Philippines Defence Forum

[p3avi8tor69]

PNoy to welcome home Alcaraz warship
By Camille Diola (philstar.com) | July 25, 2013

MANILA, Philippines - President Benigno Aquino III will lead the welcoming ceremony of the Philippine Navy's newly acquired Hamilton-class cutter BRP Ramon Alcaraz (PF-16) upon its arrival.

Navy spokesperson Lt. Cmdr. Gregory Fabic said Thursday that Aquino will grace the event on August 6 after the warship docks at Subic Bay.

"We will be having a meeting with the Presidential Management Staff regarding (the event) as President Aquino will be our guest of honor," Fabic revealed.

The vessel is expected to enter Philippine territory by August 3 and will be painted with the Navy's traditional haze gray while in Subic.

He said the warship's arrival is met with much anticipation in the Navy.

"The morale of the PN is very high with the arrival of the 378-foot BRP Ramon Alcaraz as (it) will greatly boost the capabilities of our fleet," Fabic said.

Declining to reveal the ceremony's exact venue for security reasons, Fabic explained that another Navy vessel will meet the Alcaraz at sea to escort the frigate as tradition requires.

The Alcaraz will be commissioned in the second week of October and will be reportedly deployed to protect the country's exclusive economic zones.

PNoy to welcome home Alcaraz warship | Headlines, News, The Philippine Star | philstar.com

Pathetic, the Pinoy newspaper had to misrepresent the image of their new cutter with a US warship at the background.

 

[Pinoy]

PH may grow faster than China
By Julito G. Rada | Aug. 02, 2013

The Philippines can grow faster than China in the coming years, a top official of British bank Standard Chartered said Thursday.

Standard Chartered global macro research head Marios Maratheftis said the economy might expand 8 percent or faster annually beyond 2015, if current policies of the present administration, healthy fundamentals and strong business confidence were sustained.

“There is no reason for the Philippines not to grow faster than China,” Maratheftis said.

“Policy, fundamentals and confidence would be the three key drivers of growth. Policies are moving in the right direction, especially on public-private partnership projects, fundamentals are also very healthy and confidence is high. These three are well aligned for the Philippines,” Maratheftis said.

A Standard Chartered’s recent business confidence survey showed the Philippines obtained the highest score in 2013, with the United Arab Emirates getting the second highest result.

“Generally, there is more confidence from the corporate sector. If this level of confidence can be translated into actions, the Philippines can attract more foreign direct investments,” Maratheftis said.

Maratheftis said within the Asean region, their top picks were the Philippines and Indonesia. He said the Philippines was a positive story, which was just starting and had a very long way to go.

He said because of the country’s boundless potentials, Standard Chartered adjusted upward its 2013 growth projection for the Philippines to 7 percent from the previous 6.9 percent.

He said the country’s more exposure to the US economy than China would be a plus factor. He said while China’s economy was on a high growth recently, it was “slowing down.”

PH may grow faster than China - Manila Standard Today

 

[Pinoy]

PH acquiring French vessel for South China Sea
8/03/2013
Agence France-Presse

MANILA - The Philippines said Saturday it is purchasing a surplus French Navy vessel to boost its forces in the South China Sea where it has an ongoing territorial dispute with China.

The 26-year-old "La Tapageuse" vessel is likely to be the first of several French ships that will be acquired by the Philippine coastguard as it contends with increasingly assertive Chinese forces.

The 54.8-meter patrol ship will cost six million Euros ($7.97 million) and is due to arrive in the country by April next year, a coastguard statement said.

The ship, which is armed with two cannon and two machine-guns, was inspected before acquisition and is good for 20 more years of service, the coastguard said.

"This French vessel is multi-functional and it would be a major contribution to our fleet, particularly in our search and rescue operations," coastguard chief Rear Admiral Rodolfo Isorena was quoted as saying in the statement.

The Philippines is also "finalizing" with the French government the purchase of four brand-new 24-meter and one 82-meter multipurpose vessels, Isorena said.

These new ships would arrive in the first quarter of 2015, the statement added, without specifying their cost.

Isorena also recalled that the Philippine coastguard was already set to acquire 10 multi-role patrol boats under an aid program with Japan.

The announcement came as a second-hand US Hamilton-class cutter acquired by the Philippine Navy sailed into the country's waters, where it will also help in patrolling the South China Sea.

