Philippines Defence Forum

[Malaya]

PSEi climbs near 7,400 amid heavy foreign buying
By: Krista Angela M. Montealegre, InterAksyon.com
May 15, 2013

MANILA - (UPDATE 2, 6:15 p.m.) Philippine share prices closed at a fresh record high on Wednesday, as heavy foreign buying pushed the benchmark index within earshot of the 7,400 level.

At the Philippine Stock Exchange, the composite index logged its 31st record high, adding 78.74 points or 1.08 percent to close at 7,392.20.

Except for the services and mining and oil counters, all other sub-indices registered at least one percent gains. Losers however beat gainers, 88 to 73, with 51 issues unchanged. A total of 3.046 billion stocks worth P21.39 billion changed hands.

Actively traded stocks were SM Investments, ICTSI, PLDT, Metrobank and MPIC. Top advancers were House of Investments, iRipple and Primex, while the biggest decliners were Calapan Ventures, ATN Holdings "A" and Omico.

Foreign buying nearly doubled to P14.845 billion from yesterday's P6.206 billion. At the close of trading, foreigners were net buyers of Philippine listed stocks to the tune of P6.805 billion, or nearly a third of total trades today.

"It's a combination of select companies that reported good results and strong fundamentals referring to growth prospects, low interest rates and low inflation," said Jose Vistan of AB Capital Securities Inc.

Vistan cited Universal Robina Corp, which reported a 21 percent increase in net income to P5.4 billion in the first six months of its year, pushing the company's share price to a 52-week high of P131.50 each. The Gokongwei-led food and beverage manufacturer accounted for 12 points of the PSEi's gain today.

"Adding fuel is the improving sentiment overseas brought by similar rallies to record highs in the global markets," Vistan said.

Overnight, the Dow Jones industrial average shot up 123.57 points, or 0.82 percent, to a fresh all-time high at 15,215.25, supported by the easy monetary policy of the Federal Reserve and other major central banks designed to stimulate their respective economies.

Also fuelling optimism was the National Federation of Independent Business data showing small business owners were slightly more optimistic in April.

"In a normal market, every run up should have some decent correction to temper any excesses. We're hitting record highs almost everyday without a correction," said Vistan.

PSEi climbs near 7,400 amid heavy foreign buying - InterAksyon.com

 

[Malaya]

Philippines: Airports upgrade
May 16, 2013

AIR TRAVEL in the Philippines could see major changes this year, with the government working to improve airport services and update older facilities in Manila and Cebu City.

As air traffic increases both internationally and domestically, the private sector has a range of investment opportunities. The Ninoy Aquino International Airport (NAIA) in Manila is set to expand its operations and improve international services after the government put out a call for tenders on a number of refurbishment projects, which should help reduce congestion and delays. At the same time, domestic services are expected to receive more attention after several major multinationals bid on a project to build a new terminal at the Mactan-Cebu International Airport in Cebu City, the country’s fifth-largest urban center.

According to the Manila International Airport Authority (MIAA), the NAIA handled 31.56 million airplane passengers in 2012, a 6.2% increase from 29.72 million recorded in 2011. Of these, 13.93 million boarded international flights and 17.63 million travelled domestically. Today, the NAIA is the 34th-busiest airport in the world, up from 46th in 2011, according to the Center for Aviation, a think-tank.

However, the NAIA has been troubled by delays, disorganization and lax safety and security records. These woes were exacerbated in 2007, when the US Federal Aviation Authority, acting on the recommendation of the International Civil Aviation Organization (ICAO), downgraded the Philippines’ standing as a compliant member of the ICAO due to safety and management issues. As a result, Philippine Airlines (PAL) has not been able to expand its US service beyond Honolulu, San Francisco and Los Angeles.

More recently, the government has taken steps to open up the market. In 2011, President Aquino signed a number of laws liberalizing the aviation industry, and formed the Philippine Air Negotiating Panel and the Philippine Air Consultation Panel, with the aim of pursuing a more effective open skies policy. At the same time, foreign carriers were exempted from a pair of taxes amounting to 5.5% of gross turnover.

