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Philippines Defence Forum

France Helps The Philippines Get Respectable Against China
by James Dunnigan
September 15, 2013

The Philippines has turned to France to obtain more offshore patrol ships for its coast guard. The first to arrive (in 2014) is a recently retired P400 class patrol boat. The 373 ton, 54.8 meter (180 foot) long vessel has a crew of up to 29 and two ten-seat small power boats on board. Top speed is 44 kilometers an hour and can stay out up to 20 days at a time. Armament consists of a 40mm and 20mm autocannon, plus two heavy machine-guns and some small arms. The 26 year old P400 will be refurbished before delivery to the Philippines. Total cost to the Philippines will be about $8 million.

Separately, the Philippines is buying a newly built 82 meter (271-foot) patrol ship and four 24 meter (79-foot) patrol boats from France for $120 million. The larger ship is similar to the P400 and meant to patrol hundreds of kilometers off the coast, while the smaller boats are for coastal patrols. The larger vessels will be dealing with even larger ships China is building for patrols off the coast of neighboring countries. China claims all of the South China Sea, including areas very close to the Filipino coast.

France Helps The Philippines Get Respectable Against China
 
PAL returns to Europe via London Nov. 4
By Lawrence Agcaoili (The Philippine Star) | September 16, 2013

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MANILA, Philippines - National flag carrier Philippine Airlines (PAL) is set to return to Europe after a 15-year hiatus by mounting direct flights to London starting November.

PAL is flying directly to the Heathrow Airport five times a week starting Nov. 4 using Boeing 777-300ER.

The national flag carrier earlier sought a green light from the Civil Aeronautics Board (CAB) to impose a $170 fuel surcharge on its international operations from Manila to any country in Europe.

No less than PAL president and chief operating officer Ramon Ang announced last July 10 that the national flag carrier is preparing for the much awaited return to popular European destinations as London, Paris, Frankfurt, Amsterdam, Rome, and Madrid.

Last July 12, the European Union lifted the ban imposed in 2010 after the Civil Aviation Authority of the Philippines (CAAP) addressed major safety concerns raised by the International Civil Aviation Organization (ICAO).

In March of 2010, the 27-member European Commission imposed a ban on Philippine carriers from European airspace for the failure of CAAP to reform the country’s civil aviation system.

In 2008, the safety rating of the Philippines was downgraded by the US FAA upon the recommendation of ICAO to Category 2 from Category 1 after CAAP failed to comply with safety standards for the oversight of air carrier operations.

ICAO lifted the remaining significant security concerns after the Philippines through the CAAP passed the audit conducted from Feb. 18 to Feb. 22, paving the way for the series of upgrades.

PAL senior vice president for operations Ismael Augusto Gozon earlier said the airline is looking at mounting direct flights to two European countries within the year. “We will fly to two European destinations before the end of the year,” Gozon said.

PAL is in the middle of a major refleeting program with an end view of acquiring 100 new aircraft. It has entered into a $9.5 billion contract with the EADS Group for the delivery of 65 aircraft.

PAL entered into a $7 billion deal for the acquisition of 45 A321 and 10 A330-300 last August and exercised an option to acquire 10 more A330-300 worth $2.5 billion last September.

PAL has received two A321-200 last August and expects the delivery of its first A330-300 in the last week of September. In all, PAL would take the delivery of 12 aircraft this year, 17 next year, 10 in 2016, two in 2017, four in 2018, and four in 2019.

PAL is focusing on regional and international destinations as it expanded its code sharing arrangement with affiliate PAL Express (formerly Airphil Express) to cover all domestic routes except Cebu, Kalibo and Davao.

PAL has a fleet of 48 aircraft composed of five Boeing 777-30ER, five Boeing 747-400, six A340-300, eight A330-300, 18 A320-200, four A319-100, and two A321-200 while PAL Express has a fleet of 14 A320, four Bombardier Q300 and four Q400.

SMC through San Miguel Equity Investments Inc. controls about 49 percent of Trustmark Holdings of PAL after infusing $500 million in April of 2012. Trustmark and affiliate Zuma Holdings own PAL Holdings and sister airline AirPhil Express.
 
UK minister for trade and investment visits PH

Monday, September 16, 2013

THE United Kingdom's minister of state for trade and investment arrived in Manila Monday for a three-day visit that will boost the trade and investment relations between the two countries.

A statement from the British Embassy in Manila said that Lord Stephen Green of Hurstpierpoint will be in Manila for three days.

Green is expected to meet various high-level government officials and business leaders in trade, infrastructure and finance "to promote the deepening partnerships between the two countries."

The embassy said he will hold discussions with his counterparts in the Philippine government regarding "a high-level trade Philippine mission to the United Kingdom next month." Green will also meet members of the British Chamber of Commerce regarding a new partnership to support UK companies doing business in the country.

Also, Green will be in Manila "to prepare the ground" for a five-month celebration of the best of British business and culture, which will be organized by the British Embassy in Manila. Such activity is believed to "build mutual prosperity and deeper friendship with the Philippines."

The official will also be holding a range of meetings with senior business leaders to discuss potential commercial opportunities and partnerships."

UK's trade relations with the Philippines are strong and increasing, the embassy said.

The United Kingdom is the highest European and fourth highest overall source of foreign direct investments in the Philippines.

In 2012, total UK exports to the Philippines were up 13% at over £550 million.

British companies have been entering the Philippine market in recent years.

Among the recent successes are the launch of iconic men’s wear brand TM Lewin, the opening of the new Bentley showroom and the entry of Rolls Royce, the start of deliveries of new Airbus planes with major British components following the $7 billion deal with Philippine Airlines, and the tender won by GlaxoSmithKline with the Philippines’ Department of Health for the supply of pneumococcal vaccine this year.

Green began his career with the British government’s Ministry of Overseas Development.(CVB/Sunnex)

UK minister for trade and investment visits Philippines | Sun.Star
 
Philippines leapfrogs 25 places in global biz growth index
By Jovan Cerda (philstar.com) | September 16, 2013

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MANILA, Philippines - The Philippines posted its biggest climb in a global index of dynamic business growth environments, British-based advisory firm Grant Thornton International reported on Monday.

The country leapfrogged by 25 places to land at the 21st spot in this year's Global Dynamism Index (GDI), improving the most among 60 countries included in the report.

“The fast-paced growth of the Philippine economy certainly underlined our substantial rise in this year’s GDI. This means our business growth environment improved quicker than any other country in 2012,” said Marivic Españo, chair and chief executive officer of Punongbayan & Araullo (P&A), the Grant Thornton member firm in the Philippines.

Among countries in the Association of Southeast Asian Nations included in the report, the country ranked behind Singapore (7th), Malaysia (13th) and Thailand (19th), and ahead of Vietnam (27th).

Australia, Chile, China, New Zealand and Canada topped the list while Ukraine, Italy, Kenya, Algeria and Greece placed at the bottom.

On the area of economics and growth, the Philippines jumped by 11 places to tie at fourth place with Peru. It posted the biggest improvement in terms of labor and human capital, galloping by 40 places to rank fifth globally.

“I think the key point here is that the Philippines is starting to realize its potential domestically. Aside from remittances, which have recovered well since the global financial crisis, private construction and government spending on infrastructure contributed to our above-target expansion. Domestic demand in the form of private investment and consumer growth has also helped the country outpace its Southeast Asian neighbors, which are showing signs of slowing down,” Españo said.

