quo warranto petition, the OSG sought to cancel the legislative franchises of the network and its unit for allegedly violating the laws such as provision on foreign ownership restriction and operating a pay-per-view channel without regulatory approval, among others.

The state lawyer filed a petition for issuance of gag order to prohibit both parties from releasing statements discussing the merits of the case. — Gillian M. Cortez and Vann Marlo M. Villegas

Game developers group looking to add jobs in computer graphics

THE Game Developers Association of the Philippines (GDAP) wants to create higher-skilled jobs in the outsourcing industry amid the threat of automation.

“The lower hanging fruits might disappear soon because of automation,” GDAP President Alvin Juban said in an interview on Monday.

GDAP is seeking P7-8 million in annual government funding to localize a certification program for computer graphics.

Mr. Juban said the association created an English-language version of the Japanese Computer Graphic Arts Society test.

“We want the teachers certified and the certification body is us,” he said.

The CG Creator Certification Exam measures the test-takers’ knowledge in computer graphics, the results of which are currently recognized by over 70 prominent computer graphics, games, and animation studios in Japan.

This year, GDAP targets 2000 test-takers as it introduces the first translated test in the country in July.

The association has reached out to the Department of Information and Communications Technology and the Department of Trade and Industry to back the seed funding of the program for two to three years.

“Hopefully, every year they can provide it,” Mr. Juban said, noting that not all government agencies have fully committed yet.

GDAP is also looking for investors to back original content from the game development industry, with Mr. Juban saying that the country needs to institutionalize investment to improve the success rate in a high-risk industry.

The Information Technology and Business Process Association of the Philippines cut growth figures under a road map through 2022 due to geopolitical challenges, protectionism and automation.

The industry cut its revenue targets to a compound annual growth of 3.5-7.5% from 9.2% set in 2016, based on a study conducted by the Everest Group.

The combined animation and game development subsectors’ target fell to 6.8-11.7% from 14%. — Jenina P. Ibañez

‘We eat the same things’

By Joseph L. Garcia, Reporter

CHEF Myke “Tatung” Sarthou, like most people, may well have been content to stay in one place. As it is, however, man has a mandate to move, and despite it being a time of rest for him, he has managed to open two restaurants in less than a year.

“Just go with the flow. Eh nag-flow (and it flowed),” he told BusinessWorld with a chuckle during our visit to his latest restaurant, Pandan Asian Café in Quezon City, a Southeast Asian joint with coolly refined interiors designed by Ivy Almario.

While his other restaurant, Talisay, is a homecoming project, Pandan serves as both substitute and souvenir for travel. Mr. Sarthou might have been in the culinary scene for about 10 years, but he points to a previous life of writing about travel for a newspaper. The recipes and techniques are gleaned from his travels, as well as his study of Philippine cuisine, which opened up several crossroads in the attempt to summarize Southeast Asian cuisine. “I’m here to recreate favorite food memories of my travels,” he told BusinessWorld.

The café’s name also points to the attempt to make a narrative about the interconnectivity of Southeast Asia, a region to which the Philippines belongs, and from there, forms a community with Brunei, Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, and Vietnam. “[Pandan] an ingredient that lives in the same climate,” he said. According to him, we all use pandan, but in different ways: for example, in the Philippines, we use it to flavor and perfume rice, while some countries use it to flavor and wrap chicken. “It’s really about Southeast Asian diversity: how much we share, but how much we interpret it differently in our own cultures.”

THE FOOD
For our first course, Mr. Sarthou brought out a Vietnamese Platter, featuring fresh Vietnamese spring rolls, chicken and pork satay skewers, and fried shrimp rolls. All of the dipping sauces, mostly with a peanut base of varying consistencies, were made in-house. The fresh spring rolls — shrimp wrapped in greens and rice paper — had a freshness that jolted one awake. It’s perfect for setting the stage for the chicken and pork satay, which, despite its heft, proved to taste quite clean. The shrimp rolls — combining pork and shrimp within a crispy shell — also had the same neat properties, thus ensuring a long, relaxed meal that will never over-exert the palate.

