Business News:
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GDP growth seen at robust 6.6% in Q1
By Kathleen Martin (The Philippine Star)
Updated May 24, 2015 - 12:00am
MANILA, Philippines - Philippine economic growth in the first quarter this year is seen remaining robust despite slowing in the fourth quarter of last year, UK-based investment bank Barclays said.
The bank, in its latest Emerging Markets Weekly, has forecast Philippine growth to have settled at 6.6 percent in the first quarter, faster than the 5.6 percent posted in the same period last year, but slower than the 6.9 percent seen in the previous three months.
“Growth to slow from an exceptionally strong Q4, but underlying trend to remain robust, supported by government spending,” Barclays said.
Official first quarter gross domestic product (GDP) data will be released on May 28.
Barclays said first quarter expansion in Asian emerging markets could have been slower given weak activity elsewhere pulling down growth.
The International Monetary Fund last month said the Philippines should continue to be Southeast Asia’s growth driver this year.
Philippine economic growth slowed to 6.1 percent last year from 7.2 percent in 2013, short of the government’s 6.5 to 7.5-percent target. However, the growth rate was among the fastest in Asia last year.
IMF resident representative Shanaka Jayanath Peiris said a slower first quarter growth is expected given the stellar fourth quarter level.
Risks to growth this year may come from the slowdown in economic activity in Japan and China, as they are the biggest trade partners of the Philippines.
The divergence in monetary policies in advanced economies also pose a risk as they could result in shifts in interest rates and tighter financial conditions.
Peiris, however, said lower oil prices could be a boost to the Philippine economy this year as the country is an importer of the commodity.
“Indeed, headwinds such as slowing China growth, soft demand from Europe and a more gradual US recovery, continued to weigh on the region’s Q1 growth,” Barclays said.
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GDP growth seen at robust 6.6% in Q1 | Business, News, The Philippine Star | philstar.com
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Phl readiness in PPP most improved in AsPac – EIU
By Lawrence Agcaoili (The Philippine Star)
Updated May 24, 2015 - 12:00am
MANILA, Philippines - The Economist Intelligence Unit (EIU) has tagged the Philippines as the most improved country in Asia-Pacific in terms of Public-Private Partnership (PPP) readiness.
In a report entitled “Evaluating the environment for Public-Private Partnerships in Asia-Pacific, The 2014 Infrascope,” the EIU said the Philippines joined the developed PPP market group with an overall score of 64.6, improving to 7th place from the previous rank of 8th under the emerging market category with an overall score of 47.1.
The Philippines joined Korea (3rd), Japan (4th), India (5th), and India – Gujarat State (6th) in the developed PPP market with a score ranging between 60 and 79.9.
Australia topped the list with a score of 91.8, followed by the United Kingdom with 88.1.
“By finishing in 7th position, it (Philippines) is among those which have improved the most. It recorded the most-improved regulatory and institutional frameworks and is one of the leading countries in the study for improved investment climate and financial facilities,” the EIU stated in the study.
The report pointed out that the Philippines has one of the oldest Build-Operate-Transfer (BOT) policies in the Asia-Pacific region, but has introduced a new sub-national regulatory framework and has used its increased capacity and transactional experience in recent years to promote capacity-building in emerging PPP markets within the region.
In terms of regulatory framework, the Philippines improved its rank to 4th with a score of 68.8 from 7th place in 2011 with a score of 43.8. Australia was in 1st place with 100 followed by UK with 96.9 and Korea with 90.6.
“The Philippines is the most improved country in overall rankings and the regulatory framework category as a result of significant regulatory reform in recent years, new biddings and selection procedures, better dispute resolution mechanisms, and a wider role for the national PPP Unit. Institutional roles have been further streamlined under the new PPP regime,” the report said.
