Philippines Defence Forum

[Malaya]

Philippines, Germany boost labor partnership
Jun 28th, 2013

The training of Filipino health care workers and seafarers is in the agenda to boost labor relations between Republic of the Philippines and Federal Republic of Germany. Germany is known for its “dual system” of vocational school. A student learns his craft at both the workplace and at vocational school. Providing knowledge and skills is linked to acquiring job experience.

Germany will assist in training Filipino seafarers, to help strengthen the country’s maritime industry. A joint committee will serve as forum for the two countries to discuss seafaring issues. Filipino seafarers will benefit from the scheme. Data from German Shipowners’ Association showed that 30 percent of 80,000 seafarers in Germany are Filipinos. There are over 300,000 Filipino seafarers manning international ships, with a large number deployed in Europe.

The Philippines may start deploying the first batch of Filipino nurses in German government hospitals starting this year. The Philippine government signed on May 29, 2013, the “instrument of ratification” to implement an agreement that will open the German health care sector to Filipino health care professionals. The agreement, signed on March 19, 2013, between the Philippine Overseas Employment Administration and German Federal Employment Agency/International Placement Agency, provides for a government-to-government system of placing Filipino health workers in Germany.

The agreement will address the shortage of workers in the German health sector, as well as provide new opportunities for skilled Filipinos. Filipino workers may not be employed in Germany under conditions less favorable than those for German workers. They will have German social security system coverage such as pension and unemployment insurance.

We congratulate Republic of the Philippines Vice President and Overseas Filipino Worker Concerns Presidential Adviser Jejomar C. Binay, Philippine Ambassador to Germany Maria Cleofe R. Natividad, Department of Labor and Employment Secretary Rosalinda D. Baldoz, German Labor and Social Affairs Minister Ursula von der Leyen, and Federal Employment Agency/International Placement Services Director Monika Varnhagen, in their collective efforts to upgrade the skills and competence of overseas Filipino workers. CONGRATULATIONS AND MABUHAY!

http://www.tempo.com.ph/2013/06/philippines-germany-boost-labor-partnership/#.Uc0YQ_mnpn8

 

[Malaya]

Japan to take Phl's side in South China Sea dispute
By Camille Diola and Alexis Romero (philstar.com)

MANILA, Philippines - Japanese Defense Minister Itsunori Onodera on Thursday assured the Philippines that Japan will be on its side in defending disputed territories in the South China Sea.

Onodera, who is in a two-day visit in Manila, told Department of National Defense Secretary Voltaire Gazmin in a courtesy call that Japan will cooperate to resolve the sea row with China.

"We agreed that we will further cooperate in terms of defense of remote islands as well as the defense of territory, or territorial sea as well as protection of maritime interest ... We will cooperate with the Philippine side in this matter," Onodera said.

The Japanese official said that both countries are facing "common concerns" as China feuds with different states over territorial claims in overlapping waters.

"I also said that Japan(ese) side is very concerned that this kind of situation in South China Sea (as it) could affect the situation in East China Sea," he said.

Onodera also said that peaceful means over military might should remain paramount and that the rule of law must be considered in seeking arbitration.

"I would like to emphasize here that the current situation should not be changed with use of force ... I think this the concept that is agreed upon in international communities these days," he said.

Likewise, Onodera lauded the Philippines' action in seeking arbitration to resolve the matter.

“I have also learned about the Philippines’ efforts for the United Nations (UN) arbitration process in the principle that the Philippine side seeks to solve this problem based on the rule of law. Japan side is totally supporting these kinds of efforts,” he said.

He added that Japan's priority, meanwhile, is to keep and protect its own territorial space in sea or air more than to get involved in international matters.

Onodera visited U.S. naval base at Subic Bay before meeting with Gazmin, while Japanese Prime Minister Shinzo Abe intends to visit the country in July.

Japan claims that China had intruded into the Senkaku Islands, which China calls Diaoyu Islands.

The Philippines for its part, accuses China of intruding into various areas that are within its exclusive economic zone

Chinese intruders have strengthened their presence in the Panatag (Scarborough) Shoal off Zambales and Ayungin Shoal off Palawan.

They have also built structures in the Mischief Reef or Panganiban Reef, which is about 70 nautical miles from Palawan and Subi Reef, an islet 12 nautical miles southwest of Pag-asa Island in the same province.

The Philippines has been advocating a multilateral rules-based approach to settle the West Philippine Sea dispute. It has also

China, however, insists that the row be addressed through direct bilateral negotiations.

A report from the newspaper The Japan Times said the meeting between Onodera and Gazmin was meant “to keep China in check.”

The report also quoted an unnamed source as saying that Onodera and Gazmin would work out a “coordinated response” toward China.

Onodera clarified that their security efforts are not directed against a specific country.

“The Japanese government is not aiming at protecting from any specific nation but our stance is that we keep out territorial space, territorial air and sea space well-protected. This should be done according to the rule of law,” he said.

Last January, the Philippines challenged China’s territorial claim to most of the West Philippine Sea before an international tribunal of the UN.

China claims almost the entire West Philippine Sea and the East Sea. The area, delineated by a so-called nine-dash line, covers more than 100 islets, atolls and reefs.

The Philippines believes China’s nine-dash line, which outlined its claims over most of the sea, is illegal. China’s claims also overlap with those of the Philippines, Malaysia, Taiwan, Brunei and Vietnam.

http://www.philstar.com/headlines/2013/06/27/958907/japan-take-phls-side-south-china-sea-dispute

 

[Malaya]

US trains Philippines on how to use drones amid China fears
Jun 28, 2013

A US Navy serviceman (left) prepares to launch an Unmanned Aerial Vehicle (UAV) with Philippine Navy servicemen aboard a patrol boat during a joint annual military exercise called Carat at former US military base Sangley Point in Cavite city, west of Manila on June 28, 2013. US troops trained their Philippine counterparts how to use surveillance drones on Friday, as Manila seeks to boost military ties with Washington and counter what it perceives as a rising security threat from China. -- PHOTO: REUTERS

CAVITE CITY, Philippines (AFP) - US troops trained their Philippine counterparts how to use surveillance drones on Friday, as Manila seeks to boost military ties with Washington and counter what it perceives as a rising security threat from China.