In terms of science and technology, however, the country ranked 51st, indicating the lack of infrastructure improvements needed for businesses to expand. P&A said while spending on information technology improved by 9.5 percent last year, it only translated to 0.1 percent of the country's gross domestic product, the fourth lowest among the 60 economies studied.

“The government recognizes that local infrastructure needs to be improved. Eighty public-private partnerships with around $17.6 billion of capital to boost the investment environment were supposed to be launched between 2011 and 2016, but progress is well behind schedule. Add to this a rank of 44 for business operating environment, which looks at how easy and risky it is to operate in an economy, and you can clearly see there is some room for improvement,” Españo said.

“The good news is that both total and worker output is expanding rapidly. The key now is to combine this growth with infrastructure and operating environment improvements. With the right mix of policies in place, our economy could offer even more opportunities for dynamic businesses,” she added.

Philippines leapfrogs 25 places in global biz growth index | Business, News, The Philippine Star | philstar.com
 
Japannese hair styling wax maker eyes 30 pct growth in Philippines
By: Darwin G. Amojelar, InterAksyon.com
September 16, 2013

MANILA - The Philippine unit of a Japanese manufacturer of cosmetics and toiletries expects sales to grow more than 30 percent this year with the launch of new products.

"We are hoping that we will be able to grow more than 30 percent because of these products," Patricia Gregorio, marketing manager of Mandom Philippines Inc, last week said, referring to among others its hair styling wax, which accounts for 80 percent of its local business.

"We are doing good [in the Philippines], the [hair] styling wax is our killer brand. More than 80 percent of our business is styling wax," she told reporters.

Last year, the company earned more than P500 million in the Philippines.

The company has expanded its portfolio from hair style products to body care, facial wash and fragrances, targeting males aged 20 to 35 years old.

Mandom Philippines, the manufacturer of Gatsby hair styling wax, last Friday launched its new product called Gatsby Deodorant Acua, an all over body deodorant.

"Most of our products are manufactured in Indonesia, but Deo Acqua is manufactured in Japan," Gregorio said.

Besides Japan and Indonesia, Mandom also manufactures in China.

"Our products are very affordable and comparable to locally made cologne, targeting the mass market," Gregorio said.

The Mandom Group, which is based in Japan has nine consolidated subsidiaries in eight Asian countries, namely, the Philippines, China, Hong Kong, Indonesia, Malaysia, Korea, Singapore, Taiwan and Thailand.



Philippines clocks up biggest improvement in business dynamism -- Grant Thornton survey
By: Darwin G. Amojelar, InterAksyon.com
September 16, 2013

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MANILA - The Philippines catapulted to the 21st spot among 60 countries ranked for the dynamism of their business climates.

In its Global Dynamism Index (GDI) 2013, Grant Thornton said the Philippines jumped 25 notches to land on the 21st place in the annual ranking.

According to Grant Thornton, dynamism refers to the changes in an economy over the past 12 months that are likely to lead to a fast rate of future growth. The GDI is based on the assessment of five key areas: business operating environment, science and technology, labor and human capital, economics and growth, as well as financing environment.

“The fast-paced growth of the Philippine economy certainly underlined our substantial rise in this year’s GDI,” said Marivic Españo, chief executive officer of Punongbayan & Araullo (P&A), the Philippine member-firm in the Grant Thornton Group.

“This means our business growth environment improved quicker than any other country in 2012,” Españo said.

In the area of economics and growth, the Philippines moved up 11 places to rank fourth overall. The country’s economic growth last year was the third highest among the 60 economies surveyed, with private consumption growth of 9.8 percent being the 10th highest globally.

The country registered its biggest improvement in the area of labor and human capital, rising 40 places to join the world's top five behind China, Australia, Thailand and Indonesia.

This means the Philippines' labor force is the fifth best in the world for growing businesses. The boost was driven by labor productivity growth of 5.4 percent, next only to the 7.4 percent increase in China.

“I think the key point here is that the Philippines is starting to realize its potential domestically,” said Españo.

“Aside from remittances, which have recovered well since the global financial crisis, private construction and government spending on infrastructure contributed to our above-target expansion. Domestic demand in the form of private investment and consumer growth has also helped the country outpace its Southeast Asian neighbors, which are showing signs of slowing down," she said.

The Philippines however didn't fare as well as in the area of science and technology, where it ranked 51st. This, as IT spending increased 9.5 percent last year, to 0.1 percent of GDP, or the fourth lowest among the 60 countries polled.

“The government recognizes that local infrastructure needs to be improved,” Españo said.

“Eighty public-private partnerships with around $17.6 billion of capital to boost the investment environment were supposed to be launched between 2011 and 2016, but progress is well behind schedule. Add to this a rank of 44 for business operating environment, which looks at how easy and risky it is to operate in an economy, and you can clearly see there is some room for improvement,” she said.

“The good news is that both total and worker output is expanding rapidly. The key now is to combine this growth with infrastructure and operating environment improvements. With the right mix of policies in place, our economy could offer even more opportunities for dynamic businesses,” Españo added.

Grant Thornton is an international tax and auditing firm.

Philippines clocks up biggest improvement in business dynamism -- Grant Thornton survey - InterAksyon.com
 
Malaysia backs Philippines' bid for peace in Mindanao
09/17/2013

MANILA, Philippines - The Philippine embassy in Kuala Lumpur yesterday welcomed Malaysia's expression of confidence in the Philippine government’s resolve to restore peace in Zamboanga.

The embassy also welcomed Malaysia’s reaffirmation of its commitment to the ongoing peace process in Mindanao.

In a statement issued last Wednesday, Foreign Minister Anifah Aman stated that Malaysia will not meddle in the conflict between elements of the Moro National Liberation Front (MNLF) and Philippine security forces in Zamboanga.

Anifah said Malaysia is confident that Manila would restore peace in the affected area.

“As facilitator to the peace process between the Philippine government and the Moro Islamic Liberation Front (MILF), Malaysia is committed to resolve the southern Philippine conflict in a peaceful manner that will benefit all, in particular Filipinos in Mindanao,” Anifah said.

In a symposium last June at Kuala Lumpur’s Institute of Islamic Understanding, Prime Minister Najib Razak called for a permanent solution to the problems of indigenous Muslim minorities in its neighboring countries, referring to Muslims in Mindanao, southern Thailand and Myanmar.

“These Muslims should be made to understand that they must live under current national governments… and must recognize the true responsibilities within the current nation-states and contribute the utmost to the moral and socioeconomic strengths of the nation,” Najib said.

Najib added that Muslim minorities “must eschew violence and forget this idea of having an independent Muslim state, which is not realistic. Muslims must also understand the sensitivities of non-Muslim as well.”

Widening division

Datu Dima Ambil, chairman of the Sebangen Kutawato Revolutionary State of the MNLF’s “Sema Group,” yesterday assured the police and military that his followers are ready to help quell, even by force, any attempt to create trouble by Nur Misuari’s followers in any part of Central Mindanao.

Ambil made the statement amid reports that the deadly forays of Misuari’s men in Zamboanga City and Basilan have widened the factional divide between his group and the Sema group – the largest, most politically active faction in the MNLF.

Ambil belongs to the MNLF faction led by former Cotabato City vice mayor Muslimin Sema, which has 20 “revolutionary states” scattered across Central Mindanao and Moro-dominated southern island provinces.

