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Philippines Defence Forum

Military and Defense News:

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US, PH start air assault exercises
By: Niña P. Calleja
Philippine Daily Inquirer

05:47 AM July 17th, 2015


The Philippines and the United States have begun three weeks of joint air assault exercises as the country starts to lay out plans to strengthen its western defenses amid increased tension in the West Philippine Sea, which China is claiming.

A statement from the US Embassy in Manila on Thursday said that the joint exercises were aimed at improving the Philippines’ ground and air operations.

The embassy said members of the US 1st Marine Air Wing, the 3rd Marine Division and their aircraft were involved in the joint exercises with the Philippine Marine Corps and the Philippine Air Force.


The training includes fast-rope rappelling, casualty evacuation drills, day and night platoon-size raids and integrated fire training—all of which were being held at three sites in Luzon: the Basa Air Base in Pampanga; the Crow Valley Range in Botolan, Zambales; and Clark Air Base, also in Pampanga.

Called Aviation Assault Support Exercise, the maneuvers are a repeat of the joint training held annually by the US and Philippine militaries.

The exercises are “designed to expand and promote cooperative training opportunities with the Armed Forces of the Philippines to enhance core skill proficiency and to increase operational readiness in ground and air operations,” the US Embassy said.

Unique training environment

“It gives our guys a unique training environment that they are not used to, as well as an opportunity to learn from our Philippine counterparts,” said Lt. Col. Teodoro Apalisok, US Air Force operations officer of the Joint US Military Assistance Group.

“We learn from them and they learn from us,” he said.

The exercises are in their third year, each year containing two iterations, Apalisok said.

Unique to this year’s joint maneuvers is the “unitization” of new US aircraft, or the assembling of small parts into one, Apalisok said.

“Traditionally, we have used only the MV-22 in this exercise to conduct many of the engagements,” Apalisok said. “However, this year we will be implementing the CH-53 and the UH-1Y helicopters.”

The government views the Balikatan joint military exercises between the US and the Philippines as crucial due to what the Department of Foreign Affairs has described as external threats posed by China’s increasing aggressiveness in asserting its claims in the South China Sea.

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US, PH start air assault exercises | Inquirer Global Nation
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Its not the matter of how expensive it was. Its a matter of the US seeing the Philippines not ready to receives a 4the gen Fighter Jets yet. Don't go with the Grippen that's my only advice to the Philippines. If you want to do a free acting independent policy then go right ahead with buying Grippen.

I think the F/A-18 is much suited for us, since the aircraft is almost the same as the F-16, and that the F/A-18 and its prototype original, the YF-17 were at least based on the design aspect of the F-5, which we had deployed from 1960s up to 2005.
 
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Its not the matter of how expensive it was. Its a matter of the US seeing the Philippines not ready to receives a 4the gen Fighter Jets yet. Don't go with the Grippen that's my only advice to the Philippines. If you want to do a free acting independent policy then go right ahead with buying Grippen.

The gripen is good for the philippines and it can work alongside other nato equipment forces in fact some nato countries do have gripens in their forces so its not a problem but we should buy also twin jet airframes like the F18 or even the Mig35 so your post no offense is bit unfounded again no offense sir just making observation
 
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Business News:

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European mobile brand Prestigio enters Philippines
By Louella D. Desiderio (The Philippine Star)
Updated July 19, 2015 - 12:00am


MANILA, Philippines - European mobile phone brand Prestigio has entered the Philippine market as part of its aim to expand its global reach.

Sergey Bezruchenok, product development manager at Prestigio Global, said in a statement the company decided to launch its products in the Philippines as it sees opportunity in this fast-growing and competitive smartphone market.

“The Philippines is our very first official distributor in Asia, demonstrating our confidence that we will be able to extend our global reach into the Filipino mobile market. After seeing Prestigio gain strong traction in several markets as a credible alternative to established brands at extremely competitive prices, we now look forward to replicating its success in the Philippines,” he said.

Veracity Mobile, the official distributor of the European brand in the Philippines, is aiming to capture one percent of the domestic smartphone market within the year.

“We came in late into the game, the second half of the year. Based on industry trending in terms of smartphone sales, I would think hitting a percent or near one percent of the total market share would be good for us,” Veracity Mobile managing partner Jojit Alcazar told reporters during the launch.

Capturing one percent of the market would mean selling 35,000 to 50,000 units this year.

For next year, Alcazar said the aim is to double Prestigio’s market share to two percent to three percent.

The company hopes to attract consumers in the middle segment looking for smartphones offering competitive features at much affordable prices.

Prestigio’s smartphone line is composed of the 3 Series Multiphone 3450 Duo, 3502 Duo, 5 Series Multiphone 5454 Duo, 5550 Duo and 5508 Duo which all run on Android and the Windows Phone 8.1 Multiphone 8500 Duo.

The smartphones are available at a price range of P5,699 up to P13,899.

The smartphones can be purchased online through Lazada or by visiting multi-brand retailers.

Veracity Mobile chairman and president Arnold Jimenez said the company is looking to partner with telecommunication firms Smart Communications Inc. and Globe Telecom Inc. to promote the products.

The company also plans to launch other Prestigio products such as tablets by the fourth quarter and healthcare wearables in the future.

With the Philippines being the first market for Prestigio in Asia, Jimenez said Veracity Mobile would likewise be interested in introducing the products in other Southeast Asian countries.

“The initial plan is to try it out in the Philippines and moving forward, look into the possibility of growing it in other regions such as (the) Asean market,” he said.

Apart from the Philippines, Prestigio is currently being sold in 70 countries in Europe, Middle East and Africa.

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European mobile brand Prestigio enters Philippines | Business, News, The Philippine Star | philstar.com
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DA expects crop output to pick up in H2
By Czeriza Valencia (The Philippine Star)
Updated July 19, 2015 - 12:00am


MANILA, Philippines - The Department of Agriculture (DA) expects palay and corn production to pick up in the second half after first half production estimates indicated lower year-on-year outputs.

Agriculture assistant secretary for field operations Edilberto de Luna said palay production in the first six months likely reached 8.3 million metric tons (MT), slightly lower than the 8.5 million MT target and from the production level of 8.38 million MT in the same period last year.

Corn production, meanwhile, was estimated to have reached 3.4 million MT, lower than the 3.7 million MT target. It also represented a decrease from the 3.48 million MT recorded a year ago.

“There were delays in planting due to El Niño but that does not mean that we cannot hit the (production) target (for the year). The bulk of the production volume is attained during the third and fourth quarter,” said de Luna, who also heads the department’s national rice and corn program.

For this year, the Philippines is expected to produce an aggregate 8.4 million MT of yellow and white corn and 20 million MT of rice.

Government data showed domestic production and respective yield have risen steadily over the past five years mainly due to increased irrigation, use of high performing seeds and new technologies.

Rice production grew from 15.7 million MT in 2010 to 18.97 million MT in 2014. Yield per hectare rose from 3.62 MT in 2010 to 4 MT the previous year.

Corn production, on the other hand, increased from 6.4 million MT in 2010 to 7.7 million MT last year.

De Luna said these production achievements would be taken up in President Aquino’s upcoming State of the Nation Address this month.

He said the department continues to develop multi-stress grain varieties to enable farmers to cope with climate stresses.

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DA expects crop output to pick up in H2 | Business, News, The Philippine Star | philstar.com
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Ford on track to bring up dealer network to 40 this yr
By Richmond S. Mercurio (The Philippine Star)
Updated July 19, 2015 - 12:00am


MANILA, Philippines - Ford Philippines said it is on track to bringing its nationwide dealer network to a total of 40 locations by year end as it continues its dealership network expansion with the opening of Ford Ormoc in Leyte.

Ford Ormoc is the company’s second dealership to open in Leyte and is the 38th dealership in the country.

The new dealer location is expected to further strengthen Ford’s presence in the Visayas by extending the same quality and customer experience in all Ford dealerships nationwide.

“We’re opening our doors to more customers in the Visayas region with the inauguration of Ford Ormoc. This milestone in our dealership expansion plan across the country underscores our commitment to bringing the Ford brand closer to our customers,” said Kay Hart, Ford Philippines managing director.

Ford Ormoc is a single-story facility occupying 1,700 square meters with a five-vehicle showroom that can accommodate as much as six vehicles.

Two more new Ford dealership sites are set to open this year to bring the total nationwide dealer locations to 40 by the end of the year.

“Apart from delivering One Ford products, one of our main priorities is working closely with our dealer partners to ensure a quality customer and ownership experience. We are looking forward to reaching more new-to-Ford customers as we remain aggressive with our One Ford plan and growing our dealer network to 40 locations by year end,” Hart said.