The naval exercises are part of annual training operations between the two defence partners, but they have come under closer scrutiny this year due to simmering tensions between Manila and Beijing over rival claims to the South China Sea.

At a naval base around 13 kilometres southwest of the capital Manila, US Navy SEALs trained Filipino soldiers how to use small unmanned aerial vehicles (UAVs) or drones, launching one from a boat out at sea after which it circled the base and landed in the water.

US maritime civil affairs officer Jeremy Eden said these were the smaller "Puma" drones used only for surveillance and not the more lethal, armed versions employed in Afghanistan.

US trains Philippines on how to use drones amid China fears

 

[Malaya]

Govt eyes forces pact with Japan
By Joyce Pangco Panares
Jun. 29, 2013

To allow Japanese troops join military exercises

The Philippines and Japan have agreed to study the possibility of pursuing a status of forces agreement that could enable Japanese troops to participate in joint military exercises here, the Defense Department said Friday.

“The details still need to be firmed up. Right now we are at the level of forming the technical working groups,” said Defense spokesman Peter Galvez.

Galvez said such a military agreement was broached during a meeting between Defense Secretary Voltaire Gazmin and his Japanese counterpart, Defense Minister Itsunori Onodera.

Under the government’s 2010-2016 National Security Policy, the Aquino administration will purse a “larger border security” program to ensure territorial sovereignty and defense.

National Security Adviser Cesar Garcia said it is “desirable” to pursue other status of forces agreements with neighboring countries and other allies instead of relying heavily on the Mutual Defense Treaty with the United States.

The Mutual Defense Treaty paved the way for the Visiting Forces Agreement, which governs joint military exercises of Philippines and American troops in the country.

The Philippines currently has a status of forces agreement with Australia.

In December 2006, then President Gloria Arroyo directed the Defense department to be more active in drawing up similar agreements with other neighboring countries after Washington temporarily suspended joint military exercises.

The suspension was seen as a move to pressure the Philippine government into turning over the custody of convicted rapist Lance Cpl. Daniel Smith, a participant to the Balikatan in 2005, to the US.

The Balikatan eventually resumed after Smith was transferred to the US embassy in Manila.

The Palace said China, which has conflicting territorial claims with the Philippines, should not see a proposal to give rights to American troops to use military bases in the country as an aggressive action.

Deputy presidential spokesperson Abigail Valte also assured the public that whatever access agreement is reached with the United States will be in accordance with the Constitution and the Visiting Forces Agreement.

She said the proposal was part of an agreement to increase the “rotational presence” of American forces in the country.

Asked if the proposed access rights would result in more incursions from China, the Palace official pointedly said that it was none of China’s business.

“At this point, whatever that we do within our territory is perfectly within our rights to do. Other countries must respect that,” Valte said.

On Thursday, Gazmin clarified that the proposed access agreement is not equivalent to basing rights.

Gazmin said other defense allies of the Philippines can also be given access to military bases.

China, reacting to reports of the planned access agreement, has warned that countries with territorial claims in the West Philippine Sea which look for help from third parties will find their efforts “futile.”

Chinese Foreign Minister Wang Yi said the strategy was a “path of confrontation” and it would be “doomed.”

But Gazmin on Friday said the Philippines needs allies to defend itself against the China.

“You know at this point we cannot stand with our own feet; we need allies. If we will not do this we will always be at the mercy of big powers. What is happening is that China is already here, they are already on our territory. We cannot just attack them. We had already run after them before a court but look they will not leave us. So, what are we going to do now? Shall we wait they will come further and enter our doorsteps? They are already inside our garage,” Gazmin said.

Gazmin’s remarks came as leftist lawmakers slammed the government for negotiating anew with the United States government for its forces to have greater access into military facilities in the country.

The government is also exploring a similar agreement with Japan.

Gazmin brushed aside Chinese warnings.

“Well that is their right, their prerogative to say such a statement but you know we have to protect ourselves too. In the process of building up our defense we should be able to collaborate with other countries so that we become stronger, we become united,” he said.

After Beijing rejected a series of diplomatic protests by Manila over its relentless intrusions into Philippine territory in the West Philippine Sea, President Benigno Aquino III ordered the Department of Foreign Affairs to bring the case for arbitration before an international court, which triggered more aggressiveness on the part of China.

At present, China has roped off and is building structures in Panatag (Scarborough) Shoal, which is within the Philippines’ exclusive economic zone.

China also intruded into Ayungin Reef, part of the municipality of Kalayaan Island Group in Palawan. The Philippine Marines have troops stationed in the area.

Gazmin also explained that the possible “access agreement” for American forces would be in accordance to the Visiting Forces Agreement, which needs the approval of the Senate.

“Of course, it should pass Congress approval. Right now, our legal luminaries are carefully studying it,” he said.

Gazmin said such an agreement could include introducing “new military technology” from US.

The Defense chief also said the agreement was part of a US agreement to increase the presence of its forces in the Asia Pacific.

He also said that with the expected increase in joint military exercises, the US would need access to bases here in Subic and Lumbia Airport so they could temporarily park their planes from Okinawa or Guam or Hawaii while the exercises were ongoing.

Gazmin said a similar agreement can be forged with Japan, which he described as a “strategic ally.”

He said, however, that without a visiting forces agreement, Japanese troops wouldn’t be able to enter or be stationed here.

“We might hold an exercise with Japan but they wouldn’t be able to disembark. Our technical working group will explore this and come up with a mechanism,” Gazmin said.

Leftist lawmakers on Friday accused Aquino of insulting Filipino war veterans and comfort women by allowing Japan to gain greater access to Philippine military bases and facilities.

They also said it was a shameful act of national betrayal if President Aquino overturned the 1991 historic verdict of the people and the Philippine Senate against the US bases by turning the country’s bases and facilities into American military outposts.

They demanded that the Department of National Defense divulge the details of the access agreement that will give open access to US troops and other foreign forces to Philippine territories.

“These so called access arrangements are so vague that it appears to expand the Visiting Forces Agreement. The Aquino government is allowing an undetermined number of US military troops as well as Japanese forces to stay and make use of an unidentified and undetermined number of Philippine facilities for an undetermined period of time. These are de facto military bases,” Gabriela Rep. Luzviminda Ilagan said.

