Philippines Defence Forum

[Cossack25A1]

They been refurbished

I think what he meant is that we should opt for better vehicles, like the ACV-15 or K200. Though if we opt for either of these vehicle, we should follow what the Argentinians did - they partnered with Germany and made a family of track vehicles based on the Marder AFV; the vehicle is called Tanque Argentino Mediano.

 

[Zero_wing]

I think what he meant is that we should opt for better vehicles, like the ACV-15 or K200. Though if we opt for either of these vehicle, we should follow what the Argentinians did - they partnered with Germany and made a family of track vehicles based on the Marder AFV; the vehicle is called Tanque Argentino Mediano.

Ya if we have 10 trillion budget why not? for now we have 25 billion so we have to share with three major branches and general HQ of the AFP we have to make due if it was up to me we be buying Patria's all the variants and Kaplan AFV with Israeli and european weapons and have them majority license builded here. But the sad thing is we don't have the budget not unless we stop funding education and health care and the other areas of concern what are we some of the middle east countries or north korea?

 

[Cossack25A1]

Ya if we have 10 trillion budget why not? for now we have 25 billion so we have to share with three major branches and general HQ of the AFP we have to make due if it was up to me we be buying Patria's all the variants and Kaplan AFV with Israeli and european weapons and have them majority license builded here. But the sad thing is we don't have the budget not unless we stop funding education and health care and the other areas of concern what are we some of the middle east countries or north korea?

While the AFP should buy new ground assets, the focus should be more on the Navy and Air Force as these branches are dire need for new equipments.

 

[Zero_wing]

While the AFP should buy new ground assets, the focus should be more on the Navy and Air Force as these branches are dire need for new equipments.

Well to tell you there is nothing wrong buying second had weapons we just have to spend money upgrading and refurbishing them until we can buy or produce our own even license copies of weapons systems the point is make due and blame those useless morons in congress particularly the house of rep they are the worse.

 

[Cossack25A1]

Business News:

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Debt payments up 10% to P325 B in H1
By Kathleen A. Martin (The Philippine Star)
Updated August 31, 2015 - 12:00am

MANILA, Philippines - Philippine debt payments grew 10 percent with principal payments rising in the first half of the year, Bureau of Treasury (BTr) data showed.

Debt payments reached P324.81 billion in the first half of the year, P29.2 billion higher from P295.62 billion in same period last year.

Data from the BTr showed principal payments climbed 24 percent to P168.69 billion from P135.88 billion, while interest payments fell two percent to P156.12 billion from P159.74 billion.

Almost three-fourths of the principal payments were made for domestic borrowings at P124.14 billion, while the rest were for debt from foreign sources at P44.55 billion.

The same trend was observed for interest payments as bulk or P108.91 billion were for domestic debt and P47.21 billion were made for foreign liabilities.

For June alone, debt payments were unchanged at P23.87 billion from the same period last year.

BTr data showed interest payments during the month slid two percent to P19.20 billion from P19.62 billion a year ago.

Interest payments for domestic borrowings decreased three percent to P15.74 billion from P16.15 billion, while those made for foreign debt also declined to P3.45 billion from P3.46 billion.

Principal payments in June grew 10 percent to P4.67 billion from P4.25 billion last year. All of these payments were made for foreign borrowings.

The government borrows to augment revenue collections and to fund social services and economic development programs and projects.

Latest data showed outstanding government debt rose three percent to P5.82 trillion in June from P5.65 trillion in the same month last year.

This was made up of P3.84 trillion in loans from domestic creditors and P1.98 trillion from external sources.

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Debt payments up 10% to P325 B in H1 | Business, News, The Philippine Star | philstar.com
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Banks cut Philippine GDP forecast to below 6%
By Lawrence Agcaoili (The Philippine Star)
Updated August 31, 2015 - 12:00am

MANILA, Philippines - Investment banks slashed the country’s economic growth forecast to below six percent despite picking up in the second quarter of the year.

Daniel Martin, senior Asia economist at Capital Economics, said the country’s gross domestic product (GDP) is likely to expand by 5.7 percent instead of six percent this year after the disappointing data for the second quarter.

The country’s GDP grew 5.6 percent in the second quarter of the year from 6.4 percent in the same quarter last year due to weak global demand and lack of government spending.

The GDP expansion in the second quarter was faster than the revised five-percent growth penned in the first quarter amid the improving government spending and strong domestic consumption.

Barclays regional economist Raul Bajoria said the British-owned investment bank lowered its GDP growth forecast for the Philippines to 5.5 percent instead of 6.5 percent this year due to slower than expected government spending and weaker external demand.

“Overall, despite the cut in our growth forecast, we expect the Philippines to continue to outperform the other Asean economies, with the country set to be the fastest growing economy among the major Asean economies for a third consecutive year in 2015,” Bajoria said.

Standard Chartered Bank economist for Southeast Asia Jeff Ng said the Philippines is on its way to recording a 5.7 percent GDP growth this year and six percent next year.

“We believe the economy is on track to grow 5.7 percent this year and six percent next year. The domestic economy remains solid. Philippines’ household consumption outperformed that of other Asean economies over the past four to five years,” Ng said.

On the other hand, Metropolitan Bank & Trust Co. (Metrobank) scaled down its GDP growth forecast to six percent instead of 6.4 percent this year despite the expected pick up in government spending in the second half.

Metrobank analyst Pauline May Ann Revillas said higher government spending would help sustain the growth in investment spending and would also further boost consumption spending.

She added the services and industry sectors are still expected to post solid growths in the coming quarters while the agri sector is seen to remain weak amid soft food prices and the impact of the El Niño phenomenon.

“Risks to the domestic economy remain amid the effects of the El Niño phenomenon, uneven global economy, and impact of financial market volatilities,” she said.

The Philippines recorded a GDP growth of 5.3 percent in the first half of the year, slower compared to 6.4 percent in the same period last year. This was way below the GDP growth of seven to eight percent penned by economic managers for 2015.

Socioeconomic Planning Secretary Arsenio Balisacan earlier said the country’s GDP growth would likely settle between six percent and 6.5 percent this year.