Tensions have risen in recent years over China's increasingly-forceful claims to almost all of the South China Sea, even up to the coast of its neighbors like the Philippines.

These tensions have worsened since Chinese government vessels seized the Scarborough Shoal, a South China Sea outcrop just 230 kilometers east of the main Philippine island of Luzon, last year.

The Philippines has also complained about the presence of Chinese navy vessels near the Manila-controlled Second Thomas Shoal in the Spratly Islands.

The Philippines has one of the most poorly-equipped militaries in the region and has been trying to beef up its armed forces in the face of the maritime disputes.

 

[Pinoy]

SUSTAINABLE: PH growth model attracts investors
Written by REUTERS

MEXICO AND THE PHILIPPINES ARE EXPECTED TO SUSTAIN GROWTH BY POURING DOMESTIC MONEY ON INFRASTRUCTURE. THE PHILIPPINES HAS OFFERED PRIVATE SECTOR FIRMS CONTRACTS TO MODERNIZE AT LEAST FIVE AIRPORTS AND AN A $814 MILLION TOLL ROAD PROJECT.

LONDON - Headline growth numbers are no longer enough to attract foreign capital to emerging markets as discriminating investors home in on countries with the most sustainable economic models.

This transition to a new model is already underway, with equity and bond funds in both countries attracting net inflows in the past six months despite a sharp emerging market sell-off.

The Federal Reserve’s plan to withdraw its massive monetary stimulus is dividing emerging markets fortunes, with capital draining rapidly out of countries with large financing needs.

To make themselves less vulnerable to the ebb and flow of foreign short-term money, some countries are beginning to invest in their economies, backed by a more stable financing base.

The Philippines, where remittances from overseas workers provide a steady flow of income, is channelling a pool of domestic money to build airports and roads in a project costing 3 percent of gross domestic product.

Mexico plans to spend almost a third of GDP on improving its infrastructure in the next six years and is among Latin American countries that have reformed their pension systems to encourage workers to save regularly.

That creates a base to finance infrastructure spending, which should boost domestic demand and potential growth.

“In emerging markets, you are no longer trying to find a winner but you’re trying to find a survivor,” said Salman Ahmed, global fixed income and FX strategist at Lombard Odier Investment Managers.

“We still think Mexico and Philippines are well placed ... Winners of yesterday, Brazil and Turkey, are looking trickier.”

According to estimates by Lipper, dedicated Mexico equity and bond funds saw a combined inflows of $3.7 billion in the six months to end-June, while Philippine equity and bond funds attracted a combined net inflows of $2.56 billion.

Mexico’s stock market has risen 1.6 percent since May 22, while the broader index has lost nearly 7 percent.

The Philippines’ stock market has risen more than 14 percent in 2013 and its sovereign credit rating is on review for an upgrade by Moody’s.

The ratings firm has cited stable and favorable government funding conditions and a strengthened government policy mandate among triggers for the rating review.

Latin America is a step ahead in building up an institutional domestic savings base, having reforming its pension systems following the debt crisis of the 1980s. Mexico, Chile, Peru, and Columbia all have relatively high savings rates of above 20 percent of GDP, according to the World Bank.

Chile is the highest-ranked emerging economy after Singapore and Taiwan in BlackRock’s Sovereign Risk Index, which measures credit risk through a broad list of fiscal, financial and institutional metrics.

“It’s interesting to know that a considerable number of emerging markets get very high ratings in that index because of domestic finance savings institutions,” said Ewen Cameron Watt, BlackRock Investment Institute’s chief investment strategist.

“Countries that are tending to find their financing of currencies more resilient are those who have deepened their domestic financial system, usually with the development of the domestic contractual financing and savings industry.”

Mexico is beginning to channel domestic savings to building projects via its state pension funds, which have about 1.919 trillion Mexican peso in assets, representing about 23 percent of private savings. They hold 1.5 percent of assets in domestic debt specifically labelled as infrastructure.

State funds may be key to its plans to spend $300 billion in the next six years to build highways, rail lines and communications infrastructure, and upgrade the country’s ports.

After two decades without a passenger rail service, Mexico has earmarked 95 million pesos for three routes, including a 300-km line across the Yucatan peninsula, home to its famous Cancun beach resort and the ancient Maya pyramids.