“Japan’s military presence in the Philippines is not only unwanted, it is also unwelcome. This is an insult to our veterans and comfort women who suffered under the Japanese,” said Bayan Muna Reps. Neri Colmenares and Carlo Zarate in a statement.

“While we should strongly assert our territorial integrity against China’s bullying, basing the US and Japanese military here is not the solution to the territorial dispute with China. Bringing our case to a multi-lateral body and gather international support against China’s bullying is the strong but peaceful track that we should follow. The Visiting Forces Agreement with the US must be terminated instead of expanded,” Colmenares said.

Anakpawis Rep. Fernando Hicap said since 2010, US naval ships have frequented Subic Bay supposedly for maintenance, refueling and courtesy visits.

“In the past six months, 72 US warships and submarines docked at Subic, 88 ships visited in 2012, 54 in 2011 and 51 in 2010,” Hicap said citing official reports.

“These visits are not simple logistical stopovers. The Philippine government is obviously portraying an active role in the US government’s increasing economic, political and presence and military build-up in the Asia-Pacific region,” Hicap said.

Hicap also lambasted the Cooperation Afloat Readiness and Training exercises that started this week near the disputed Panatag Shoal.

“We refuse to be dragged into the proxy military wars between US and China. Filipinos must raise concerns over the increasing presence and deployment of US and foreign troops in the country under the guise of joint military trainings. We must not allow further encroachment of our national sovereignty by US superpowers and foreign forces,” Hicap said.

ACT Teachers Rep. Anotnio Tinio said historically, the US has used the Philippines as a stepping-stone for military intervention in China.

US troops based in the Philippines were among the foreign troops that invaded China and occupied Beijing in 1900, Tinio said.

“Most Filipinos are probably unaware of this, while the Chinese certainly have not forgotten. Instead of forging an independent and self-reliant foreign policy in response to Chinese territorial incursions, the Aquino administration would let this country reprise its role as neocolonial outpost, a staging area for the encirclement of China by the US,” Tinio said.

He said the Aquino administration should stop fooling the people.

“Whether they’re called basing or access agreements, the expanded access deal for US forces will further diminish our national sovereignty, perpetuate the abject dependence on the US military for external defense, and aggravate the tension over the disputed territories in the West Philippine Sea,” Tinio said.

“The government’s disturbing hospitality towards US and other foreign troops is a direct affront to our national sovereignty and territorial integrity. The DND is acting like a willing host and aide to foreign forces without giving due consideration to the safety and security of Filipinos,” Hicap said.

Amid the controversy over access rights, US Secretary of State begins his first Southeast Asian trip with a visit to Brunei to attend a regional security forum with more than 20 counterparts from countries including China, Japan and North Korea.

The US 7th Fleet, meanwhile, said it has deployed its amphibious assault ship USS Bonhomme Richard to patrol its area of responsibility in the Asia Pacific. With lorante S. Solmerin and Christine F. Herrera

Govt eyes forces pact with Japan - Manila Standard Today

 

[Malaya]

PH, Switzerland to establish joint economic commission
ABS-CBNnews.com
06/28/2013

MANILA, Philippines - The Philippines and Switzerland on Friday inked an agreement to establish the Joint Economic Commission (JEC).

The signing coincided with the visit to the Philippines of Marie-Gabrielle Ineichen-Fleisch, State Secretary and Director of the State Secretariat for Economic Affairs (SECO), Federal Department of Economic Affairs of the Swiss Confederation this week.

The agreement institutionalizes a mechanism for regular dialogue and exchanges between the Philippines and Switzerland related to the business environment to improve and facilitate bilateral trade and investment flows.

The JEC will also serve as the platform to conclude other mutually beneficial economic agreements between the two countries.

Trade and Industry Secretary Gregory L. Domingo said the agreement is among the priorities of President Benigno S. Aquino.

After the signing, Domingo and Ineichen-Fleisch held a bilateral meeting to discuss the next steps towards operationalizing the JEC and other economic issues.

Trade Undersecretary Adrian S. Cristobal Jr. said the JEC demonstrates the commitment of the two countries to strengthen and move forward their economic relations.

In 2012, Switzerland ranked as the country's 23rd major trading partner (out of 214 countries), 16th largest export market (out of 212 countries) and 29th top import supplier (out of 171 countries).

Total trade was valued at $646.79 million with exports at $381.03 million and imports at $265.75million. Switzerland was the country's 5th largest export market in Europe for the same period.

 

[Malaya]

Spanish military offers aid to modernize AFP

Spain’s Vice-Minister of Defense Constantino Mendez Martinez said his country is willing to provide equipment to help modernize the Armed Forces of the Philippines (AFP). Martinez arrived in the Philippines last Sunday accompanied by Spanish military officials to meet with officials of the military and the defense department. He was also accompanied by executives of several Spanish companies engaged in the supply and services of defense systems engineering consultancy; information systems and electronic radars; aircraft; ammunition and mortars; and disasters and emergency situations.

Martinez said Spain has naval and air assets that may be offered to the Philippines upon the request of the AFP.

The Aquino administration has vowed to support the AFP’s capability upgrade program to boost its territorial defense capabilities.

The government aims to acquire lead-in jet trainers, surface attack aircraft, air defense radars, long-range patrol aircraft and closed air support aircraft for the Air Force. It also seeks to buy new equipment for the Army.

Not to be left out, the Navy will be provided with strategic sea-lift vessels with amphibious capability, off-shore patrol vessels, naval helicopters, coast watch stations, and weather-heavy endurance cutters.

 

[Malaya]

Aquino vows to rebuild air force by 2016
Agence France-Presse
07/01/2013

MANILA - Philippine President Benigno Aquino vowed Monday to acquire fighter jets, air defense radar and other equipment within three years to bolster the country's weak air force, amid a territorial dispute with China.

"I assure you that before I step down from office, our skies will be guarded by modern air assets," he said in a speech during a visit at an air base in Clark, north of Manila. The speech was broadcast live on radio and television.