We don’t believe that Southeast Asians have a culture of courses, and everything is immediately served at the same time. This is how we came to encounter the Char kway teow (stir-fried noodles with disputed origins from either Malaysia or Singapore), and their version of Lechon Macau. We had these alongside the remains of our Vietnamese platter (which serves three for P590). The noodles, made with fish cake, sausages, and cooked on a wok over an oven flame, displayed both verve and familiarity. As for the lechon (roast pig), it’s rare for us to meet a pig so elegant: it is silky, topped with a noisy crispy skin, and dressed with a ginger and light soy-based sauce.

We guess we can see the common thread of interconnectivity that Mr. Sarthou talks about: none of the dishes share a country of origin, but all together in one plate, they blended together, each flavor strengthening each other, and all boundaries forgotten. Note to diplomats: we’re all a step closer to world, or at least regional, peace with elegantly assembled lunches.

“We have the same cooking methods,” said Mr. Sarthou in a mixture of English and Filipino. “We sauté. We fry. We grill. We boil and stew. But the dishes are so different. Imagine how raw materials and people create something so different.”

We might have a soft spot for Southeast Asian cuisine simply because it tastes like home. However, Mr. Sarthou points to another reason for taking Southeast Asian cuisine more seriously. “We should see ourselves as a region, not just geographically,” he said. “It’s an issue of food security, and it’s an issue of cultural diversity within the region.”

When he speaks about food security, he means, “Look at the Philippines right now. Who supplies most of our food? China, America, Australia. If we don’t nurture ourselves as a region, anong mangyayari sa atin (what will happen to us)?” He continued: “If you’re able to nurture that interconnectivity and interdependence within Southeast Asia, probably, we’d be more secure as a region.

“We eat the same things. Kaya ’yan (we can do it).”

Pandan Asian Café is located at 76 Sct. Limbaga St. in Quezon City.

Yields on term deposits decline as COVID-19 worries affect rates

YIELDS ON the central bank’s term deposit facility (TDF) continued to decrease despite lower bids on Wednesday as investors remain wary of risks that may arise as the coronavirus disease 2019 (COVID-19) continues to spread and amid signals of another rate cut in the second quarter.

Tenders for the Bangko Sentral ng Pilipinas (BSP) term deposits totaled P173.668 billion on Wednesday, higher than the P130 billion offered by the central bank. However, total bids this week failed to beat the P183.468 billion seen last week.

Broken down, tenders for the one-week papers stood at P50.263 billion, surpassing the P40 billion on offer but lower than the P66.422 billion in tenders seen last week for the same offer volume.

Lenders asked for yields ranging from 3.75% to 3.8844%, a slimmer margin compared to the 3.75% to 3.93% logged last week. This resulted in an average rate of 3.825%, slipping by 0.51 basis point (bp) from last week’s 3.8301%.

For the 14-day term deposits, total bids amounted to P69.91 billion, higher than the P50 billion auctioned off and also surpassing the P57.718 billion in tenders logged last week.

Rates of the 14-day deposits fell within 3.8% to 3.9%, a thinner margin compared to the 3.75% to 3.975% band logged the previous week. This caused the average rate for the two-week deposits to clock in at 3.8654%, down by 1.05 bps from the 3.8759% seen on Wednesday last week.

Meanwhile, bids for the 28-day papers hit P53.495 billion, higher than the P40 billion up for grabs but failing to beat the P59.328 billion worth of tenders logged last week for the P50-billion offering.

Yields sought by banks for the one-month deposits ranged from 3.785% to 3.95%, a slimmer range compared to the 3.6525% to 3.99% margin seen last week. With this, average rate for the 28-day term deposits settled at 3.8918%, inching down by 0.66 bp from the 3.8984% seen a week ago.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the continued decline in TDF yields to market jitters amid concerns on the COVID-19 and to expectations of further easing next quarter.