The government has also promised to consider a second airport in Mexico City to ease pressure on the current sole hub, which is Latin America’s second largest by traffic.

The Philippines government has offered private sector firms contracts to modernize at least five airports in two of its three main regions and will soon take bids for a $814 million toll road contract in two provinces just south of the capital.

For both economies, Japan could be a model. Much of its post-war growth, kick-started with foreign capital, was driven by private savings that were chanelled by banks to finance massive infrastructure and reconstruction projects.

By the time it passed West Germany to become the world’s No. 2 economy in the 1960s, Japan no longer relied on foreign capital to grow.

“Infrastructure in the long term is a positive factor. It makes you more competitive and improves the supply side of the economy,” Ahmed at Lombard Odier said.

 

[Pinoy]

PH economy to grow 8% by 2015 - StanChart
08/02/2013

MANILA, Philippines - The Philippines could begin growing by more than eight percent in 2015 and sustain that even onto the next administration given the correct policies and strong fundamentals driving investor confidence now, a top executive of a global investment bank said yesterday.

“There is no reason why the Philippines could not start growing faster than China,” Marios Maratheftis, global head of macro research at Standard Chartered Bank, said in a briefing.

“The country is moving into the right direction. There is no reason why the Philippines will not grow by eight percent plus by 2015,” he added.

The statement compares with Standard Chartered’s official forecast of seven percent growth by 2015. For this year and next, the economy is expected to expand by 6.9 percent and 6.3 percent, respectively.

The Aquino administration has set the following medium-term growth targets: six- to seven-percent this year, 6.5-percent to 7.5-percent next year, seven- to eight-percent by 2015 and 7.5- to 8.5-percent by 2016.

According to Maratheftis, the “positive story” of the Philippines has reverberated across the world given that “right plans,” especially on infrastructure, are in place. The bank also credited the public-private partnership (PPP) initiative.

In a report dated July 1 but released yesterday, Standard Chartered said low interest rates and a “flush of liquidity” will help finance PPP projects, of which only three have been successfully awarded since its launch in November 2010.

The awarding of investment grade status could also boost foreign direct investments (FDI) — tagged as the missing link to the country’s success story. Maratheftis noted that “strong confidence” in the Philippines from corporations globally.

“FDI will eventually catch up. There is a lot of room for Philippines to catch up,” Maratheftis said.

“If you have the three drivers of growth: correct policies, strong fundamentals and confidence, it will be difficult to isolate one over the other,” he pointed out.

A recovery in the US would also work on the country’s favor, the official said, noting that the Philippines is “most sensitive” to developments in the world’s largest economy. Among others, trade and FDI gains are expected once the US fully recovers.

For his part, Steve Brice, the bank’s chief investment strategist, said it would be important for the government “not to become complacent” despite all its laurels.

Growth, he said, will need to be sustained by ensuring public projects are bid out accordingly and in time.

Brice also said there is a need to create more channels for investments to keep the Philippines on the radar screen. On the local bourse for instance, he said “a lot of money chasing limited assets” have caused valuations to ratchet up relative to our neighbors.

“Valuations are really high. It’s a challenge for the market. But we always believe on the structural rerating story,” Brice told reporters.

“You would expect earnings to grow up faster here than in the US against this backdrop (of strong growth),” he added.

On the property market, Brice said the market is seen to remain “relatively buoyant,” with slight correction on prices in the future owing to huge supply coming in. “But we don’t expect it to slump back dramatically.” – With Ted Torres




Japan rating firm raises Philippine outlook
August 2, 2013

JAPAN-BASED debt watcher Rating and Investment Information, Inc. (R&I) has raised the Philippines’ credit outlook to "positive" from "stable", citing improvements in the country’s fundamentals.

In a statement on Friday, R&I affirmed the country’s foreign currency issuer rating of BBB-. It also affirmed the foreign currency short-term debt rating of a-2.

A BBB- issuer rating, according to the debt watcher’s website, means the country’s creditworthiness is sufficient "though some factors require attention in times of major environmental changes". An a-2 rating on short-term debt, meanwhile, denotes that the certainty of fulfillment of a short-term obligation is high.

R&I’s last rating action on the country’s debt was in June last year, when it affirmed both BBB- and a-2 ratings and its "stable" outlook. The debt watcher had assigned the ratings and outlook in 2009.

In raising the issuer outlook, R&I cited major improvements in the country’s economic, fiscal, and external position.