Building on earlier plans, the government announced in January this year that it was accepting bids on tenders for refurbishments and renovations at NAIA, including a baggage porter system, a new remote-controlled and -monitored air navigation hazard prevention system, roof repairs in Terminal 2, speaker upgrades in Terminal 1 and five new mini-buses to shuttle passengers. The government has also ordered aviation schools and general aviation aircraft to transfer operations elsewhere by 2014, which should reduce delays and congestion.

Further positive developments came about in March and April, when the ICAO announced that the NAIA had passed a five-day safety audit, clearing the way for further expansion into North America and the EU. Ramon S. Ang, the president and COO of PAL, told local media he would like to see flight services expand to New York and European destinations in the coming years. Weeks later, the Aquino administration announced it would tender bids for P434.5 million ($10.58 million) worth of upgrades and refurbishments at airports across the country.

As the Philippines braces itself for double-digit growth in air traffic in the coming years -- passenger volumes are expected to reach 40 million by 2021 -- the government is also looking to focus more on domestic services, most notably with the redevelopment of the Mactan-Cebu International Airport. This build-operate-transfer project involves the construction of an eight-million capacity passenger terminal, as well as a 20-year concession to operate and maintain all facilities at the airport.

The government set a deadline of April 22 for bidders to submit pre-qualification documents. Among those that expressed interested are several domestic firms (Metro Pacific Investments, JG Summit Holdings, San Miguel Group), as well as a partnership between local company Megawide Construction and India’s GMR Infrastructure.

Philippines: Airports upgrade | BusinessWorld Online

 

[Malaya]

US, RP authorities end four-day coast watch system exercises
Written by Mario J. Mallari Saturday, 18 May 2013

United States and Philippine authorities yesterday completed a four-day coast watch system exercises in Manila to improve the Philippines’ capability in maritime security and prevention of the proliferation of weapons of mass destruction (WMD).

In a statement, the US Embassy said the US Department of National Defense-Defense Threat Reduction Agency (DTRA) hosted a National Coast Watch System (NCWS) operational planning table exercise in Manila from May 14 to 17, participated in by both US and Filipino authorities.

The US Embassy said the exercise was meant to “assist NCWS agencies improved the Philippines’ capability in maritime domain awareness and of WMD proliferation prevention.”

The embassy said DTRA’s proliferation prevention program and international counter-proliferation program built upon previous workshops and seminars to further the development of a multiagency system focused on maritime security and WMD proliferation awareness in Philippine territorial waters.

At the same time, the US Embassy vowed DRTA’s continued assistance to the Philippines improved its maritime domain awareness.

“The Defense Threat Reduction Agency will continue assisting the Philippines in the development of a systematic approach to multiagency fusion center operations, the establishment of the NCWS, as well as training and mentoring in maritime domain and WMD awareness,” the US Embassy said.

The NCWS was established in September 2011 by President Aquino through Execuitve Order 57 and seeks to enhance interagency coordination on maritime issues.

The Department of National Defense has programmed acquisitions of modern equipment like radars aimed at enhancing the country’s coast watch system under the military’s capability upgrade and modernization program.

The program improvement of coast watch system went on full gear amid the tension between Manila and China over the disputed West Philippine Sea.

US, RP authorities end four-day coast watch system exercises

 

[Yukio]

Japan to fast track coast guard vessels donation to the Philippines

The plan for Japan to provide coast guard patrol ships to the Philippines will be accelerated, according to Japanese officials. Foreign Minister Fumio Kishida and Philippine Foreign Secretary Albert del Rosario are expected to sign the final plan at their meeting in Tokyo on Wednesday.

Manila formally requested 10 coast guard patrol ship from Japan last December. A fact-finding mission, which includes experts from the Japan International Cooperation Agency, was sent by the Japanese government this May to assess the situation. They will also work with officials in coming up with the equipment preferences and also devising with plans to operate the patrol ships once they are turned over. The delivery for the vessels are expected to begin by next fiscal year from April 2014. Each ship is expected to cost more than 1 billion yen (approx. 9.74 million dollars) and will be part of the official development assistance of Japan to the Philippines.

The fast-tracking of this plan is also due to the increasing activities of China in the South China Sea. The Philippines is currently involved in a territorial dispute over the Spratly Islands and the Scarborough Shoal. The ships and the plan being developed is to strengthen the capacity of the Philippine’s maritime police against possible actions by China over the row. Japan is considering providing assistance to Vietnam, who is also involved in a dispute with China over boundaries and territories in the maritime region as well.