“The sustained decline in BSP TDF yields, consistently since the start of 2020, may be largely brought about by the sharp declines in global interest rates…amid lingering concerns over the novel coronavirus,” Mr. Ricafort said in an e-mail.

He noted that the benchmark 10-year US Treasuries’ yield succumbed to “a new record low of 1.3055% on Feb. 25” due to “global risk aversion and sharp declines in US and global stock markets.”

Reuters reported that the S&P 500 and the Down Jones Industrial Average both shed more than 3% on Tuesday in their fourth consecutive session of losses. In Asia, Japan’s Nikkei stock index dipped by 0.92%.

So far, the COVID-19 has already infected some 80,000 people across the world and caused the dead of more than 2,600 people, majority of which are in China.

Mr. Ricafort added that the lower yields also came following signals from the BSP that the next rate cut could come as early as the second quarter.

“BSP TDF yields have also been lower recently after BSP Governor [Benjamin E.] Diokno earlier signalled possible 0.25-bp cut in local policy rates as early as Q2 2020 if supported by economic data, since BSP TDF auction yields are pegged on BSP’s policy rates,” Mr. Ricafort said.

Mr. Diokno said earlier this month that the BSP may cut rates by another 25 bps as early as next quarter or in the second half to guard against possible economic risks from the virus outbreak.

The Monetary Board on Feb. 6 trimmed policy rates by 25 bps as a “preemptive move” to shield the economy from downside risks. This brought the rate on the BSP’s reverse repurchase, overnight deposit and lending facilities to 3.75%, 3.25% and 4.25%, respectively. — Luz Wendy T. Noble with Reuters

Wilcon allots P2.9B for this year’s spending

WILCON DEPOT, Inc. is earmarking P2.9 billion for its capital spending in 2020, which it will use to fund plans to open more stores, extend existing ones and upgrade old depots.

In a disclosure to the stock exchange Wednesday, the listed home improvement retailer said it is targeting to have a total of 65 stores by the end of the year, an increase from the 57 it had at the end of 2019. The budget would cover the construction of around eight to nine new depots.

It also reported a 15.8% growth in net income to P2.13 billion for the full year 2019, fueled by the expansion of its store network nationwide.

The growth was backed by a 16.3% growth in net sales to P24.48 billion, cushioning the 12.9% increase in cost of sales to P16.3 billion. Comparable sales growth for the full year was 5.2%.

Depots accounted for 95.9% of Wilcon’s sales in 2019 at P23.47 billion, an increase of 16.5% from a year ago. The company was able to open six new depots last year, which contributed P2.33 billion or 67.9% of the total rise in net sales.

The same store sales growth of depots — or sales from Wilcon’s existing depots — stood at 5% in 2019. The company ended the year with 50 depot branches across the country.

Wilcon’s smaller format store, Home Essentials, added 2.7% or P658 million of the total net sales last year. This is an increase of 6.2% from the level in 2018, coming from a portfolio of seven branches that had a same store sales growth of 4%.

The remaining 1.4% of net sales came from project sales, which contributed P349 million or a 18.6% rise from in 2018.

“Wilcon’s effective implementation of its product mix strategy continued to drive margin expansion. Exclusives’ (in-house and exclusive brands) contribution to net sales increased to 49.5% for the year driving the expansion in the blended gross profit margin to 33.4%,” it said.

Operating expenses recorded a three-year high of P5.4 billion, 22.1% up from the figure in 2018, due to the implementation of a new accounting policy, the expansion of its store network, and an adjustment in statutory wage.

Total capital spending last year clocked in at P2.65 billion, which went to the opening of new stores and warehouses, the extension and renovation of existing stores, and investments in computer software.