"The economy of Republic of the Philippines has started to show strong growth thanks to continued robust consumption driven by remittances from Overseas Filipino Workers (OFW), coupled with expansions in public investment and exports," it said.

"At the same time, the inflation rate has been stable. As a result of the sustained current account surplus, the level of foreign reserves is rising. This has diminished concern about external liquidity," it added.

Financial management has also improved, it noted, and "steady" progress towards fiscal consolidation has allowed the government to spend more on infrastructure and education.

R&I likewise cited the country’s stable political environment, which it said had helped attract investments.

"The government significantly restored the peace of western Mindanao, a part of the island which used to ruin the country’s image. As improvement of the investment climate will accelerate direct investment by foreign investors, expectations for sustainable expansion of investment are growing," it said.

"If fundamentals for economic growth are solidified and steady increases in per-capita income become more promising, R&I will consider a rating upgrade."

The Philippine economy expanded by 6.8% in 2012, substantially higher than the 3.6% recorded in the previous year and above the government’s 5-6% target. In the first quarter, growth was a better-than-expected 7.8% -- faster than the government’s 6-7% goal for this year.

R&I said the economy’s growth would likely "stay robust" this year and the next.

Inflation -- 2.93% as of end-June, at the low end of the central bank’s 3-5% target -- is likewise expected to settle within target.

"Furthermore, public- private partnerships ... are expected to gain the momentum ... Whether such trend will be translated into a steady rise in investment ratio, and in turn, investment will serve as a growth driver, along with consumption, will be the key to future economic growth," it said.

R&I, however, noted that the country’s per-capita gross domestic product was still low relative to its peers in the region.

"The Philippines is the only country which has yet to reach per-capita GDP of US$3,000 among the five founding members of ASEAN; at long last, the country sees a clearer opportunity for catching up," it noted.

Public investment, while up, could also still be improved.

"The fiscal position serves as a major constraint. The 2012 figures show that tax revenues are only 12-13% of GDP. R&I positively views the government’s leadership in raising the ’sin’ tax levied on tobacco and alcohol beverages. Still, reform on the tax code and system aimed at a stronger tax collection capacity and better spending efficiency remains an important issue to be addressed," it noted.

The government also still needs "to address the issues ranging from lack of infrastructure to the perception of widespread corruption in order to improve the investment climate."

"A focus will be placed on whether the Aquino administration will be able to make the best use of positive factors, such as the strong economic growth and political stability, in efforts to break a stalemate in investment, a structural problem that has haunted the Philippine economy," R&I said.

"In consideration of the execution and progress of specific plans, along with economic trends, R&I will incorporate developments into the rating."

http://www.bworldonline.com/content...ating-firm-raises-Philippine-outlook&id=74382

 

[Pinoy]

S&P: Philippines leads Southeast Asia growth
08/07/2013

MANILA, Philippines - The Philippines is seen to lead Southeast Asia in terms of growth as what was once regarded as Asia’s laggard spearheads an outperforming region this year until 2015 amid a weakening China.

“The major ASEAN economies we cover (Indonesia, Malaysia, Thailand, Vietnam and the Philippines) continue to outperform,” debt watcher Standard & Poor’s Ratings Services (S&P) said in a report released Monday. ASEAN refers to the 10-member Association of Southeast Asian Nations.

“The Philippines, which S&P recently upgraded to investment grade, has taken over the ASEAN growth leadership role from Indonesia,” it added.

Other members of the ASEAN are Brunei Darussalam, Cambodia, Laos, Myanmar and Singapore.

According to S&P’s baseline forecasts, the Philippines is projected to grow 6.9 percent, 6.1 percent and 6.5 percent for 2013, 2014 and 2015, respectively. This is faster than ASEAN’s 5.5 percent, 5.6 percent and 5.4 percent during similar periods.

The 10-nation group is expected to be more “domestically focused,” essentially keeping them insulated from China’s faltering export-driven and investment-led economy.

Indonesia is still expected to remain strong, although its current account deficit – a situation that indicates fleeing dollars – is a problem. Thailand, meanwhile, could be hurt through weak trade, S&P said.

On the other hand, Malaysia will remain afloat, thanks to a surge in public investments, while Vietnam continues to struggle with large bad credit accumulated by its banks.

