Philippines Defence Forum

[Malaya]

Nido Petroleum to drill 115 million barrel Philippines offshore oil exploration well
Tuesday, May 07, 2013 by Bevis Yeo

Nido Petroleum (ASX: NDO) and partner PNOC Exploration Corporation have approved the plan to drill the Baragatan Prospect offshore Palawan Island, Philippines, that has estimated mean risked recoverable oil volumes of 115 million barrels.

The joint venture is progressing activities to secure a jack-up rig for the drilling of the exploration well and will drill the well as soon as practicable. All environmental approvals have already been secured.

Key long lead items such as the wellhead and casings have already been secured and are stored at the company’s forward operational base in Batangas.

Baragatan, located in Service Contract 63, is a large well defined rotated fault-block prospect with a mapped aerial closure of about 20 square kilometres.

Besides the mean oil volumes, it contains further upside recoverable potential of 166 million barrels of oil.

The primary reservoir objective are stacked Miocene-aged Pagasa Formation marine sandstones interpreted to be have been deposited in delta front/delta slope geological setting.

The Galoc oil field in SC 14C1 produces oil from Miocene-aged fan sands associated with the slightly younger Miocene prograding delta front/delta slope depositional system predicted at the Baragatan Prospect.

Previous exploration included the Albion Head-1 well drilled by Phillips in 1975 on poor quality 2D seismic data that missed the Baragatan Prospect, instead drilling the main Baragatan bounding fault.

Importantly, when the bounding fault was penetrated by the Albion Head-1 well, moderate to good oil shows were encountered in an interbedded sandstone mudstone sequence within the upthrown Baragatan fault block, confirming an active oil charge into the lower part of the prospect.

Baragatan is well positioned to receive oil charge from a large syn-rift graben located immediately to the south of the Baragatan structure which, based on the Joint Venture’s regional studies, is interpreted to contain thick, mature oil-prone source rocks.

These are the same source rocks which have produced the majority of oil and gas discovered offshore NW Palawan basin.

Nido’s 50% share of total drilling costs – estimated at between US$22 million and US$25 million - is fully funded from current cash reserves and ongoing production revenue from its interest in the Galoc and Nido/Matinloc fields.

The company is currently trading at about 67% cash backing with $28.7 million, or $0.014 per share, in cash as of 31 March 2013. Its market capitalisation is $42.94 million while its last traded share price was $0.021.

Its net share of proceeds from production from both the Galoc and Nido/Matinloc oil fields totalled $9.4 million during the March 2013 quarter.

Nido Petroleum to drill 115 million barrel Philippines offshore oil exploration well - Proactiveinvestors (AU)

 

[Malaya]

Despite row, Phl-China defense cooperation eyed
By Alexis Romero (The Philippine Star) | Updated May 7, 2013

MANILA, Philippines - The Philippines and China have agreed to explore ways to enhance defense cooperation despite a long-standing territorial row in the West Philippine Sea.

The two countries made the commitment during the 4th Defense and Security Talks (DST) last April 27 attended by senior security officials in China.

“This year’s talks enabled the two sides to exchange views on the evolving regional security situation to include maritime security,” defense department spokesman Peter Galvez said in a statement released yesterday.

“The 2013 DST also provided the two sides with an opportunity to review their bilateral defense relations and explore mechanisms to further promote defense and military cooperation,” Galvez said.

Among the areas of cooperation being considered were the exchanges of personnel and collaboration to address natural disasters and climate change.

“The dialogue also served as a platform for the Philippines and China to share perspectives on regional security architecture to include relations with powers such as the US,” Galvez said.

Defense Undersecretary Honorio Azcueta led the Philippine delegation while Gen. Qi Jianguo, deputy chief of general staff of the People’s Liberation Army, headed China’s representatives.

Azcueta said the dialogue showed that the West Philippine Sea row is not the “totality of the relations between China and the Philippines even if it remains a key issue.”

Chinese Defense Minister Chang Wanquan cited the importance of sustaining a dialogue between the two countries’ defense and military establishments.

China claims virtually the entire West Philippine Sea, a view the Philippines has described as “excessive and exaggerated.”

Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims in the area.

The Philippines has protested China’s claim before the International Tribunal on the Law of the Sea.

China, however, insists that the row should be settled through bilateral negotiations and not involve non-claimants.

Engagement with China

Malacañang supports Filipino businessmen’s continuous engagement with China and would welcome more Chinese investors in the country.