“We are pleased with our full year 2019 results,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said in a statement. “These results certainly will encourage us more to continue in our strategic direction and give us assurance that we can deliver consistent growth in the coming years.”

The company is looking at a mid-teen topline and bottomline for 2020 and a 5-6% comparable sales growth.

Shares in Wilcon at the stock exchange closed P18.50 each on Wednesday, down 16 centavos or 0.86%. — Denise A. Valdez

Google Philippines launches online safety campaign

By Zsarlene B. Chua
Senior Reporter

GOOGLE Philippines has launched a campaign creating a teaching module for high school students nationwide in order to “deepen its ongoing commitment to online safety and responsibility,” according to a press release.

The campaign called Cyberpeace: Creating a Peaceful Internet Together has Google partnering with Teach Peace Build Peace Movement, a non-government organization that runs a peace education program for children in conflict and non-conflict zones, along with volunteers and YouTube creators in implementing the company’s Be Internet Awesome curriculum to high school students in private and public schools nationwide.

“Google is not just about creating the most awesome and magical products. We feel that we have a bigger responsibility than that and that includes our responsibility to create a safe and peaceful environment for everyone,” said Bernadette Nacario, country director, Google Philippines said during the launch on Feb. 11 at the Google offices in Bonifacio Global City, Taguig.

The curriculum aims to educate at least 10,000 high school students nationwide through 2020 on how to use the internet in a more responsible and safer way.

The module will focus on five core concepts and values: online reputation, critical thinking to fight scams and misinformation, privacy and security, cyberbullying, and reporting inappropriate online behaviors. The initiative will also tackle other relevant issues such as “catfishing” and cancel culture.

Catfishing is a deceptive activity where a person fakes an identity online targeting people for fraud or abuse while cancel culture is a phenomenon where people online boycott an individual (usually a celebrity) for alleged wrongdoings, problematic behavior, or unpopular opinions.

Citing Google’s Digital Wellbeing of Families report, Ms. Nacario said 71% of Filipino households rely on digital technology to connect with their families at least once a day. This makes the Philippines the highest among the 11 countries surveyed. At second place is Indonesia at 66%. While 85% of Filipino parents said they worry about their child being exposed to inappropriate content online, second only to Brazil at 94%.

The Digital Wellbeing of Families was conducted in the Philippines in April 2019 with 1,000 households participating. Google also surveyed the US, Brazil, Mexico, Germany, Russia, Japan, Korea, Japan, Thailand, and Indonesia.

“At Google, we believe kids and the youth should be able to experience the best of technology — and that parents should be able to feel confident letting them explore online,” Ms. Nacario said.

“Through the Cyberpeace campaign, we hope not to only help Filipino families stay safer online but provide a springboard for a shared, nationwide commitment to a more peaceful internet, at the heart of a vibrant digital economy for all Filipinos,” she added.

Aside from the pilot class in San Francisco High School in Quezon City, the modules will also be taught in select public and private schools in the country including Batasan Hills Nation High School in Quezon City, Abellana High School in Cebu City, and Marawi City National High School.

Whiskey from Tibet and organic Champagne among best new booze

By Elin McCoy, Bloomberg

EVERYONE loves Paris — even in February, when the City of Light is cold and gray, right?

That was the thinking behind holding this year’s VinExpo wine and spirits trade fair in Paris for the first time. Since 1981, the fair’s biannual home has been Bordeaux, but despite lavish chateau parties with fireworks, that version was losing market share to the no-nonsense annual German trade show, ProWein.

“Our goal in Paris,” says new VinExpo Chief Executive Rodolphe Lameyse, “is to be the game changer — and the No. 1 wine and spirits marketplace in the world.”

This year’s three-day schmoozefest blended VinExpo with Wine Paris, another international exhibition, and drew some 30,000 international buyers to do deals, discover the latest trends, explore what’s new from 2,800 exhibitors from 20 countries, and delve into the topic of sustainability and climate change at Moët Hennessy’s three-day forum (more on that in a future column).