“We will fight them because our 1996 peace agreement with government enjoins us to help government address peace and security issues in areas covered by the agreement. It’s a big shame for us to just look at them do travesty to that agreement,” said Ambil.

Ambil said they are opposed to the hostile activities going on now in Zamboanga City and Basilan of the MNLF Misuari group, which is largely composed of ethnic Tausugs from mainland Sulu and a handful of Yakans from Basilan.

“We do not like it. We will never support any violent action they are instigating just to catch attention,” Ambil said. “We will not stop from recognizing and upholding the Sept. 2, 1996 government-MNLF final peace agreement, whose initial dividends are now being felt by our members in North Cotabato.”

Meanwhile, Sema said key officials of the MNLF opposing the hostile actions of Misuari and his men will hold a “revolutionary conclave” today to draft a manifesto reaffirming their recognition of the Sept. 2, 1996 government-MNLF final peace accord and renouncing him for good.

“This is a follow up to our position to just stand down and not participate in any of the ‘acts of war’ being done by Misuari’s group,” Sema said yesterday. – With John Unson, Ramil Bajo, Ben Serrano, Gerry Lee Gorit, Alexis Romero

Malaysia backs Philippines' bid for peace in Mindanao | ABS-CBN News



'Zamboanga conflict won't affect PH economy'
by Alvin Elchico, ABS-CBN News
MANILA, Philippines - Finance Secretary Cesar Purisima does not see the Zamboanga siege affecting the economy.

Purisima said once the standoff is resolved, Mindanao will have higher growth potential.

Asked what happens if the conflict lingers, Purisima maintained the Zamboanga incident is isolated. He expressed hope the issue will be resolved soon.

“Geographically, the area that has issues is closer to other ASEAN nation than in Manila. And we see business usual on the other side of Mindanao. Mindanao is a big island and the area that has some issues is just a small portion,” Purisima said.

Mindanao contributes around 40% of the Philippines' total annual agricultural output and 20% of the economy's gross domestic product.

"Mindanao is a window of opportunity for the country that's why President Aquino has been committed to achieving peace in that area," the DOF chief added.

'Zamboanga conflict won't affect PH economy' | ABS-CBN News
 
Philippines, US to start joint military drills
The Philippines and the United States are to start joint military drills near the disputed South China Sea waters.

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The United States (US) Navy Wasp Class Amphibious Assault Ship USS Boxer is guided by tugboats as it docks at the Subic Bay Freeport Zone yesterday

The joint Philippines-US Amphibious Landing Exercise (Phiblex) is slated to begin on September 18 at a naval base in Zmabale Province in the western coast of Luzon island.

Some 2,300 American and Filipino marines are to take part in the annual military exercise, which will last three weeks.

The drills came as the allies are laying the groundwork for expanding the presence of US forces in the Philippines, a move which could fuel the current tensions with China.

Tensions between the Philippines and China started on April 8, 2012 following a naval standoff between the two countries in the South China Sea over the region’s shoal, which both sides claim as their territory.

China has time and again criticized the Philippines for refusing to stop the territorial dispute and seeking to expand US military presence in the region.

PressTV - Philippines, US to start joint military drills



Japanese warships dock in Manila port
By Frances Mangosing
INQUIRER.net
Tuesday, September 17th, 2013

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MANILA, Philippines– Two Japanese warships have docked in Manila for a two-day port call.

In a statement, the Philippine Navy said on Tuesday that JS Akebono (DD-108) and JS Hamagiri (DD-155) of the Japanese Maritime Self Defense Force Escort Six Division headed by Captain Tsutomu Iwasawa arrived at the port of Manila last Sunday.
The visit will be until today, Tuesday.

“The purpose of the visit was for re-provisioning and rest of crew before it heads back to Japan,” the Navy said.

Captain Iwasawa and his party visited the Navy Headquarters and paid a courtesy call to the Chief of Naval Staff, Rear Admiral Jesus Millan. The Navy also hosted a welcome reception for the officers and crew of the ships.

The ships came from counter-piracy operations in the Gulf of Aden near Arabian Sea before it arrived to the Philippines.

The visit was expected to promote stronger ties and military cooperation between the Philippine Navy and Japan Maritime Self Defense Force.

Both Japan and the Philippines share a rival claimant in China. Last June, defense ministers of both countries met to step up their “strategic partnership in the field of defense, particularly in maritime affairs.

The Philippines is engaged in a dispute with China over the West Philippine Sea (South China Sea), while Japan and China have a maritime row over Senkaku (known Diaoyu) in the East China Sea.
 
Two drillings in Galoc indicate bigger reserve

The Galoc oil field in northwest Palawan may contain an additional 12 million to 15 million barrels of oil based on the preliminary results of new drilling on two wells, an industry source said Friday.

The source said the additional reserves would bring the current level of production at the Galoc field to 10,000 to 15,000 barrels a day from the current 5,000 to 6,000 barrels.

The Galoc field is located in Service Contract SC14C. Two wells, Galoc-5H and Galoc-6H, are being drilled within the existing producing field that has delivered over 10 million barrels of oil since its commissioning in 2008. Oil from the Galoc field is sold to Asia Pacific refinery customers.

The Galoc oil field is expected to remain in production beyond 2020.

The second phase of drilling started on June 4 and is expected to be completed after 115 days, including the flowing of the wells for cleanup. First oil from the expansion is expected during the fourth quarter this year.

Two drillings in Galoc indicate bigger reserve - Manila Standard Today



Korean firms to invest
September 16, 2013

COMPANIES from Chungnam province, Korea, are willing to invest in the Philippines to expand their global operations, some of the firms said yesterday.

During the Korean Trade Mission meeting yesterday at the Intercon Hotel in Makati City, Yun-Gi Ha, director at cutting machine manufacturer Hi-Worth Co., Ltd., said that his company plans to partner with a local welding machine manufacturer and invest 500 million (about P20.1 million) from 2015 to 2017.

“We’re planning to form a partnership with a Filipino company. At the first level, which is from the beginning to the next two years, we plan to invest half a billion Korean won, so that’s 1 billion for the partnership,” Mr. Ha told BusinessWorld. He that the amount would double by 2017.

Mr. Ha noted that as part of the investment, the company will also build a factory that will house at least 50 locals and 10 Korean engineers in 2015.

“It will double after two years,” he added.

“The Philippines is one of the biggest markets that we are currently looking at, specifically because it has a big sheet-production industry,” Mr. Ha said.

Cosmetics manufacturer Juhwan Bio.Cell Co., Ltd. Marketing Business Manager Hong Kyun said that his company will spend $100,000 on promotions and exhibits of its cosmetic products.

“We are looking for one distributor here in the Philippine market. We are looking for just one because many distributors would haggle for lower prices,” Mr. Kyun said, noting that investments would start the moment the company has struck a distribution deal with a Filipino cosmetics firm.

Paint and cosmetics producer DongYang E&P Co., Ltd. Chairman and Chief Executive Officer Kang-Jung Jin said that the company will invest 3 billion in the Philippines, depending on the condition of the market.

“We will be focusing on architecture and the beauty product industry; we need a partner which has a high ability to sell our products in the Philippines,” Mr. Jin said.

“We will invest in the Philippines, but we first need to check the entire condition of the market of the Philippines. We will decide with the partner [firm], that’s why we first need to find a partner,” he said.