Ford Philippines posted record sales in the first half of the year as total vehicle sales surged 18 percent year-on-year to 10,427 units.

The company said products such as EcoSport, Ranger and Explorer were able to sustain strong demand locally.

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Ford on track to bring up dealer network to 40 this yr | Business, News, The Philippine Star | philstar.com
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Low inflation to linger this year – ADB
By Kathleen A. Martin (The Philippine Star) | Updated July 19, 2015 - 12:00am

MANILA, Philippines - Developing Asia, including the Philippines, is expected to continue experiencing a low inflation environment given the weak oil prices and falling food prices, the Asian Development Bank said.

The bank has lowered its 2015 average inflation forecast to 2.5 percent in its latest Asian Development Outlook Supplement from a 2.6 percent estimate last March.

“Low oil prices and declining food prices continue to exert downward pressure on inflation in the region,” ADB said.

ADB kept its 6.7 percent projection for Central Asia, but cut its forecast for East Asia to 1.4 percent from 1.7 percent. ADB has also reduced its estimates for inflation in South Asia to five percent from 5.1 percent and the same for the Pacific to 4.7 percent from five percent.

However, the ADB hiked its 2015 inflation projection for Southeast Asia to 3.4 percent from 3.1 percent given expected rise in the rate in Indonesia and Malaysia.

“In Indonesia, inflation is now expected to reach 6.4 percent in 2015 and 4.9 percent in 2016… reflecting significant additional increases in administered prices,” ADB said.

“In Malaysia, the depreciating ringgit is seen to apply upward pressure on prices to the forecast horizon,” the bank added.

For the Philippines, ADB maintained its 2.8 percent forecast for average inflation this year.

Domestic inflation decelerated to 1.2 percent in June from 1.6 percent in May on lower food prices. This brought the average inflation rate to two percent, which is at the low end of the Bangko Sentral ng Pilipinas’ two to four percent target range.

The central bank has left key policy rates unchanged last month as inflation expectations remain within the target band. The BSP will revisit policy settings next on Aug. 13.

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Low inflation to linger this year – ADB | Business, News, The Philippine Star | philstar.com
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National Development News:

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Weak political system in Philippines hinders full econ development governance experts say
(The Philippine Star)
Updated July 19, 2015 - 12:00am


MANILA, Philippines - The weak political system in the Philippines has been blocking the country’s full development, according to governance experts.

In a recent forum organized by think tank Stratbase ADR Institute (ADRi), experts from the academe, the private sector and civil society groups cited the need for deep government reforms to strengthen the weak political system that has been stalling the country’s development and competitiveness.

“We have focused so much on personalities, we have lost substance and are wasting too much time in personal attacks instead of debating on critical issues that would create much needed jobs and boost the country’s competitiveness in the ASEAN economy,” said ADRi president Dindo Manhit.

Danilo Reyes, a professor at the University of the Philippines’ National College of Public Administration and Governance, said the country needs to tackle the issue of globalization, which has been transforming international arrangements and relationships in the world.

He said with the Asean regional integration, the country needs to conduct and pursue more research in understanding the nature of international bureaucracies and Asean connectivity.

Management Association of the Philippines governor-in-charge for National Issues Committee Gregorio Navarro said the Philippines needs to improve on a lot of areas to compete effectively in Asean.

Navarro said in the latest Corporate Governance Watch Asia, the Philippines ranked very low among 10 Asean countries in terms of corporate governance, particularly in the rule of law.

“Out of the highest possible rating of 100 points, we have 15, I think in the rule of law. We don’t lack laws, rules and regulations, we just don’t know how to implement them,” Navarro said.

Navarro said Brunei, considered the best in the region in terms of facilitating tax payments, has a 20 percent income tax rate. The number of taxes in Brunei is about 27 with a total tax rate of about 16.1 percent and takes about 96 hours in a year to comply with taxes.

In comparison, the Philippines has a 30 percent income tax rate with 36 other taxes and a total tax rate of 44.5 percent. The country targets to reduce the number of hours spent on complying with taxes to 193.

Meanwhile, Ramon Casiple, chairman of Consortium for Electoral Reforms, said the patronage system basically poisons the entire political structure or framework in the country.

“Every time they change president, the new president has the authority to appoint something like 17,500 positions. That is only in the Philippines wherein like the President can appoint up-to the sixth level of bureaucracy down to the provincial head of the national agency. Of course, that shows a very strong President. But it also reinforces what I call the patronage system,” he said.

Casiple said governance as a whole is tightly related to the patronage system because of the appointments and also because of the policies that would favor dynasties, families and politics.”

“You have to de-link that two. The marriage of politics and governance is a disaster. Unless that is addressed, all the well-meaning reforms I think would go into nothing,” he said.

Casiple cited the need to have a political mechanism to enhance the vision for national unity. “That mechanism actually is the political party--a genuine political party that talks to other political parties on the basis of programs, platforms, ideas and come up with a national agenda. You will have differences definitely but it is the differences of ideas, not personalities,” he said.

“Unless that political question is addressed, I fear that the Philippines, that would mean the government or even the private sector would not be prepared for Asean integration or for global competitiveness for that matter,” he said.

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Weak political system in Philippines hinders full econ development governance experts say | Business, News, The Philippine Star | philstar.com
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Military and Defense News:

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Philippine Military Upgrade Stalls
By Trefor Moss
July 19, 2015 12:40 a.m. ET


Delay for $1 billion in defense deals leaves planned overhaul years from completion

MANILA—A push by the Philippines to overhaul its obsolete military has ground to a halt just as the U.S. ally is striving to deter China in the disputed waters between them.

A string of programs collectively valued at $1 billion stalled early last year, according to military officials and executives involved in Philippine defense deals. The delay underscores how the government’s efforts to transform the country’s derelict navy and air force have become mired in red tape, funding problems and corruption allegations.

The delays leave long-held plans to build a “minimum credible deterrent”—comprising small but capable air and naval fleets—at least a decade from completion, said Jose Antonio Custodio, a Manila-based defense consultant. Even with a basic deterrent in place today, Manila would likely still lack the means to check Beijing’s assertiveness.

“We’re still at square one,” said Mr. Custodio. “With China building all these new bases [in the South China Sea], I’d say it’s already too late.”

Securing secondhand equipment from allies like Japan and the U.S. may now be the Philippines’s only chance of quickly upgrading its forces, sources familiar with the country’s procurement process said, with presidential elections due in May next year making it unlikely that any big contracts will be signed before then.

President Benigno Aquino III has promised to rejuvenate the military, degraded by decades of underinvestment. A pledge to spend $1.7 billion on new equipment initially bore fruit, as the administration signed a flurry of defense contracts valued at $834 million in late 2013 and early 2014, including deals for 12 Korean fighter jets, three Airbus transport planes, and a new fleet of combat helicopters from Canada and the U.K.

“The record will show that the Aquino administration has stepped up the pace of [military modernization] considerably, surpassing the procurement program undertaken by three previous administrations combined,” presidential spokesman Herminio Coloma said.

However, Mr. Coloma also confirmed that Mr. Aquino has still not signed a law earmarking a further $2 billion for defense procurement that was passed by congress in February 2013. Mr. Coloma didn’t explain the delay.

Government finances have been stretched thin after spending billions on reconstruction after Supertyphoon Haiyan in 2013, a fact Mr. Custodio, the defense consultant, cited for the spending delay.

Spending has also slowed after a recent scandal in which prosecutors charged three senators with corruption for their alleged involvement in the use of dummy NGOs to steal around $220 million in public money. All three senators deny the charges. Already strict government procurement rules have been further tightened since then, putting the brakes on a range of spending programs.

Contracts for two naval frigates valued at $398 million and for two long-range patrol planes valued at $132 million—capabilities that would help the Philippines monitor its maritime territory, where it has overlapping claims with China—are among those that were scheduled to have been bid out last year, but are instead stuck on the drawing board.

“It’s a bureaucratic logjam,” said Mr. Custodio.

Foreign defense companies seeking to supply these and other systems can only wait for the logjam to clear.

“It seems that all programs are paralyzed,” said a Western defense executive whose company is involved in one stalled project. Another Western executive said the Philippines was hardly unique in experiencing lengthy holdups for military equipment, but recalled how the country’s defense leadership had built momentum in 2013, only to hit the buffers in early 2014.

“Defense officials just don’t have the authority to make things happen now,” he said.

The Philippine Department of National Defense and the Armed Forces of the Philippines didn’t respond to requests to comment.