In terms of institutional framework, the Philippines likewise increased its ranking to 4th place with a score of 66.7 from 8th place with a score of 41.7 in 2011. The Philippine ranked 9th in terms of operational maturity, from 10th place in 2011 and jumped to 7th place in terms of investment climate from 13th place. It was ranked 8th in terms of financial facilities and 6th in terms of subnational adjustment.
“In the Philippines, in addition to training and capacity building, regulatory amendments have improved evaluation and bidding timelines, giving bidders a longer time to prepare, and streamlined the formalities for small and municipal contracts,” it added.
The EIU cited the PPP Center’s “wider role” in the implementation of the PPP program as a significant factor in the country’s improvement.
It added that the PPP Center has produced guidance on how to conduct multi-criteria analysis (MCA) in project selection, while the newly-created PPP Governing Board has prepared more detailed policies on matters such as risk allocation and private-sector compensation rights.
According to EIU, the feat was achieved despite the controversies surrounding some projects, including the award of the P17.5 billion Mactan Cebu international airport expansion project to the tandem of GMR Infrastructure of India and Filipino-owned Megawide Construction Corp.
“This and earlier controversies related to the bidding and award procedures for major transport infrastructure projects indicate certain weaknesses in public-sector decision making. At present, most PPP stakeholders see the dispute resolution mechanism as transparent and fair, though the whole process can be inefficient due to the length of time it takes to reach a final decision,” it said.
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Phl readiness in PPP most improved in AsPac – EIU | Business, News, The Philippine Star | philstar.com
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Exports to start recovery in H2
By Kathleen A. Martin (The Philippine Star)
Updated May 24, 2015 - 12:00am
MANILA, Philippines - Exports should start increasing in the second half of the year on the expected recovery of trade partners, the research arm of Metropolitan Bank and Trust Co. said, despite the contraction recorded in the first quarter of the year.
Merchandise exports fell 0.2 percent to $14.247 billion in the first quarter from $14.277 billion in the same period last year.
“The lackluster export performance may serve as a drag to first quarter GDP (gross domestic product) growth, which is expected to be slower compared to the same quarter in 2014,” Mabellene Reynaldo, research analyst at Metrobank, said in a report.
“Expect exports to be slightly higher in the second half of the year as the US economy continues to strengthen. The long term trade picture is seen to improve with the recovery of the Philippines’ major trading partners,” she continued.
In the month of March alone, outbound shipments climbed 2.1 percent to $5.377 billion from $5.268 billion in the same month last year. This reversed a 2.96-percent contraction in February and also a 0.02-percent decrease in January.
Electronic products, which made up 43 percent of the total exports, grew 4.5 percent to $2.332 billion in March from $2.232 billion a year ago.
The increase in March exports was also due to higher shipments and sales of coconut oil, machinery and transport equipment, chemicals, metal components, other mineral products, and clothing and accessories.
Japan accounted for the biggest chunk of Philippine exports in March at 20.8 percent, followed by the United States (16.4 percent), and China (10.9 percent).
Last year, merchandise exports went up nine percent to $61.81 billion from the $56.698 billion seen in 2013. The largest export markets last year were Japan, the US, China, Hongkong, and Singapore.
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Exports to start recovery in H2 | Business, News, The Philippine Star | philstar.com
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Moody’s says PH economy grew 7.3% in 1st quarter
Amy R. Remo
Philippine Daily Inquirer
4:11 AM | Saturday, May 23rd, 2015
The Philippine economy grew by 7.3 percent in the first quarter of the year, according to Moody’s Analytics.
Jumping the gun on the Philippine Statistics Authority (PSA), Moody’s Analytics confirmed the continued growth of the economy under the Aquino administration in a report posted on ABS-CBN’s online portal on Friday.
Moody’s Analytics, a think tank, is an affiliate of Moody’s Investors Service, one of the world’s three major credit rating agencies.
At press time, there was no immediate comment from Malacañang or the finance department, as the official report on the country’s first quarter gross domestic product (GDP) has yet to be released.