Dong-ho Kim, director of vitamin manufacturer FNBio Co. Ltd., noted that his company is still studying the Philippine market before proceeding to investment.

“Our plan is to export our products and enter the Philippine market. But, I’m not sure about the exact amount of investment, because we need to do the market research first,” Mr. Kim said.

“We are still studying if we could create a market (store) in the Philippines or just export our products,” he added.

One company, Daesung Metal Printing Co., Ltd. declined to be interviewed.

The trade mission was organized by the Korean Trade-Investment Promotion Agency (Kotra), Small and Medium Business Corp. (SBC), and the Chungnam local government.

According to Jinhee Park, an organizer of the event, the purpose of the trade mission is to help Korean companies find prominent buyers, importers and distributor agents to discuss possible market entry of their products.

“In the national level, we do this twice or thrice a year,” Ms. Park said.

A Korean trade mission was also set by the organizers last July, when nine companies from the Gyeongsangbuk-do province participated. -- Lorenz Christoffer S. Marasigan

Korean firms to invest | BusinessWorld Online



Australian company to raise fund for Cebu oil wells
By Alena Mae S. Flores | Posted on September 17, 2013

Gas2Grid Ltd. of Australia said Monday it will raise $1.625 million through a private placement to fund an oil and gas exploration program at the Malolos-1 well in Cebu province, as the company looks for partners in the project.

Gas2Grid said in a disclosure to the Australian Stock Exchange the private placement involved 73.88 million ordinary shares at $0.022 per share.

“The funds raised will be applied to exploration and appraisal, including flow testing oil at Malolos-1 well in order to convert some contingent resource into reserves (at Service Contract 44), exploration at St. Griede in Aquitaine Basin in France and general working capital,” the company said.

Gas2Grid reported in June a significant oil recovery from two sandstone intervals at Malolos-1 followed by an initial assessment of the volume potential within the Malolos field.

It said an estimate of “contingent resource” for oil in place in the two lower oil productive sandstones indicated a range between a “low estimate” of 4 million barrels and a “high estimate” of 42 million barrels, with a “best estimate” of 12 million barrels of total oil initially in place.

“The forward plan is to conduct a longer-term production test of the two oil bearing sandstone intervals with the aim of moving some of the contingent resource of oil in a reserve category and also gather technical data to help plan field development,” Gas2Grid said.

Australian company to raise fund for Cebu oil wells - Manila Standard Today

Two drillings in Galoc indicate bigger reserve

The Galoc oil field in northwest Palawan may contain an additional 12 million to 15 million barrels of oil based on the preliminary results of new drilling on two wells, an industry source said Friday.

The source said the additional reserves would bring the current level of production at the Galoc field to 10,000 to 15,000 barrels a day from the current 5,000 to 6,000 barrels.

The Galoc field is located in Service Contract SC14C. Two wells, Galoc-5H and Galoc-6H, are being drilled within the existing producing field that has delivered over 10 million barrels of oil since its commissioning in 2008. Oil from the Galoc field is sold to Asia Pacific refinery customers.

The Galoc oil field is expected to remain in production beyond 2020.

The second phase of drilling started on June 4 and is expected to be completed after 115 days, including the flowing of the wells for cleanup. First oil from the expansion is expected during the fourth quarter this year.

http://manilastandardtoday.com/2013/09/14/new-drillings-in-galoc-indicate-bigger-reserve/



Korean firms to invest
September 16, 2013

COMPANIES from Chungnam province, Korea, are willing to invest in the Philippines to expand their global operations, some of the firms said yesterday.

During the Korean Trade Mission meeting yesterday at the Intercon Hotel in Makati City, Yun-Gi Ha, director at cutting machine manufacturer Hi-Worth Co., Ltd., said that his company plans to partner with a local welding machine manufacturer and invest 500 million (about P20.1 million) from 2015 to 2017.

“We’re planning to form a partnership with a Filipino company. At the first level, which is from the beginning to the next two years, we plan to invest half a billion Korean won, so that’s 1 billion for the partnership,” Mr. Ha told BusinessWorld. He that the amount would double by 2017.

Mr. Ha noted that as part of the investment, the company will also build a factory that will house at least 50 locals and 10 Korean engineers in 2015.

“It will double after two years,” he added.

“The Philippines is one of the biggest markets that we are currently looking at, specifically because it has a big sheet-production industry,” Mr. Ha said.

Cosmetics manufacturer Juhwan Bio.Cell Co., Ltd. Marketing Business Manager Hong Kyun said that his company will spend $100,000 on promotions and exhibits of its cosmetic products.

“We are looking for one distributor here in the Philippine market. We are looking for just one because many distributors would haggle for lower prices,” Mr. Kyun said, noting that investments would start the moment the company has struck a distribution deal with a Filipino cosmetics firm.

Paint and cosmetics producer DongYang E&P Co., Ltd. Chairman and Chief Executive Officer Kang-Jung Jin said that the company will invest 3 billion in the Philippines, depending on the condition of the market.

“We will be focusing on architecture and the beauty product industry; we need a partner which has a high ability to sell our products in the Philippines,” Mr. Jin said.

“We will invest in the Philippines, but we first need to check the entire condition of the market of the Philippines. We will decide with the partner [firm], that’s why we first need to find a partner,” he said.

Dong-ho Kim, director of vitamin manufacturer FNBio Co. Ltd., noted that his company is still studying the Philippine market before proceeding to investment.

“Our plan is to export our products and enter the Philippine market. But, I’m not sure about the exact amount of investment, because we need to do the market research first,” Mr. Kim said.

“We are still studying if we could create a market (store) in the Philippines or just export our products,” he added.

One company, Daesung Metal Printing Co., Ltd. declined to be interviewed.

The trade mission was organized by the Korean Trade-Investment Promotion Agency (Kotra), Small and Medium Business Corp. (SBC), and the Chungnam local government.

According to Jinhee Park, an organizer of the event, the purpose of the trade mission is to help Korean companies find prominent buyers, importers and distributor agents to discuss possible market entry of their products.

“In the national level, we do this twice or thrice a year,” Ms. Park said.

A Korean trade mission was also set by the organizers last July, when nine companies from the Gyeongsangbuk-do province participated. -- Lorenz Christoffer S. Marasigan

http://bworldonline.com/content.php?section=Economy&title=Korean-firms-to-invest&id=76550



Australian company to raise fund for Cebu oil wells
By Alena Mae S. Flores | Posted on September 17, 2013

Gas2Grid Ltd. of Australia said Monday it will raise $1.625 million through a private placement to fund an oil and gas exploration program at the Malolos-1 well in Cebu province, as the company looks for partners in the project.

Gas2Grid said in a disclosure to the Australian Stock Exchange the private placement involved 73.88 million ordinary shares at $0.022 per share.

“The funds raised will be applied to exploration and appraisal, including flow testing oil at Malolos-1 well in order to convert some contingent resource into reserves (at Service Contract 44), exploration at St. Griede in Aquitaine Basin in France and general working capital,” the company said.

Gas2Grid reported in June a significant oil recovery from two sandstone intervals at Malolos-1 followed by an initial assessment of the volume potential within the Malolos field.

It said an estimate of “contingent resource” for oil in place in the two lower oil productive sandstones indicated a range between a “low estimate” of 4 million barrels and a “high estimate” of 42 million barrels, with a “best estimate” of 12 million barrels of total oil initially in place.