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Banks cut Philippine GDP forecast to below 6% | Business, News, The Philippine Star | philstar.com
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Philippines defence industry can try to cooperate with PINDAD to join develop Anoa2 armored vehicles for philippine army. We can work out some offset scheme so that all the additional, modification and future maintenance work will be done independently in Philippines. For new build armored vehicle, the price definitely much more affordable than the western build such as VAB with similar capability.

and much more...

If this is to be considered by the Philippine government, then we can finally complement or replace the V-150 vehicles that is still in service after local AFV designs were not approved.

 

[Cossack25A1]

Business News:

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Texas Instruments undertakes $10-M expansion of Clark facility
By Ding Cervantes (The Philippine Star)
Updated September 1, 2015 - 12:00am

CLARK FREEPORT, Pampanga, Philippines – Texas Instruments Philippines, the biggest semiconductor and electronics manufacturer in the country, is planning to invest $10 million to expand its distribution center at its facility in Clark Freeport Zone.

This was announced by Mohammad Yunus, president and managing director of TI Philippines, during the groundbreaking ceremonies last Thursday of the expansion of its product-distribution center in Clark.

“The groundbreaking of the new facility is a celebration of what government agencies and industry can achieve together, not only for the success of the corporate enterprise but also for the success of the country,” Yunus said.

Yunus said last quarter, TI shipped 1.5 billion semiconductor units, and this quarter, TI would ship about two billion semiconductor units.

“Our current product distribution center is overflowing. We do not have enough space to do an efficient job in distributing,” he said.

The new product distribution center is designed to be a state of the art storage retrieval system with high levels of automation, and to have the highest level of workplace ergonomics, Yunus said.

“We are currently looking at two billion units, which could be a new record for any Texas Instruments sites anywhere in the world,” Yunus said.

TI already has an investment of $1 billion for its manufacturing facilities in Clark.

During the groundbreaking ceremonies, Philippine Economic Zone Authority director general Lilia De Lima cited Clark Development Corp. (CDC) president Arthur Tugade for making Clark Freeport Zone one of the country’s strong investment and promotions destinations.

“I’ve been in this job for more than 20 years as PEZA director general and I’ve seen presidents of CDC come and go, but the current one is the best,” she said.

As of June this year, the actual employment in Clark Freeport Zone was recorded at close to 80,000 in 781 registered enterprises, including some government agencies.

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Texas Instruments undertakes $10-M expansion of Clark facility | Business, News, The Philippine Star | philstar.com
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Japan, Singapore eye Philippines for pork, duck supply
By Czeriza Valencia (The Philippine Star)
Updated September 1, 2015 - 12:00am

MANILA, Philippines - Japanese and Singaporean buyers are considering to source pork and duck from the Philippines as the country remains free from animal diseases, Agriculture Secretary Proceso Alcala said.

In a recent interview, Alcala said at least two groups of Japanese buyers have expressed interest in importing pork and duck from the Philippines as several prefectures in Japan continue to have cases of foot-and-mouth disease as recently as six months ago.

“They (buyers) have been asking me if we are clear to export chilled pork and peking duck. We have been discussing this. Our production systems are not yet that integrated so if we can start with a small volume it is already a good start,” Alcala said.

He said local producers need to conform with the stringent import requirements of Japan.

“We do not export pork to Japan yet so we would need to conform to the necessary tests. We need to work fast,” said Alcala.

The Philippines currently supplies chicken yakitori nuggets to Japan.

These buyers have also visited La Trinidad, Benguet to look at the possibility of sourcing vegetables, Alcala said.

A group from Singapore has also expressed interest in buying pork from the Philippines, the DAR chief added.

“Singapore has a small population but because of tourism, it is a good market,” Alcala said.

The Philippines remains free from animal diseases that have caused devastation to the livestock and poultry industries of neighboring Asian countries such as avian influenza and foot-and-mouth disease (FMD).

The World Organization for Animal Health has recognized the Philippines as free from FMD without vaccination as well as from goat plague.

Alcala attributed this to the proactive monitoring of the animal health situation in the country as well as to the promotion of Good Animal Husbandry Practices (GAHP), and improving animal health services.

Both FMD and goat plague are economically damaging animal diseases that could lead to significant production losses.

FMD is a disease that primarily affects cattle and hogs but can also affect small ruminants. Humans may be infected though rarely. It is characterized by the onset of high fever in infected animals followed by the occurrence of blisters inside the mouth and on the feet.

It causes rapid weight loss and reduction of milk production among infected animals.

Goat plague, on the other hand, also affects sheep but does not affect humans. It is characterized by fever in the infected animal and is accompanied by discharge form the eyes and nose which can form a crust.

The infected animal may have coughing fits and foul-smelling breath; it may also suffer from diarrhea. The general weakness experienced by the animal usually leads to death.

The disease is spread through excretion of infected animals such as tears, and mucus from the nose and droplets ejected with cough.

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Japan, Singapore eye Philippines for pork, duck supply | Business, News, The Philippine Star | philstar.com
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More investment banks slash Philippine growth targets
By Lawrence Agcaoili (The Philippine Star)
Updated September 1, 2015 - 12:00am

MANILA, Philippines - More investment banks have lowered their economic growth forecasts for the Philippines despite the slight uptick in the second quarter of the year.

DBS Bank of Singapore slashed its gross domestic product (GDP) growth forecast for the Philippines to 5.7 percent from the original target of six percent this year.

“The full-year GDP growth may only reach 5.7 percent versus our earlier projection of six percent,” DBS said in a research note.

However, the investment bank is not ruling out a six percent GDP growth this year depending on the eventual pace of fiscal spending for the rest of the year.

Lack of government spending and weak global demand pulled down the GDP growth to 5.3 percent in the first half of the year from 6.4 percent in the same period last year.

Economic growth, however, picked up slightly to 5.6 percent in the second quarter of the year from the revised five percent in the first quarter amid the improved public spending.

“Looking ahead, downside risks to GDP growth remain prevalent, mainly on the external front,” the bank said.

Global financial markets have been rattled by external shocks including the stock market rout last Aug. 24, the devaluation of the Chinese yuan last Aug. 10, the impending interest rate increase by the US Federal Reserve, among others.