Hanging over all of this, though, were the specters of Brexit, the continuing US tariffs, and China’s slowdown, which prompted French Minister of Agriculture Didier Guillaume to open the fair by stating that France has to find new markets in other countries.

I spent my days tracking down the newest of the new in three huge halls at the Paris-Versailles Exhibition Center. Products ranged from the sublime to the silly, including such items as the world’s first wine vinified underwater.

What struck me most was the popularity of the huge spirits area, where dozens of buyers hung out at a 165-foot-long bar, sipping exotic drinks stirred up by Paris’s top mixologists. New gins were ubiquitous and unusual, with regional flavors predominating. One Peruvian example incorporated sacha inchi (Inca chestnuts) and tonka beans from the Amazon rainforest, another from the UK was flavored with local gooseberries, and an Italian one included fresh tomatoes. Talk about upgrading your summer gin and tonic!

And, yes, there were parties, such as the dinner at Château de Versailles to celebrate the 70th anniversary of Bordeaux’s Commanderie du Bontemps. We walked through Louis XIV’s bedroom and under the sparkly chandeliers in the Hall of Mirrors to the 390-foot-long Gallery of Great Battles, where we ate truffled fillet of beef and drank magnums of Château Lafite-Rothschild while contemplating huge canvases replete with charging horses and clashing soldiers swinging swords — and, of course, the spoils of the fair.

Here are my six most exciting VinExpo/WineParis discoveries:

BEST NEW CHAMPAGNE
2016 Champagne Drappier Clarevallis, €46 ($49.69)

Organic wines continue to be a hot trend, so I was excited to try this new certified organic bubbly cuvée being launched by family owned Champagne house Drappier that will arrive in the US in May. It’s fresh, bright, chalky, and very, very dry, with an enticing golden color, scents of violets, and a creamy texture. Think of a superb white Burgundy with bubbles.

The blend of pinot noir, pinot meunier, chardonnay, and a bit of blanc vrai (pinot blanc) is the first fizz made by Drappier’s eighth generation — Charline, Hugo, and Antoine — all millennials.

BEST NEW SPIRIT
2006 Jiu Hai Bu Gan Sadhana, about €83

The biggest surprise was the world debut of this — get ready for it — vintage single malt from Tibet. Made with local barley and yeast grown at an elevation of nearly 10,000 feet and aged for nine years in special porcelain amphora, it was finished for six years in used American Bourbon casks and French oak barrels from Sauternes and Layon in the Loire Valley. It’s not like any whiskey you’ve tried. Amber-colored, with delicate floral aromas, it tastes very dry, pure, and soft, almost velvety in character. The barley comes from a Tibetan monastery, and three women distill it.

BEST NEW COCKTAIL INGREDIENT
Paragon Pepper Collection Cordials, €22 each

These exotic single botanical cordials from Nepal, Ethiopia, and Cameroon are based on different local peppers and reflect a current bartending obsession with unusual essences from remote places to liven up drinks.

My favorite was Timur Berry, which grows on small trees at elevations of 7,000 feet in Nepal. Fresh and citrusy, it smells and tastes of grapefruit. The powerful jasmine scents of Rue Berry, from Ethiopia, and the menthol-scented White Penja Pepper, from handpicked and fermented white peppers in Cameroon, wowed me, too.

Flavor syrup company Monin and award-winning London-based bartender Alex Kratena created them, using such new processes as “supercritical CO2 extraction,” which they claim reproduces a plant’s smell without altering it.

BEST NEW ORGANIC WINE
2017 Domaine Marcel Deiss Riquewihr, $40

Marcel Deiss, one of the top biodynamic domaines in Alsace, will launch this savory new white in the US in the spring. The earthy, seductive blend of pinot gris and riesling is part of a series of new village wines with medieval manuscript-like labels designed to reflect the “emotion” of the wine inside. Alsace lacks the official category of village wines that Burgundy has, and the Deiss family is trying to create one to promote Alsace’s different terroirs.