Presidential spokesman Edwin Lacierda was reacting to a report that a powerhouse group of Filipino businessmen is flying to Nanjing, China in September to explore new investments and expand opportunities despite diplomatic strains due to the territorial dispute.

Businessman Francis Chua said the team would be composed of chief executive officers of the country’s top corporations.

The mission is an offshoot of another mission conducted by Chinese businessmen to the Philippines last month.

In a press briefing yesterday, Lacierda said it would be good for the country if businessmen would help bring in more investments.

He said many businessmen had become interested in the Philippines because investment rules were clear cut and President Aquino had assured them that these would not change.

“That is important. Not just from the Chinese... All investments here will be welcome,” Lacierda said.

He said prospects in the country had become better because of the investment grade rating from two credit rating agencies – Fitch and Standard & Poor’s.

He said aside from investments that could bring more jobs, the government could “open up more borrowings for our country at preferred rates” and provide more fiscal space for poverty alleviation and social services programs.

“So that will have lower cost for instance, for public schools, public hospitals (to be built),” Lacierda said.

On Sunday, the Philippine government shrugged off the decision of China’s foreign minister to exclude the Philippines in his Southeast Asia tour.

Chinese Foreign Minister Wang Yi will visit Thailand, Indonesia, Singapore and Brunei.

Foreign Affairs Secretary Albert del Rosario said the Philippines continues to work toward further enhancing its bilateral relations with China with focus on deepening economic cooperation and strengthening people-to-people links, including seeking a peaceful rules-based resolution on West Philippine Sea disputes.

Deputy presidential spokesperson Abigail Valte said, “it will not be healthy to engage in speculations.”

“We recognize perfectly the prerogative of the Chinese foreign minister to set his own agenda for trips outside of his country.

“This is a new minister that is holding the post and we reiterate, we have already conveyed our congratulations to him and we wish him great success,” she said. – With Aurea Calica

Despite row, Phl-China defense cooperation eyed | Headlines, News, The Philippine Star | philstar.com

 

[Zero_wing]

Man this is not good but we are a peace loving people after all

 

[Malaya]

Man this is not good but we are a peace loving people after all

Filipinos are friendly and peace-loving people. The problem we have at the moment is because someone is grabbing our territory. When somebody is grabbing a piece of territory on the other side of the sea, so far from their own, it can properly be called greed and aggression.

Anyway I hope that the problem will be settled harmoniously like good neighbors.




State, Defense Officials Back Phl Arbitration Initiative Phl, US Commit to Further Strengthen Security Relations
Tuesday, 07 May 2013

07 May 2013 – United States (US) State, Defense, and National Security Council (NSC) officials reiterated their strong support for the Philippines’ legal track to settle the disputes in the West Philippine Sea, according to a senior Department of Foreign Affairs (DFA) official.

“Once more, officials from the State and Defense departments as well as the NSC made clear that the US backs our resort to arbitration proceedings under UNCLOS to peacefully resolve the disputes in the West Philippine Sea,” said DFA Undersecretary for Policy Evan P. Garcia who had a series of meetings in the run up to the ASEAN-US Dialogue last May 03 in Washington, D.C.

According to Undersecretary Garcia, “The US has conveyed their strong interest in the maintenance of the rule of law in the Asia-Pacific region. For them, a rules-based regime in the West Philippine Sea is essential to promote peace and stability.”

“Our resort to arbitration is consistent with promoting the rule of law in Asia-Pacific. This is complimentary to ASEAN efforts to draft a Code of Conduct for the West Philippine Sea,” Undersecretary Garcia added.

Among the officials that Undersecretary Garcia met in Washington, D.C. were Defense Assistant Secretary Mark Lippert, State Acting Assistant Secretary for East Asia and the Pacific Joseph Yun, State Acting Assistant Secretary for Political Military Tom Kelly, and NSC Senior Director for Asia Daniel Russel.

PHL-US to continue to strengthen alliance

“Our countries acknowledged the security challenges in the Asia-Pacific region. Territorial and maritime disputes have increased tensions in East Asia. We discussed how our efforts as allies will address these issues and help maintain stability in the region,” according to Undersecretary Garcia.

“US assistance will reinforce Philippine efforts to build our defense capabilities. We also had fruitful discussions on how to implement our agreed policy of increased rotational presence and enhanced exercises. These are important in order for the Philippines-US alliance to continue to be a cornerstone of regional stability,” said Undersecretary Garcia.