On the other hand, ING Bank Manila senior economist Joey Cuyegkeng said the country’s GDP would likely average 6.3 percent in the second half of the year from 5.3 percent in the first half.

“We retain our forecast growth of 5.9 percent in 2015 with a 6.3 percent second half GDP growth,” he added.

Cuyegkeng said domestic demand would continue to power overall growth with expected acceleration in government spending and construction activity.

Likewise, he explained the growth in household spending is likely to remain strong at around six percent in the second half of the year.

Government economic managers have set a GDP growth target of between seven and eight percent this year but Socioeconomic planning Secretary Arsenio Balisacan said growth could settle at six to 6.5 percent this year.

Both DBS and ING Bank expect the Bangko Sentral ng Pilipinas (BSP) to keep its monetary policy stance unchanged for the rest of the year.

“Monetary policy settings are likely to remain steady in the very near term while BSP remains focused on possible risks to inflation and financial sector stability,” Cuyegkeng said.

The BSP has kept interest rates on hold since September last year amid steady GDP growth and easing inflation.

The BSP has penned an inflation target of between two and four percent but it averaged 1.9 percent in the first seven months of the year after easing to a record low of 0.8 percent in July.

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More investment banks slash Philippine growth targets | Business, News, The Philippine Star | philstar.com
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[Cossack25A1]

Business News:

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The Philippines and South Korea are the big winners from China's slowdown
September 2, 2015 - 1:21AM
William Pesek

How panicked were investors last week about China's stock market plunge? Enough to treat the Korean peninsula, a place that was teetering on the brink of war, as a safe haven.

Even as policy makers braced for renewed military confrontation between North and South Korea, the won staged a rally.

It may be time to start counting Korea as a developed nation, rather than an emerging market.

That's made South Korean assets one of the few bright spots in a dark time for emerging markets. On August 24 alone, investors yanked $2.7 trillion out of developing nations, with Indonesia, Malaysia and Thailand especially hard hit. It matched the violent September 2008 selloff after Lehman Brothers collapsed.

Back then, Korea was battered so hard that pundits were calling it the "next Iceland" and the "Bear Stearns economy". Now, together with the Philippines, it's one of Asia's only refuges from chaos.

It's not hard to explain why many Asian economies are suffering from China's slowdown. Exporters of commodities, who depended on a humming Chinese market, have especially suffered. But why are there such big outliers among battered emerging markets?


Less like lemmings

The answer is that investors are finally basing their decisions less on herd mentality than nuanced, case-by-case analyses.

"Emerging market investors have become a lot savvier," says economist Frederic Neumann of HSBC in Hong Kong.

"Gone are the days where emerging markets were all lumped into one bucket. Today, countries with stronger fundamentals are able to resist the spread of contagion washing over global financial markets."

Along with South Korea and the Philippines, Neumann notes that even some frontier economies, like Vietnam, "have weathered global financial turmoil with apparent ease".

The common link among the success stories is they've got the basics right since Asia's 1997 financial meltdown. They have healthier financial systems, greater transparency, stronger banks, sober national balance sheets, and reasonable current-account deficits.

Malaysia's reckoning, by contrast, is long overdue.

The ringgit is trading near 17-year lows because scandal-plagued Prime Minister Najib Razak cares more about staying in power than modernising the country's unproductive economy.

Meanwhile, Thailand's military junta is undoing much of the progress Bangkok made since the late 1990s in strengthening the rule of law. And for all its gripes that Indonesia is being unfairly lumped in with Asia's laggards, President Joko Widodo's administration is rapidly losing the trust of investors.

While there's still time to win it back, Widodo's first 315 days in office have been a case study in timidity, drift and lost opportunities.


Korea credible

Korea, by contrast, is on the "more credible side of the spectrum," says economist Marc Chandler of Brown Brothers Harriman.

Even though China's downshift and US interest rate hikes will eventually make a dent, the won was Asia's top performer last week. Its 2.7 percent gain almost matched the drop in the Chinese yuan since August 11.

Meanwhile, Korean bond yields are falling. It turns out that the world's central banks had it right last year when they boosted their Korean debt holdings. In 2014, they made up 45.4 percent of the foreign-held portion of Korea Treasury bonds, up from 41.8 percent a year earlier.

It may be time to start counting Korea as a developed nation, rather than an emerging market. Korea still faces many challenges, not least of which are its rogue family-run conglomerates. But its macroeconomic performance deserves the recognition it's receiving from investors.

The same goes for the Philippines. Since 2010, President Benigno Aquino has steadily improved his nation's debt position (winning investment-grade ratings in the process), attacked graft and drawn in waves of foreign-direct investment.

Last month, reporters asked Philippine central bank governor Amando Tetangco if he's worried about the spectre of economic crisis haunting Asia at the moment.

"There's a herd mentality," he said, "but there'll be differentiation."

So far, he's been proven right. The country formerly derided as the "sick man of Asia" has been standing its ground amid market chaos.


Still risks

Risks abound, of course. While South Korea's economic fundamentals are stable – it's growing at a rate of 2.2 percent with a 3.7 percent jobless rate – its high household debt of $458 billion is a concern.

Manila, for its part, faces an uncertain 2016 election, in which Ferdinand Marcos Jr, son of the dictator who ravaged the nation in the 1970s and 1980s, may make a bid for the presidency. History has shown that emerging markets are often just one bad leader away from relapsing into chaos.

For now, the relative stability washing over Korea and the Philippines underscores that steady leadership and long-term thinking matter. It also shows that global investors are getting better at identifying those factors in Asia.

Bloomberg

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The Philippines and South Korea are the big winners from China's slowdown
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[Cossack25A1]

National Development News:

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MRT prototype assembly begins
Kevin Manalo, ABS-CBN News
Posted at 09/03/2015 11:33 AM
Updated as of 09/03/2015 1:27 PM

MANILA - After months of deliberation, meetings and approval by the Department of Transportation and Communications (DOTC) and the Metro Rail Transit (MRT) management, the new train set prototype from the Chinese company CNR Dalian Locomotive and Rolling Stock Co. Ltd., has begun its assembly today.