BEST NEW, INEXPENSIVE RED
2016 Marie Blanque Edition 1, $19

This brand new red wine from Famille Lesgourgues, three brothers who own an estate in Madiran in southwest France, is made from tannat, a grape known for super tannic, powerful wines that are often tempered by the addition of grapes such as cabernet franc. This 100% tannat cuvée is different — soft and fresh, with dark, juicy, intense flavors. It was inspired by the artist-brother’s memory of one he drank during a mountain picnic 20 years ago.

BEST NEW LUXURY WINE ACCESSORY
Baccarat Passion Champagne decanter, $960

On L’Avenue, a posh-looking area designed as a Parisian street of luxury shops, Jean-Charles Boisset, a flamboyant impresario of California and French wines, was launching a lot of new items, but my eye was on the pricey new Passion Collection Champagne decanter he created, produced by Baccarat. You may be asking yourself why you need to decant Champagne. The idea — according to Boisset — is to add smoothness, release the wine’s aromas, and leave you with only the most elegant, tiny bubbles. At the very least, it’s a beautifully designed object to display in your home.

Hong Kong banks face virus toll on asset quality, loan growth

HONG KONG — Hong Kong’s banks face at least two quarters of worsening asset quality and slowing loan growth as the coronavirus outbreak hits trade and consumer banking, analysts and bankers said.

Lenders in the Asian financial hub, including HSBC and Standard Chartered, are seeing a drop in demand for mortgages, credit card usage and corporate loans, bankers with knowledge of the matter said.

Hong Kong banks have Asia’s largest exposure to China, which accounted for 29.4% of banking system assets in the first half of last year, credit ratings agency Fitch says.

Some of the banks have already started stress testing select parts of their China and Hong Kong businesses as fears grow of a pandemic of the flu-like virus that originated in China late last year.

“Some of the companies in Hong Kong were already hanging from a thread after months of civil unrest and now the virus has come on top of that,” said Sonny Hsu, senior credit officer for financial institutions group at Moody’s Investors Service.

“The combined effect will be much more. This time, it will be more of a problem loan and credit cost issue,” Hsu said.

An extended disruption to economic activities would weaken the banks’ asset quality and profitability, and will be a credit negative, the ratings agency said.

“(The) first quarter is usually a busy month for us as clients work on their plans for the year ahead. This year, the trade finance volume is down 15% to 30% in China and Hong Kong,” a senior banker at a large global bank in Hong Kong said.

ASSET QUALITY
The biggest impact on asset quality in Hong Kong will come from retail, hotels and property as the city’s economy, already in recession after months of anti-government protests, faces increased headwinds due to the coronavirus, the banker added.

Some banks are also concerned about the likely push from Chinese authorities to extend loan repayment periods as well as make cheaper credit available, the bankers said.

“We are not thinking about origination of new business much — (the) bulk of work is focused on minimizing the hit to asset quality. It won’t be business as usual for the next two quarters at least,” a retail banker with a global bank said.

Unemployment in Hong Kong reached its highest in three years in January at 3.4%, while bankruptcy petitions submitted rose to 703 last month up from 665 a year-ago, data showed.

HSBC, which made 40% of its revenue from China and Hong Kong in 2019, said last week it could take up to $600 million in additional provisions against loan losses if the coronavirus outbreak persists into the second half. HSBC declined further comment.

Hong Kong-based Bank of East Asia (BEA) said last Wednesday it expected a deterioration of 10-20 basis points in credit cost, the percentage of provisioning for bad loans out of total lending, for its local business in 2020 due to the economic downturn. BEA declined to comment further.

StanChart, which also makes the bulk of its profits in Asia, is expected to echo these comments when it reports on Thursday. It declined to comment ahead of its results. — Reuters

Draft common tower policy out in March — DICT chief Honasan

THE Department of Information and Communications Technology (DICT) missed again the latest schedule it set for the release of the common tower policy, saying the document could be made public in March.