National Economic and Development Authority Director General Arsenio M. Balisacan and PSA National Statistician Lisa Grace S. Bersales will release the 2015 First Quarter Performance of the Philippine Economy on May 28.
Moody’s Analytics credited the strong performance of the economy in the first quarter of the year on government’s higher infrastructure investment and spending.
“Moody’s said strong electronics exports also gave the economy a lift due to improved global demand especially from the US. Likewise, the country is expected to benefit most from low oil prices with businesses and even consumers able to spend more due to savings from fuel costs,” said Moody’s Analytics, in a report posted on ABS-CBN’s online site.
Apec’s 3rd fastest growth in 2014
The report said a 7.3 percent growth would help the economy be on track to meet the Aquino administration’s full year target of 7 to 8 percent.
In 2014, the economy posted a full-year growth of 6.1 percent.
Also in 2014, the Philippines posted the third fastest GDP growth among the Asia-Pacific Economic Cooperation (Apec) economies, next to Papua New Guinea and China.
In Apec’s latest economic trends analysis titled, “Economic Resilience Amidst Global Headwinds,” the Philippines is seen growing by 6.7 percent this year, and 6.3 percent in 2016, enabling the country to remain as the third fastest growing economy among Apec members.
On the whole, the Apec members is seen to grow at a faster pace of 3.2 percent within the next two years on the back of a strong domestic demand and lower oil prices.
Silent
Citing data from the International Monetary Fund (IMF), the Apec said in its latest economic trends analysis that the economic growth in the near term would also hinge on the impact of the United States’ economic resurgence and normalization of the monetary policy.
Last year, Apec economies proved resilient amid challenging external conditions as the bloc posted an average growth of 2.9 percent, which was similar to the level in 2013, but lower compared to the 3.4 percent world GDP growth estimate by the IMF.
This was amid uncertainties surrounding the path of oil prices and the timing of monetary normalization in the US.
Upside opportunities
This year, upside opportunities for growth would come mainly from domestic factors, particularly robust household spending that is ably supported by steady government consumption and investment, according to economic trends analysis.
In turn, accommodative conditions marked by low interest rates and strong credit growth remain important determinants of private consumption expenditures.
Falling oil prices continue to generate positive impact for oil importers via the consumption channel by increasing households’ purchasing power, the report stated.
Downside risks meanwhile are largely external in nature.
Uncertainties
“Uncertainties surrounding the trajectory of oil prices and the timing of US monetary policy normalization combined with slower economic activity in China will impact on the near-term GDP growth of Apec economies. The steady and significant decline in oil prices is expected to directly affect oil exporters, weighing down output levels,” it said.
As economies rebalance towards domestic drivers of growth, Apec members will now need to strengthen private consumption through more inclusive and sustainable growth.
“This will require both increasing labor productivity and innovation to raise wages and living standards, as well as reducing income uncertainties through safety nets and social insurance to allow households to smooth consumption.
Fiscal consolidation programs
Economies could consider implementing fiscal consolidation programs, where appropriate, that will take into account spending rationalization, revenue generation and subsidy reforms, which will make public funds available for programs aimed at improving economic inclusiveness, sustainability and innovation,” the report stated.
Such programs, in turn, will need to cover skills development, investments in infrastructure (including regulatory and financial reforms), making labor markets more open for women and disadvantaged groups, and enhancing institutions and governance at all levels to strengthen transmission mechanisms between policy and inclusive growth.
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Moody’s says PH economy grew 7.3% in 1st quarter | Inquirer Business
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PH backs support for small enterprises at APEC meet
Associated Press 11:48 PM
Saturday, May 23rd, 2015
The Philippines’ top trade official on Saturday called for support for the integration of micro, small and medium enterprises in global trade, which he said would help reduce poverty and inequality in the Asia-Pacific region.
Trade has been a powerful growth engine in the 21 economies comprising the Asia-Pacific Economic Cooperation, where MSMEs account for over 97 percent of all businesses, said Philippine Trade and Industry Secretary Gregory Domingo.