The prototype of three train coaches arrived from the port area and was delivered to the Light Rail Transit Authority (LRTA) depot in trailer trucks.

After the assembly, it will be transferred to the MRT-Line 3 depot in North EDSA and will undergo a series of tests until the end of the year.

DOTC Spokesperson Atty. Michael Sagcal said this is beneficial for both the passengers and the management of MRT as it will make riding the MRT, notorious for frequent breakdowns, more comfortable.

After it passes the series of tests conducted by the MRT engineers, 48 train coaches from CNR Dalian Locomotive will be added to the current 73 available train coaches.

This means that at peak hours on day and night there will be 30 train sets compared to the 20 train sets currently running.

Records show there are 540,000 people who use the MRT Line 3 at peak hours daily but after the approval of the new train sets, the transit system would be able to cater to 900,000 people.

The DOTC hopes that the prototype will be up and ready for testing in the days to come. Overall, DOTC officials are optimistic that this move will improve the transport system in Metro Manila.

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MRT prototype assembly begins | ABS-CBN News
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Business News:

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DoTC eyes new MRT maintenance provider by January 2016
By: Yuji Vincent Gonzales
INQUIRER.net
07:17 PM September 2nd, 2015

The deteriorating Metro Rail Transit-3 (MRT) will have a new, long-term maintenance provider by January next year, the Department of Transportation and Communications (DoTC) said on Wednesday.

DoTC said the procurement of a three-year maintenance contract was unanimously approved by the Government Procurement Policy Board (GPPB) last August 20.

“We were given the go signal by the GPPB last to pursue this mode of negotiated procurement. We’re targeting to award the contract within the year, and to have the new maintenance provider begin its services in January next year,” DoTC Secretary Joseph Emilio Abaya said in a statement.

In its request to the GPPB, DoTC cited the “immediate need” for a three-year maintenance provider to upgrade “worn-out facilities” and address other existing problems that haunt the congested railway system, “as well as the general overhaul of train coaches and the replacement of the signalling system.”

“These are essential in order to address the core problems of obsolescence and complete wear-and-tear,” DoTC said.

After two failed attempts to bid out MRT’s maintenance contract and while waiting for GPPB’s approval, DoTC has resorted to the existing six-month multidisciplinary approach, wherein seven different contractors are in charge of maintaining rail tracks and permanent ways, rolling stock (coaches) and depot equipment, power supply and overhead catenary, conveyance systems (elevators and escalators), communications systems, single-ticketing systems, and buildings and facilities.

“The new long-term maintenance provider will take over from these 7 multi-discipline contractors when their services expire in January. In accordance with the GPPB-approved plan, the DoTC has invited several established, well-reputed international expert groups in the railway maintanance industry,” DoTC said.

“This will effectively eliminate the possibility of non- or under-qualified firms from participating in the bid and eventually winning the contract,” it added.

DoTC has blamed the Sobrepeña-owned MRT Holdings Inc. for the sorry state of the MRT, saying that the private owner failed to add train coaches, conduct proper overhauling, and replace rail tracks, among others.

DoTC said the negotiated mode of procurement for the long-term maintenance contract was also approved by the Department of Justice and the National Economic Development Authority. Yuji Vincent Gonzales/TVJ

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DoTC eyes new MRT maintenance provider by January 2016 | Inquirer Business
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PSE tracks Wall Street gain
By: Doris Dumlao-Abadilla
Philippine Daily Inquirer
04:53 PM September 3rd, 2015

HE LOCAL stock barometer returned to positive territory on Thursday, tracking an overnight rebound in Wall Street.
Snapping out of a two-day decline, the Philippine Stock Exchange index firmed up by 26.3 points or 0.37 percent to close at 7,098.76.

The gains were led by the services sub-index which advanced by 1.13 percent while the financial, industrial, holding firms and mining/oil counters firmed up by a more modest pace.

The only counter that bucked the day’s upswing was the property sub-index, which fell by 0.77 percent.
Value turnover for the day was thin at P6.4 billion. There were 110 advancers, nearly twice the 59 decliners while 40 stocks were unchanged.

ICTSI led the day’s rebound, rising by 3.37 percent while URC and Semirara both advanced by over 2 percent.

PLDT gained 1.16 percent while GTCAP, SMIC, Meralco, Globe, AGI, Metrobank, JG Summit, BPI, MPI and RLC also contributed modest gains.

Outside of the PSEi, the notable gainers were DoubleDragon (+6.68 percent) and Security Bank (+0.72 percent), which were among the most actively traded stocks for the day.

Bucking the day’s upswing were SMPH, BDO and ALI which all faltered by over 1 percent.

Elsewhere in the region, stock markets traded mostly higher as most investors likewise took their cue from Wall Street.

Meanwhile, China’s financial markets are closed due to a holiday that commemorated victory over Japan during World War II.

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http://business.inquirer.net/198434/pse-tracks-wall-street-gain
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IMF sees PH growing slower than expected
By: Paolo G. Montecillo
Philippine Daily Inquirer
06:21 AM September 3rd, 2015

Philippine economic growth is expected to be slower than expected this year following a disappointing first-semester performance and amid threats to stability coming from overseas.

The International Monetary Fund (IMF) currently sees Philippine gross domestic product (GDP) rising by 6.2 this year and 6.5 percent in 2016. However, a senior official said the country might fall short of these already-conservative projections.

“The downward revision to the first quarter GDP and somewhat weaker global environment may result in a slightly lower forecast than our original,” said Shanaka Jayaneth Peiris, IMF’s resident representative to the Philippines, said on Wednesday.

Late last month, the government said the economy grew by 5 percent in the first quarter of 2015, slower than the initially reported expansion of 5.2 percent. A separate report showed Philippine GDP growth picked up to reach 5.6 percent in April to June.

Despite the improvement, the first-half performance was still far short of the government’s goal of at least 7 percent for the entire year.

The economy will have to grow by more than 8 percent in the second half of the year for this target to be met.

In an e-mail to reporters, IMF’s Peiris said the Philippine economy remained healthy.