DICT Secretary Gregorio B. Honasan II told reporters on Wednesday that his department “should come up with an announcement on the common tower policy in March.”

“It’s actually on its final draft. We will make the announcement soon,” he added, noting that the department had to consolidate the inputs it gathered from various stakeholders.

He also noted that “not everyone is happy” with the draft policy. “But we said, ‘Democracy [means] the greater good for the greatest number.’”

Mr. Honasan attributed the delays to “bureaucratic problems.”

“But I am not blaming anybody. It’s our job really. We just want to be thorough, comprehensive, and be guided by what the data tell us. The delays are explainable, in short,” he explained.

DICT Undersecretary Eliseo M. Rio, Jr. previously said that the rules governing the shared use of telecommunications towers would be out by “mid-January.”

Mr. Rio gave another schedule on Jan. 29, saying the policy might be made available by February.

In December, Mr. Rio told reporters that the department was looking at three options on the provision that limits the number of companies that can operate common towers. “Of the three options, there’s one without limit, five and seven,” he said.

He added that currently there are only four companies that have secured permits to operate such as ISOC edotco Towers, Inc., which is a joint venture of local company ISOC Infrastructure, Inc. and Malaysia’s edotco Group Sdn Bhd; Aboitiz InfraCapital, Inc.; LCS Holdings, Inc.; and American Tower Corp.

The concept of tower sharing is being pushed by the DICT to improve tower density, which it said is one of the lowest in the region at 4,000 subscribers per tower. Allowing common towers means more than one telco can use a single tower, thereby increasing the number of subscribers being served by each tower.

The DICT started work on a new common tower policy in 2018 after opposition to an earlier draft presented by Presidential Adviser Ramon P. Jacinto. This version limited the number of companies that may build towers, and barred network operators from building their own, which stakeholders contested.

In a stakeholders’ meeting held in August last year, the department presented initial ideas that it wants to include in the policy, such as a requirement that towers be built within a given radius apart from one another.

Other proposals are to require telcos to submit an annual tower rollout plan to tower companies, and subsidies for towers that will be built in missionary areas. Government support is also guaranteed only for towers that will be built by independent tower companies to facilitate infrastructure sharing. — Arjay L. Balinbin

Intel unveils new data center processor, 5G chip

INTEL CORP. on Monday launched new microprocessors, including a second generation Xeon processor for data centers and a 10nm chip for wireless 5G base stations.

Demand from cloud computing companies have boosted sales of server chips, leading to strong results from Intel and its rival AMD Corp.

Intel’s Xeon chips have dominated the market for server chips, but AMD has been gaining ground since its re-entry into the business three years ago with rival EPYC processors that earned positive reviews here

The new Xeon chips will provide better per-dollar performance than last generation, while the 10nm chip, P5900, will help it become the leading silicon provider in base stations by 2021, a year earlier than expected, Intel said.

Last month, the chipmaker said it would release nine 10nm products in 2020 and launch its 7nm product next year. AMD has already launched several chips based on the smaller 7nm architecture.

Intel had struggled with delays in its 10nm chip technology, losing its lead to rivals in the race to supply to the “new data economy,” which includes 5G, autonomous vehicles and artificial intelligence.

The company had planned to launch the new chips at the Mobile World Congress in Barcelona, but the event was called off due to rising fears over the coronavirus outbreak. — Reuters

CNN Global names The Test Kitchen among Best New Restaurants in Asia

FILIPINO-BRITISH chef Josh Boutwood, who brought his flair for flavors to Manila as the Bistro Group’s Executive Chef since 2012, has also established himself as a culinary maverick with his progressive concepts such as Helm, Savage, and The Test Kitchen serving up a different, more personalized take on tastes and textures.