Manila is pushing for greater support for the integration into the global trade and value chain of MSMEs, which provide jobs to more than half the workers in the Asia-Pacific region.
Domingo opened an APEC trade ministers’ meeting Saturday on the central Philippine resort island of Boracay, one of many meetings hosted this year by Manila before the APEC summit in November, a government statement said.
Domingo said these small businesses “play an important role in poverty alleviation and long-term growth” in each of the APEC economies and the region as a whole.
Such enterprises represent 98 of all registered businesses in the Philippines, employ about 60 percent of the nation’s work force and account for about one-third of the country’s gross domestic product, according to the Philippines’ Department of Trade and Industry.
The Philippines is seeking the adoption the “Boracay Action Agenda” to globalize MSMEs, which Manila says will foster the participation of these enterprises in regional and global markets.
The move will prioritize the simplification of procedures and documentary requirements for such enterprises, allow them to take advantage of electronic commerce platforms, encourage trade through online publication of tariff procedures and requirements, provide possible innovative financing, and strengthen institutional support, the Trade Department said.
The trade ministers also will discuss support for the multilateral trading system and regional economic integration and start groundwork for the Free Trade Area of the Asia-Pacific, it said.
Domingo has said the APEC trade ministers are expected to come out with the terms of reference for the study of the free trade area within the year so the study can commence in 2016.
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PH backs support for small enterprises at APEC meet | Inquirer Business
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Military and Defense News:
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Supplier of 'antiquated' military choppers was favored: witness
By Ryan Chua, ABS-CBN News
Posted at 05/20/2015 3:39 PM | Updated as of 05/20/2015 5:49 PM
But officials say chopper purchase was aboveboard
MANILA - The P1.25-billion contract to supply the Philippine military with refurbished utility helicopters was ''tailor-fitted'' for a company favored by certain officials of the Department of National Defense (DND), according to a person who claimed to have personal knowledge of the deal.
Rhodora Alvarez, a government employee who had close ties with Thach Nguyen of aircraft supplier Rice Aircraft Services Inc. (RASI), told the Senate Blue Ribbon committee that the UH-1 chopper specifications were designed so that only RASI could meet them.
These included a mechanism for maintaining the helicopter's main body, which other companies do not have.
''This is to prove to you the allegation that the project was tailor-fitted,'' said Alvarez, who said she served as a link between RASI and Department of National Defense officials when the deal was being negotiated.
''Alam nila na si Rice ay mayroong available helicopters. Ang hindi nila alam, hindi naman pala ito world-class. Hindi naman pala ito fully refurbished, at hindi naman ito best in the world.''
(They knew Rice had available helicopters. What they didn’t know was that those were not world-class, not fully refurbished, and not the best in the world.)
Nguyen was RASI's former representative in the Philippines. He now faces a lawsuit in the United States for misrepresenting himself as a state department official.
Alvarez said Defense Undersecretary Fernando Manalo, chairman of the agency's special bid and awards committee, used to be an agent for RASI. Manalo denied this.
Alvarez also said the choppers delivered to the Philippine Air Force in 2014 were of low quality.
For instance, she said none of the helicopters was able to fly when the military recently launched an all-out offensive against Muslim rebels in Mindanao.
Undersecretary Pio Lorenzo Batino said the DND is conducting an internal probe into the matter.
NEGOTIATED PROCUREMENT
The contract for supplying 21 helicopters went to the joint venture of RASI and Eagle Copter Ltd. through a negotiated procurement after several unsuccessful public biddings.
Only seven choppers were delivered to the Air Force, however. The contract was terminated after RASI and Eagle Copter failed to deliver the other units on time.
Senator JV Ejercito questioned the awarding of the contract to RASI -- albeit already with a partner -- which joined the public biddings but was disqualified and later found to have submitted fake documents.