“Strong fundamentals should help cushion the economy from global financial market volatility with exchange rate flexibility serving as a shock absorber and supporting growth,” he said.

He said the country’s steady expansion would be “supported by an acceleration in public spending, a recovery in exports and continued accommodative monetary conditions.”

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IMF sees PH growing slower than expected | Inquirer Business
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PH stocks reverse early gains, close lower
Philippine Daily Inquirer
07:12 AM September 2nd, 2015

The local stock barometer slipped for the first time in four sessions on Tuesday as a sluggish factory gauge out of China weakened regional marts.

Reversing gains in early session, the Philippine Stock Exchange index lost 11.95 points, or 0.17 percent, to close at 7,086.86 in mixed trade.

Across the region, stock markets traded mostly lower as a factory gauge in China fell to a three-year low, aggravating concerns over Asia’s largest economy.

At the local market, the PSEi was led lower by the services and mining/oil counters, which slumped by 2.02 percent and 1.79 percent, respectively. The industrial counter was also sluggish (-0.89 percent).

On the other hand, the property counter rose by 1.3 percent while the financial and holding firm counters also advanced.

Value turnover for the day amounted to P10.3 billion. There were only 63 advancers which were overwhelmed by 110 decliners while 42 stocks were unchanged.

The PSEi was led lower by PLDT, which slumped by 2.86 percent, and ICTSI, which slid by 3.26 percent.

BDO, BPI, JG Summit, AEV and RLC also declined.

On the other hand, AC gained by 2.3 percent while ALI also rose by 1.95 percent. SM, SMPH and MPI all advanced by over 1 percent. Globe, Metrobank and AGI also firmed up.

Outside of the PSEi, Security Bank—which has the highest return on equity among the largest local banks—gained 3.26 percent.—Doris Dumlao-Abadilla

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PH stocks reverse early gains, close lower | Inquirer Business
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Military and Defense News:

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Upgraded APCs from Israel waiting for .50 caliber remote controlled weapons system
Philippine News Agency
September 2, 2015

While the six upgraded armored personnel carriers (APCs) from Israel are all ship-shape, they are still to be fitted with .50 caliber-remote controlled weapons system (RCWS). This was stressed by Mechanized Infantry spokesperson Major Filemon Tan in a text message to the PNA on Tuesday. He said the RCWS are still to clear the Bureau of Customs.

“The weapon systems have not arrived in Camp O’Donnell for fitting,” Tan added.

The six APCs were transported to Tarlac last July 8. They arrived in the Philippines last June 18.

The Philippines signed an order for 28 M-113 APCs worth PhP882 million with Israeli defense manufacturer Elbit Systems Ltd. on June 22, 2014.

Fourteen of these vehicles are configured as fire support vehicles, four as infantry fighting vehicles, six as armored personnel carriers, another four as armored recovery units.

Upgrades include installation of 25mm unmanned turrets, 12.7mm (.50 caliber machine guns) RCWS and fire control systems (FCS) for 90mm turrets.

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Upgraded APCs from Israel waiting for .50 caliber remote controlled weapons system | Ang Malaya Net
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[The Asian Arms Race Guy]

The Army just loves the M113. Can't blame them--it's the ultimate tracked APC.

 

[Aepsilons]

MRT prototype assembly begins

Post pictures, amigo.

 

[Cossack25A1]

Once I found the pictures.

Though according to the news, it was assembled in a depot for a different line of elevated railways (Manila LRT Line 1 or Green (formerly Yellow) Line), thus I suspect that future trains for the said line will come from China.

Post pictures, amigo.

The Army just loves the M113. Can't blame them--it's the ultimate tracked APC.

The PH Army should also consider AIFV or derivatives of it like the South Korean K200 or Turkish ACV-15 (ACV-300).

 

[Cossack25A1]

Post pictures, amigo.

Well these are the ones I found

Do note that this train prototype for the Manila MRT (Line 3) was assembled in the depot for the Manila LRT Line 1 train, though both rail lines are connected to each other.

The design (particularly the front) is similar to the third generation trains the Manila LRT Line 1 uses (the first generation trains for the said line is from Belgium, the second generation from South Korea and the third from Japan)

The current rolling stock of the Manila MRT (Line 3) is from Czech Republic while this prototype and likely the second generation rolling stock will come from China.

The Manila LRT Line 2 is a different story because it is a heavy rail rapid transport, the only other rapid transport I am most familiar with that is similar the Manila MRT Line 2 is Bangkok's BTS Skytrain because both trains are wide.

 

[Cossack25A1]

Military and Defense News:

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AFP Modernization projects now moving to next respective bidding phase
Samuel Biag
September 8, 2015

Acquisition of around 30 much-needed military equipment and platforms, part of revised Armed Forces of the Philippines (AFP) Modernization Program, is now on green light after President Benigno S. Aquino III’s approval. Department of National Defense (DND) Undersecretary for Finance, Modernization, Installation and Munitions Fernando Manalo noted that these projects “were held in abeyance” last May pending the approval of the President.

Undersecretary Manalo made a presentation before the House of Representatives Appropriations Committee in today’s hearing for the 2016 budget.

Military equipment and platforms in the list include missile-firing frigates, long-range patrol aircraft, surveillance radars and close-air support aircraft program. Acquisition projects will now move to their next respective bidding phase, Manalo said. Frigates and radar projects are in the later phase of bidding.

The DND, last September 2, moved the Close Air Support Aircraft acquisition project from held in abeyance to active project. Pre-bid conference is scheduled on September 16, while bid opening will be on September 30.

The DND is seeking a PhP158.8-billion budget for 2016, broken down into PhP63.5-billion for territorial defense, security and stability; PhP1.5-billion for humanitarian assistance and disaster relief; PhP667-million for international engagements and peace support missions; and PhP93.1-billion for force level support and training. The latter amount is also inclusive of pensions.

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http://www.angmalaya.net/nation/201...s-now-moving-to-next-respective-bidding-phase
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Close Air Support Aircraft acquisition project continues
Ruser Mallari
September 8, 2015

After being “held in abeyance”, the Department of National Defense released a supplemental bid bulletin notifying possible bidders that hold on the Close Air Support (CAS) Aircraft acquisition project was lifted. DND will be conducting pre-bid conference on September 16, while bid opening will be on September 30.