With China accelerating its island-building program in the South China Sea, Philippine military chief General Gregorio Pio Catapang recently urged Manila to spend more on defense as the country’s economy enjoys healthy growth. Last year’s defense budget was just $3.3 billion—far less than neighboring Singapore ($9.5 billion), Indonesia ($7.5 billion), and Malaysia ($4.9 billion).

A Philippines senate inquiry into the country’s military modernization efforts has meanwhile questioned the effectiveness of the funds spent so far, with one senator arguing there was practically nothing to show for the $1.4 billion spent on new weaponry in the decade to 2013. Senators also probed a deal for 21 secondhand helicopters, which the defense department canceled in April after only seven deliveries amid concerns about the quality of the technology, and with a Philippine tax official claiming that the aircraft had been ordered in exchange for kickbacks. The defense department has denied the allegations.

The breakdown of the helicopter program has made defense officials even more reluctant to place new orders and expose themselves to further scrutiny, said Mr. Custodio.

Mr. Aquino has turned to allies for help. On a recent state visit to Japan, he requested secondhand P-3C Orion maritime patrol aircraft, having already received a $183 million loan from Tokyo to fund the construction of 10 new patrol boats. Tokyo has said it is considering the requests, though hasn’t committed to anything specific. Australia, South Korea and the U.S. have all donated used military kit to Manila in recent years, and have signaled a willingness to do more.

But hand-me-downs won’t deliver a deterrent capable of influencing decision makers in Beijing, Mr. Custodio says. “The Chinese are building islands on our doorstep.”

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Philippine Military Upgrade Stalls - WSJ
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Bad news for us, though Chinese PDF members would rejoice on this news. F****!
 
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One busy day at Indonesian PTDI production hangar, finishing aircraft orders from various customers.
ptdi-2.jpg

2 NC212-400 for Philippines spotted at PT.DI production hangar
 
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Defense Budget Reduced by P2b


The First batch of 6 Upgraded APC's delivered to the Philippine Army mechanized infantry division has been already in the country (photo : AFP will rise)

THE government has slashed to P25 billion the 2016 budget of P27,752,655.774.55 being proposed by the Department of National Defense, Budget Secretary Florencio Abad confirmed on Monday.

He said the appropriation would be used to buy modern equipment for the Armed Forces of the Philippines, one of the weakest in Asia.

The P27.7 billion defense budget for 2016 is part of the proposed Revised AFP Modernization Program dated Oct. 29, 2014, with a total amount of P90,858,912,364.56 including P31,106.003,531.90 in 2015 and P18,589,184,038.45 in 2017.

The Defense Department said that of the P90.8 billion budget for 2014-2017, it had P13,410,026,020.06 allocation in 2014 but it has yet to itemize the money.

The Budget Department must be more transparent in releasing figures because Defense Secretary Voltaire Gazmin, in his letter to President Benigno Aquino III dated March 5, 2015, said it appeared that the P90.8 billion defense budget for 2014-2017 for 33 projects had further been slashed to P60,143,404,181.90 with 28 projects.

Gazmin said Aquino “approved in principle” 28 projects under the with a total budget of P60.1 billion during a meeting that the latter presided over on Feb. 17, 2015. Abad and all the AFP Major Service commanders, Cabinet Secretary Rene Almendras, among others, were also in the meeting.

In his letter, Gazmin said the proposed P60.1 billion budget was for 2015-2017 that he submitted to Abad on Feb. 23, 2015.

Meanwhile, the P25 billion defense budget for 2016 reportedly will be used to buy two frigates, two twin-engine long-range patrol aircraft and three aerial surveillance radars to boost the military’s capability to defend the West Philippine Sea from China’s aggression in the area.

(ManilaStandardToday)
 
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Business News:

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May imports volume expands despite drop in payments
By Patricia Lourdes Viray (philstar.com)
Updated July 24, 2015 - 2:50pm


MANILA, Philippines - A 7.1 percent expansion in the volume of total imported merchandise was recorded in May, the National Economic and Development Authority (NEDA) said on Friday.

However, the value of the country's total imports declined by 13.4 percent from $5.1 billion in May 2014 to $4.4 billion in the same period.

“Despite lower payments for merchandise imports, more goods are actually being purchased as business sector sentiment for the quarter remains bullish. This is driven by expected robust demand from consumers, expected uptick in construction–related activities and the higher volume of production from the manufacturing sector,” NEDA Director General Arsenio Balisacan said.

According to the Philippine Statistics Authority, lower purchases of imported raw materials and intermediate goods (-23.3 percent), mineral fuels and lubricants (-24.8 percent), and consumer goods (-3.4 percent) were the main factors in the softening of merchandise imports.

Balisacan added that the volume of imports indicates a likely sustained growth of the domestic economy for the remainder of the quarter.

“The still bullish importation of capital goods should bode well for the country’s productive sectors particularly industry and services. Year-on-year expansion in inward shipments of power generating machines, as well as office, telecommunication and land transportation equipment remains robust,” the NEDA official said.

The NEDA official noted that the government should maintain its support on the micro small and medium enterprises (MSMEs) as it could prompt further growth.

"Continuing improvements in the business environment through various reforms in doing business can sustain the growth momentum. One of these is the recently signed Competition Law that ensures a level playing field even for the MSMEs," Balisacan added.

Balisacan also suggested that the government should improve the quality and quantity of the country's infrastructure as it would further encourage more participation from the private sector.

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May imports volume expands despite drop in payments | Business, News, The Philippine Star | philstar.com
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Singaporean partner ups stake in MacroAsia unit
By Iris C. Gonzales (The Philippine Star)
Updated July 24, 2015 - 12:00am


MANILA, Philippines - Singapore Airport Terminal Services (SATS) has increased its stake in airline caterer MacroAsia Catering Services Inc. (MACS), a subsidiary of MacroAsia Corp., the Lucio Tan-led aviation services company.

This development is part of the two companies’ move to further strengthen their partnership in their food services venture in the Philippines.

In a disclosure to the Philippine Stock Exchange yesterday, MacroAsia said it signed a sale and purchase agreement with SATS to sell 162,500 shares representing 13 percent of the total issued and outstanding capital stock of MACS, the dominant airline catering company in the country.

MacroAsia currently owns 80 percent of the total issued and outstanding capital stock of MACS while SATS holds 20 percent.

Under the agreement, the share purchase consideration consists of an initial cash consideration of P168.8 million and “potential earn-out consideration subject to the achievement of certain targets.”

The parties expect to complete the transaction “on or about Aug. 31, 2015,” MacroAsia said.

In 2006, MacroAsia acquired an additional 13 percent stake in MACS through a sale and purchase agreement with Compass Group International BV at a value of P36.4 million.

By mutual agreement of the three joint venture partners in MACS then, the transaction effectively increased the shareholding of MacroAsia in MACS to 80 percent and the balance of 20 percent stayed with SATS as joint venture partner.

“The transaction today effectively reverts the shareholding of MacroAsia in MACS to 67 percent, its original stake when MACS started operations in 1998,” MacroAsia said.

Aside from this joint venture, the partners also formed a new company, MacroAsia SATS Food Industries Corp., as a 100 percent subsidiary of MACS.

This company is investing in a P300- million new food commissary located near East Service Road, Sucat, Muntinlupa City to serve the requirements of institutional clients like hotels and casinos, call centers and other non-airline institutional clients.

MACS is currently operating in a two-hectare facility inside NAIA and this new facility in Muntinlupa to be operated by the newly-formed company will complement the current inflight kitchen, aside from focusing on further expansion into the production of food for non-airline clients.

SATS, on the other hand, is based in Singapore and is listed on the main board of the Singapore Exchange. It has more than 65 years of operating experience and a growing regional presence in Asia Pacific. SATS is the leading provider of gateway services and food solutions in the region. – Louella Desiderio

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Singaporean partner ups stake in MacroAsia unit | Business, News, The Philippine Star | philstar.com
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Philippines in ‘good position’ to withstand US rate hike
By Lawrence Agcaoili (The Philippine Star)
Updated July 24, 2015 - 12:00am


MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) said the Philippines is in a “good position” to withstand the impact of the much anticipated interest rate increase in the US.

BSP Governor Amando Tetangco Jr. told reporters contingency measures were put in place as early as last year in anticipation of a possible interest rate hike by the US Federal Reserve.

“Remember we took tightening measures last year. In 2014, we increased reserve requirements and rates. Those preemptive measures were designed in anticipation of the US Fed lift off. That was one of the things and those haven’t been unwound, and they’re still there. We’re in a good position,” Tetangco said.