Japan to fast track coast guard vessels donation to the Philippines - The Japan Daily Press

 

[Malaya]

Benham Rise eyed as new fishing haven
By Joyce Pangco Panares | Posted on May. 29, 2013

The government will open a new fishing ground on Benham Rise in Luzon amid reports that commercial fishing operations have been hampered on the Ayungin and Panatag shoals due to the Chinese presence in those areas, an official said Tuesday.

Benham Rise or Benham Plateau is a seismically active undersea region and an extinct volcanic ridge in the Philippines Sea, and is about 250 lometers east of the northern coastline of Dinapigue, Isabela. It a rich spawning ground and is also potentially rich in mineral and natural gas deposits.

Bureau of Fisheries and Aquatic Resources director Asis Perez said the surrounding waters of Benham Rise are rich in tuna and scad.

“We will develop the area for commercial fishing,” he said.

“We will be placing payaw [artificial fishing sanctuaries made of metal drums] in the area.” Perez said at least seven vessels had already signified their intention to start fishing operations in the area, which has been declared by the United Nations a part of the Philippines’ extended continental shelf.

Perez said the BFAR had already erected several payaw at the Panatag Shoal, also known as Bajo de Masinloc, so that fishermen no longer needed to venture farther out to sea where Chinese military and Coast Guard vessels are in position.

He said the payaw placed near Patanag Shoal were about 70 nautical miles away from the Chinese fleet.

He said they would be doing the same for the Ayungin Shoal, where Beijing has deployed two surveillance ships.

Earlier, deputy presidential spokeswoman Abigail Valte said the policy of non-engagement with the Chinese did not mean the government was giving up the Ayungin and Panatag shoals.

“There is a deliberate choice to avoid or to not respond to any provocative actions and not to make any actions that would tend to escalate the situation,” Valte said.

“I cannot stress this enough: that our response to maritime disputes is we have always taken it to the proper forum, and from where we stand, we cannot take any action that may tend to exacerbate the situation apart from the approach that we’ve already taken.”

Malacañang on Monday advised the Filipino fishermen who have lost their livelihood to the Chinese military presence at the Ayungin Shoal and parts of the Kalayaan Island Group to look for alternative fishing grounds.

Valte said the BFAR had set up artificial fish sanctuaries surrounded by bamboo poles in the area so that Filipino fishermen no longer needed to venture far out at sea to avoid engaging the Chinese fishing vessels.

Foreign Affairs spokesman Raul Hernandez on Monday called on Beijing to immediately withdraw its vessels.

“They should not be there. They do not have the right to be there,” Hernandez said.

“We consider this an aggressive action by China to project their so-called dash line claim, which is violative of international laws.”

The dispute over Ayungin followed the shooting death on May 9 of a Taiwanese fisherman who was suspected of poaching on Philippine waters off Batanes.

The shooting by the Philippine Coast Guard soured the relations between Manila and Taipei, which has imposed 11 sanctions against the Philippines including a freeze in the hiring of Filipino workers.

 

[Malaya]

DND finalizing terms for jet acquisition
By Alexis Romero (The Philippine Star) | Updated May 29, 2013

MANILA, Philippines - The Department of National Defense (DND) is finalizing the terms of reference for the acquisition of 12 fighter jets from South Korea to beef up the military’s security capabilities.

“We are threshing out the terms of reference before we present them to the bids and awards committee,” Defense Undersecretary Fernando Manalo told The STAR in a phone interview yesterday.

The terms of reference contain details of the acquisition, including the equipment to be delivered, features and technical specifications, payment schemes and costs, among other information.

The details were discussed in a meeting of security officials last Thursday. The government hopes to start the negotiations with South Korea soon but did not give a specific timetable.

Manalo said the purchase of the jets remains a priority.

Officials were quoted as saying that the terms of reference for the 12 FA-50 fighter jets might be completed within the month.

The government has allotted P18 billion for the purchase of the jets that would boost the capabilities of the Air Force.

Manalo said they are waiting for the sales agreement from the Defense Acquisition Program Administration (DAPA), a state-run firm that coordinates with countries seeking to acquire South Korean military assets.

He said the DAPA would sign the deal in behalf of the South Korean government and would guarantee the performance of the assets even if these are manufactured by a private company.