The Philippines has been heavily investing in defense. The Aquino Administration has spent over Php28 billion for the AFP modernization program, in contrast with the Php33 billion spent for modernization in the fifteen years before 2010. Relatedly, the recently signed AFP Modernization Act (RA10349) will allocate PhP75 billion in the first five years of implementation for the Philippines' military upgrade.

The Undersecretary added that Philippine-US defense cooperation also extends to non-traditional threats in Asia-Pacific such as natural disasters. “We continue to develop our capacities in humanitarian assistance and disaster response,” Undersecretary Garcia said. END

http://www.dfa.gov.ph/index.php/new...mmit-to-further-strengthen-security-relations

 

[Malaya]

PH gets third investment grade rating

ABS-CBNnews.com
Posted at 05/07/2013 6:11 PM | Updated as of 05/08/2013

MANILA (UPDATED) - The Philippines on Tuesday received its third investment grade credit rating - this time from the Japan Credit Rating Agency Ltd. (JCRA).

In a statement, JCRA said it raised its credit rating for the Philippines by a notch from BBB- to BBB, with stable outlook.

Fitch Ratings gave the Philippines its first investment grade rating in late March, while Standard & Poor's followed suit last week.

In a statement, JCRA said the upgrade reflects improvements in the Philippines' political stability and fiscal position, as well as robust economic growth.

"JCRA is of the view that the Philippine economy will, by and large, sustain an annual economic growth at around 6 percent in the years to come supported by strong domestic demand," it said.

JCRA also noted the Philippines' resilience to external shocks rendered by the accumulation of foreign exchange reserves. It said the Philippines' current account will remain in surplus, on the back of remittances from overseas Filipino workers and revenues from business process outsourcing companies.

“Its fiscal position will continue to improve moderately as the Aquino government is committed to hold the fiscal deficit/gross domestic product (GDP) ratio within its 2 percent target from 2013 onwards," it said.

"The pattern in which OFW remittances support the balance of payments as well as private consumption is likely to continue in 2013."

However, the rating agency said the Philippines should upgrade its infrastructure and improve the business environment to ensure sustainable economic growth.

"As the uncertainty persists over the prospect of the world economy, especially the European economy, JCRA will closely monitor its future developments and their possible impact on the Philippine economy," it said.

PH gets third investment grade rating | ABS-CBN News

 

[Malaya]

3 PH schools in global university rankings
BY PURPLE ROMERO
POSTED ON 05/08/2013

MANILA, Philippines - Three Philippine universities made it into the 2013 QS World Rankings for Subjects, which lists the best schools for 30 disciplines including economics, psychology and law, among others.

The University of the Philippines and Ateneo de Manila University were part of the top 51-100 schools for English Language and Literature, while De La Salle University is in top 101-150.

"Looking at the Philippines' overall performance, the country’s institutions are among the world’s top institutions for English Language and Literature," Ben Sowter, head of research at QS said.

Ateneo de Manila University also made it into the top 151-200 list for modern languages, while UP was in the 151-200 ranking for agriculture and forestry, QS said.

Harvard University was ranked number one in 10 disciplines, while the Massachusetts Institute of Technology ranked first in 7. The University of California, Berkeley and Oxford topped in 4 subjects, while Cambridge ranked first in 3.

The QS World University Rankings by Subject series gathers the opinion of academics and employers through a global survey.

For 2013, the QS World University Rankings by Subject evaluated 2,858 universities and ranked 678 institutions. - Rappler.com

3 PH schools in global university rankings

 

[Malaya]

Support dev’t of credible naval force – Angara


TEAM PNoy senatorial candidate Edgardo “Sonny” Angara said the Philippine Navy deserves all the support to make it a credible defense force that is fit for a maritime country like the Philippines.

He said that a strong and vigilant navy would successfully defend the country’s Exclusive Economic Zone (EEZ) along the country’s vast coastline and maintain sea lanes of communication with other countries to promote regional and global stability.

“We are a peaceful maritime country. Peace, international cooperation and amity are the foundations of our foreign policy. But without a maritime defense force that our navy can be proud of, what we will have are porous coastal areas and an unprotected EEZ,” Angara said.

He also stressed the need to balance resources with a strategy that is responsive across the full range of blue and brown water operations. Blue water refers to the open ocean, while brown water refers to lakes, rivers, and coastal areas (also called littorals).

Angara said that one of the good news that has come out of the tensions in the West Philippine Sea is the high morale of the Philippine Navy and its corps of officers as well as the enthusiasm of young military officers to enter the naval service.