As early as March last year, the BSP raised the reserve requirement by one percentage point. This was followed by another one percentage point increase on the reserve requirements for universal and commercial banks as well as thrift banks in May.

In June, the Monetary Board raised the interest rate on the special deposit account (SDA) facility by 25 basis points to 2.25 percent from two percent across all tenors.

The BSP jacked up key policy rates by 25 basis points in July, bringing the overnight borrowing rate to 3.75 percent and the overnight lending rate to 5.75 percent.

The policy rates were raised by another 25 basis points in September, bringing the overnight borrowing rate to four percent and the overnight lending rate to six percent.

St. Louis Fed chief James Bullard said earlier there is more than a 50 percent probability the US Fed would raise its benchmark rate this September.

US Fed chair Janet Yellen said interest rates would likely be tweaked within the year.

“If you look at the impact on us, the US Fed lift off of course it will have an impact on capital flows and we expect that going back to US and other safe haven currencies,” Tetangco said.

He reiterated the country’s sound macroeconomic fundamentals would help the Philippines survive external shocks.

The BSP chief cited the ability of the Philippines in surviving the impact of the decision of the US Fed to reduce bond purchases amid the improving economic conditions.

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Philippines in ‘good position’ to withstand US rate hike | Business, News, The Philippine Star | philstar.com
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BSP seen keeping rates steady
By Lawrence Agcaoili (The Philippine Star)
Updated July 24, 2015 - 12:00am


MANILA, Philippines - Standard Chartered Bank expects the Bangko Sentral ng Pilipinas to keep its key policy rates unchanged until next year amid the benign inflation and stable financial conditions.

In a report, StanChart economist Jeff Ng said monetary authorities in the Philippines are likely to keep rates for the overnight borrowing or reverse repurchase facility and overnight lending or repurchase facility as well as special deposit account (SDA) facility steady this year and next year.

“We would like to reiterate our expectations on BSP policy rates for the rest of the year. We currently expect no changes to the reserve repo rate and the SDA rate for the rest of this and next year,” Ng said.

Ng said inflation is expected to ease further in the third quarter of the year before bottoming out in fourth quarter as food inflation is likely to stay muted.

Inflation eased to a 20-year low of 1.2 percent in June from 1.6 percent in May.

“However low inflation is not likely to be sustained. We see a modest rebound from the fourth quarter, as base effects turn unfavorable. As a result, there is little need for the BSP to cut policy rates now and hike later on,” Ng said.

StanChart further slashed its price forecast for oil to an average of $64 instead of $76 per barrel this year and $83 instead of $100 for next year.

“While we still expect oil prices to rebound, we now expect a modest pace of rebound in oil prices,” Ng said.

In its Global Research report last June 9, StanChart revised downwards its inflation forecast to 1.9 percent instead of 2.2 percent this year and to 2.9 percent instead of 3.5 percent next year.

Likewise, the British bank believed the BSP would keep key policy rates steady until the end of 2016 instead of an earlier projection of a 50-basis point hike.

BSP Governor Amando Tetangco Jr. said the other day there is no need to alter monetary policy settings as the Philippines is expected to withstand external shocks arising from the much anticipated interest rate hike by the US Federal Reserve.

“Remember we took tightening measures last year. In 2014, we increased reserve requirements and rates. Those preemptive measures were designed in anticipation of the US Fed lift off. That was one of the things and those haven’t been unwound, and they’re still there. We’re in a good position,” Tetangco said.

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BSP seen keeping rates steady | Business, News, The Philippine Star | philstar.com
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SCS/West PH Sea News:

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Fishermen remove Chinese-marked buoys off Zambales
Zambales fishermen find these buoys as China asserts de facto control over the West Philippine Sea (South China Sea) through island-building

Randy V. Datu
Published 10:14 PM, July 25, 2015
Updated 10:14 PM, Jul 25, 2015


ZAMBALES, Philippines – Fishermen here discovered 3 lengthy floating containment booms, or buoys, located in 3 different barangays about 6 miles from the disputed Bajo de Masinloc (Scrarborough Shoal) in the West Philippine Sea (South China Sea).

Nine fishermen found the orange-colored floating booms in the sea off Zambales.

They towed the booms toward the shore and brought them to 3 barangays – Sitio Lanao, San Agustin, and Sto Rosario.

The fishermen said the booms' markings appear to indicate ownership by China.

They seem to have been placed there to set the boundary for fishermen in Zambales. These will eventually limit the areas where they can go for fishing and harvesting other marine resources, the primary sources of livelihood for these Zambales fisherfolk.

The Zambales fishermen found these buoys as China asserts de facto control over the West Philippine Sea.

In other parts of the disputed waters, China is building artificial islands that have fueled concern in the region.

The Philippines, on the other hand, is pursuing a historic arbitration case that seeks a long-term solution to the sea dispute. – Rappler.com

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Fishermen remove Chinese-marked buoys off Zambales
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PH State of the Nation Address News:

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NOTE: More news will come/ be updated as this began 1600 hrs Philippine Standard Time (0800 hrs GMT)

SONA 2015: Is it really more fun in the Philippines?
By Rex Remitio, CNN Philippines
Updated 12:27 PM PHT Mon, July 27, 2015


Metro Manila (CNN Philippines) — President Benigno S. Aquino III, in his State of the Nation address three years ago, announced an ambitious plan for the country's tourism industry.

"Sa dinami-dami ng magagandang tanawin sa ating bansa, hindi naman siguro suntok sa buwan kung mangarap tayong pagdating ng 2016, sampung milyong turista na ang bibisita sa Pilipinas kada taon," he said in his 2012 address.

(There are so many beautiful places in our country that it is not impossible to dream that when 2016 comes, there will be 10 million tourists that will visit the Philippines from that point on.)


The tourism department aggressively pushed for a marketing campaign to attract tourists, with the slogan “It's more fun in the Philippines.”

The campaign went viral, and social media platforms were abuzz with funny memes.

It was hailed as one of the world's smartest marketing campaigns, receiving dozens of international citations.

"It hit a psyche in the international travel community that now Thailand is following, right? It's not anymore Truly Asia or what, it's more human capital that they're concentrating on, what makes us unique," said Rosanna Tuason-Fores, President of the Tourism Congress of the Philippines.

Annual international tourist arrivals have been steadily rising, from 3.5 million in 2010, to a record-high 4.8 million in 2014, according to the Department of Tourism (DOT).

The DOT said that the campaign may have drawn more tourists.

This achievement is unmatched by previous administrations. But latest figures show the Aquino government is far from achieving the tourist arrival target.

The country's numbers are unimpressive compared to its Southeast Asian neighbors, according to tourism ministries in the Association of Southeast Asian Nations.

Last year, Malaysia had 25.7 million tourist arrivals, while Thailand welcomed 24.8 million visitors. Those numbers are far greater than the 4.8 million tourist arrivals for the Philippines.

For every tourist going to the Philippines, about five others choose Malaysia or Thailand.

The tourism department said that it's still more expensive to go the Philippines, from airfare costs to hotel rates.

"Unlike most other countries in Southeast Asia, we don't enjoy the luxury of cross-border land travel. It's not as if somebody can just hop on a car, cross the border, and then you count the number of tourists," said DOT Usec. for Tourism Development Benito Bengzon.

Travel bans also drive away tourists — with China issuing bans because of the dispute in the West Philippine Sea and western countries warning tourists against heading out to the conflict-torn south.

"I avoid the areas where there are issues for example in Mindanao. I just don't go there and it's a shame because I believe it's a very attractive place to go," said Adrian Allison, an Australian national.

But experts and tourists alike say there's a deeper problem: the lack of infrastructure.

Airports can get congested and flights may get delayed.

"I'll be losing four hours in between and the second at times if it is late I cannot make up and catch up," said Vinayak More, an Indian national.

And there's horrible traffic everywhere.

"Awful. It's very crazy. Awful. Nothing you can see in Spain, everybody doesn't respect the others. Nobody respects the traffic lights. To get to about one kilometer, you have to spend about half an hour, that's incredible," said Jose Ortega Lanuza, a Spanish national.

But Bengzon said that these are things beyond their control, and all they can do is to properly sell the country — with only a 2-billion-peso yearly budget.

"If you're left with a budget that is not as big as what your competitors have then you are forced to be more creative," Bengzon said.

Tourism marketing expert Maria Criselda Badilla of the University of the Philippines suggested instead that the next administration should double DOT's budget.

Badilla said that this will boost the country's tourism campaign.

Her advice to the next president: keep the "It's More Fun In The Philippines" campaign for brand recall.

"Branding the Philippines again differently will be suicide," said Badilla.