Among these are "lead-in fighters, long-range patrol aircraft, close-air-support aircraft", as well as transport planes, attack- and multi-use helicopters, air defense radar and flight simulators.

He gave no details of the aircraft and equipment, or the terms for their acquisition.

In January an Aquino spokesman announced the government would buy 12 South Korean FA-50 fighter jets to be used for "training, interdiction and disaster response".

The Philippines, a former US colony, retired the last of its US-designed F-5 fighters in 2005 and lacks air defense.

Aquino, whose-six-year term ends in mid-2016, has set about modernizing the military in his first three years in office as tensions rise with China over overlapping territorial claims to islands and waters in the West Philippine Sea (South China Sea).

The main focus was initially the navy with the acquisition of two Hamilton-class cutters decommissioned by the US Coast Guard.

The first of the two refurbished vessels became the Philippine Navy's flagship in 2011, replacing a warship initially built for the US Navy in World War II.

The second cutter is set to arrive in the Philippines later this year.

Aquino said Monday he was committed to reversing the under-spending on military capability that he said had characterized the Philippines since the early 1990s.

"Over the past decades the air force had its wings broken and we relied on old and rickety planes and equipment," he said.

Parliament has since authorized the defense department to spend 75 billion pesos ($1.7 billion) on modernizing the military over the next five years, Aquino added.

This is on top the more than 19 billion pesos that it had spent over the past three years for this purpose.

Between 1992 and 2010, the Philippines had spent just 33 billion pesos for military modernization, Aquino said.

http://www.abs-cbnnews.com/nation/07/01/13/aquino-vows-rebuild-air-force-2016

 

[Malaya]

AFP modernization now making significant headway

By Priam Nepomuceno

MANILA, July 01 (PNA) -- Like a phoenix slowly rising from the ashes, the Armed Forces of the Philippines is making significant headway in developing its minimum-credible deterrent capability.

This is also called the ability to forestall attempts by intruders attempting to violate the country's maritime, aerial and land territories, thanks to the commitment given by President Benigno S. Aquino III to the military.

The latter allocated around P75 billion to modernize the AFP. This money will be spent within five years.

"It is a step forward, a keen capability upgrade for all of our forces. We may not be comparable to other countries in the totality of equipage but the (modernization) program addresses a lot of our tactical and operational needs," AFP spokesperson Brig. Gen. Domingo Tutaan said of the development.

Highlighting this focus is the BRP Ramon Alcaraz (PF-16), the second Hamilton-class cutter acquired by the Aquino administration from the Americans, is now on its way home and is expected to be in Philippine territory by first week of August.

The Aquino government utilized more than USD15 million in refurbishing and re-equipping this ship.

The ship, which naval experts said is more heavily-armed that its sistership, the BRP Gregorio Del Pilar (PF-15), is expected to be in service by next September.

It is expected to improve the country's domain awareness capability or the capacity to detect, deter and pursue intruders in the Philippines' vast territorial waters

Aside from the BRP Ramon Alcaraz, the Philippine Navy is expecting the delivery of three AW-109 naval choppers by December courtesy of AgustaWestland.

As of this posting, the flight and maintenance crew of these aircraft are now undergoing training at Sesto Calende, Italy (and) these are avionics and maintenance trainings.

"The PN is also very thankful to the present administration for the continued support that the Navy is receiving," PN spokesperson Lt. Cmdr. Gregory Fabic stressed emphasized.

The contract for the three AW-109 naval helicopters were signed last April and will be delivered this coming December.

These choppers are worth around P1.33 billion.

"With the support we are getting from the present administration and the capability upgrade and modernization efforts in place, the officers and men of the PN are esteemed to serve the country and the people," he added.

Aside from these, Fabic said equipment in the pipeline includes three more multi-purpose assault craft, a anti-submarine helicopter, engineering and other support equipment.

Recently, the Dept. of National Defense announced that it is allocating P4-billion for two strategic sealift vessels and another P18-billion to acquire two brand-new missile-firing frigates as to fully boost the deterrent capability of the PN.

Fabic's earlier sentiments was also echoed by Philippine Air Force spokesperson Col. Miguel Ernesto Okol who stressed that he is very confident with the way the Aquino government is conducting the AFP's modernization.

"Most of (big) ticket items (equipment upgrade for the PAF) we have requested for has been approved," he added.

This includes the so-called surface attack aircraft, lead-in fighter aircraft, surveillance radars, medium lift and light transport and long-range patrol aircraft.

Recently, the PAF has completed the delivery of its eight W-3A "Sokol" combat utility helicopters with the last four being delivered last Nov. 26, 2012 and Feb. 17 this year.

The first batch of four was delivered in sometimes in 2011. These "Sokols' were commissioned and place in PAF service in March 9, 2012.

Aside from this, the Air Force has also beefed up the number of Lockheed C-130 "Hercules" aircraft from one to three, thanks to the ongoing modernization and upgrade programs.

The additional C-130s were activated during the latter part of 2012.

Besides this, DND observers said that the Philippines is now on the closing stages of the contract regarding the acquisition of 12 South Korean F/A -50 "Golden Eagle" jet aircraft which is touted to be the PAF's interim fighter aircraft.

It has allocated P18 billion for this program.

The Government Procurement Policy Board earlier gave the DND the "green-light" to start pre-negotiations with the South Korean government for 12 F/A 50 aircraft last January.

This boost to Philippine military equippage was made possible by the Dec. 11, 2012 signing of President Aquino signing of Republic Act No. 10349 which amends Republic Act No. 7898 or the AFP Modernization Act.

The amendment will "boost the AFP's capability upgrade program as it shifts from internal to external defense capability."

With the passage of the law, the military will be able to push for the acquisition of equipment which is listed in our medium term (2013-2017) acquisition list.

"(This amendment will extend) the implementation of our modernization and capability upgrade program will also provide greater opportunities and enough time for us to finally achieve a minimum credible defense posture which will help us in better fulfilling our mandate to protect the people and the state," the AFP stressed.

Republic Act No. 10349 has a budget of P75 billion for the first five years of implementation subject to the capacity of the DND to utilize and implement the program in accordance with the Defense System of Management.

The new law exempts certain major defense purchases such as aircraft, vessels, tanks, armored vehicles, communications equipment and high-powered firearms from public bidding.