The legislature, said Angara, can help beef up the country’s naval capacity through budgetary intervention and pushing for the return of the Philippine Coast Guard back into the navy.

“With the current tension in the West Philippine Sea, the PCG should be reintegrated into the navy to augment its force during peacetime or wartime,” he added.

Support dev

 

[Zero_wing]

Lets see pero sa akin lang kainlangan natin talaga mag modernized kasi ayoko lang mapako ulit tayo kasi bata pa ako nga start yan modernization program natin hangang ngayon wala pa rin puro improvements lang but that's good news for us at less someone is trying but it should be done faster.

 

[Reashot Xigwin]

Remington Wins Bid to Supply 50,000 M4 Rifles for AFP
07 Mei 2013

Image from firearmblog.com


The Bids and Awards Committee (BAC) of the Department of National Defense (DND) has declared the United States-based Remington company the winning bidder to supply 50,629 pieces of M4 rifles, according to the Philippine representative of the company. The bid was for little less than P2-billion.

"Remington was declared the winning single calculated bid on the AFP requirement for 50,629 pieces M4 cal 5.56mm assault rifles," Neri Dionisio, head of the P.B. Dionisio & Co., Inc., said. Dionisio is the official local representative of Remington.

In a follow-up phone interview, Dionisio said the bidding was conducted on Tuesday at the DND. Apart from Remington, it was participated in by Colt Defense, Sig Sauer and Manroy, he added.

"Remington submitted a total bid price of P1,944,261,591.66, saving government coffers P1,245,365,408.34, (based on) the total authorized budget of contract of P3,189,627,000." This would place the price for each rifle at around P38,400, or around $960.

Even as Dionisio announced Remington's winning bid, however, a source from the DND-BAC said they expected at least one of the losing bidders, particularly Colt, to file a motion for reconsideration.

"We've been expecting that, but we're confident the DND-BAC is certain they got the right bidder. With or without the contest of Colt we will be filing our request for a post-qualification bid on Friday," Dionisio said.

The post-qualification process will revalidate the documents for bidding. After this, the DND-BAC moves to the conduct of a pre-delivery inspection of the items from the winning bidder.

"A group from DND, most probably the Technical Group (TWG), will be going to the factory in the US to inspect the firearms. If there is no problem then the DND-BAC will finally award the contract to Remington," Dionisio said.

(InterAksyon)

Military to Acquire P40-M Grenades

Smoke and fragmentation grenades (photo : jeeper)

MANILA, Philippines - The Armed Forces of the Philippines (AFP) will acquire close to P40 million worth of hand grenades to be used for security operations.

A bid bulletin published in The STAR yesterday showed that the AFP will acquire 11,364 smoke grenades and 11,460 fragmentation grenades.

The government has allotted P19.944 million for the smoke grenades and P19.998 million for the fragmentation grenades.

The opening of bids will be on May 20 at the AFP Bids and Awards Committee Conference Room in Camp Aguinaldo.

The AFP assures the public that the process would comply with the provisions of the procurement law.

The acquisitions of smoke and fragmentation hand grenades are separate projects. Interested parties can submit bids for one project or for both.

To be qualified, prospective bidders should have undertaken similar projects within the last five years.

Bidders should have inked a single contract equivalent to at least 25 percent of the approved budget for each project.

They should also have completed at least two similar contracts, the total amount of which should be equivalent to at least 25 percent of the approved budget for the project.

The larger of the two contracts must be equivalent to at least 12.5 percent of the approved budget for the project.

Prospective suppliers may buy a set of bid documents worth P6,000 for each project from May 2 to 29 in Camp Aguinaldo.

http://www.philstar.com/headlines/2013/05/02/937251/military-acquire-p40-m-grenades

 

[Bob Ong]

Despite row, Phl-China defense cooperation eyed
By Alexis Romero (The Philippine Star) | Updated May 7, 2013

MANILA, Philippines - The Philippines and China have agreed to explore ways to enhance defense cooperation despite a long-standing territorial row in the West Philippine Sea.

The two countries made the commitment during the 4th Defense and Security Talks (DST) last April 27 attended by senior security officials in China.

“This year’s talks enabled the two sides to exchange views on the evolving regional security situation to include maritime security,” defense department spokesman Peter Galvez said in a statement released yesterday.

“The 2013 DST also provided the two sides with an opportunity to review their bilateral defense relations and explore mechanisms to further promote defense and military cooperation,” Galvez said.