President Aquino has declared 2015 as the "Visit the Philippines Year,” as tourism is seen a key driver towards achieving socio-economic growth. However, the tourism department admits the 10-million international tourist arrival target by 2016 remains a long shot.

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SONA 2015: Is it really more fun in the Philippines? - CNN Philippines
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SONA 2015: Government's plans for the power sector
By Kristine De Guzman, CNN Philippines
Updated 11:34 AM PHT Mon, July 27, 2015


Metro Manila (CNN Philippines) — The country last suffered from an energy crisis about 15 years ago, and it may happen again if things don't change.

Sufficient power supply is important to move forward — but it's something the administration has so far struggled to achieve.

Mindanao has been suffering from the lack of electricity. Other provinces like Occidental Mindoro and Palawan are suffering from long hours of blackout.

The Luzon grid is no exception — power supply is unstable whenever some power plants stop working.

It may have taken some time, but the Department of Energy (DOE) said that new power facilities will be up and running beginning this year.

"Kung titignan nating yung outlook for the country — Luzon, Visayas, Mindanao, marami tayong committed projects, meaning may financial closure, and some of these are starting to be constructed," explained Department of Energy Officer-in-Charge Usec. Zenaida Monsada.

In Luzon, a total of 2,300 megawatts will be added to the grid from June this year until September 2019.

The Visayas grid will also be augmented by about 442-megawatts, while Mindanao — which has endured power shortages for many years now — will get an additional 2,000 megawatts.

Based on the Energy Department's 5-year outlook, the additional capacity in Luzon and Mindanao will mean there will be no blackouts until 2020.

Supply will remain stable in the Visayas until 2018, as data shows there will be more demand by that year.

With the fast-paced growth of the economy, both government and the private sector must work fast to keep up with the growing demand for power. For a country growing faster than most of its neighbors, there's no room to play catch up in the quest for stable power.

"I think the industry as a whole recognizes that the only way to ensure power reliability and adequacy is to have more power plants online both as a source of actual supply when it is needed and as a reserve as well in the event of forced or sudden outages including scheduled outages," said MERALCO Spokersperson Joe Zaldarriaga.

But if government wants more power plants, economists say it should make the process easier for investors.

It takes over a hundred permits to build a single power plant.

"You can just imagine how much of a disincentive that would be for investors. Now if you don't have enough investors, if they don't come in then you don't have additional capacity and at the, let's say, fast-paced of growth of the economy then that can be worrisome because we might end up eating up what little reserves we have," said Peter Lee U, dean of the University of Asia and the Pacific's School of Economics.

Power sector participants say that the government should focus on long-term solutions to ensure enough electricity. Otherwise, large parts of the country would continue to suffer in darkness.

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SONA 2015: Government's plans for the power sector - CNN Philippines
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SONA 2015: Aquino administration's policies and priority bills
By Anna Estanislao, CNN Philippines
Updated 11:34 AM PHT Mon, July 27, 2015


Metro Manila (CNN Philippines) — The clock is ticking.

With less than a year left before a new President is elected, Congress will soon be tackling priority bills the current administration is pushing for.


Bangsamoro Basic Law

First on the list is the draft Bangsamoro Basic Law (BBL).

The measure is pending at the House of Representatives, and the Senate is waiting on a substitute bill. What are the chances of it being passed?

Former Interior Secretary Rafael Alunan doubts it will ever be passed.

He said that there's tremendous resistance against the BBL — a measure seen to end decades-long conflict with rebels in the south.

"For the sake of argument, if it passes the legislature, to me the chances are quite slim especially at the level of the Senate. But in the event that it is passed by the legislature they still have to hurdle the SC [Supreme Court]. That will be the final battle ground," said Alunan.

Alunan maintained the peace process with the Moro Islamic Liberation Front (MILF) has not been transparent and inclusive. Because of this, he said that people in Mindanao believe BBL will not solve the unending cycle of violence there.

"Whether the BBL is passed or not, The MILF for example, if the BBL is not passed they will go to war. They've said it themselves. If the BBL is passed, those who are excluded from the talks — and many were excluded — said they won't take it sitting down," Alunan said.

Senator Ferdinand “Bongbong” Marcos,Jr., chair of the Senate Committee on Local Government, argued that cannot support the BBL in its present form.

"[T]he Philippine Peace Panel and the OPAPP had not consulted anyone but the MILF. So if I said it would lead us to perdition, it will lead us back to war, we have already had the Zamboanga uprising. Do we need a clearer indication of what the reaction would be of other groups to this BBL in the form that it has been presented?," the senator said.


Freedom of Information Bill

Another equally contentious measure is the Freedom of Information bill.

The President vowed to pass the law before he steps down.

While the bill passed the Senate in March last year, it has yet to get past the second reading in the Lower House.

Senator Grace Poe, author of the bill, has been urging Congress and the President to prioritize the measure.

"If I had my way, every citizen should be able to access government contracts, project details and project allocations. This is the purpose of the FOI that has been one of my priorities since day one," said Senator Grace Poe during her speech at the Rotary Club Journalism Awards.

“Freedom of Information has been enshrined in our laws combined with the wonders of technology with the powerful weapons to kill the cancer of corruption.”

But Vergel Santos, Board of Trustees Chair of the of the Center for Media Freedom and Responsibility, said that he is not hopeful that the bill will be passed into law.

"[W]hat I had seen being discussed now in congress is a pathetic parody of freedom. I can't imagine [it], but I'm not surprised."

"[T]he potential targets of such legislation are [the] people in Congress themselves. The mere fact that there have been more than 20 versions of the bill should give you an idea of the confused play of interests surrounding the bill," Santos added

In the absence of such a law, Santos said that the Aquino administration has at least ensured some measure of transparency.

"[T]he problem is not only in Congress. It is a problem of culture… the kind of people that we elect in office, the kind of people who run our lives socio-politically — people who should be doing all those things as well."


Economic charter change bill

Another important legislation is the Economic Charter Change Bill. It's not on Aquino's priority list but Congress seems bent on passing it. It is a measure that introduces changes in the 1987 Constitution to allow more foreign investment in the country.

Senate President Franklin Drilon said that the measure has a good chance it will get the Senate's nod.

"We are not amending immediately the so-called economic provisions. What we are amending is the manner with which we can change the policies insofar as the economic provisions are concerned, by adding the phrase, ‘unless otherwise provided by law’,” Drilon said.

"That is why my confidence level is high that the senators will be generally supportive of this process," the senator added.

Analyst Dindo Manhit believes Congress should fast-track the approval of the bill.

He pointed out that while the country has seen better economic growth, with gross domestic product increasing by 5.2% during the first quarter of 2015, people do not have jobs, "because of our provision in our constitution of limiting it [specific business] to 60% ownership of Filipinos.

“It has limited our investment to the point that among the big ASEAN [Association of Southeast Asian Nation] countries, we are ranked number six in terms of investments."

Manhit insists allowing foreign investment in different sectors will create job opportunities, thereby creating inclusive growth.

Other major legislative measures passed into law include the K to 12 Enhanced Basic Eudcation Act, Reproductive Health Law, Armed Forces of the Philippines Reform Act, and the Whistleblower Protection Act.

Congress has less than a year left to tackle the priority bills, putting the political will of Aquino and his allies in Congress to test.

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SONA 2015: Aquino administration's policies and priority bills - CNN Philippines
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SONA 2015: State of the country's disaster response
By Triciah Terrada, CNN Philippines

Updated 11:35 AM PHT Mon, July 27, 2015


Metro Manila (CNN Philippines) — Barely two years after Typhoon Yolanda battered Tacloban and Samar, some victims have already begun recovering.

But much has yet to be done. Other victims have yet to receive help from the government.

Safety experts say Typhoon Yolanda's destruction was a lesson learned the hard way.

Before Typhoon Yolanda struck, local government officials had difficulty asking residents to evacuate. But now, that situation has changed.

"Comparing people now and before, this time, we are receiving reports that there are individuals and families who go to the evacuation center earlier on even before the warning of the local government units," Romina Marasigan, spokesperson of the National Disaster Risk Reduction Management Council (NDRRMC) says.

"So I think people are now understanding the importance of preparedness, mitigation and prevention," she adds.

Marasigan adds, disaster response funds are now divided into 70% for mitigation and preparedness and 30% for response.

"Funds are actually being judiciously spent by our government just to make sure that there are not only equipment, not only food packs, not only medicines, but also people who are skilled to be there and provide the assistance to them."


'Room for improvement'

Under the law, local disaster risk reduction and management council offices have permanents posts so standard strategies can be laid out and mainstreamed.