It also exempts from value-added tax and customs duties the sale and importation of weapons, equipment and ammunition to the AFP which are directly and exclusively used for its projects, undertakings, activities and programs.

Republic Act 10349 also institutionalizes the defense system of management, which incorporates a collegial and collaborative planning and decision-making process by senior defense and military leaders.

It also allows additional funding from public-private partnerships entered into by the DND as well as multi-year contracts.

This law will hopefully repair the damage caused by long years of neglect to the military which during the 1960s up to the 70's was considered to be Southeast Asia's best.

DND undersecretary for finance, munitions, installations, and materiel Fernando Manalo earlier said that the signing and passage of the revised AFP Modernization Act will definitely make the military more capable of carrying out its constitutional mandate.

"This law will give the AFP a minimal credible deterrent posture," he emphasized.

Aside from defense equipment, engineering and search-and-rescue materiel will also be acquired, Manalo pointed out, giving the Philippines more assets in its peace and community development. (PNA)
HBC/PFN

http://www.pna.gov.ph/index.php?idn&sid&nid&rid=539672

 

[Malaya]

DND bares shopping list for AFP modernization
By David Santos
Wed, July 03, 2013

Less than two weeks before the President's State of the Nation Address (SONA), the Department of National Defense (DND) made public on Wednesday the government's shopping lists of assets and equipment that would boost the capability of the Armed Forces of the Philippines (AFP).

It will be the fourth State of the Nation Address of President Benigno Aquino III, during which he is expected to underscore the P75 million modernization of the AFP, especially with the brewing tensions with China over disputed areas of the West Philippine Sea.

Defense Undersecretary Fernando Manalo justified the presentation as part of the government policy of transparency, particularly because of the enormous budget involved.

But he was quick to point out that there would be details of the program that would be kept from the public.

"Hindi lahat pwede nating sabihin openly. Gaya sa inyong pamilya, may mga bagay kayo na kinakailangan itago sa ibang tao – for obvious reasons [We can't divulge everything. As in your family, there are some things that you need to hide from other people – for obvious reasons]," Manalo said.

The major procurements include two frigates with a combined tag price of P18 billion and 12 FA-50 fighter jets from South Korea worth close to P19 billion.

The shopping lists also consists of additional naval and aerial assets, such as amphibious assault vehicles and close-support aircraft, as well as major military hardware, like rocket launchers, night-fighting equipment and radars.

There will even be flight simulators to improve Air Force pilots' training.

All these, according to Manalo, should project to the world that the Philippines is determined to become a regional military power and to assuage concerns of countrymen in the face of the growing aggression of China.

"Para naman kahit papano magda-dalawang isip din yung magpaplano na, ika nga, ay makipaggyera sa atin. Mahirap magsabi na talagang pwede na tayong makipagbangaan kahit kanino. At least, meron tayo kahit papano na tinatawag natin na minimum deterence capabity. Yun lang ang pwede nating maibigay na assurance dito sa ating mga kababayan [At least, anyone who has plans to make war with us would think twice. We still cannot say that we can readily get into clash with anyone. But we can at least have what we could call minimum deterence capability. That's all the assurance we can give our countrymen]," Manalo said.

But the DND has also been questioned and criticized for supposedly exposing too much information on the country's defense capabilities and tactics.

Online discussions have been raging on whether the Philippines is taking the right strategy of being upfront on its actual military might, as well as its plans to upgrade, allowing other countries including China to counter our defenses.

Manalo said media was partly to blame, as well as the government's need to be transparent in spending taxpayer's money.

But he said the publicity had its good side, as it would let other countries know that the Philippines would stand up to bullying.

Manalo said that, when the modernization program was created in 1995, its goal was not geared towards arming the country solely to engage any nation in an armed conflict.

But with the changing security situation in the region, it has become inevitable to factor in external threats in government's plans of beefing up our military capability.

 

[Malaya]

US access to bases OK'd
Manila Bulletin – Wed, Jul 3, 2013

Manila, Philippines --- President Benigno S. Aquino III has approved the proposal of the Department of National Defense (DND) to give the United States increased access to the country's military bases, saying this is "a natural circumstance" to achieve a "credible alliance."

The President, however, made clear that the proposed access agreement with US troops will not lead to their permanent presence in the country.

"I want to make clear that they (US troops) will not be permanent fixtures in our bases but they are our allies," the President said in a media interview after the distribution of new handguns to policemen in Camp Crame, Quezon City.

At present, Aquino said the country has two strategic partners, the United States and Japan, citing that any military training between forces should be done "within our territory or the allies' territory."

If we don't coordinate with them and establish a system in case of chaos, there's no preparation at all. So they must have the knowledge of our terrain... there should be inter-operability with them, the President said.

"So it is but the natural circumstance..., if you want a credible alliance, then you will have to have mutual training and that will normally occur within our territory or the allies' territory," he added.

Defense Secretary Voltaire Gazmin had earlier announced that the government is drafting an agreement that will provide the United States greater access to the country's bases. Gazmin clarified though there is no plan for the US troops to establish bases in the country since the Constitution prohibits it.

The proposed access pact is reportedly one of the modalities being discussed for increased rotational presence of US forces in the region.

Some militant groups have criticized the government's plan to allow increased US presence in the country due to concerns it could violate the country's sovereignty.

 

[Malaya]

Aquino: US, Japan need to know PH terrain
BY RAPPLER.COM

STRATEGIC PARTNERS: President Benigno Aquino III says U.S. and Japan are Philippines' 'only strategic partners'. Malacañang photo

MANILA, Philippines —President Benigno Aquino III justified a government plan to give the US and Japan more access to Philippine military bases. He said these "strategic partners" should be familiar with Philippine terrain in case of a "disturbance."

"There are only two strategic partners that we have. It is America and Japan.... If we don't coordinate with them and fix our systems for a possible disturbance, I think that is wrong preparation. That is the absence of preparation," the President told reporters in Filipino on Tuesday, July 2.

"They need to know our terrain. We need to practice inter-operability," he added.

Defense Secretary Voltaire Gazmin said the government is drafting plans to allow US forces to spend extended time on the Philippines' military bases. He said the same plan will be offered to Japan's military.