Among the areas of cooperation being considered were the exchanges of personnel and collaboration to address natural disasters and climate change.

“The dialogue also served as a platform for the Philippines and China to share perspectives on regional security architecture to include relations with powers such as the US,” Galvez said.

Defense Undersecretary Honorio Azcueta led the Philippine delegation while Gen. Qi Jianguo, deputy chief of general staff of the People’s Liberation Army, headed China’s representatives.

Azcueta said the dialogue showed that the West Philippine Sea row is not the “totality of the relations between China and the Philippines even if it remains a key issue.”

Chinese Defense Minister Chang Wanquan cited the importance of sustaining a dialogue between the two countries’ defense and military establishments.

China claims virtually the entire West Philippine Sea, a view the Philippines has described as “excessive and exaggerated.”

Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims in the area.

The Philippines has protested China’s claim before the International Tribunal on the Law of the Sea.

China, however, insists that the row should be settled through bilateral negotiations and not involve non-claimants.

Engagement with China

Malacañang supports Filipino businessmen’s continuous engagement with China and would welcome more Chinese investors in the country.

Presidential spokesman Edwin Lacierda was reacting to a report that a powerhouse group of Filipino businessmen is flying to Nanjing, China in September to explore new investments and expand opportunities despite diplomatic strains due to the territorial dispute.

Businessman Francis Chua said the team would be composed of chief executive officers of the country’s top corporations.

The mission is an offshoot of another mission conducted by Chinese businessmen to the Philippines last month.

In a press briefing yesterday, Lacierda said it would be good for the country if businessmen would help bring in more investments.

He said many businessmen had become interested in the Philippines because investment rules were clear cut and President Aquino had assured them that these would not change.

“That is important. Not just from the Chinese... All investments here will be welcome,” Lacierda said.

He said prospects in the country had become better because of the investment grade rating from two credit rating agencies – Fitch and Standard & Poor’s.

He said aside from investments that could bring more jobs, the government could “open up more borrowings for our country at preferred rates” and provide more fiscal space for poverty alleviation and social services programs.

“So that will have lower cost for instance, for public schools, public hospitals (to be built),” Lacierda said.

On Sunday, the Philippine government shrugged off the decision of China’s foreign minister to exclude the Philippines in his Southeast Asia tour.

Chinese Foreign Minister Wang Yi will visit Thailand, Indonesia, Singapore and Brunei.

Foreign Affairs Secretary Albert del Rosario said the Philippines continues to work toward further enhancing its bilateral relations with China with focus on deepening economic cooperation and strengthening people-to-people links, including seeking a peaceful rules-based resolution on West Philippine Sea disputes.

Deputy presidential spokesperson Abigail Valte said, “it will not be healthy to engage in speculations.”

“We recognize perfectly the prerogative of the Chinese foreign minister to set his own agenda for trips outside of his country.

“This is a new minister that is holding the post and we reiterate, we have already conveyed our congratulations to him and we wish him great success,” she said. – With Aurea Calica

Despite row, Phl-China defense cooperation eyed | Headlines, News, The Philippine Star | philstar.com

Everytime we encounter an impasse with China, we send our top brass to kowtow to their whims. Our leaders easily fall into this carrot-and-stick diplomacy. China gives us temporary reprieve from incursions in return for these high level visits. They are playing a game. It's about time our leaders learn how to play their game and play it well. And even better. We should continue to upgrade our defenses to deter any future incursions.

Man this is not good but we are a peace loving people after all

Well I want the best, but to be honest, I am expecting the worst. China has slammed every peaceful move her neighbors have made over a group of islands while they preach about peace.

Lets see pero sa akin lang kainlangan natin talaga mag modernized kasi ayoko lang mapako ulit tayo kasi bata pa ako nga start yan modernization program natin hangang ngayon wala pa rin puro improvements lang but that's good news for us at less someone is trying but it should be done faster.

tumpak kabayan.

 

[Malaya]

Everytime we encounter an impasse with China, we send our top brass to kowtow to their whims. Our leaders easily fall into this carrot-and-stick diplomacy. China gives us temporary reprieve from incursions in return for these high level visits. They are playing a game. It's about time our leaders learn how to play their game and play it well. And even better. We should continue to upgrade our defenses to deter any future incursions.

I agree. They shouldn't go on these invitation. They should just bypass it. As we all know China will just calm for now but behind our backs they are always up to something. Greedy indeed!