Alvarez said DND Assistant Secretary Patrick Velez even blew his top when he found out RASI submitted fake documents such as financial statements. But the deal still pushed through, she said.
Velez told the committee that the agency did not know the documents were fake during the bidding and even when the negotiated procurement was made.
''What was already submitted by the joint venture were contracts by Eagle Copters and financial documents of Eagle Copters,'' he said.
''That's the reason we were not able to look into that.''
EXTORTION?
It was unclear why Alvarez, an employee of the Bureau of Internal Revenue, came out to speak on the issue. At the hearing, she said she was doing it for the country.
Senators, however, required her to submit a sworn statement supporting her claims.
Manalo said Alvarez only wanted to extort money from RASI.
''Noong madiskubre ng Rice ang malaking pera na ginastos niya na hindi niya ma-explain, suddenly, nag-demand siya na, 'Bigyan n'yo ako ng 15 percent. Otherwise ipapakansela ko ang kontrata'
(When Rice discovered huge amounts she spent but could not explain, she suddenly demanded 15 percent from the project, otherwise she would have the contract cancelled),'' he told reporters after the hearing.
Manalo also said Alvarez was among those who defended the deal with RASI when DND officials met to terminate the supply contract after the deliveries were not made on time.
''Hindi 'yon ang picture ng taong magsasabi na masama ang helicopter
(That’s not someone who would say the choppers are bad),'' he said.
OLD, BUT IN GOOD CONDITION
Defense officials, meanwhile, stood by their decision to purchase refurbished UH-1 helicopters that a senator described as antiquated, saying they followed the right processes in buying them and that the choppers are in good condition despite being old.
Velez said the choppers are in ''operational condition and can be upgraded to improve their capabilities.''
''The AFP (Armed Forces of the Philippines) does not buy obsolete equipment,'' he said.
Velez also said there was no intention to defraud the government when the choppers were bought, and that the DND only wanted to address the capability gap in the poorly equipped AFP despite its limited budget.
''That is not a crime,'' he said. ''That is our collective responsibility.''
ZOMBIES
Wednesday's hearing was prompted by a resolution calling for a probe into the purchase of 50-year-old helicopters, which for some lawmakers defeated the purpose of the military's modernization program.
Senator JV Ejercito, who filed the resolution, pointed out in an earlier interview that the German-made helicopters are older than retiring military personnel.
They were put on sale after being decommissioned by Germany's military.
''It just doesn't seem right that we are on a modernization program and yet we are buying antiquated 50-year-old helicopters,'' he said at the hearing.
''These are zombies already. They were in a graveyard in Germany.''
ABOVEBOARD
Manalo said lack of time was one of the reasons the contract was awarded to RASI-Eagle Copter in a negotiated manner after several failed biddings.
He stressed that the process was aboveboard, and that RASI-Eagle Copter was not a favored supplier. He also vouched for the quality of the choppers
''I would like to reiterate that contrary to the allegations the UH-1 helicopters delivered to the Philippine Air Force were all in good condition, reliable, and compliant with the requirements of the Philippine Air Force,'' said Manalo.
WHO'S RESPONSIBLE
Still, Senator Francis Escudero noted the contract was still given to RASI-Eagle Copter despite its questionable record and failure to deliver the other choppers on time.
''Shouldn't someone be held responsible for this? This is already negligence on someone's part,'' he said.
Ejercito also said he has spoken with some Air Force pilots on what they thought about the refurbished choppers.
One of the helicopters reportedly needed to have a change of engine after only three months in operation.
''When we asked the ordinary pilots who will be using these on a day-to-day basis, they said they were not confident in flying these refurbished helicopters,'' Ejercito said.
Air Force officials maintained, however, that the helicopters are working well and even better than other units in their fleet.
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Supplier of 'antiquated' military choppers was favored: witness | ABS-CBN News
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Politics and International Diplomacy News:
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Phl to join Bangkok meet on Rohingya crisis next week
By Edu Punay (The Philippine Star)
Updated May 23, 2015 - 12:00am
MANILA, Philippines - The Philippines will join a 15-nation meeting in Bangkok, Thailand next week to address the migration crisis involving thousands of Rohingyas who escaped persecution in Myanmar and Bangladesh.