“The forward plan is to conduct a longer-term production test of the two oil bearing sandstone intervals with the aim of moving some of the contingent resource of oil in a reserve category and also gather technical data to help plan field development,” Gas2Grid said.

http://manilastandardtoday.com/2013/09/17/australian-company-to-raise-fund-for-cebu-oil-wells/
 
Philippines leapfrogs 25 places in global biz growth index
By Jovan Cerda (philstar.com) | September 16, 2013

makati.jpg


MANILA, Philippines - The Philippines posted its biggest climb in a global index of dynamic business growth environments, British-based advisory firm Grant Thornton International reported on Monday.

The country leapfrogged by 25 places to land at the 21st spot in this year's Global Dynamism Index (GDI), improving the most among 60 countries included in the report.

“The fast-paced growth of the Philippine economy certainly underlined our substantial rise in this year’s GDI. This means our business growth environment improved quicker than any other country in 2012,” said Marivic Españo, chair and chief executive officer of Punongbayan & Araullo (P&A), the Grant Thornton member firm in the Philippines.

Among countries in the Association of Southeast Asian Nations included in the report, the country ranked behind Singapore (7th), Malaysia (13th) and Thailand (19th), and ahead of Vietnam (27th).

Australia, Chile, China, New Zealand and Canada topped the list while Ukraine, Italy, Kenya, Algeria and Greece placed at the bottom.

On the area of economics and growth, the Philippines jumped by 11 places to tie at fourth place with Peru. It posted the biggest improvement in terms of labor and human capital, galloping by 40 places to rank fifth globally.

“I think the key point here is that the Philippines is starting to realize its potential domestically. Aside from remittances, which have recovered well since the global financial crisis, private construction and government spending on infrastructure contributed to our above-target expansion. Domestic demand in the form of private investment and consumer growth has also helped the country outpace its Southeast Asian neighbors, which are showing signs of slowing down,” Españo said.

In terms of science and technology, however, the country ranked 51st, indicating the lack of infrastructure improvements needed for businesses to expand. P&A said while spending on information technology improved by 9.5 percent last year, it only translated to 0.1 percent of the country's gross domestic product, the fourth lowest among the 60 economies studied.

“The government recognizes that local infrastructure needs to be improved. Eighty public-private partnerships with around $17.6 billion of capital to boost the investment environment were supposed to be launched between 2011 and 2016, but progress is well behind schedule. Add to this a rank of 44 for business operating environment, which looks at how easy and risky it is to operate in an economy, and you can clearly see there is some room for improvement,” Españo said.

“The good news is that both total and worker output is expanding rapidly. The key now is to combine this growth with infrastructure and operating environment improvements. With the right mix of policies in place, our economy could offer even more opportunities for dynamic businesses,” she added.

Philippines leapfrogs 25 places in global biz growth index | Business, News, The Philippine Star | philstar.com
Guess China bananas move doesn't effect Philippines economy growth.
 
Guess China bananas move doesn't effect Philippines economy growth.
No not even when they are trying to sabotage our economy by targeting agricultural export and the tourism industry in the country.

Fresh growth upgrades for the Philippines
October 08, 2013

THE WORLD BANK (WB) has hiked its growth forecasts for the Philippines, which is expected to be buoyed by robust fundamentals amid a challenging global and regional outlook.

In its East Asia and Pacific Economic Update released yesterday, the bank said it expected gross domestic product (GDP) growth of 7% this year, up from the 6.2% projected in April.

The expansion will likely ease to 6.7% next year and pick up to 6.8% in 2015. The new 2014 outlook is still higher than the 6.4% previously held by the bank.

Both the updated 2013 and 2014 projections are within the government’s 6-7% and 6.5-7.5% growth goals for those years. The 2015 forecast, on the other hand, falls below the 7-8% target.

“The Philippines is bucking the trend in the rest of the region, mainly on the back of private consumption, increased spending by the government, the continued solid expansion of the services and industry sectors, and public and private investments as was seen in the first half,” said Rogier van den Brink, WB lead economist for the Philippines, in a briefing.

“Over the medium term, all these are expected to continue and this will make for a very good performance for the country,” he added.

The bank’s improved outlook for the Philippines came as it cut its 2013 and 2014 growth forecasts for developing East Asia to 7.1% and 7.2%, respectively, from 7.8% and 7.6% previously. The region, however, is still expected to be among the main drivers of the global economy. The WB likewise slashed its outlook for the Association of Southeast Asian Nations to 5.1% for this year and the next from 5.4% and 5.7%, respectively.

“The regional forecasts are a bit down from six months ago as domestic demand has disappointed compared to earlier expectations,” said Bert Hofman, the bank’s chief economist for the East Asia and Pacific Region, via a video conference.

Mr. Hofman said that going forward, one risk to the regional outlook would be the US Federal Reserve’s tapering of its stimulus program, which could “impact capital flows and suppress domestic demand, and in turn the region’s capacity for medium-term growth.”

An economic slowdown in China could also affect export demand. Meanwhile, gradual recoveries in the United States and Japan would provide “a bit of a tailwind” because of their high trade share in East Asian economies, he said.

“However, countries in the region would now need to be better prepared for potentially disruptive adjustments. Structural reforms are needed across the region, such as the improvement of investment climates and infrastructure,” Mr. Hofman noted.

Central banks and governments in the region must also be prepared to manage their fiscal and monetary policies to manage risks resulting from global headwinds, the WB said. In the Philippines’ case, it said the country remained relatively shielded.

“The country’s strong macroeconomic fundamentals, characterized by low and stable inflation, healthy external balance and stronger government finances have continued to shield the economy from the persistent weaknesses of the global economy,” the report states.

“Going forward, the government needs to focus its attention on generating higher, sustained, and more inclusive growth -- the type that creates more and better jobs and reduces poverty.”

Mr. van den Brink said bankrolling and institutionalizing these reforms would require “a broad coalition” between different sectors. “The government and private sector must work to lock in this inclusive growth path, these reforms, which cut across a wide range of issues,” he noted.

Reform initiatives the country must embark on include those that will enhance competition, protect property rights, simplify business regulations and increase investments in infrastructure, education and health. In particular, the country’s tax system can still be tweaked to help improve the investment climate as well as shore up much-needed revenues for the government, Mr. van den Brink said.

“The system is very much set up to make it difficult for citizens to pay and for the government to collect taxes ... The government must improve the administration of the system first,” he noted.

Tax loopholes, he added, must also be plugged.

“[T]ax breaks -- the fiscal incentives bill could address that. It’s a transparency principle that’s behind it. The first step would be to make tax system simpler, more transparent, and level the playing field,” Mr. van den Brink said.

These would go hand in hand with other public finance reforms such as improving customs administration to minimize smuggling and enhancing accountability and transparency with regard to the budget.

Spending, said Mr. van den Brink, must also be done prudently and be targeted towards sectors such as health, education, and infrastructure, which could generate employment and attract investments.

“The macroeconomic framework of the Philippines at the moment is quite good, both on the fiscal and monetary sides. We would urge the government to continue on this path while continuing to be watchful of risks that could emerge over the medium term,” he said.