The plan drew mixed reactions.

READ: Give Australia, ASEAN access to bases

And it comes at a difficult time for Philippine-China relations.

On Saturday, June 29, China's state-run media warned that the Philippines should brace itself for a possible "counterstrike should Beijing continue to be provoked in the South China Sea (West Philippine Sea).

The Philippines has accused China of "massive" military buildup in the disputed West Philippine Sea. In a statement released on the first day of the annual Asia-Pacific talks in Brunei, the Philippines warned that the Asian giant's tactics threatened peace in the region.

"Hindi naman siguro pwedeng mag-practice tayo outside of our territory. It is but the natural circumstance. If you want a credible alliance, then you will have to have mutual training that will normally occur within our territory or teh allies' territory," he explained.

Nevertheless, the President said the government will do everything to pursue peaceful means in resolving the conflict.

The Philippines brought the territorial row before the International Tribunal for the Law of the Sea (ITLOS).

READ: Top maritime judge to hear PH case vs China

"It is in our Constitution. We renounce war as policy," Aquino stressed. — Carmela Fonbuena/Rappler

 

[Malaya]

AFP modernization to include bases upgrade
By Alexis Romero (philstar.com) | Updated July 3, 2013

MANILA, Philippines - The improvement of existing military bases will be part of the items to be funded by the new Armed Forces modernization law, a defense official said Wednesday.

Defense Undersecretary Fernando Manalo said the facilities would be readied for the arrival of the military assets to be acquired through the same law.

“Included in the items to be funded by the P75-billion (modernization budget) are the facilities,” Manalo said in a press conference.

“That includes the hangar and the berthing facilities for the Navy. These are included in the infrastructure that we will need,” he added.

Manalo, who oversees the military’s modernization program, noted that the hangars would be used to house the helicopters and other air assets. The berthing facilities, meanwhile, will provide space for floating assets to dock.

The government will also provide support facilities for naval bases in Cebu and Palawan.

Manalo, however, could not tell if the bases in Subic would be covered by the upgrade efforts.

“As for Subic, there is no definite decision yet,” he said.

Manalo said the modernization program would also involve the construction of access roads for aerial radars to be used to monitor the country’s territory.

Earlier, the government announced that it is ready to provide the US and other allies access to its bases in a bid to counter China’s aggressive activities in the region.

Officials, however, clarified that there is no plan to put up new foreign military installations as this would violate the constitution.

The Philippines is strengthening its security ties with its allies and beefing up its defense capabilities to defend its territory in the face of China’s bullying.

‘Our lives are at stake’

Manalo stressed that the modernization of the military is crucial in addressing internal security threats and in asserting the country’s sovereignty.

“What we want is a minimum deterrence capability so that those who plan to wage war with us would think twice,” Manalo said.

“Our lives are at stake here,” he added.

President Aquino signed last December a new Armed Forces modernization law that allotted P75 billion for the first five years of the capability upgrade program. The law effectively extended the modernization program that was enacted in 1995.

The new law seeks to enhance the capabilities of the military, which have been depleted due to lack of resources. It requires the military, defense and budget departments to submit to the president a list of equipment to be acquired.

The Department of National Defense (DND) plans to undertake a total of 24 modernization projects to enhance the military’s capabilities.

Manalo declined to enumerate all the projects for security reasons but revealed that these include the acquisition of rocket launchers, hand-held radios and night fighting system for the Army.

For the Air Force, the government aims to acquire radar systems, close air support aircraft, combat utility helicopters, and 12 lead in fighter trainer jets for the Air Force.

Manalo said the FA-50 fighter jets will be acquired through government-to-government transaction from the Korean Aerospace Industries (KAI). The government has allotted P18.9 billion for the fighter jets.

The Defense department is awaiting the sales agreement from Malacañang, which will pave the way for the start of negotiations with KAI.

For the Navy, the government will acquire two frigates worth P18 billion to improve the military’s maritime defense capability. Manalo said at least five companies from South Korea, Spain, Australia, and Singapore have expressed interest to join the bidding. He said they include Hyundai, Daewoo and Navantia and Austal.

Other equipment to be acquired for the Navy include the amphibious assault vehicle, naval helicopters, multi purpose attack craft, and base support facilities.

AFP modernization to include bases upgrade | Headlines, News, The Philippine Star | philstar.com

 

[Malaya]

Economic boom spreads wealth wider in Philippines
By Teresa Cerojano (Associated Press) | Updated July 4, 2013

MANILA, Philippines — Just three years ago, a new car and an overseas holiday were unthinkable luxuries for J. Ante and her family of six. The insurance company manager's commissions have soared since then as the Philippines, blighted for a generation by venal and incompetent leaders, has unexpectedly boomed, putting middle-class comforts within tantalizing reach of many.

The $250 billion economy surged 7.8 percent in the first quarter of this year, outpacing China, and a middle class stunted by widespread poverty, political strife and corruption is beginning to share in a prosperity captured for decades by a clannish business and political elite.

The growing affluence and a burgeoning population have lured many global brands. Students and office workers flock to gleaming outlets opened by Zara, Gap, Forever 21, Starbucks and Japan's Uniqlo. New apartment blocks are springing up on almost every corner of metropolitan Manila and other cities, often clustered around malls and office buildings housing outsourcing businesses such as call centers, which are forecast to earn around $25 billion by 2016.

Luxury car maker Rolls Royce said it was flooded with inquiries since it opened its first dealership in Manila two weeks ago. The first car selling for $605,000 went to a popular TV show host, according to newspaper reports.

"Last year and this year have been a big leap in terms of my total income," Ante said. "Times have become better for our family."

She said three years ago it was difficult to come up with the school fees for her four children. Travel abroad or a new car were impossible, but "they seem more realistic now since my income is growing at a faster rate," she said. The family holidayed in Hong Kong this year and a vacation in the U.S. and Canada is planned. They hope to afford a family-friendly Toyota Innova this year.

Many credit the new vitality to the policies of President Benigno Aquino III, elected in 2010 on promises of eradicating graft and fighting poverty. He introduced new taxes, reformed the judiciary, and set the country on a path that shows sign of enduring — it has now enjoyed three straight quarters of economic growth above 7 percent. Standard and Poor's and Fitch Ratings earlier this year upgraded the Philippines' credit rating to investment grade for the first time.