Justice Secretary Leila de Lima bared this yesterday after meeting with United Nations High Commission for Refugees (UNHCR) representative to the Philippines Bernard Kerblat.
In an interview, De Lima said the Philippine government has been invited to the meeting. The Department of Foreign Affairs (DFA) will lead the delegation.
Representatives of the United States and Australia will also join the meeting on May 29, which will be attended by members of Association of Southeast Asian Nations (ASEAN), she added.
De Lima said the Philippines might present its position on issues concerning refugees and asylum as well as formally offer aid in whatever collective action by participating nations aimed at addressing the plight of the boat people.
She said the UNHCR had earlier asked the Philippines to send rescue boats to the seas in Indonesia and Malaysia where about 3,000 Rohingyas have been drifting for the past few days, but clarified that the government has not yet decided on it.
“That’s something that we can also endorse, but it’s not going to be my decision,” she said.
Department of Social Welfare and Development (DSWD) Asec. Javier Jimenez said they would likely tap disaster quick response funds in case of relief efforts for Rohingya refugees.
Kerblat, for his part, confirmed that the regional meeting was called by the royal government of Thailand and will also be attended by three UN organizations.
He pointed out that the issue “cannot and will not be solved by a single state. But it will be solved through a process of consultation, gathering all impacted states, plus friends of the issue in the region, including the Philippines.”
“Although the Philippines is not affected, we believe it has a lot to contribute to the debate, to the search for solutions, through goodwill and exchanges,” he added. – With Janvic Mateo, Pia Lee-Brago, Rainier Allan Ronda
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Phl to join Bangkok meet on Rohingya crisis next week | Headlines, News, The Philippine Star | philstar.com
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SCS / West PH Sea News:
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Chinese blast fishing off Pag-asa threatens island's livelihood
(philstar.com)
Updated May 24, 2015 - 11:05am
MANILA, Philippines — Residents of Philippine-occupied Pag-asa Island in the West Philippine Sea are not fazed by the growing Chinese' militaristic presence in the disputed waters, but the foreigners' economic practices leave Filipinos worried.
Mary Joy Batiancila, Pag-asa administrator, said fisherfolk are deeply concerned about the banned fishing activities of Chinese and Vietnamese fishermen who intrude in what the Philippines considers as its exclusive economic zone.
Philippine Coast Guard, Pag-asa barangay officials and fishermen would regularly chase or warn illegal fishers away but they kept on returning.
"They are engaged in blast or dynamite fishing. They also use cyanide," Batiancila said.
As a result, the natural ecosystem and the "bahura" or coral reefs around Pag-asa Island are destroyed and the source of livelihood of Filipino fisherfolk are adversely affected.
"[The foreign fishing activity] leads to a drop in the fish catch or incomes of our own fishermen," she said.
Kalayaan town mayor Eugenio Bitoon-on said these illegal fishing activities made local officials of Kalayaan and Palawan province alert worried over the condition of the sea, considered one of the richest fishing grounds in the country.
Batiancila, meanwhile, said the area around Pag-asa alone is abundant with turtles, dolphins, manta rays and various kinds of fish.
Pag-asa is surrounded by around 20 to 30 hectares of reefs that are home to aquarium and commercial fish.
It provides livelihood and food for the island's 200 dwellers. It is often visited by rare types of turtles like the endangered leatherback.
Just some three nautical miles away from Pag-asa is a sandbar islanders call the "Secret Island," Batiancila said.
The island is also home to teeming marine life which the Islanders are keeping watch over.
About 25.7 kilometers from Pag-asa is Subi Reef, also of the Spratlys or Kalayaan Island group.