Earlier, the interagency government procurement policy board allowed the DND to proceed with the pre-negotiations with South Korea for the purchase of the FA-50s manufactured by the Korean Aerospace Industries.

Meanwhile, Defense Secretary Voltaire Gazmin has ordered security officials to hasten the acquisition of 21 UH-1 helicopters so these can be delivered in time for the rainy season.

Gazmin gave the assurance that procedures would be followed despite the speedy acquisition of the helicopters.

“I have asked Undersecretary Manalo to fast-track the acquisition without violating any law so we can use them during the rainy season,” Gazmin said over radio dzRH.

The defense chief said the 21 UH-1 helicopters or Hueys would be delivered within the year.

The DND will acquire the 21 refurbished Hueys through negotiated procurement after the two biddings for the air assets failed. The government expects to complete the procurement by July.

The government has allotted P1.26 billion for the 21 helicopters, which were originally intended to support poll-related duties. However, failed biddings delayed the acquisition.

AFP chief visits PAF

Armed Forces chief Gen. Emmanuel Bautista made his first visit to the Philippine Air Force (PAF) headquarters in Pasay City last Monday, more than four months since he assumed as head of the military.

Bautista was warmly welcomed at Villamor Airbase by airmen led by Air Force chief Lt. Gen. Lauro de la Cruz, who was a contender for the top military post.

During the visit, Bautista thanked Air Force leaders for supporting and helping the military’s security plan.

The visit was meant to discuss efforts to enhance the Air Force’s capabilities.

DND finalizing terms for jet acquisition | Headlines, News, The Philippine Star | philstar.com

 

[Malaya]

Military upgrade
The Philippine Star) | Updated May 29, 2013

After two failed bids, the government is preparing for a negotiated purchase of 21 combat utility helicopters, with delivery expected within a few months. The 21 refurbished UH-1 helicopters or Hueys were originally meant for use in maintaining peace and order during the midterm elections, but the failed bids delayed the acquisition.

The Philippine Air Force has only 16 mission-capable Hueys and needs 51 more for credible capability to perform its numerous tasks, including rescue and relief efforts, reconnaissance, and support for ground and sea forces. The Hueys are no top-of-the-line aircraft, but they will have to do, considering the budget constraints of the Philippine military. For this purchase, the PAF has a budget of P1.26 billion.

The defense department is also reportedly finalizing the acquisition of 12 fighter jets worth P18 billion from South Korea. In the ongoing upgrading, the defense and military establishments must make sure all deals will be aboveboard, particularly the negotiated purchases. The Armed Forces of the Philippines has not yet fully recovered from corruption scandals mostly involving supply procurements and fund juggling, with several AFP generals implicated.

Such scandals not only erode public trust in the nation’s defenders but also derail the upgrading program, modest as it is, that the AFP badly needs. The upgrade is not a preparation for war; the nation is already too far behind most of its neighbors in defense capability and will surely be outgunned in case of armed conflict. But the upgrade is necessary if the country wants to be capable of protecting its territory from smugglers, poachers and other foreign intruders. The upgrade is needed if the nation wants to stop depending on others for its own defense. If the upgrade is tainted by scandal, the biggest losers will be the AFP itself, and the public it is sworn to protect.

EDITORIAL - Military upgrade | Opinion, News, The Philippine Star | philstar.com

 

[Malaya]

Philippines' 7.8% growth in Q1 outperforms peers, China
By Camille Diola (philstar.com) | Updated May 30, 2013

MANILA, Philippines - The Philippine economy exceeded targets and forecasts with its 7.8-percent growth in the first quarter of the year, the National Statistical Coordination Board (NSCB) announced on Thursday.

NSCB said the stellar performance of the construction and manufacturing industries was a main driver, while consumer spending and government expenditure also contributed to the growth.

The board added that sectors have generally recorded positive growth including construction with a staggering 32-percent surge, industry with 10.9 percent, services with 7 percent and agriculture having 3.3-percent expansion.

National Economic and Development Authority director general and Socioeconomic Planning Secretary Artemio Balisacan said the country grew fastest in Southeast Asia, even overtaking growth rates of neighbors China and Indonesia having 7.7 percent and 6 percent respectively.

"The numbers speak for themselves. The numbers exceeded market forecasts, including my own," Balisacan said in a briefing on Thursday.