The downside risks to growth include a slower global recovery, uncertainties in advanced economies as stimulus programs are withdrawn, potential asset bubbles in the real estate sector and a lag in domestic reforms, the World Bank said.

http://www.bworldonline.com/content.php?section=TopStory&title=Fresh-growth-upgrades-for-the-Philippines&id=77607



Outsourcing revenues seen to reach $16 B
By Louella D. Desiderio (The Philippine Star) | Updated October 8, 2013

MANILA, Philippines - The Information Technology Business Processing Association of the Philippines (IBPAP) expects to exceed its revenue and employment targets this year as more companies from overseas prefer the Philippines as the location for outsourcing operations.

In a press conference held during the 5th International Outsourcing Summit yesterday, IBPAP president Jose Mari Mercado said the group expects revenues to reach $16 billion this year, 21 percent higher than the $13.2 billion last year.

The projection, he said, is above its target of 19 percent growth or revenues worth $15.7 billion.

He said the group also expects to go above the employment target of 925,000 or up 19 percent from last year’s 777,000, with the total information technology business process management (IT-BPM) workforce seen to reach 960,000 by the end of the year.

“These are the numbers we are seeing,” he said.

The group expects to exceed its targets as the country remains to be the preferred destination for voice as well as non-voice services.

IBPAP chairman Danilo Sebastian Reyes said the country is now well-positioned to serve the requirements of companies across different geographies.

“There is really pinpointed request for Philippines not just for voice but for higher value non-voice services. I think we have been quite successful in marketing the Philippines as providing full service,” he said.

“Many companies see the capacity of Filipino workers to service their requirements,” he added.

The group does not see the US shutdown affecting the revenues and employment to be generated by the industry this year.

“It is too early to assess. In my view, I think the shutdown will be resolved soon so as a result there will no impact to the industry,” Mercado said.

This, even as 70 percent of the IT-BPM industry’s revenues last year were accounted for by the US market.

Reyes said the IT-BPM industry has been looking for new markets.

In the same event, Department of Science and Technology (DOST) Information and Communications Technology Office deputy executive director Monchito Ibrahim said the country is on track to achieve the $25 billion revenue target and 1.3 million employees goal by 2016.

“What’s more challenging is the new target given by the President,” he said.

He noted that President Aquino who wants the country to achieve inclusive economic growth, has given the IT-BPM industry a target of increasing the workforce count in the provinces to account for 40 percent of operations, and have 60 percent remain in Metro Manila by 2016.

Currently, 73 percent of IT-BPM workers are in Metro Manila while the balance is accounted for by the provinces.

He also said that as part of preparations for the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) to be established by 2015, the Philippines would like to work with other members to market the region an IT-BPM hub.

Mercado said the IBPAP is working on a road map to promote the ASEAN as an IT hub with other countries in the region.

“Even if we will be marketing the region, we are confident because of our track record of being number one in voice and being a reliable provider of service,” he said.

http://www.philstar.com/business/2013/10/08/1242597/outsourcing-revenues-seen-reach-16-b
 
The road to a bully-free Philippines
10/08/2013

On September 12, 2013, President Aquino signed into law Republic Act No. 10627, or the Anti-Bullying Act of 2013. In a nutshell, the law prohibits bullying or any severe or repeated act which has any of the following effects: Causing physical or emotional harm; Creating a hostile environment at school; Infringing on another’s rights; and Substantially disrupting the orderly operation of a school.

Bullying under the law takes place only among elementary or high school students, whether or not of the same school, whether or not within school premises, and whether or not at a school-sanctioned event. Hence, bullying involving a college student, or one committed by or against a teacher, is not covered. Department of Education (DepEd) Order No. 40, or the Department of Education Child Protection Policy addresses the latter.

Cyberbullying now illegal

It is worthy to note that the fact that bullying can be committed outside school premises means that cyberbullying, or bullying done through electronic means, is amply covered. Accessing a computer at home away from school in order to bully another will not provide refuge to the offender.

In addition to defining the prohibited act and giving examples thereof, the law imposes an obligation on elementary and secondary schools to craft and publish within school premises and website their respective policies against bullying. The same must incorporate mandatory provisions on the redress of grievance and prevention of injury caused by bullying, which include:

Sanctions against the offender, which sanctions must be commensurate to the act done;
A rehabilitation program for both the offender and the victim, joined by their parents; and
Procedures for the prompt and effective response to bullying.
Also, all teachers and members of the school administration now have a duty to immediately report any instance of bullying that may come to their attention. These incidents, in turn, will have to be reported to DepEd every first week of each school year beginning school year 2014-2015.

Lastly, schools have six (6) months from the effectivity of the law within which to submit to DepEd their RA 10627-compliant anti-bullying policies.

Public school teachers and administrators who fail to perform a duty under the law will be imposed administrative sanctions, while private school teachers and employees will be dealt with in accordance with the procedure of their own schools. The license to operate of erring private schools will likewise be suspended.

A good start

Although the law is only limited to elementary and secondary schools, it is a welcome development.

At this point, no one questions the horrible outcomes of bullying. If the victim is unable to return to normal and integrate into society, he either dies or survives without self-esteem. The latter means that the victim is a shell without the human spirit—unable to dream and reach his potential. Worse, he feeds off on healthier spirits, slowly transforming into a bully himself. As a result, gifts and talents remain hidden. Leaders shirk. No street is safe. Society then is marred by mediocrity and defeat.

A government that claims progress is at hand yet fails to acknowledge the issue is indeed to be doubted. After all, a competitive nation is characterized by creation, not destruction.

State policy

Given the dangers, the fight against bullying has always had legal underpinnings. The Constitution provides that the State has a duty to defend children from all forms of “abuse, cruelty, exploitation, and other conditions prejudicial to their development,” [Article XV, Sec. 3(2)], and to assure them of “quality education at all levels.” (Article XIV, Sec. 1) Certainly, education, much less quality education, is a myth when bullying thrives and makes the atmosphere hardly conducive to learning.

The Convention on the Rights of the Child, to which the Philippines became a signatory in 1990, states that the “best interests of children” must be the primary concern of all governments when making decisions affecting them. It is in the best interests of children to be “protected from being hurt and being mistreated, physically or mentally.” (Art. 19)

In line with the Constitution and our international commitment towards children welfare, we have enacted domestic legislation. Presidential Decree No. 603, or the Child and Youth Welfare Code states that “[e]very child has the right to a well-rounded development of his personality to the end that he may become a happy, useful and active member of society.” To attain this, every child should be protected against “conditions or circumstances prejudicial to his physical, mental, emotional, social and moral development.”

The Family Code, on the other hand, imposes on the parents and those exercising substitute parental authority the duty to “enhance, protect, preserve and maintain (the child’s) physical and mental health at all times.”

Given that bullies are often a reflection of the precept and example set by their parents, parents have a duty to “prevent (children) from acquiring habits detrimental to their health, studies and morals.”

At par globally

Today, we have successfully added to these the new law against bullying, in line with the Constitution and our international commitment. In so doing, we have placed ourselves on the map in terms of global competitiveness and innovation along with nations like the United States, where a majority of states have an anti-bullying law, and Japan, whose anti-bullying law dates back to a decade earlier in 2001.

Plainly, we are all stakeholders in the matter. We must see to it that underway are more measures to curb, if not totally obliterate, this evil. With the new law, the first of its kind, we are a step closer to a bully-free Philippines. In an advanced civilization, being bullied does not reflect poorly on the victim. It reflects poorly on society.