"Disposable income has increased and we see a rising middle class," said Jose E.B. Antonio, chairman of Century Properties Group that brought in Donald Trump's sons and Paris Hilton to launch luxury condos in Manila.

Sheila Abay, a real estate agent for the past 10 years, said competition in her industry has become stiffer but she still sells more condominiums these days compared to five or 10 years ago.

The bulk of her clients are Filipinos working abroad, who buy property for retirement or investment. Over the last few years, however, she said she has seen a growing number of younger clients mostly aged 25 to 35. Many of them are midlevel managers at outsourcing companies who receive good pay for doing backroom operations for overseas companies.

"Their buying power is bigger," she said.

It adds up to dramatic shift for a country that has perennially lagged most of its Southeast Asian neighbors despite perceived advantages of a relatively free media, democratic elections and widespread use of English — the language of global business.

The Philippines is only sixth among 10 Southeast Asian countries in terms of GDP per head. Compared with Indonesia, which attracted nearly $20 billion in foreign investment last year, the Philippines managed only $2.8 billion, not far from $2.2 billion for Myanmar, a pariah state until recently. Thailand wooed more than 22 million visitors last year, the Philippines received 4.3 million.

Doubts still linger whether the country can stay on its new course.

President Aquino, in the mold of his late parents — democracy icon and former President Corazon Aquino and anti-dictatorship champion Benigno Aquino Jr. — won the presidency on a reformist platform following two corruption-tainted predecessors. His term ends in 2016.

But in a country where powerful families dominate politics and "name recall" ensures votes even for corrupt or incompetent leaders, another wrong turn can reverse recent gains.

There is a still a long way to go before the 28 percent of the population who live below the poverty line feel they too are benefiting from the boom that has dotted Manila with cranes and propelled the local stock market to new heights.

Elizabeth Yap, a 51-year-old single woman with close-cropped hair, scrapes a living by pedaling her tricycle around Manila to ferry passengers. She makes 400 to 500 pesos ($9 to $11) on good days, when she does not run afoul of law enforcers on their on-and-off campaign to clear the capital's traffic-choked streets.

"How can we feel the progress in the Philippines when we are poor," Yap said. "We can see the nice buildings, but for us poor, we can see that we are still poor."

Antonio, the property developer, believes it's only a matter of time before prosperity trickles down. He called for more focus on building infrastructure — roads, airports, hotels, restaurants — to support the tourism industry, which he said is a key to providing jobs for drivers, farmers, cooks and other lower income groups.

Despite the strong economic growth, joblessness soared to 7.5 percent in April, up from 6.9 percent a year earlier. Another 19.2 percent were "underemployed," or part-time workers.

Aquino blamed the increase in joblessness to delays in the planting season due to poor weather, leaving farm workers temporarily out of work during the survey period.

The government has intervened through a program that gives cash directly to the poorest families on condition children stay in school and see a doctor. The program will continue in the remaining three years of Aquino's administration, along with building mass housing and creating durable jobs in manufacturing, tourism and agriculture, Aquino said.

"We cannot have a society where a few flourish, and the rest must make do with crumbs," he told a recent development conference. "We must have inclusive growth."

Economic boom spreads wealth wider in Philippines | News Feature, News, The Philippine Star | philstar.com

 

[Malaya]

No more Chinese partner

Sun Cellular taps Norwegian firm for mobile Internet service
By Lawrence Agcaoili (The Philippine Star) | Updated July 4, 2013

MANILA, Philippines - Sun Cellular, a unit of dominant carrier Philippine Long Distance Telephone Co. (PLDT), has tied up with Norway-based Opera Software ASA to provide subscribers with strong, fast, and reliable mobile Internet connection.

Sun Cellular taps Norwegian firm for mobile Internet service | Business, News, The Philippine Star | philstar.com





Spanish dairy company eyes more investments in PH
By Patrick Camara Ropeta, ABS-CBN Europe News Bureau
07/04/2013

MADRID - A dairy company from Spain is hoping to invest more in the Philippines following the successful launch of their products in the local market, reflecting the recent upward trend of foreign investments into the economy.

Grupo Leche Pascual (GLP), based in Madrid, is considering the possibility of building a factory in the Philippines, which will be used to produce pasteurized yogurts, depending on local demand for the product in the next year or so.

GLP launched a variety of yogurt products in the Philippines in 2012, and according to the company, demand exceeded expectations in the first quarter of 2013 - to the point that they ran out of stock from initial shipments.

“We are now focused on the Philippines,” said Tomas Melendez, Director of International Division at GLP, who believes the country could be an ideal gateway for their business in Southeast Asia.

“It’s very important because Philippines will be the door to open Asia, and in particular, as a base for the ASEAN region. We are doing a wonderful launch of the product and when we reach a certain volume, we will think in the future of the possibility to build a factory in the Philippines.”

A new factory, which takes 1-3 years to develop, will be a welcomed investment for local communities, offering the possibility of employment as well as capital injection for the burgeoning Philippine economy.

“Every business needs to grow in order to provide opportunities,” said Tomas Pascual Gomez-Cuetara, President of GLP.

“Our most important projects right now are the international efforts. Not only exporting from Spain, but developing markets and implanting ourselves in those markets. That’s why we are so focused and provide so much energy to the Philippine project that we are beginning to develop.”

GLP is working with local business partners in emerging markets as part of their international strategy. In the Philippines, the company has chosen to work with Asia Brewery Inc (ABI) owned by the prominent Tan family, which includes dozens of well-known brands in its portfolio from airlines to banks and beverages.

“It was love at first sight,” revealed Pascual Gomez-Cuetara. “We thought we had the same values and the same purpose. That’s why I decided first to partner with the Tan family, with Michael Tan, which has proven for us a moving leading person, and secondly to do that business where he was in the Philippines.”

“We serve the same values and the same way of doing business,” added Melendez, who oversees the company’s international operations.

“ABI for us is a great corporation: it’s a family company, and both our companies think in the long-term. We have to partner with a wonderful distribution with the same way we do business. Our strategy is to create a joint venture through 50/50 with local partners.”