The rate has been the highest so far under the administration of President Benigno Aquino III.

In 2012, a 6.6 -percent climb was recorded, with the year ending with a 7.1 percent GDP increment.

http://www.philstar.com/business/2013/05/30/948101/philippines-7.8-growth-q1-outperforms-peers-china

 

[Malaya]

Philippines called 'brightest' in Southeast Asia
By Camille Diola (philstar.com) | May 29, 2013

MANILA, Philippines - A report by the Institute of Chartered Accountants in England and Wales (ICAEW) said the Philippines is significantly contributing to the "glowing" Southeast Asian region with its bright economic prospects.

"The Philippines is the brightest spark in glowing Asean region," the report said, citing the recent quarterly review Economic Insight: South East Asia by its partner organization Cebr that highlights Indonesia, Malaysia, the Philippines, Singapore and Thailand.

ICAEW said that the "very positive" outlook for the country which is expected to grow 5.1 percent in GDP this year and in 2014 can be attributed to strong exports, "booming" household expenditures and the government's heavy infrastructure investments.

"The country looks set to shake off its former reputation as the ‘sick man of Asia’," Cebr's macroeconomics head Charles Davis said in a statement.

Davis said, however, that the country's capacity constraints will likely lead to a slowdown in growth, which is seen to fall to 4.5 percent in 2015. Such constraints cause higher inflation and tighter monetary policy.

Furthermore, the growth in stock prices in the Philippines--currently at 34 percent--is seen unsustainable and suggests a bubble to emerge, Davis warned.

“Stagnation in industrialized nations means investors are turning to emerging economies in search of higher yield,” Davis, also an economic advisor at ICAEW, said.

ICAEW South East Asia director Mark Billington, meanwhile, added that the Philippines' emergence in the region can be maintained through the management of its currently increasing credit levels taken on by firms and households.

"Debt levels in the region remain manageable for as long as the projected positive growth story remains. This is fine for now but would be a cause of concern if credit growth continues to outpace nominal GDP growth at the same rates we see today," Billington said.

Still, such scenarios are not as bleak compared to the country's larger prospects including its strong market investment matched with the higher credit levels, the report said.

“Growth outlook for both Philippines and ASEAN as a whole remains healthy. However careful judgment will be needed to ensure that credit growth and capital inflows are used to lay the foundation for future prosperity and not fuel a bubble,” Billington said.

The quarterly report provides the organization's 140,000 members with an overview of the region's economic performance.

Philippines called 'brightest' in Southeast Asia | Business, News, The Philippine Star | philstar.com

 

[Malaya]

The Philippines, Canada strengthen cooperation
Posted by Online on May 30th, 2013

Canada and the Philippines reiterated their commitment to strengthen cooperation, particularly in the areas of trade, agriculture, labor, education, security, and people-to-people ties, at the two-day Association of Southeast Asian Nations (ASEAN)-Canada Dialogue recently held in Toronto, Canada.

Canada and the Philippines are active partners on the international stage, working together to find solutions to global issues. Canada cooperates with the Philippines as an ASEAN Dialogue Partner, and both countries are active participants in the Asia-Pacific Economic Conference (APEC) Forum, the World Trade Organization (WTO), and the ASEAN Regional Forum (ARF).

There are today more than 682,000 Filipinos in Canada, the third largest immigrant community in that country. They are among Canada’s most active citizens, contributing to the economic, social, and cultural dynamism of the country. The province of Manitoba alone hosts about 60,000 Filipinos and a number of its officials are of Filipino descent. Its capital, Winnipeg, has a sister-city relation with Manila. Of the total US$17-billion remittances from overseas Filipinos in 2010, 10% or about US$1.7 billion came from Canada. The Philippines has agreements on human resources development and deployment with the Canadian provinces of Alberta, British Columbia, Manitoba, and Saskatchewan.

Canada is one of the Philippines’ key trading partners with total trade in 2009 estimated at US$497.88 million. Canada is also one of the Philippines’ biggest sources of tourists with 80,500 Canadian visitors for the period of January-October, 2010. There are approximately 7,500 Canadians residing in the Philippines. The Philippines is Canada’s largest agricultural-food export market in Southeast Asia. In 2011, Canadian exports to the Philippines totalled C$554.6 million, while Canadian imports from the Philippines were valued at C$915.8 million. The Canadian International Developmental Agency (CIDA) works actively in the far-flung Philippines communities in the areas of agricultural cooperatives, local governance, and small-business development.