Safety expert Martin Aguda says these initiatives are good, but there's still room for improvement.

He adds that more than hiring permanent disaster managers, it's best to find competent people to handle emergencies.

"Since the DRR (Disaster Risk Reduction) law was passed it should be a priority, madali kasi to appoint people to DRR posts. Ang tanong what are the competencies."

[Translation: Since the DRR (Disaster Risk Reduction) law was passed it should be a priority. It's easy to appoint people to DRR posts, but the question is whether they are competent to perform the task.]

And while purchasing emergency equipment is a good idea, Aguda says the government should also weed out corruption in the purchasing process.

"Makakakita ka diyan ng fire extinguishers na substandard, because they are being dictated upon by the inspectors to get fire extinguishers from a specific supplier."

[Translation: You will see substandard fire extinguishers, because they are being dictated upon by the inspectors to get fire extinguishers from a specific supplier.]

"Actually, yun ang nakakainis e. These are basic safety equipment pero parang pinaglalaruan pa rin tayo."

[Translation: It's irritating. These are basic safety equipment but we are being played at.]


Setting standards

Aguda says all these boil down to strict implementation of the law, especially in the case of a possible 7.2 magnitude quake that could strike Metro Manila, which is projected to result in 33,000 fatalities.

In case of such an earthquake, officials say evacuation camps have already been identified and goods have been prepositioned, something learned from Typhoon Yolanda's aftermath.

A nationwide earthquake drill has also been set on July 30.

"Even people here in [Metro Manila] would be victims, there will be people coming in from the outside who are already informed that they are going to do this. Who are already provided with protocols on how they would be undertaking the disaster response," Marasigan says.

Aguda also suggests that disaster officials should implement standards for evacuation camp needs, such as finding adequate water supply, ample stock of basic necessities, and enough space.

Roads and passage for rescuers and emergency responders must also be identified. Volunteers and trained personnel must be clustered according to their expertise — for easier and faster emergency response.

"You have to layout the scenario, because it's being realistic. How many will be injured? Thousands will be injured, you might be hearing setting up field hospitals would that be enough, with the thousands injured?" Aguda says.

"We're hearing many will be displaced, 3,000 will be homeless and they have identified through the Oplan Yakal, several evacuation areas per quadrant is that enough? If you've seen Oplan Yakal hindi pa nakaincorporate yan," he adds.

[Translation: We're hearing many will be displaced, 3,000 will be homeless and they have identified through the Oplan Yakal, several evacuation areas per quadrant is that enough? If you've seen Oplan Yakal that aspect is not incorporated yet.]


Capacity building

Albay Province, one of the most disaster-prone areas in the country, is a role model for disaster risk management and prevention.

Its Provincial Disaster Risk Reduction and Management Office regularly updates data on hazards and risk assessment.

Albay also invests in strengthening infrastructures to prevent damage when a calamity strikes.

"Kasi dapat safe route, safe evacuation center, I did not see the safe routes in Metro Manila. One, kapag lumindol saan ka dadaan? Tapos yung mga evacuation center mukhang pinagtuturo lang. Aba kailangan mong gawin yan hindi yan basta puwede kayo sa golf course," Albay Governor Joey Salceda says.

[Translation: You should have a safe route and a safe evacuation center. I did not see safe routes in Metro Manila. For one, if an earthquake strikes where will you pass? And you must also build evacuation centers and not just put people in a golf course.]

He adds the provincial government conducts training on risk reduction in schools and local communities.

The province also has early warning systems and emergency management equipment in place.

After all, Salceda says, whether it's the weather or climate change it is our response that will shape human conditions — a challenge for the government to level up preparations and mitigation initiatives.

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SONA 2015: State of the country's disaster response - CNN Philippines
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Last Sona mirage of lost years
By: Amando Doronila
Philippine Daily Inquirer

03:40 AM July 27th, 2015


On the eve of President Aquino’s sixth and final State of the Nation Address (Sona), his administration refocused Sona’s keynote to his announcement on whom he would endorse as official candidate of the ruling Liberal Party (LP) in the May 2016 general elections.

Weeks ahead of the polls, the nation has been in the throes of febrile anxiety over the issue of the anointment of his successor. In doing so, the President not only shifted public attention to the succession, away from the central function of Sona, that is, rendering an accounting to the people of what his government has done for the nation during the past five years to justify his presidential mandate.

The 2015 Sona is extraordinary in more ways than one: First, it sums up the performance in office of the administration for five years—not just his first, when his slate was clean; secondly, it sets the tone of national discourse for the next 12 months up until the day he steps down because for the first time he will be telling the nation the person to whom he would entrust its leadership for the next six years.

The spectacular atmosphere of this transfer of power is something like the pageantry surrounding the coronation of the dauphine of the French monarchy, as the new king of France, in ceremonies at Reims Cathedral in medieval France.

Sona is more than telling the people who among the aspirants for the highest office in the republic enjoys the presidential blessing to be his successor who would ensure the continuity of his good governance reforms. It is an extremely important public document that serves as an inventory of the performance of a democratically elected government consisting of what it proposed to do and failed to do in previous Sonas of the past five years.

This annual report serves to fulfill the function of accountability of any government. But by highlighting the event that the President would use it as a platform to announce his succession preferences after his Sona speech, he has downgraded the importance of Sona as a documentary mechanism of rendering public accountability to enable the public to determine whether he has squandered the resources and powers of the presidency to deliver benefits for the general public good according to the programs spelled out in previous Sonas.

From the way the administration highlighted the Sona in response to public clamor to declare the President’s preferences on who would receive his endorsement, it appears to us that using Sona as a platform to announce his succession decision is a glib cop-out to divert public attention from the serious task of scrutinizing the contents of his last Sona.


Emphasis on trivia

It would be brazenly presumptuous for anyone to comment on the contents of Sona until after the President has delivered it to determine what it claims as the achievements of his five years in office and what shortfalls it glosses over.

After the delivery of the last Sona, there will be more than enough documentary data, consisting of the previous Sonas to assess what the President has promised to do and has failed to deliver, on issues such as inclusive economic growth, poverty reduction, the threat of China’s territorial aggrandizement in the West Philippine Sea, land reform, safe and efficient public railways, and food sufficiency. These are the parameters with which to measure the claims of Sona. They raise many questions Sona has to address.

The highlight of the succession issue not only trivializes Sona but also diverts public attention from the hard issues enumerated above. Sona illustrates the process of Question Hour in a parliamentary democracy through which elected leaders are put on the carpet by congressional deputies of the people for accountability on their mandate to rule.

Prior to its delivery, publicity on the Sona had centered on the color and trivia (such as the fashion show on the ternos of the congressional ladies and the design of the barong of their spouses), and on the efforts of Mr. Aquino to form a coalition of political parties that would back his decision on whom to endorse as the administration’s candidates for President and Vice President next May. Malacañang handouts emphasizing the selection process left the impression that it was the centerpiece and keynote of Sona—not its contents.


Herded sycophants

Let us not forget that Mr. Aquino will deliver his last Sona at the twilight of his presidency when his popularity has declined and when his clout to influence events has diminished. There is little time left in the last few months to rectify the errors of the past or to push the initiatives proposed in the Sona. It is his swan song.

While we wait for his delivery of the Sona, Malacañang has stepped up the presentation of Sona as a bread-and-circus spectacle reminiscent of the triumphal parade of Julius Caesar on the Forum after his conquest of the Gaul region.

We are not sure Mr. Aquino’s Sona will be hailed with accolades of “Ave Caesar” from the adoring multitudes in the streets, but we know from experience the cavernous congressional gallery at the Batasan will be jampacked with herded sycophants who, at the slightest prompting, will explode with thunderous applause every punchline of the speech.

The media will dutifully report the number of applause for the speech, but only the naïve will claim the noise echoes the rabbles’ approval of Sona’s fantastic claims.

Meanwhile, the beneficiaries of the President’s anointment are left hanging whether the endorsement is a kiss of death or a bounty. It’s a blade that cuts both ways.

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Last Sona mirage of lost years | Inquirer Opinion
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Business News:

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Gov’t spending still off target despite Q2 hike
(The Philippine Star)
Updated July 29, 2015 - 12:00am


MANILA, Philippines - Public spending is expected to rise 12.4 percent in the second quarter over year-ago levels, the Department of Budget and Management said yesterday.

“For the second quarter, we project that it is going to be 12.4 percent higher than second quarter last year. Those are the emerging numbers based on preliminary figures,” Budget Secretary Florencio Abad said in a briefing.