GLP, which has been producing dairy products since 1969, has an annual average output of 436.9 million liters of packaged dairy products, 403 million liters of bottled water, 29 million liters of juice, and 48.6 million liters of soya-based beverages.

It has created a recognizable brand in Spain and is now present in 70 countries, predominantly in Asia, South America and Africa.

“For our business, emerging markets are the most important. It’s almost 80% of our business,” Melendez revealed. “We are growing more than 25%, and now we are building a factory in South America, and we are thinking of opening other factories in different parts of the world.”

Attracting Investors

GLP’s interest in the Philippines follows a recent surge of direct foreign investments into the country, which rose by 8% in 2012 according to official government figures, reaching a healthy $2 billion sum.

This has been largely attributed to positive developments in the country’s economy in recent years, as well as the relative stability and transparency of the sociopolitical landscape under the administration of President Benigno Aquino III.

The Philippine Stock Market, for instance, grew by 30% in 2012, supported by a strong Philippine peso which reached record levels of exchange rates against foreign currencies, peaking at P40.87 against the US dollar in November 2012.

In 2013, the Philippine economy continues its good streak with a 7.8% growth in the first quarter, the fastest in the whole of Asia for this period, beating the performance of larger economies like China.

Last month, global financial service company Nomura also labelled the Philippines as a “low risk” zone for investment in terms of macroeconomics, alongside neighboring Taiwan.

Furthermore, the government continues its public battle against corruption, as well as its drive to attract more investments into the country through various incentives and initiatives.

http://www.abs-cbnnews.com/business/07/03/13/spanish-dairy-company-eyes-more-investments-ph

 

[Malaya]

PHL less risky among Asian economies — Nomura
SIEGFRID O. ALEGADO, GMA News

Sustained growth spurred by tourism, investments, remittances, and business process outsourcing limits the risks faced by the Philippine economy in the coming years compared to its Asian peers, according to global financial services giant Nomura.

Its June 28 report “Asia's rising risk premium,” released on Tuesday, noted Asian economies will be distinguished based on macroeconomic risks when the US Federal Reserve starts scaling back its $85-billion bond buying stimulus.

“The investor preference would be for sustainable growth over fast growth, favoring countries that pursue structural reforms and unwind the loose macro policies... The Philippines stands out in this low-risk category,” the report read.

“[C]ountries either with weak economic fundamentals or that are too slow in normalizing macro policies and implementing structural reforms could struggle to attract investment,” it added.

Nomura groups China, Hong Kong and India “firmly” in the high-risk danger zone category, while Indonesia is at the lower end of high-risk zone.

Korea, Malaysia, Singapore, Thailand and Japan are in the medium risk zone, while Taiwan shares the low risk zone with the Philippines.

Nomura's barometer was largely based on residential property prices, domestic private credit and savings as well as their ratio to a country's output.

“The danger zone does not mean that a financial or balance of payments crisis is imminent,” Nomura clarified.

“But it does mean that, without a move toward less-accommodative macro policies to rein in debt and property markets, and a step-up of structural reforms to boost productivity-enhancing supply, some countries could face a crisis in the next few years,” it added.

Rising investments

By contrast, the Philippines' rising investments, particularly in infrastructure, as well as sustained dollar inflows from remittances and BPOs “continue to be highly supportive of strong growth momentum which looks to be set in motion for the next couple of years,” Nomura said.

Nomura noted that the Philippines is slowly moving towards an investment driven economy. “From a savings/investment perspective, a strong investment cycle is underway, led by private sector capex (capital expenditure) spending,” the report read.

“This rise in investment ratios has been accompanied by higher domestic savings, boosted by a growing middle class, as well as lower fiscal deficits as a result of reforms to improve governance,” it added.

The financial giant expects remittances—already up 5.7 percent year-on-year to $6.916 billion as of end-April—to remain the Philippines' key economic driver on the back of “strong demand for higher-skilled workers.”

Sought for comment, University of Asia and Pacific School of Economics dean Peter U said the Philippines is now “better positioned to face risks.”

“We're at a high point compared to our past. And probably better ,” U told GMA News Online.

The economist said the country will “stay within strong growth trajectory” on the back of government hiking infrastructure spending and private construction.

The country's “fairly healthy” dollar reserves—$82.9 billion as of end-May—provide room for monetary policy moves that can cushion any risks, U noted.

The Philippine economy grew 7.8 percent in the first quarter, the fastest in Asia. — VS, GMA News



Amid uncertain global outlook, Philippine economic managers keep growth targets for now
By: Likha Cuevas-Miel, InterAksyon.com
July 3, 2013

MANILA - The Aquino administration has kept its economic targets for this year and next year, as it took on a cautious stance amid the uncertain global outlook.

"Well i don't think the volatility has really settled down, so the position of the DBCC is to take a conservative approach," Budget Secretary Florencio Abad said on the sidelines of the Development and Budget Coordination Committee (DBCC) meeting, which he chairs.

"Although of course, US and Japan are our top trading partners--and while we are seeing imporvements in their situation--we have not seen it stabilize to a point where we can be confident and make adjustments in our growth assumption," Abad added.

While the government has kept its targets, it is redirecting its efforts from improving governance to creating more jobs by cranking up infrastructure spending.

"Part of the reason for that is that, you know the investments in quality sustainable jobs, will take some time to develop so that in the meantime, while that is happening, you're investing also in projects that generate quick employment, and one of this is infra. So we're going to be rationalizing the infra program because unlike in the past, each agency was worrying about its own infra program," Abad said.

Socioeconomic Planning Secretary Arsensio Balisacan said the government is synchronizing the infrastructure projects across the different agencies.

He said President Benigno Aquino III is anchoring the second half of this administration on "massive employment creation", with construction as the centerpiece.

Balisacan, however, said the government cannot push its plan forward to hike infrastructure spending to five percent of gross domestic product (GDP) before 2016 given that there are other basic services that need attention, such as education and health.

There is also the problem of agencies' absorptive capacity, given that five percent of GDP is equivalent to P800 billion, he said.

http://www.interaksyon.com/business...economic-managers-keep-growth-targets-for-now