We congratulate the government of the Republic of the Philippines headed by H.E., President Benigno S. Aquino III, and the government of Canada headed by H.E., Prime Minister Stephen J. Harper in their commitment to strengthen the Philippine-Canadian economic cooperation and people-to-people ties towards inclusive growth. CONGRATULATIONS AND MABUHAY!

 

[Malaya]

PH economy grows 7.8 pct in Q1; highest in Asia

by Kathleen A. Martin, ABS-CBNnews.com
05/30/2013

MANILA, Philippines (4th UPDATE) - The Philippine economy grew by an "impressive" 7.8% in the first quarter on higher consumption, manufacturing and government spending, according to the National Statistical Coordination Board (NSCB).

This is faster than last year's 6.5% growth and the previous quarter's revised 7.1% expansion.

Socioeconomic Planning Secretary Arsenio Balisacan said the figure is the highest so far among the major East and Southeast Asian economies, particularly Indonesia, Thailand, Vietnam and China.

In the first quarter, Indonesia grew by 6%, Thailand by 5.7%, Vietnam by 4.9 and China by 7.7%.

"This growth rate of 7.8 percent exceeded market forecasts, including my own... This growth figure is significant since it puts to rest the doubts cast on the 2012 figure as being due to base effects only. It also indicates to us that we may now be moving along a new growth trajectory," Balisacan said.

Moreover, the 7.8% growth is the highest so far under President Aquino's administration.

The stellar growth that beat market forecasts was driven by the strong performance of the manufacturing and construction segments which buoyed the industry sector's at 10.9%, NSCB Secretary General Jose Ramon Albert said.

Baliscan noted the manufacturing sector contributed the most to the growth in industry, offsetting the drop in exports.

"I am proud to say, that despite the contraction of 8.4 percent in our goods exports, local manufacturing has grown at an impressive rate of 9.7 percent, primarily from what can only be deduced as a heightened domestic demand," he said.

Balisacan noted the construction sector's 32.5 percent growth also "indicates a good positioning towards an industry-led economy."

"The sector has been increasing rapidly with double digit growth rates since the second quarter of 2012. Initially, this was led by infrastructure spending of the government. By the second half of 2012, private construction started to rebound," he said.

At the same time, continued rise in consumer and government spending, sustained growth in the services sector at 7%, and a 3.3% expansion in the agriculture sector all contributed to the growth, Albert said.

The NSCB stressed this is the highest quarterly GDP growth since the second quarter of 2010.

The government still hopes to grow the economy by 6% to 7% this year, as Balisacan noted the first quarter GDP figure would be considered once the targets are under review.

"We remain vigilant of downside risks. Disasters can negate the gains and even push back development. Moreover, the global economy remains fragile, negatively affecting our trade performance. Due to the attractive investment opportunities, we are also at risk of receiving too much capital inflows as advanced economies implement quantitative easing. The challenge is to channel these inflows into productive investments," Balisacan said.

A Reuters survey of economists had earlier placed the first quarter GDP number at 6.1%, while Bloomberg projected 6%. Both are slower than the fourth quarter last year.

Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo on Wednesday said the first quarter growth was expected to be "impressive", as suggested by various demand indicators.

On Wednesday night, the NSCB revised the 2012 GDP growth to 6.8% from an earlier 6.6%, after the fourth quarter GDP figure was hiked to 7.1% from 6.8%.

Meanwhile, markets' reaction to the data was mixed. The peso was off early lows and was quoted at 42.35 per dollar at 0216 GMT from a low of around 42.515 in early deals. But the Philippine stock market was down around 1 percent.

Economists said the central bank would most likely leave its key overnight borrowing rate on hold for the rest of the year, with inflation forecast to stay within the central bank's 3 to 5 percent target band this year despite strong growth.

The central bank next meets to review policy on June 13. It has kept its policy rate steady at a record low of 3.5 percent since December 2012, but has slashed the rate on its special deposit account (SDA) facility by more than 200 basis points since July 2012 to divert credit to more productive use.

"We think the BSP (Bangko Sentral ng Pilipinas) will continue to cut the SDA rate to lift domestic spending as well as save costs," said Trinh Nguyen, economist at HSBC in Hong Kong.