The government spent P505.175 billion in the second quarter of 2014, up 9.8 percent from the P459.95 billion recorded in the same period in 2013.

Abad’s estimate of a 12.4-percent growth from year-ago levels will translate to P567.82 billion in expenditures in the three months to June this year.This projection, however, is still short of the P669.4-billion target for the period.

“I think if we base it on year-on-year performance, I think we are confident that we are doing much better than last year,” Abad said.

“But if you base it in program versus actual, that’s where the challenge is because we have to set our targets high so that our performance also improves compared to last year,” he said.

Latest data from the Department of Finance showed the government recorded a budget surplus of P86.4 billion in the five months to May.

Government revenues amounted to P922.2 billion as of May, below the P935.072-billion goal for the period. Expenditures from January to May, meanwhile, amounted to P835.7 billion, also short of the government’s P1.06 trillion program.

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Gov’t spending still off target despite Q2 hike | Business, News, The Philippine Star | philstar.com
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ADB boosts Phl funding to $3 B over next 3 years
By Kathleen A. Martin (The Philippine Star)
Updated July 29, 2015 - 12:00am


MANILA, Philippines - The Asian Development Bank (ADB) has increased its funding for the Philippines in support of infrastructure, job creation and economic development.

The Department of Finance said the ADB hiked its sovereign lending to the country to $3 billion for 2016 until 2018, up from the current $1.8 billion funding for 2015 to 2017.

“ADB will continue to support infrastructure needs; programs to strengthen senior high school education, job creation for youth, and social protection; deeper capital markets; improved access to finance; and development in southern Philippines including Mindanao,” ADB president Takehiko Nakao said.

“We are pleased to see the recent progress made by the government in its public-private partnership (PPP) program and will continue to support its implementation,” he added.

Nakao met with Finance Secretary Cesar Purisima yesterday to discuss the multilateral bank’s increased funding for the Philippines.

The ADB had forecast the Philippine economy to grow 6.4 percent this year and 6.3 percent in 2016. Nakao said the country should take advantage of its young population to increase opportunities for growth especially in the business process outsourcing, tourism, and agri-business sectors.

At the same time, the ADB has planned a capital reform program for the development of the local bond market, the promotion of long-term savings, and improvement in treasury operations. A financial inclusion program is also being readied by the bank to allow poor households access to financial services.

The multilateral agency also stressed its support for disaster risk financing, and its commitment to developing Mindanao and the Bangsamoro areas.

“The Philippines welcomes the hand extended in partnership with an unequivocal vow to press on. Filipinos have seen what we can achieve with good governance and are ready to dream of bigger things,” Purisima said.

“Our country has more than proven its mettle throughout the past five years writing a comeback story of growth and better governance. Deepening support from ADB in sustaining these reforms is critical–we need quality education and infrastructure to fuel further inclusive growth,” he added.

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ADB boosts Phl funding to $3 B over next 3 years | Business, News, The Philippine Star | philstar.com
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Phl stocks retreat amid China debacle
By Iris C. Gonzales (The Philippine Star)
Updated July 29, 2015 - 12:00am


MANILA, Philippines - Philippine stocks retreated yesterday, joining other Asian bourse that slumped amid China’s stock market rout.

At the Philippine Stock Exchange, the benchmark index went down 68.41 points, or 0.90 percent, to settle at 7,479.03.

Value turnover reached P6.85 billion, as 2.1 billion shares changed hands. All counters were in the red, led by the 16.59 points slide of the financials sub-index.

Market breadth was negative, as decliners edged out advancers, 122 to 46, with 38 issues unchanged.

Joey Roxas, president of Eagle Equities attributed the decline to lingering concerns over the Chinese economy as seen in its weak stock market performance.

“The market is still weak in sympathy with China. Although, it’s funny why we should sympathize since China is still up 70 percent year-on-year,” Roxas said, referring to China’s stock market index.

MSCI’s broadest index of Asia-Pacific shares outside Japan ended the day 0.2 percent higher after falling nearly one percent early on, touching its lowest level since July 9.

Tokyo’s Nikkei ended 0.1 percent lower.

The main China indexes fell again, although by nowhere near as much as Monday’s 8.5 percent plunge. The Shanghai market benchmark closed 1.7 percent lower.

Since hitting a peak in early June, Chinese shares have gone through a roller-coaster ride with main indexes plummeting by a third in less than a month before rebounding by a quarter, only to then have their biggest one-day fall since 2007 on Monday. – With Reuters

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Phl stocks retreat amid China debacle | Business, News, The Philippine Star | philstar.com
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PH State of the Nation Address News:

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Last SONA of President Benigno S. Aquino III
CROSSROADS (Toward Philippine Economic and Social Progress)
By Gerardo P. Sicat
(The Philippine Star)
Updated July 29, 2015 - 12:00am


This State of the Nation Address (SONA) is very different from the first five he delivered in the past.

The earlier SONAs could be seen as strategic statements concerning the year’s most pressing issues. The sixth or the last SONA sums up the President’s achievements as he winds up his final year in office. There is a feeling of awe as well as finality about the moment.

In this last SONA, the President waxes full with statistics and lists of accomplishments. There is much to praise in these numbers. There are notable achievements in such areas as provision of public facilities and in the operations of each branch of government.

As someone who has travelled through many of the country’s main roads in many trips taken, I am much impressed by the new state of national roads. Most have been widened. I suspect they have also been finished and maintained at lower cost than in the past. Yet, we also have to juxtapose the unmitigated sufferings imposed on slow accomplishments in Metro Manila’s traffic gridlock.

This SONA, therefore, has the aura of a grand summation of accomplishments. It is also replete with profuse and intimate thank-yous the President generously returns to his co-workers. Yet, the accolades could have been rendered in an in-house party atmosphere. For aren’t all public servants supposed to help make their leader do his job well?

My expectations of President Aquino at the beginning of his accession into office were much more modest than my assessment of him now as he commences the last year of his term in office. It looks like he will leave office as a successful president, one who had a positive impact on his country.

We focus first on the success arising from economic management. The national economy comes out positive and at a high plane of performance. There are successes in some economic reforms undertaken. These are in the broad areas as well as more limited sectors.

Yet there are also areas of weak performance that are glossed over. In particular, I call attention to the matter of attracting foreign direct investment, especially in the context of Asean neighbors. This is an issue of paramount importance in view of the growing integration of the Asean economies.

In the course of the last five years, President Aquino has been holding out against advice from his Congressional and Senate leadership that want to liberalize the restrictive provisions of the Constitution .

Luckily, good economic performance has come into play as a result of past legacies. The most important among these factors are strong balance of payments contributed by high OFW remittances and new export earnings from the back-office processing industries.

These have strengthened the country’s macroeconomic performance and have helped attain an “investment grade” rating for the country’s sovereign position in the capital markets.

The anti-corruption program of the government under the “daang matuwid” theme has captured wide international recognition in raising the prestige of the Aquino administration, especially in view of low esteem in this regard under previous Philippine administrations.

Actions that led to the impeachment of the Supreme Court Chief Justice and the incarceration of former President Gloria Macapagal Arroyo on the charge of plunder, which is a non-bailable offense, apparently gave credence to the anti-corruption program. The world took notice on the significance of the catch.

The subsequent jailing of three well-known senators, two of whom harbor presidential aspirations, further improved the country’s international standing on this score. This explains why the country’s ranking in surveys concerning corruption has been moving notches upward in a more favorable light.

This development in the anti-corruption drive would not have been possible were it not for the presence of “lucky” factors that have become available within the body of laws of the country.

The enactment of the “plunder law” produced a very powerful weapon to fight corrupt officials. The crime of plunder allowed the imprisonment without bail of any one charged with plunder.

The enactment of the “whistleblower law” made it possible to blow the whistle on corrupt officials, while protecting and incentivizing the whistleblower.

Both these new provisions of law happened before Aquino came to the presidency. It is during his presidency that they are harnessed for their power in improving governance.

To end this essay, I have a tentative judgment. How do I rate the presidency of one whose last SONA has just been delivered? One year is yet to go. But I give it a rating. I give it a “Good Pass,” for performance in general.

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Last SONA of President Benigno S. Aquino III | Business, News, The Philippine Star | philstar.com
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Philippines to buy Submarines and advanced missile systems for the first time.
http://gulfnews.com/writers/barbara-mae-dacanay
By Barbara Mae Dacanay, Correspondent

Manila: For the first time, the Philippines will buy electric and diesel-run submarines, including advanced missile systems, as listed in its $22.11 billion (998 billion pesos or Dh83.166 billion) modernisation plan that was approved in July, to ensure its strength against China, Taiwan, Vietnam, Brunei, and Malaysia which have overlapping claims in the South China Sea, sources said.