Allocated budget for this acquisition program is PhP4.9 billion.

Philippine Air Force will be replacing/complement its Rockwell OV-10 “Bronco” turboprop attack planes with the upcoming six brand new CAS aircraft. These aircraft are designed to provide air support to infantry and naval units in contact with the enemy.

A per DND’s technical specification, bidders must present aircraft with dual tandem seating. The aircraft must have a carrying capacity of at least 3000 pounds with five hard points. Aircraft must also have two .50 caliber guns built-in or through pods.

DND Undersecretary for Finance, Modernization, Installation and Munitions Fernando Manalo confirmed, while presenting the 2016 defense budget before House of Representatives Appropriations Committee today, that revised AFP Modernization projects “held in abeyance” will now move to their next respective bidding phase.

Projects include missile-firing frigates, long-range patrol aircraft, surveillance radars, close-air support aircraft program, and other much-needed military equipment and platforms.

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http://www.angmalaya.net/nation/201...upport-aircraft-acquisition-project-continues
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Navy always ready to deploy 78% of assets to defend territory
Philippine News Agency
September 8, 2015

Unknown to many, the Philippine Navy (PN) is capable of steaming or deploying 78 percent of its fleet of patrol and logistic vessels at any given time. This was stressed by PN flag officer-in-command Rear Admiral Caesar Taccad during the presentation of the proposed 2016 budget of the Department of National Defense (DND) before the House of Representatives Appropriations Committee on Tuesday.

Taccad was responding to questions from the lawmakers on whether the PN can sail to show the flag and protect Philippine territory from poachers and other threats.

The PN chief also said that it is using its aircraft to project Philippine sovereignty over the Scarborough (Panatag) Shoal which lies 124 nautical miles off Zambales.

The area is currently under Chinese control.

As of this posting, the PN has on its inventory 124 fleet marine units ready for various contingencies.

Taccad said that 78 percent of these units can steam if needed, adding that these ships are not merely sitting alongside piers.

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http://www.angmalaya.net/nation/201...dy-to-deploy-78-of-assets-to-defend-territory
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PHL, Australian army special forces undergo two joint trainings
Grace Gonzales
September 8, 2015

Philippines and Australia will be conducting two joint military exercises in September and October to be held in Australia and Philippines respectively. Personnel from Special Operations Commands (SOCOM) of both the Philippine and Australian Army will be participating in the said exercises, the Philippine Army said in a statement.

Exercise ‘Dusk’ Caracha 2015, to be held September 15 to 26, will be held in Perth, Western Australia. The Army will be sending 25 personnel from the Light Reaction Regiment (LRR), SOCOM.

“Exercise ‘Dusk’ Caracha aims to enhance the counter-terrorist skills and capabilities of the Philippine Army’s Light Reaction Regiment utilizing the training facilities of the Special Air Service Regiment in Australia,” the Army said. It will also include closed-quarter battle training, sniper skills development training, and unit collective training.

Meanwhile, Exercise ‘Dawn’ Caracha 2015 will be held in Fort Magsaysay, Nueva Ecija on October 19 to 30. Australian Army will be sending 15 personnel.

“Exercise ‘Dawn’ Caracha is an annual army-to-army exercise between the Special Air Service Regiment, SOCOM, Australia and the SOCOM, Philippine Army which aims to enhance the interoperability between the Special Forces units of both countries,” the Army said.

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http://www.angmalaya.net/nation/201...rmy-special-forces-undergo-two-joint-training
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3 Japanese navy minesweepers now in Manila
Philippine News Agency
September 7, 2015

Three Japanese minesweepers have arrived at the Manila South Harbor for a three-day goodwill visit which started Monday. The ships, which are part of the Japan Maritime Self Defense Force (JMSDF)’s Minesweeper Division 51, are commanded by Capt. Toshiro Takaiwa.

Cmdr. Lued Lincuna, Philippine Navy public affairs office chief, said the visit of the Japanese minesweepers in Manila is part of the JMSDF’s tour in Southeast Asia. Minesweeper Division 51 is composed of JS Bungo (MST-464), JS Aishima (MSC-688) and JS Shishijima (MSC-691).

These specialized vessels are used in locating and disarming naval mines.

Philippine Navy delegates rendered customary welcome ceremony upon arrival of the visiting vessels followed by a port briefing on topics about security, safety and health with their Japanese counterparts aboard JS Bungo.

As part of their visit, Takaiwa together with the commanding officers of the three vessels, rendered a courtesy call to PN flag-officer-in-command, Rear Admiral Caesar C. Taccad. This goodwill visit will also involve series of confidence building engagements between PN and JMSDF personnel such as soccer games and receptions that would create an avenue for cultural exchanges.

Moreover, PN personnel will also be given a chance to tour and familiarize with the Japanese ships to enhance their knowledge especially in mine countermeasures.

“The said visit is another gesture of fostering goodwill thus contributing to the furtherance of friendship between the PN and JMSDF established through the years with continuing commitment to promoting naval diplomacy and camaraderie,” Lincuna stressed.

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http://www.angmalaya.net/nation/2015/09/07/13163-3-japanese-navy-minesweepers-now-in-manila
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Business News:

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Gov't exceeds target in latest bond swap
By Prinz Magtulis (philstar.com)
Updated September 8, 2015 - 1:52pm

MANILA, Philippines - The Philippines has accepted tenders more than double its minimum target for its latest bond exchange transaction, which has resulted in P2.4 billion in government savings in the first year.

A total of P237 billion in new 10-year and 25-year bonds were swapped with eligible maturing obligations in an exercise meant to lower the country's interest payments and lengthen debt payment terms, the Bureau of the Treasury said on Monday.

Broken down, a total of P121 billion in 2025 bonds and P142 billion worth of 2040 securities were exchanged with illiquid debts or those no longer traded. The government had set a minimum P50-billion target for each maturity, but total tenders reached as high as P388 billion.

The bonds were priced at the minimum coupon rates of 3.625 percent for the 10-year tenor and 4.625 percent for the 25-year paper.