On Subi Reef, China government are undertaking massive reclamation and building structures, in the process destroying sea life and hectares upon hectares of coral reefs.
Bitoon-on said the Chinese seem bent on transforming the reef into a man-made island.
Chinese and Vietnamese fishermen often visit Subi Reef and the Secret Island to gather giant clams from the area, leading to a significant decline of the resource, according to recent surveys by the Coast Guard and local officials.
"We cannot perform arrests against them even though we have the maritime police with us. We do not have facilities and transportation to stand against them," Batiancila said.
She said the least authorities could do is chase away the foreign fishers every chance they get.
"But we can never engage them," she said.
Despite not having the right facilities, the people of Pag-asa and the local officials of Kalayaan and Palawan expressed utmost support in protecting the natural treasures of West Philippine Sea.
Bitoon-on said he is thankful for the support the Armed Forces of the Philippines (AFP) and the Coast Guard extend to Pag-asa.
He said he is confident Pag-asa residents are secure and safe in their homes on the island.
For now, local government is keen on developing another means of livelihood for their consistuents—a tourism route through West Philippine Sea which will include Pag-asa Island.
Bitoon-on said the new industry would help generate more jobs and income for those residing in the Kalayaan islands.
AFP chief-of-staff Gen. Gregorio Pio Catapang, in his May 11 visit in Pag-asa Island, called on people to continue backing the country's maritime and territorial claims despite stiff opposition, especially from China.
"This is ours!" Catapang declared, thereby setting a battle cry for the Philippine military in asserting sovereignty over the potentially gas-rich maritime features.
The military leader assured residents of security for tourism-related plans for the disputed areas, expressing optimism that the rich reefs around Pag-asa will attract domestic and international tourism.
- Priam Nepomuceno, Philippine News Agency
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Chinese blast fishing off Pag-asa threatens island's livelihood | Headlines, News, The Philippine Star | philstar.com
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Miscellaneous News:
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Filipino turns ordinary car into autonomous vehicle
Gervie Kay S. Estella
Philippine Daily Inquirer
12:59 AM | Sunday, May 24th, 2015
SINGAPORE—A Filipino professor in Singapore has converted an ordinary car and two buggies into driverless vehicles, and is now working on an autonomous car system that may soon be part of the city-state’s public transportation system.
Marcelo Ang Jr., 56, oversees a 12-member group of students and staff members called Autonomous Vehicles Group (AVG). They developed two driverless golf buggies and an autonomous compact car that are “environment-friendly” and “cheaper” than other versions of their kind.
Ang, an associate professor of National University of Singapore’s (NUS) Department of Mechanical Engineering, said the vehicles would enable the old, handicapped and intoxicated people to “drive” safely to their destinations.
“My motivation in starting this project is my wanting to become independent when it comes to driving,” said Ang, also the Director of NUS’ Advanced Robotics Center. “As I grow older, I feel it’s very important to be independent and mobile, to go to the library and shop without having to rely on my kids.”
The vehicles were developed in cooperation between NUS and Massachusetts Institute of Technology (MIT), through the Singapore-MIT Alliance for Research and Technology (SMART).
Ang supervises the group, together with Emilio Frazzoli, his counterpart at MIT.
NUS-SMART’s version may be similar to Google’s Self-Driving Car that has $150,000 worth of equipment. But the former is “cheaper,” with the conversion costing only around $30,000. The Singaporean vehicle can also navigate indoors, underground, and even in areas with no Global Positioning System (GPS) signal, said James Fu Guo Ming, SMART project lead.
This program is “proof that you don’t have to be a $300-billion giant company like Google to work on an autonomous vehicle,” said Fu, who is also a former student of Ang. “The work here is being done mostly by students with the help of research staff.”
Ang’s team is not only focusing on converting vehicles, but is also developing the Mobility-on-Demand (MOD) system.
Robotics
Users will be able to use their smartphones to book autonomous vehicles, which will take them to the nearest train station where they can ride toward their final destinations.