The road to a bully-free Philippines
 
PH planning to acquire 3 submarines, other military assets - report
October 7, 2013

MANILA - The Philippines plans to acquire three submarines and among many other military assets, Northern Luzon Command head Major Gen. Gregorio Pio Catapang says in a paper cited by the state-run Philippine News Agency.

PNA quoted Catapang as noting that submarines, by their inherent stealth capabilities, may be deployed to monitor and protect the country's extensive maritime domains. The vessels being eyed are conventional-powered or diesel-electric types, and not the nuclear-powered ones.

Also supposedly being eyed is the acquisition of six frigates for anti-air warfare, 12 corvettes for anti-submarine warfare, 18 offshore patrol vessels, and three anti-mine warfare ships.

The PNA said Catapang's paper did not specify when and how much it will cost the Philippines to complete these acquisitions.

An earlier Philippine Navy (PN) study revealed that some P497 billion is needed to fully upgrade its fleet.

Once it has this money, the Navy will acquire the above-mentioned items along with four sealift vessels, 18 landing craft utility vessels, three logistics ships, 12 coastal interdiction patrol boats, 30 patrol gunboats, and 42 multi-purpose assault craft that can be equipped with torpedoes and missiles.

Also envisioned are eight amphibious maritime patrol aircraft, 18 naval helicopters, and eight multi-purpose helicopters.

"Looking at the PN's inventory of mission essential equipment, it is very discernible that the majority of our assets and vessels were acquired not necessarily because they fit into our strategy or operational requirement but because they are available as grant from the US or from our allies," the PN study said.

BEEFING UP | PH planning to acquire 3 submarines, other military assets - InterAksyon.com



Govt spent P500M to build Palawan naval base for US -- leftist fishermen's group

MANILA, Philippines - The government has spent P500 million of taxpayers’ money to build a naval base in Palawan for the use of visiting United States military forces in the country, the leftist fishermen’s group Pamalakaya said in a statement Sunday.

Vice chairperson Salvador France of the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) said the Department of Public Works and Highways has released half a billion pesos to complete some major infrastructure, including a 12-kilometer access road from the Luzon mainland to develop Oyster Bay in Palawan which the Department of National Defense (DND) and the Philippine Navy seek to transform into a naval base capable of hosting large US military warships.

France is reacting to the statements of Commodore Joseph Rostum Peña, commander of Naval Forces West, who said that once completed, the Oyster Bay naval base in Palawan could accommodate “at least four large naval vessels.” The Philippine Navy officer said the development of Oyster Bay is part of the Philippine military’s modernization program, which would include the installation of high-powered radar systems in strategic areas from north to south of Palawan facing the highly disputed West Philippine Sea. The radar systems, he said, would allow the AFP to monitor developments in the contested region.

But the leftist fishermen’s leader said the construction of a “mini-Subic naval base in Oyster Bay violates the sovereign rights of the Filipino people.” He said the plan will make Palawan the launching pad of US pivot and Washington's war of aggression in East Asia and the Pacific.

“The plan would (also) have (a) disastrous impact on the livelihood of Filipino fisherfolk and marine environment,” he said.

“The 500 million pesos of hard-earned taxpayers' money had already been spent for this naval base tp be used by US troops in their unjust wars and terrorist activities,” he added.

Stop construction of naval base

France thus urged the Philippine Navy and the DPWH to stop the construction of mini-naval base, warning Commodore Pena that he could face criminal and other charges for violating the sovereign rights of Filipinos and the 1987 Constitution which prohibit the building of foreign bases inside the Philippine territory.

He also urged the Department of Budget and Management (DBM) to stop releasing funds for the construction of the naval base.

Earlier, the group said it will officially ask the Senate Committee on Foreign Affairs and Senate Committee on National Defense to investigate the plan to transform Oyster Bay in Palawan into a naval base for visiting American forces.

Pamalakaya said the plan to convert Oyster Bay into a mini-Subic Naval Base was revived under the administration of President Benigno Simeon Aquino III in response to Washington's gesture to donate frigates in 2011 and 2012.

"We will contest this grand mockery of Philippine sovereignty in the parliament of the streets, in any appropriate court or forum, and in the court of public opinion. US President Barack Obama and the puppet president in Manila should be held accountable for this grandslam crime against national sovereignty and patrimony," France said.

The group said this construction is grossly unconstitutional and would put extreme danger to the lives and livelihood of the people and their environment.

France said a US military base in Palawan is not only to check China’s aggressive expansion into the West Philippine Sea but also to maintain the military hegemony of Washington in the region.

Pamalakaya called on Philippine senators to be extra vigilant as the plan to build a mini-Subic Naval Base in Oyster Bay is in preparation for the signing of the framework agreement on “increased rotational presence” of American forces in the Philippines which would allow more American access to local military bases and even the construction of new US military facilities.

“The Philippine Senate, the ratifying authority of any military agreement in the country, is completely ignored here,” said Pamalakaya.

The group said the Senate should investigate the Oyster Bay project and summon officials of the Department of Foreign Affairs (DFA) and the Department of National Defense (DND), and compel them to report on the current status of the US naval base plan and the outcome of the talks between Malacanang and the US government.

Earlier, Foreign Affairs official Carlos Sorreta said the government sees no problem with the construction of US military facilities as long as it is pre-approved by the Armed Forces of the Philippines (AFP) and that ownership is turned over to the Philippines after every joint military exercise.

Pamalakaya said this planned relocation of AFP air force and navy camps to the former American Naval Base in Subic, Zambales is also part of the grand design to “justify Washington's unlimited access to Philippine bases.”

This would reverse the decision of the Philippine Senate in September 1991 to kick out the US military bases in the country, Pamalakaya said.

The Philippines plans to grant visiting US forces, ships, and aircraft temporary access to more of its military camps to allow for a larger number of joint military exercises than are currently staged each year.
 
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IBON Infographic/ October 2013 | Increasing US military presence in the Philippines, 2001-2013 (update)

With or without talks between Manila and Washington to increase the rotational presence of American troops in the country, by virtue of the Visiting Forces Agreement between the US and the Philippines and in light of heightened US focus on the region in its pivot to the Asia Pacific, US military land, sea and air operations in the country continued to increase from March 2012 to April 2013. These military activities included increased docking of US warships on Philippine shores from Luzon to Mindanao not to mention that which caused massive destruction to the resource-rich Tubbataha reef, disaster response assistance, the Balikatan series, Cooperation Afloat Readiness and Training, Philippine Bilateral Exercise, command post and field training exercises as well as port calls, goodwill visits and meetings.

Though the anticipated first official visit of US President Barck Obama to the Philippines on October 10 and 11 may be affected by the recent US government shutdown, increased bilateral engagement between the Philippines and the US remains a certainty.



Philippines and U.S. troops hold infantry drills in joint war games
October 07, 2013

Philippines and U.S. forces conducted infantry drills at a naval encampment in Zambales province on Monday (October 7) as part of a three-week bilateral exercises aimed at boosting security ties.

The bilateral training between the U.S. and Philippine marines takes place annually under a mutual defence agreement. It is aimed at strengthening regional security and improving the two countries' humanitarian assistance and disaster response and relief operations.

Troops underwent live fire exercise and infantry attacks training, with soldiers being instructed on proper marksmanship and ambush crisis situations.