"The transaction has helped the Republic achieve its debt management objectives while also providing investors with new benchmark bonds in exchange for illiuid bonds," Finance Secretary Cesar Purisima was quoted in the statement as saying.

"Amid turbulence around the world, the overwhelming response we received from the market is an unequivocal show of strength and stability on the part of the republic," he added.

Aside from the bond exchange, the Philippines also put on offer fresh 25-year bonds for purchase by cash. A total of P9.6 billion was accepted from tenders amounting to "approximately P21 billion."

The Treasury had said earlier that proceeds from the new 25-year bond offer will be used to settle interest payments and fees for the bond swap. The remaining amount will form part of the government's general fund.

"We are pleased with the unwavering support from the market. We will continue to work with investors to ensure that the Republic maintains an efficient debt portfolio, while achieving competitive funding rates," National Treasurer Roberto Tan said in the same statement.

The Philippines launched its latest offer last August 26.

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Gov't exceeds target in latest bond swap | Business, News, The Philippine Star | philstar.com
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Budget swings to P32.2-B deficit in July
By Prinz P. Magtulis (The Philippine Star)
Updated September 8, 2015 - 12:00am

Government spending surges at fastest pace in 13 months

MANILA, Philippines - The Aquino administration’s budget balance swung to a deficit in the first seven months of the year after government spending accelerated at its fastest rate in 13 months, the Bureau of the Treasury reported yesterday.

The budget gap – the difference between government expenditures and revenues – reached P32.2 billion in July, wider than last year’s P1.8 billion.

This brought the year-to-date fiscal performance to a deficit of P18.5 billion, reversing the first half budget surplus of P13.7 billion. The government has capped its deficit at P284 billion this year.

“The pace of expenditure growth we are seeing has a clear positive trend since we adopted a whole-of-government approach to address underspending,” Finance Secretary Cesar Purisima said in a statement.

“Expenditures are on track to drive our growth for the third quarter,” he added.

For July, revenues reached P178.5 billion, seven percent up from last year. Disbursements surged by 25 percent from a year ago - the fastest since June 2014’s 44-percent uptick – to hit P210.7 billion.

For the first seven months, revenues were up 15 percent to P1.264 trillion, data showed. Spending, meanwhile, reached P1.282 trillion, an improvement of 11 percent from last year.

Emilio Neri Jr., lead economist at the Bank of the Philippine Islands, said while expansion in disbursements is a “welcome development,” much of July’s growth was also due to low base effects last year.

“We anticipated these results precisely because last year, there was a contraction in spending because of the (Supreme Court) ruling in DAP,” Neri said in a phone interview.

“I think we would have to see one or two more months of growth in spending before we can truly say that we have turned the corner,” he said.

The government has come under fire for underspending which analysts said had put a dent on economic growth. This was made worse by a high court decision in July last year that declared the disbursement acceleration program (DAP) unconstitutional.

The DAP was conceived in 2011 as a way to pump prime the economy by re-allocating funds from non-performing agencies. The high court said only the legislature has such power, cautioning the state from spending since then.

This, in turn, has resulted in economic growth slowing to 5.3 percent as of the first semester this year.

“Hopefully, the higher spending so far will offset the effects of El Niño on growth,” Neri said.

The Aquino administration has fallen below its deficit target since 2011, official figures showed.

In 2011, deficit fell to two-percent of gross domestic product (GDP), way below the 3.2-percent target that year. It was followed by 2.3 percent, 1.4 percent and 0.6 percent of GDP in 2012, 2013 and 2014, respectively.

The deficit-to-GDP ratios in those years fall below the 2.6 percent target in 2012 and two-percent goal in 2013 and 2014, DOF data showed.

Deficit-to-GDP is key measure of how well the government spends and collects revenues as the economy expands.

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Budget swings to P32.2-B deficit in July | Business, News, The Philippine Star | philstar.com
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More Philippine CEOs bullish on business growth – survey
By Richmond S. Mercurio (The Philippine Star)
Updated September 8, 2015 - 12:00am

MANILA, Philippines - The top business executives in the counrty are more optimistic about the future of their businesses as opportunities are seen to widen despite threats of increasing tax burden, overregulation, and skills shortage, a joint study by the Management Association of the Philippines (MAP) and Isla Lipana & Co. showed.

In a press briefing yesterday, MAP and Isla Lipana officials unveiled the results of the 2015 Philippine CEO Survey Report which studied factors affecting the business community based on the perspective of the leaders of large corporations and small and medium enterprises.

The report revealed 73 percent of CEOs surveyed are very confident about their business growth in the next 12 months, while 62 percent are very optimistic on growth prospects in the next three years.

The report further showed these CEO’s are slightly more confident in the growth of their business than the revenue growth prospects of the industry where they belong over the near term.

“This optimism of the CEOs is further evidenced by their ability to see more opportunities to grow. Eighty-five percent of the CEOs we surveyed say there are more opportunities today than three years ago, compared to 56 percent who say there are more threats,” the study showed.

Among the biggest opportunities for growth seen by the country’s business leaders are the untapped local market for banking, demand for basic services such as telecommunications, and the upcoming establishment of an Asean Economic Community.

“Progress in the Philippine economic landscape is also seen to present growth enablers to businesses. The country’s economy grew remarkably during the past few years. Businesses have learned to identify opportunities by responding to the megatrends in the increasingly global market. And as the country and business players strive to compete and remain relevant, more growth opportunities will emerge,” the report said.

Meanwhile, CEOs have identified increasing tax burden, overregulation, geopolitical uncertainties, and access to affordable capital as their top concerns in terms of economic and regulatory risks.

As far as business-related threats are concerned, availability of key skills, cyber dangers, speed of technological changes, and high power costs were cited as their top worries.

“The majority of the respondents at 87 percent expressed concern regarding the increasing tax burden. The country has the highest corporate tax rate in Asean that is why CEOs are worried about the competitiveness of the Philippine tax structure and increasing taxes. Some CEOs think the tax regime should be revisited to be more business friendly and to encourage more investments,” the study said.

The majority of the CEOs surveyed at 78 percent believe good governance should be the government’s top priority moving forward.