 

[Malaya]

2013 investment ‘avalanche’ seen
Wednesday, 15 May 2013

In Photo: The launch of the Asia CEO Awards 2013 on Wednesday is attended by, among other industry movers, (from left) Ford’s Josie Gonzales, Shore Solutions’ Daray Lalonde, KPMG’s Joan Carino, Aseana’s Buds Wenceslao, Chairman of Asia CEO Awards Richard Mills, PLDT Enterprise’s Alpha Jovy Hernandez, SPI Global’s Maulik Parekh, Jones Lang Lasalle’s Sheila Lobien and The King’s School Manila’s Peter Lindsay. The kick-off for the awards, which is aimed at recognizing exemplary individuals and organizations in the business community, was held at Tower Club in Makati City. (Nonie Reyes)

THE Philippine manufacturing sector will see an “avalanche of investments” this year, with projected revenues reaching $1 billion, a renowned economist said on Wednesday.

Bernardo Villegas told the 2013 Asia CEO Awards launch that the manufacturing sector will compete with the services sector in pushing up gross domestic product (GDP).

But he also said the country must make the necessary adjustments to take full advantage of the expected economic growth by setting up more economic zones and more infrastructure projects and economic-policy changes. He also called for immediate changes in economic provisions of the Constitution, particularly limitation of foreign ownership of businesses.

As of 2011, the manufacturing industry contributed about 33 percent to the country’s GDP. The services sector chipped in the largest—54.4 percent or more than half of the GDP.

“Manufacturing will have its renaissance. [It] will compete with services in fueling GDP growth rate of 7 percent to 9 percent in the next 20 years… that is because manufacturing investments are more capital-intensive than [those in the] BPO [business-process outsourcing sector], ” Villegas said.

The bulk of the anticipated investments is expected to come from the Philippines’s neighboring countries. Villegas, quoting Lilia de Lima, director general of the Philippine Economic Zone Administration (Peza), said Japan is seen as the leading country in manufacturing investments in the Philippines.

De Lima “traveled to Japan probably 10 times during the last 12 months and she says that she cannot cope with all the requests of Japanese companies to move to the Philippines,” he added.

Soaring energy costs and lack of workers due to Japan’s low fertility rate drive Japanese companies to transfer to countries with better economic climates.

“The double problem is causing the Japanese to want to move away from Japan and the Philippines is one of their first choices,” Villegas said.

China and South Korea are also two of the Asian countries that invest heavily in the Philippines’s manufacturing sector.

Villegas said the country, however, has to make adjustments to optimize the economic growth that the Philippines is expecting. He called for more economic zones and more infrastructure projects and economic-policy changes. These are the major areas, he added, that the government must focus on.

The $1-billion projected revenue from manufacturing investments, according to Villegas, will depend heavily on the creation of more economic zones in the country. He said the Peza director general had appealed to developers of such zones to double or triple the space allotted for industries.

The Philippines’s lack in infrastructure must also be addressed, Villegas added.

“It’s still a long way to go. The typical Asian country invests 5 percent of its GDP in infrastructure. We are only at 2 percent,” he said.

Villegas also called for immediate changes in economic provisions of the Philippine Constitution, particularly limitation of foreign ownership of businesses. He said a “competition policy’ must be implemented by the Aquino administration immediately.

“In the next three years, if the Aquino administration does not produce a competition policy, it will be considered a failure because we are still suffering from oligopoly. Small elite families still control the Philippine economy,” Villegas added.

“It [restrictive foreign ownership of businesses] does not benefit Filipinos. It benefits rich Filipinos because they are the ones who have a monopoly of all these things that foreigners cannot get into,” he said.

Villegas was a member of the Constitutional Commission that drafted the 1987 Philippine Constitution.

BusinessMirror - 2013 investment ?avalanche? seen

 

[Malaya]

Kalayaan island posts fastest vote
By Jaime Laude (The Philippine Star)

MANILA, Philippines - Voting on Kalayaan island in the hotly contested Spratly archipelago was over in just six hours, the fastest ever recorded in the country’s history.

First Lieutenant Cherryl Tindog, Western Command (Wescom) spokesperson, said voting on the island, which is part of Palawan, started at 7 a.m. yesterday and ended at 1 p.m., with all 288 registered voters casting their ballots.

“The polls on the island started as scheduled and remained peaceful. The provincial Comelec (Commission on Elections) had announced earlier that the election in Kalayaan was expected to finish earlier than the rest of the province,” Tindog said.