“The Philippine Navy will buy several submarines and missile systems in the next five years from private manufacturing firms either from South Korea or Japan,” a military source who requested anonymity told Gulf News.

“The ambitious purchase was scheduled after the Philippine economy grew, received good ratings from rating agencies, and allowed borrowing for expensive war materials, but the Philippines could not yet match China’s 26 submarines,” said the same source.

In 2013, the Philippine Navy bought two 1.400 tonne Incheon-class frigates (also called Future Frigate experimental or FFX), manufactured by South Korea’s Hyundai Heavy Industries and STX Offshore and Shipbuilding for $400 million (18 billion pesos or Dh1.5 billion); two strategic sealift vessels or floating command centres which can transport three helicopters per vessel, soldiers, and supplies at sea, from Indonesia’s PT PAL (Persero) for $85.7 million (3.86 billion pesos or Dh321.6 million). The new frigates and sealift vessels will arrive in the Philippines at the end of 2015 or early 2016, President Benigno Aquino announced recently.

It is widely reported that the Philippine Navy is manned by three US-made refurbished frigates: BRP Tagbanua; BRP Gregorio del Pilar and BRP Ramon Alcaraz, but Japan’s defence ministry said the Philippine Navy has 80 warships; China, 892; Malaysia, 208; and Vietnam, 94.

The Philippine Coast Guard also bought 10 40-metre-long multi-purpose response vessels (MRRV) from Japan in late 2013 for $184 million (8.09 billion pesos or Dh674.6 million), in a loan forged with Japan International Cooperation Agency (JICA) in 2014. They will augment the Coast Guard’s 19 rescue vessels, when they arrive in the Philippines at the end of 2015, sources said.

The Coast Guard secured a $20 million (900 million pesos or Dh75 million) loan from the United States’ Defence Threat Reduction Agency (it has a maritime security project with the US’ Weapons for Mass Destruction Proliferation Prevention Programme) for three aerial surveillance radars, two surface sensors and three surveillance planes for the Philippine Coast Guard National Coast Watch Centre in northern Luzon and southwest Philippines.

Recently, the Philippine Air Force bought 12 new FA-50 fighter-trainers made by Korea Aerospace Industries. six Close Air Support Aircraft; seven of 13 AW-109 helicopters; and six of eight Bell-412 combat utility helicopters made by Korea Aerospace Industries. The two fighters will arrive in December 2015 or early 2016, and the rest in 2017.

Japan’s defence ministry said the Philippines has a total of 26 combat aircraft, compared with China’s 2,582 combat aircraft.

The Philippine government also allotted $22 million (1 billion pesos or Dh83.33 million) for the development of three new naval bases that will protect its 36,000 kilometre coastline facing the South China Sea.

In 1995, Congress approved an $8.08 billion (364 billion pesos or Dh30.3 billion) military modernisation plan for 15 years. But only 10 per cent of the approved budget was secured by a loan 15 years later, in 2010, the budget department said.

China, Taiwan, and Vietnam claim the whole of the South China Sea and several parts of the oil-rich Spratly Archipelago. Brunei, Malaysia, and the Philippines claim their respective exclusive economic zones in the South China Sea and parts of the Spratly Archipelago.
 
. . .
“The Philippine Navy will buy several submarines and missile systems in the next five years from private manufacturing firms either from South Korea or Japan,” a military source who requested anonymity told Gulf News.


Maraming na maraming salamat ! :D
 
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Military and Defense News:

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Philippines to build strategic sea vessels
By Jaime Laude (The Philippine Star)
Updated August 2, 2015 - 12:00am


MANILA, Philippines - On a buying binge for big-ticket items to modernize the military, the Department of National Defense (DND) struck a deal for the transfer of technology fitted on two brand-new Strategic Sealift Vessels (SSVs) it has purchased from Indonesia.

Defense Assistant Secretary for personnel Efren Fernandez said the technology transfer by Indonesia’s PT PAL (Persero) Surabaya is highly significant, as this would allow a local shipbuilder based in Cebu to manufacture the same type of vessel.

Fernandez, former head of the Bids and Awards Committee of the defense department, recently visited PT PAL Surabaya shipyard in Indonesia, bringing along with him the shipbuilder from Cebu as an observer.

“During our inspection of the PT PAL Surabaya shipyard, the Indonesian shipbuilder agreed for technology transfer and hopefully we can locally build our own Navy ships in the near future,” Fernandez said.

Persero has bagged the contract for the delivery of two brand-new SSVs worth more than P3 billion for the Philippine Navy under the Armed Forces modernization program.

The Indonesian firm has cut the steel for the second SSV at its plant in Surabaya, thus formally setting off the assembly of the ship, which the contractor has until May next year to deliver to the Philippine Navy.

The first SSV, which is expected to be delivered either late this year or early next year, is 80 percent complete following the steel cutting in January this year.

The Philippines, despite being the fourth biggest shipbuilder around the globe – next only to China, South Korea and Japan – was only able to locally build the BRP Tagbanua, a Navy cargo ship. This was because of the lack of military technology in building modern warships.

Other than the two SSVs, the Philippine Navy is also getting two Landing Craft Heavy (LCH) that the Australian government has decommissioned and donated to the Philippines.

The newly commissioned ships are on their way from Cairns, Australia and are expected to arrive in the country next week to join the Navy’s five utility ships.

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Philippines to build strategic sea vessels | Headlines, News, The Philippine Star | philstar.com
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Business News:

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National Government borrowings down 2% in January to May
By Kathleen Martin (The Philippine Star)
Updated August 3, 2015 - 12:00am


MANILA, Philippines - Government borrowings fell two percent as of May on lower debt from domestic sources, data from the Bureau of Treasury showed.

The government borrowed P150.772 billion from January to May, higher than the P147.588 billion in the same period last year.

Borrowings complement the government’s revenue collections to help settle maturing obligations and pay for projects and programs.

External borrowings during the five-month period climbed four percent to P80.437 billion from P56.565 billion a year ago.

Program loans during the period accounted for P32.972 billion, while project loans reached P12.812 billion. Bonds issued by international sources, meanwhile, amounted to P34.653 billion as of May.

The biggest sources of these loans were the Asian Development Bank, the World Bank, and the Japan International Cooperation Agency. Data also showed most of the loans were made for post-disaster relief and recovery operations.

Meanwhile, domestic borrowings made through the sale of Treasury bonds and bills (T-bills) declined 23 percent to P70.335 billion as of May from P91.023 billion in the same period in 2014.

For May alone, government borrowings grew five percent to P22.145 billion from P21.189 billion in the same month last year.

External borrowings during the month plunged 41 percent to P760 million in May from P1.284 billion a year ago. Project loans amounted to P350 million, while program loans reached to P410 million.

Domestic borrowings rose seven percent to P21.385 billion in May from P19.905 billion last year.

Government borrowings reached P369.061 billion in 2014, 33 percent lower than the P554.701 billion in 2013.

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National Government borrowings down 2% in January to May | Business, News, The Philippine Star | philstar.com
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Government to release P278.4 B in unspent funds this year
By Kathleen A. Martin (The Philippine Star)
Updated August 3, 2015 - 12:00am


MANILA, Philippines - The government plans to release P278.4 billion in unspent portion of the national budget in the second half of the year, the Department of Budget and Management (DBM) said.

Budget Secretary Florencio Abad said the unused funds, carried over from 2014 and the previous years, are expected to be utilized for the remaining months of 2015.

The release of the funds is expected to provide additional boost to public spending, Abad said.

The bulk, or about P102 billion, of the amount will go to the Department of Public Works and Highways for the construction of new roads.

Another P20 billion will be given to the Department of Education for the establishment of new classrooms, while the Department of Agriculture will get P13 billion for construction and repair of irrigation facilities and new farm-to-market roads.

Abad said allocation for the Department of Interior and Local Government stood at P16 billion for government employees’ pension, while the Department of Transportation and Communications would get P20.7 billion.

The release of these carryover funds will be on top of the P2.56-trillion budget for this year.

Latest data from the Department of Finance showed public spending amounted to only P835.7 billion in the first five months of the year, short of the government’s P1.06-trillion target for the period.

Revenues as of May amounted to P922.2 billion, resulting in a budget surplus of P86.4 billion for the five-month period.

The government hopes to attain a budget shortfall of P283.7 billion by year-end, or about two percent of the country’s gross domestic product.

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Government to release P278.4 B in unspent funds this year | Business, News, The Philippine Star | philstar.com
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