Philippine Marines spokesperson Lieutenant Vince Salmingo said U.S. President Barack Obama's canceled trip to Manila will not affect their training regiment.

"We all see that in the news but as you can see the training is still ongoing, so I thinks it is not really affecting what we have done for the past two weeks," he said.

Obama has canceled his four-country Asian trip, which included the Philippines, last week after the U.S. government had partially shut down when it failed to pass its budget on time.

The bilateral exercise comes ahead of an ongoing negotiations between Manila and Washington to increase U.S. military presence in the Philippines, including the storage of equipment and supplies.

The Philippines has been seeking for greater military help from its treaty ally, the United States, to help boost its defence capability amid growing tensions in the Asia-Pacific region over territorial claims in the South China Sea.

Claims by an increasingly powerful China over most of the sea have set it directly against U.S. allies Vietnam and the Philippines. Brunei, Taiwan and Malaysia also claim parts of the waters and China has a separate dispute withJapan in the East China Sea, making it a potential military flashpoint in the region.

Philippines and U.S. troops hold infantry drills in joint war games - Solar News
 
Phl, Australia hold military drills
By Alexis Romero (philstar.com) | October 4, 2013

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MANILA, Philippines - The Philippines and Australia have started conducting bilateral military drills under the Status of Visiting Forces Agreement (SOVFA) ratified by the Senate last year.

Eight Philippine Navy sailors are now in Sydney to join the Exercise Triton Century 2013 and witness the Australian International Fleet Review.

The event marks the 100th year of the Royal Australian Navy’s first fleet entry into Sydney.

“The Philippine Navy participation is historic as it marks the first contingent from the Armed Forces of the Philippines to travel to Australia and participate in joint exercises since the SOVFA was ratified in 2012,” Navy spokesman Lieutenant Commander Gregory Fabic said.

Members of the Philippine contingent are now on board the ship HMAS Parramatta to join the boarding activities and to cross train on various warship systems. They are expected to return the country on Monday.

Philippine Navy chief Vice Adm. Jose Luis Alano said the activity is a great opportunity for their sailors to learn new skills.

Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1
"Filipinos and Australians have much in common, as both countries have sizable maritime borders,” Alano said in a statement.

“We find this a great opportunity for Philippine sailors to work side by side their Australian counterparts and likewise gain significant knowledge, skills and training that would be very crucial in a modernizing navy," he added.

For his part, Australia ambassador to the Philippines Bill Tweddell said the exercises reflect the rich defense relationship between the two countries.

“We look forward to more similar engagement in the future," he said.

The SOVFA with Australia was ratified by the Philippine Senate in July 2012 despite claims that it could infringe into the country’s sovereignty.

The agreement permits Australian troops to temporarily use land and sea areas of the Philippines for combined training, exercises or other activities agreed upon by the two parties.

It was signed by the two countries on May 31, 2007 in Canberra, Australia.

Phl, Australia hold military drills | Headlines, News, The Philippine Star | philstar.com

DND to upgrade 2 PN Hamilton-class cutters
October 5. 2013

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MANILA — While waiting for the delivery of its two brand-new frigates worth P18-billion, the Department of National Defense (DND) announced that plans are underway to upgrade the two Hamilton-class cutters in Philippine Navy (PN) service.

This was revealed by DND undersecretary for finance, modernization, installation, and munitions, Fernando Manalo Friday.

"While waiting for these ships to be constructed and delivered, we may upgrade our Hamilton-class cutters (to make them more capable of protecting the country's vast maritime territories)," he added.

The two new frigates are expected to be delivered in four years time upon announcement of a winning bidder.

But the DND official declined to comment on what upgrades the two ships will get for reasons of operational security.

The PN currently operates two Hamilton-class cutters in its fleet.

These are the BRP Gregorio Del Pilar (PF-15) and BRP Ramon Alcaraz (PF-16).

The ship has cruising range of 14,000 miles and has a sea and loiter time of 45 days. It has a complement of 167 officers and men. (PNA)

DND to upgrade 2 PN Hamilton-class cutters - ZamboTimes
 
Philippines secures P190-billion loan from allies

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FOREIGN Secretary Albert F. del Rosario on Friday said the country has made significant progress in economic cooperation with other countries and obtained grants and loans of more than $4.4 billion—$3 billion from Japan’s official development assistance, close to $900 million from Australia and almost $500 million from South Korea.

He also said the Philippines-European Union Partnership and Cooperation Agreement “would allow both sides to address new challenges on issues such as customs and trade facilitation, energy and migration.”

Del Rosario spoke at the Second Annual Dinner of the US-Philippines Society in New York on September 27. In 2012 alone, he said, the Philippines finalized 43 agreements involving economic cooperation in investment, tourism, development assistance education and care services, and assisted in developing more than 700 trade and business missions.

“The Philippine hosting of the 23rd World Economic Forum on East Asia in 2014 and the annual meetings of the Asia-Pacific Economic Cooperation in 2015—the second since 1996—reaffirms the leadership role of the Philippines in the global arena,” he said.

Del Rosario said that in the promotion of economic diplomacy, the foreign office entered into a partnership with the Asian Institute of Management to enhance the skills of its Foreign Service officers who undergo a program on economic diplomacy before being assigned abroad.

“This training is essential to hone our peoples’ skills as the nation’s front liners in identifying and pursuing economic opportunities abroad,” he said.

US President Barack Obama is scheduled shortly to make his first state visit to the Philippines, the eighth by a sitting American president. He said in their meeting in April in Washington, D.C., US Secretary of State John Kerry said the “relations between the US and the Philippines have never been better.”

“President Obama’s visit will reaffirm the strong economic, people-to-people and security links between our countries. Indeed, we are witnessing a more vibrant cooperation,” Kerry said.

Del Rosario said over the years, there have been discussions between the two countries on how to enhance their defense and security cooperation, particularly in maritime security and maritime domain awareness.

He said during the official working visit of President Aquino to the US last year, “our leaders ushered in a new era of strategic partnership, with the US government reaffirming support for Philippine efforts to build the country’s minimum credible defense posture.”

“This broadening and deepening of Philippines-US relations is being positively viewed in the context of the US rebalance toward Asia,” he said, adding that last month, the two countries began discussions on institutionalizing increased rotational presence through a framework agreement premised on mutuality of benefits and in full accord with the Philippine Constitution.

On China, he said, the core issue of the dispute is China’s claim of indisputable sovereignty over nearly all of the West Philippine Sea (South China Sea) under its nine dash line position. Del Rosario said this claim is “expansive, excessive and in gross violation of international law, specifically Unclos,” or the United Nations Convention on the Law of the Sea.

“China’s continuous overwhelming naval and maritime presence in the area is also contributing to the raising of regional tensions.

“Although the Philippines had undertaken many efforts to peacefully engage China and settle these disputes, these were unsuccessful,” he said.

“Our last resort was to utilize the legal track toward the resolution of disputes,” del Rosario added.

From the Philippine perspective, he said, the rules-based approach contains two elements: The third-party arbitration toward the resolution of disputes, in accordance with the universally recognized principles of international law, specifically Unclos; and the early conclusion of a Code of on the South China Sea between Asean and China toward the management of tensions.

He said the Philippine move to bring China before the UN’s Arbitral Tribunal will benefit everyone.

BusinessMirror - Philippines secures P190-billion loan from allies
 

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