Election paraphernalia were flown to the island before the May 13 elections and registered voters based at the Kalayaan’s satellite office in Puerto Princesa flew home to vote yesterday.

Tindog said they were awaiting results of the three-cornered political contest for mayor.

Aside from incumbent Mayor Eugenio Bito-onon, Puerto Princesa City-based businessman Noel Osorio and Rosendo Mantes, a retired military man, are contesting the mayoralty post in the island town located in the middle of territorial conflict among Spratlys-claimant countries, like China, Vietnam, Malaysia, Taiwan and Brunei.

Kalayaan island posts fastest vote | Headlines, News, The Philippine Star | philstar.com

 

[Malaya]

The Grim Reality Behind the Philippines' Economic Growth
The country is being heralded as the new Asian success story, but only an elite few reap the rewards.
JILLIAN KEENAN

In a neighborhood of so-called "Asian tigers," the Philippines has quietly emerged as the region's newest economic darling. At 6.6 percent, the Filipino economy's current GDP growth rate is the second highest in Asia, behind only China's. That growth is projected to continue over the next few years, in part because Filipinos are in a "sweet spot" demographically: the Philippines has the youngest population in East Asia, which translates into lower costs to support a younger workforce and less economic drag from retirees. Last month, Fitch Ratings (one of the world's three major credit rating firms) upgraded the Philippines to a "BBB-" with a stable outlook -- the first time the Philippines has ever received investment-grade status and a huge vote of confidence in the Filipino economy. And last year, the World Economic Forum moved the Philippines up ten points to the top half of its global competitiveness ranking for the first time in its history. These economic improvements are in part due to President Benigno Aquino, whose steps to increase transparency and address corruption sparked renewed international confidence in the Filipino economy even during the global slowdown.

"The Philippines is no longer the sick man of East Asia, but the rising tiger," announced World Bank Country Director Motoo Konishi during the Philippines Development Forum in Davao City in February.

But that economic growth only looks great on paper. The slums of Manila and Cebu are as bleak as they always were, and on the ground, average Filipinos aren't feeling so optimistic. The economic boom appears to have only benefited a tiny minority of elite families; meanwhile, a huge segment of citizens remain vulnerable to poverty, malnutrition, and other grim development indicators that belie the country's apparent growth. Despite the stated goal of President Aquino's Philippine Development Plan to oversee a period of "inclusive growth," income inequality in the Philippines continues to stand out.

In 2012, Forbes Asia announced that the collective wealth of the 40 richest Filipino families grew $13 billion during the 2010-2011 year, to $47.4 billion--an increase of 37.9 percent. Filipino economist Cielito Habito calculated that the increased wealth of those families was equivalent in value to a staggering 76.5 percent of the country's overall increase in GDP at the time. This income disparity was far and away the highest in Asia: Habito found that the income of Thailand's 40 richest families increased by only 25 percent of the national income growth during that period, while that ratio was even lower in Malaysia and Japan, at 3.7 percent and 2.8 percent, respectively. (And although critics have pointed out that the remarkable wealth increase of the Philippines' so-called ".01 percent" is partially due to the performance of the Filipino stock market, the growth of the Philippine Composite Index during that period would not account for such a dramatic disparity from neighboring countries.) Even relative to its regional neighbors, the Philippines' income inequality and unbalanced concentrations of wealth are extreme.

Meanwhile, overall national poverty statistics remain bleak: 32 percent of children under age five suffer from moderate to severe stunting due to malnutrition, according to UNICEF, and roughly 60 percent of Filipinos die without ever having seen a healthcare professional. In 2009, annual reports found that 26.5 percent of Filipinos lived on less than $1 a day -- a poverty rate that was roughly the same level as Haiti's. And a new report from the National Statistical Coordination Board for the first half of 2012 found no statistical improvement in national poverty levels since 2006. Even as construction cranes top Manila skyscrapers and the emerging beach town of El Nido unveils plans for its newest five-star resort, tens of millions of Filipinos continue to live in poverty. And according to Louie Montemar, a political science professor at Manila's De La Salle University, little is being done to destabilize the Philippines' oligarchical dominance of the elite.

"There's some sense to the argument that we've never had a real democracy because only a few have controlled economic power," he said in an interview with Agence France-Presse. "The country dances to the tune of the tiny elite."