His passion for creating innovative dishes that are both approachable and yet sophisticated has earned The Test Kitchen a nod from CNN Global’s Best New Restaurants in Asia list for 2020.

In the accompanying writeup, Mr. Boutwood is described as “one of Manila’s most dynamic and progressive talents” and The Test Kitchen is “A mix of informality and sophistication in both design and food.”

What makes The Test Kitchen a culinary destination is the dedication the chef has for bringing out the flavors and freshness of his chosen ingredients through different approaches. His success can be attributed to a guiding principle that follows the cooking philosophy that he has held throughout his stewardship of the restaurants under the Bistro Group and the restaurants that he created himself. For him, time is also an ingredient. At his own restaurants, he uses techniques that amplify the flavor and not hide it, he tells CNN.

The menu at The Test Kitchen is diverse and ever-changing, as the chef seeks out the best produce for the season to come up with a balanced lineup of dishes to be paired with fine wines and spirits. Dining at the restaurant is an experience for the senses as even the ambience of the 42-seater space is designed to offer a feeling of relaxed luxury suited to its new location in the upscale Rockwell area of Makati.

Having made it to the Asia’s Best New Restaurants list of CNN as the only Philippine entry puts The Test Kitchen at par with other eateries in the region such as Cantonese restaurant Mott 32 at Marina Bay Sands Singapore, Hong Kong’s Mono, Bali’s underwater dining venue Koral, Halapua and Kinu by Takagi in Thailand, and Chef Alain Ducasse’s Esterre in Tokyo.

The Test Kitchen Manila is located at One Rockwell, Rockwell Drive, Rockwell Center, Makati City.

UnionBank raises P6.8B from Tier 2 notes issue

UNIONBANK of the Philippines has issued new Tier 2 notes. — FACEBOOK/UNIONBANK

UNIONBANK of the Philippines, Inc. has raised P6.8 billion from its sale of debt notes eligible as Tier 2 notes, marking the first issue out of its P20-billion program, according to a stock filing on Wednesday.

UnionBank Treasurer and Chief Financial Officer Jose Emmanuel U. Hilado said in an e-mail that the bank accepted all orders worth P6.8 billion, upsizing the issuance from the initial offer of P5 billion, with the bank looking to refinance the P7.2 billion worth of Tier 2 notes it redeemed last week.

UnionBank said the notes have a tenor of 10 years and three months, callable in 5.25 years or starting May 24, 2025.

It said the Tier 2 notes carry an interest rate of 5.25% per annum, payable in arrears quarterly, and will mature on May 24, 2030.

The notes were listed on Monday, Feb. 24, on the Philippine Dealing and Exchange Corp. (PDEx).

Hongkong and Shanghai Banking Corp. and Standard Chartered Bank served as the joint lead arrangers and bookrunners for the transaction, along with UnionBank who also acted as the limited selling agent. Meanwhile, Asia United Bank Corp. served as a market-maker.

The offer marked the first tranche of Aboitiz-led bank’s P20-billion note program meant as a replacement for the Tier 2 notes it redeemed. The program was approved by the Bangko Sentral ng Pilipinas last December.

Mr. Hilado said they have yet to decide when the bank will offer the next tranches of the program.

UnionBank on Feb. 20 redeemed P7.2 billion worth of unsecured subordinated notes qualifying as Tier 2 capital, ahead of Feb. 25, 2025 maturity of the instruments.

It said it got the central bank’s approval to exercise its call option on the notes by way of voluntary redemption.

The Tier 2 notes were issued in November 2014 with an interest rate of 5.375%.

UnionBank booked a P14-billion net income in 2019, nearly double the P7.3 billion it earned the year prior amid a higher loan portfolio, margin recovery and strong gains from its trading activities.

The bank’s shares inched up by ten centavos or 0.17% on Wednesday to close at P57.60 each, against Monday’s close of P57.50. — Beatrice M. Laforga

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