This is followed by adequate physical infrastructure at 72 percent and internationally competitive and efficient tax system at 52 percent.

Internally, the country’s business leaders see innovation as key to their growth and survival in the coming years.

The report said 84 percent of the CEOs who participated in the study consider innovation critical and important to their organization’s growth.

As such, the study said companies which view innovation critical and important allocate a larger percentage of their revenues for research and development and innovation initiatives.

When asked for the reasons behind innovating, the study revealed about 96 percent of the CEOs say they innovate to stay on top of competition, remain relevant and grow revenues.

MAP president Francisco del Rosario Jr. said the Philippine CEO Survey Report, the first of a series of annual CEO surveys, is expected to benchmark the changes in how CEOs think, react and innovate.

The study pooled a total of 96 business leaders, 70 percent of whom came from large corporations.

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More Philippine CEOs bullish on business growth – survey | Business, News, The Philippine Star | philstar.com
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Politics and Diplomacy News:

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PNoy: Philippines ready to help Syrian refugees
(philstar.com)
Updated September 9, 2015 - 6:54pm

MANILA, Philippines - President Benigno S. Aquino III said Tuesday that the Philippines is ready to help refugees from conflict-stricken Syria.

In a media forum aired on state-run People's Television, Aquino noted that the Philippines helped other asylum-seekers in the past.

Aquino cited the case of the 2,700 Vietnamese boat people who sought refuge in the Philippines in the 1970s.

He also mentioned the over 1,200 European Jewish refugees who were saved by the Philippines from Adolf Hitler's Nazi Germany during the Holocaust.

"We have proven, as a country, that we are ready to assist," Aquino said.

But with limited resources and millions living in poverty, Aquino said the Philippines can only do so much.

"The history is there, the culture is there. We just want to make sure that we manage it properly, that we don't take more than what we can handle," he said.

"Vast majority of our people are still living in poverty. We would like to take our resources to better our people and do our fair share," the president added.

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PNoy: Philippines ready to help Syrian refugees | Headlines, News, The Philippine Star | philstar.com
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(This news article is likely for tomorrow's newspaper print)

 

[Cossack25A1]

Military and Defense News:

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US to Deliver Four New Patrol Vessels to the Philippines
State Department awards contract to firm to provide Manila with the boats.

By Prashanth Parameswaran
September 08, 2015

The Philippines will receive four new patrol vessels from a U.S. company in November 2015, the firm announced September 3.

According Willard Marine Inc., the U.S. State Department had awarded it a contract to provide the Philippine National Police Maritime Group with patrol vessels equipped for search and rescue operations along the country’s maritime borders.

The move is consistent with efforts by the United States to build the capacity of its allies and partners in the Asia-Pacific such as the Philippines to tackle maritime security challenges. In addition to such assistance, Washington and Manila also inked an Enhanced Defense Cooperation Agreement in 2014 that, if approved by the Philippine legislature, would grant access to US troops, planes and ships in the country on a rotational basis.

A press release by the firm noted that it would provide it with two aluminum, 30 foot patrol boats with twin 480-hp engines and dual water jets, as well as two 34-foot patrol boats with 600-hp engines and dual water jets. The vessels will be equipped with gun posts forward and aft, and cabins will include features such as shock-mitigating seats to enhance crew comfort and safety. The customized patrol craft for the Philippines is derived from a SeaArk Marine boat design that the company acquired the licensing rights to last year.

This is the third time that Willard Marine has been awarded a contract to provide military vessels to the Philippines. In 2013, the company supplied a number of 7 m Sea Force 730 rigid-hull inflatable boats to the Philippine Navy under a US Navy Foreign Military Sales program. Ulrich Gottschling, the company’s president, said the relationship is one that it hopes will continue in the coming years.

“We are confident that the Philippine National Police will get tremendous use of their new Willard patrol boats for many years, and we hope to provide them with additional vessels as their mission requirements grow and evolve over time,” he said.

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US to Deliver Four New Patrol Vessels to the Philippines | The Diplomat
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[Dakila]

Philippines to experience longer nights after Sept. 23
Updated September 9, 2015

MANILA, Philippines – The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) on Wednesday announced that there will be longer nights after the autumnal equinox on September 23.

PAGASA said the country will experience longer nights as the sun moves below the celestial equator toward the southern hemisphere after the autumnal equinox at 4:20 p.m., September 23.

The state weather bureau explained that the autumnal equinox is when the day and night will have equal length with 12 hours all over the world.

PAGASA Astronomical Observation and Time Unit Chief Mario Raymundo explained that the autumnal equinox exposes the countries below the equator or in the southern hemisphere to more sun and those above it to less sun.

“After ng September 23 ay dahan-dahan ng hahaba ang gabi sa Pilipinas na nasa northern hemisphere. Ibig sabihin ay mas maaga ng lulubog ang araw,” Raymundo said.

Raymundo said that the longer nights in the northern hemisphere will prevail until December.

“Pagdating ng December, mga around 5:30 p.m. pa lang ay lulubog na ang araw,” Raymundo said.

Raymundo said the autumnal equinox signifies the approach of winter in the northern hemisphere and summer in the southern hemisphere.

Aside from longer nights, PAGASA weather forecaster Robert Badrina said the country will also start experiencing cold weather as the southwest monsoon shift to the cold-weather-associated northeast monsoon or “hanging amihan” beginning next month.

The northeast monsoon is the cold wind from China and Siberia that blows into the country from late October until mid-February, often associated with Christmas season.

The transition of weather occurs twice a year, in March and in September where the astronomical event is called vernal equinox and autumnal equinox, respectively.

Meanwhile, Raymundo also reported that a super moon or the perigee moon, is expected to happen on September 28.

The super moon is the phenomenon when the full moon is closest to the earth during its yearly orbit. The moon’s normal average distance from the Earth is about 384,400 kilometers.

Raymundo noted that the anticipated super moon is the most visible and closest to the Earth among the super moon events this year as it will appear about 14 percent bigger and 30 percent brighter.

PAGASA said that the moon will be nearest to the Earth at 356,877 kilometers at 9:46 a.m., September 28.