Many observers blame the inequality on widespread corruption in local government, which makes it difficult or impossible for many Filipinos to launch small businesses. (In 2012, Transparency International, a non-governmental organization that monitors and reports a comparative listing of corruption worldwide, gave the Philippines a rank of 105 out of 176, tied with Mali and Algeria, among others.) Low levels of investment also suppress business growth: the Philippines' investment-to-GDP ratio currently stands at 19.7 percent. By comparison, the investment rate is 33 percent in Indonesia, 27 percent in Thailand, and 24 percent in Malaysia.

For the select few Filipinos who live in beach towns and other popular tourism areas, however, the recent influx of foreign tourists to the previously overlooked country has meant new business opportunities. Celso Serran, 38, a rickshaw driver in the growing tourist town of El Nido, said that the economic impact of tourism has had a significant impact on his income. "Today, a driver can reasonably expect to make 500 Philippine Pesos ($12.16) per day," said Serran. "Before the tourists started coming, he might make 200 PHP ($4.86) on a good day."

For some, the tourism industry is so clearly the only option that it even pulls them away from their hometowns towards more tourist-friendly cities. Dorina Genturo, 20, moved from Puerto Princesa, the capital of Palawan, to El Nido for the better job opportunities there. "There are definitely a lot more jobs in tourism, in hotels and tour companies," she said. "But it's not like this in other towns."

Meanwhile, other huge sectors of Filipino industry (such as banking, telecommunications, and property development) are almost entirely monopolized by a few elite political families, most of whom have been in power since the Spanish colonial era. And despite wide-reaching government reforms from the 1980s, those industries remain effective oligarchies or cartels that vastly outperform small businesses. According to a paper released by the Philippine Institute for Development Studies, small and medium enterprises (SMEs) account for roughly 99 percent of Filipino firms. However, those SMEs only account for 35 percent of national output--a sharp contrast with Japan and Korea, where the same ratio of SMEs accounts for roughly half of total output. This translates into far fewer high-paying jobs on the local level for Filipino employees and exacerbates the huge income disparity across the country.

"Is the economy growing here?" said Josefa Ramirez, 31, who earns roughly 123 pesos ($3) a day selling bottles of water and soda from a cart in Manila. "I didn't know that. For me, things feel the same as they always did."

The Grim Reality Behind the Philippines' Economic Growth - Jillian Keenan - The Atlantic

 

[Malaya]

'Lifting of ownership limit key to more foreign investments'

by Louella D. Desiderio, The Philippine Star
Posted at 05/16/2013

MANILA, Philippines - More foreign investments are seen to be made in the local manufacturing sector this year given availability of skilled labor here and favorable economic conditions, an economist said.

To further encourage foreign investors to enter the country though, the government will have to consider reviewing the Constitution’s restrictions on foreign ownership.

University of the Asia and Pacific economist Bernardo Villegas told reporters at the sidelines of the ASIA CEO Awards yesterday the country could expect more foreign investments to be made in the manufacturing sector this year with the Philippines being seen as a more attractive location for business.

But while the country is already being considered by foreign firms for investments in manufacturing, the government would also have to consider opening more opportunities for them by reviewing the restrictions on foreign ownership.

Villegas said the next Congress would have to review the limits set by the Constitution on foreign ownership.

Under the Constitution, foreign ownership in certain industries is limited to 40 percent.

He added that the limits on foreign ownership does not benefit all Filipinos but only the rich since they own all the businesses that foreigners cannot get into.

“It is the economic provisions (of the Constitution) that are really stopping foreign investments,” Villegas said.

“We can expect probably another $1 billion (about P41 billion) (worth of investments) for this year. These manufacturing investments are more capital intensive,” he said.

Data from the National Statistical Coordination Board showed that total approved foreign investments for 2012 went up 12 percent to P289.1 billion from the previous year’s P258.2 billion.

Villegas said the investments are expected to be made by Japanese and Korean firms with the Philippines seen as a good location for manufacturing given the availability of a skilled work force as well as low labor costs.

“Our advantage is not only as far as wages are concerned. We have industrial peace,” he said noting that there were only two labor strikes last year.

He also said the Philippines is seen as a good location for manufacturing as it is strategically located in the Southeast Asian region, which is on its way to creating a single market by 2015 through the Association of Southeast Asian Nations Economic Community.

The recent credit ratings upgrades received by the country from debt raters Fitch Ratings and Standard & Poor’s Ratings Services to investment grade are likewise making it more attractive to foreign investors.

'Lifting of ownership limit key to more foreign investments' | ABS-CBN News