Ang said MOD was created to “supplement Singapore’s public transportation system” and solve the so-called “first-mile” or “last-mile” problem, where passengers have difficulty traveling from their starting location to transportation networks, such as bus, train and ferry stations, and vice versa.
“In Singapore, this is much needed because trains are very efficient, while buses are not,” Ang said. “After I arrived to my destination, the car will go to the next person who needs it. If you have this system, would you want to still own a car for everyday commute?”
The project is funded by the Singapore National Research Foundation through SMART at the Campus for Research Excellence and Technological Enterprise (CREATE). It is part of the country’s Smart Nation initiative, launched by Prime Minister Lee Hsien Loong in 2014.
Ang had several other programs on robotics since he started working at NUS in 1989, including the Ship Welding Robotic System. But he said the MOD system is one of his most important projects.
“If implemented, the system will be one of my greatest legacies,” Ang said. “The transportation system affects all sectors of society, including the rich and the poor, and it will have a great impact to everybody.”
The father of three boys has been into robotics since he was young. He remembered tinkering with broken things at home in Manila, including toasters, ovens, fans, door locks and even their car, and finding ways to fix them.
He studied Mechanical Engineering at De La Salle University, where he taught for a year before getting a job at Intel Philippines Manufacturing Inc. He later left for Hawaii and took up his master’s degree also in Mechanical Engineering at University of Hawaii at Manoa. He then earned his PhD in Electrical Engineering from the University of Rochester in New York.
City of the future
Ang was teaching at University of Rochester when he was offered to be a professor at NUS. At that time, Ang said, Singapore was “not as developed as it is today.”
“Ambassador HE Professor Tommy Koh said Singapore aims to be the city of the future, and he asked me to join NUS so I can become part of it,” Ang said.
Ang immediately packed his bags for Singapore and, in three months, brought his family to settle in the country.
NUS and the Singaporean government made true their promise to support Ang’s projects. When the National Research Foundation offered a grant in 2010 for programs on future urban mobility, Ang pitched the concept of the “robot car” and of converting cars into autonomous vehicles to Damien Chong and Qin Baoxing, his students at the time who just recently earned their PhD and are now part of AVG.
The team was able to launch two driverless golf buggies—DJ (Driverless Jockey) and BX (Buggy Xtreme), named after Chong and Baoxing—which ferried passengers at a speed of 10 kilometers per hour around the Chinese and Japanese Gardens in October last year. The AVG also launched Singapore’s first locally developed driverless car called SCOT, which is designed for operations on public roads.
Unlike other driverless cars which are retrofitted with expensive 3D laser sensors, SCOT relies on low-cost off-the-shelf Lidar sensors, which enable the car to drive even in tunnels and places where GPS signals would be hindered, according to a statement from SMART.
Human error
Fu said the autonomous vehicles would provide a safer mode of transportation, more productivity, better use of road infrastructure, and transportation access even to those who cannot drive.
“Accidents are due to human error, as some people are texting, calling or even watching movies while they are driving. If the cars are driving by themselves in a very predictable manner, it would be safer,” Fu said. “At the same time, while you are inside the car, you can be doing other things like checking your e-mail and Facebook, and watching YouTube, all in safety as the car drives for you.”
Ang said the Singaporean government is supporting the prototyping stage for the MOD system, including the development of the autonomous vehicles. The group is also planning to take the car to the “One North” area, a place designated for field trials of autonomous vehicles and where many pedestrians and vehicles are present. The trial will probably start next month, he added.
But Ang wants one more thing—to see this technology in his own country, the Philippines.
“Definitely, I want to see these autonomous vehicles in the Philippines, where there is a lot of urban development and traffic, and the population is very huge,” Ang said. “It would be nice if we have autonomous vehicles and a shared-car system-mobility on demand. This may be a solution to our traffic problems and will definitely make people more productive.”
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Filipino turns ordinary car into autonomous vehicle | Inquirer Business
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