With the outlook on exports still murky, domestic consumption will remain as the main driver for economic growth this year.

Domestic demand is seen holding up well in 2013, underpinned by strong remittances, low inflation and record-low borrowing costs.

Economists forecast full-year 2013 growth of 6.2 percent, slower from the previous year but better than the 5.9 percent estimate in a Reuters quarterly poll in April. -- with Karen Lema, Reuters

 

[p3avi8tor69]

Only the super rich and the upper middle class benefits from the 7.8 % growth. The destitute are still unaffected as evidenced by the hundreds of thousands of people ( a lot of whom are children) who are homeless.

There has been little progress in job creation according to the Asian Development Bank

 

[Malaya]

Thanks for your concern. Don't worry slowly but surely we're going up there

 

[Malaya]

 

[Fsjal]

Benham Rise eyed as new fishing haven
By Joyce Pangco Panares | Posted on May. 29, 2013

The government will open a new fishing ground on Benham Rise in Luzon amid reports that commercial fishing operations have been hampered on the Ayungin and Panatag shoals due to the Chinese presence in those areas, an official said Tuesday.

Benham Rise or Benham Plateau is a seismically active undersea region and an extinct volcanic ridge in the Philippines Sea, and is about 250 lometers east of the northern coastline of Dinapigue, Isabela. It a rich spawning ground and is also potentially rich in mineral and natural gas deposits.

Bureau of Fisheries and Aquatic Resources director Asis Perez said the surrounding waters of Benham Rise are rich in tuna and scad.

“We will develop the area for commercial fishing,” he said.

“We will be placing payaw [artificial fishing sanctuaries made of metal drums] in the area.” Perez said at least seven vessels had already signified their intention to start fishing operations in the area, which has been declared by the United Nations a part of the Philippines’ extended continental shelf.

Perez said the BFAR had already erected several payaw at the Panatag Shoal, also known as Bajo de Masinloc, so that fishermen no longer needed to venture farther out to sea where Chinese military and Coast Guard vessels are in position.

He said the payaw placed near Patanag Shoal were about 70 nautical miles away from the Chinese fleet.

He said they would be doing the same for the Ayungin Shoal, where Beijing has deployed two surveillance ships.

Earlier, deputy presidential spokeswoman Abigail Valte said the policy of non-engagement with the Chinese did not mean the government was giving up the Ayungin and Panatag shoals.

“There is a deliberate choice to avoid or to not respond to any provocative actions and not to make any actions that would tend to escalate the situation,” Valte said.

“I cannot stress this enough: that our response to maritime disputes is we have always taken it to the proper forum, and from where we stand, we cannot take any action that may tend to exacerbate the situation apart from the approach that we’ve already taken.”

Malacañang on Monday advised the Filipino fishermen who have lost their livelihood to the Chinese military presence at the Ayungin Shoal and parts of the Kalayaan Island Group to look for alternative fishing grounds.

Valte said the BFAR had set up artificial fish sanctuaries surrounded by bamboo poles in the area so that Filipino fishermen no longer needed to venture far out at sea to avoid engaging the Chinese fishing vessels.

Foreign Affairs spokesman Raul Hernandez on Monday called on Beijing to immediately withdraw its vessels.

“They should not be there. They do not have the right to be there,” Hernandez said.

“We consider this an aggressive action by China to project their so-called dash line claim, which is violative of international laws.”

The dispute over Ayungin followed the shooting death on May 9 of a Taiwanese fisherman who was suspected of poaching on Philippine waters off Batanes.

The shooting by the Philippine Coast Guard soured the relations between Manila and Taipei, which has imposed 11 sanctions against the Philippines including a freeze in the hiring of Filipino workers.

But we lack technology. Also, the Taiwanese are very angry.

Only the super rich and the upper middle class benefits from the 7.8 % growth. The destitute are still unaffected as evidenced by the hundreds of thousands of people ( a lot of whom are children) who are homeless.

There has been little progress in job creation according to the Asian Development Bank

We Filipino people are still behind China. Anyway, 8 or 9% is more impressive. look at China in the 80's. Before, a poor backward nation. Now, a great global power close to superpower status.

And yes, the super rich and middle class will only benefit. Philippines is still decades away.