“The risks to growth within ASEAN are tilted modestly to the downside,” the credit rater said.

Collectively though, ASEAN remains a key driver of Asia-Pacific growth, which is projected to slow to 5.3 percent this year, before accelerating to 5.6 percent and 5.5 percent for 2014 and 2015.

S&P said this would be due to a slowdown in China, the world’s second largest economy, which is suffering from “waning private and public investments.” Beijing’s woes are expected to add to Europe’s still-fragile environment.

S&P: Philippines leads Southeast Asia growth | ABS-CBN News





Philippines optimistic 2013 growth can top 6-7% target
Published August 07, 2013

The Philippine economy can grow faster than a government target of 6-7 per cent this year, but headwinds from the global economy are keeping officials conservative in their forecasts, the country's economic planning chief said on Wednesday - PHOTO: REUTERS

[MANILA] The Philippine economy can grow faster than a government target of 6-7 per cent this year, but headwinds from the global economy are keeping officials conservative in their forecasts, the country's economic planning chief said on Wednesday.

The Southeast Asian country posted the region's fastest annual growth in the first quarter, and was the only nation which received an upwardly revised forecast from the International Monetary Fund.

"We're optimistic we can grow beyond 7 per cent this year, but given external risks we maintained the GDP target," Arsenio Balisacan, economic planning secretary, told a budget hearing at the lower chamber of Congress.

Economists in a Reuters quarterly poll in July raised their growth forecast for the Philippines to 6.8 per cent from 5.9 per cent in April, after the economy expanded by a stronger-than-expected annual rate of 7.8 per cent in the first quarter.

Philippines optimistic 2013 growth can top 6-7% target

 

[Pinoy]

Aquino approves 20,000 more troops for AFP
BY CARMELA FONBUENA

APPROVED. President Aquino approves DND's proposal to recruit additional 20,000 troops.

MANILA, Philippines — President Benigno Aquino III has approved a plan to recruit 20,000 more soldiers. Most of them will go to the Philippine Army, the largest branch of service under the Armed Forces of the Philippines (AFP).

"It’s with DBM (Department of Budget and Management). We’re looking into the appropriate ways to fund this," said defense department spokesperson Peter Galvez.

The training requirement will cost P5 billion while the salaries for all 20,000 new posts will cost additional P4 billion annually, based on the approved budget plan shown to Rappler.

"The important thing is the plan is approved," Galvez added. Implementation is pending availability of funds but the plan is to "gradually" fill up the 20,000 posts "within a 3-year period," Galvez said.

"We are simply addressing what should have been addressed long before," Galvez added. "The 20,000 will fill up the troop requirement to achieve a 95% complement of a unit. At present, most of our units are not filled up."

Aquino in his 2013 State of the Nation Address (SONA) talked about the need to augment the country's security forces. "In 1986, there were an estimated 250,000 policemen and soldiers protecting a total of 55 million Filipinos. Today, we still have an estimated 250,000 policemen and soldiers, who protect 95 million Filipinos. Our population has almost doubled; while the number of our protectors has not changed," Aquino said in his SONA.

The last big recruitment in the AFP happened in 2006 when then President Gloria Macapagal-Arroyo approved the hiring of 11,000 new troops. Then AFP chief Gen Hermogenes Esperon Jr justified this by saying the military needed more soldiers to stop the New People's Army (NPA) from operating in urban centers.

External threats

The approval of new recruits comes at a time when the Air force and the Navy are also getting better equipment.

READ: Fair winds: Navy's new warship arrives and DND wants delivery of 4 fighter jets ASAP

"Something that will help our units in the frontline is very important," said Army chief Lt Gen Noel Coballes.

The Army has a current strength of 85,000 men and women fighting the NPA, the Abu Sayyaf Group, rogue members of the Moro National Liberation Front, and the Bangsamoro Islamic Freedom Fighter (BIFF). The Moro Islamic Liberation Front is in peace talks with the government.

The additional troops will increase the number of Army troops to about 105,000. It's still far from the ideal troop strength of 150,000, based on estimates by Coballes. He said his computation is based on the country's population growth rate.

He said the Army units are undermanned. Troops are very tired because they are forced to extend their tours of duty, he added. They have to be regularly taken out of the field for reorientation, Coballes explained.

Coballes said external security threats also made it more urgent for the military to improve its posture. "There is a shift from internal defense to external defense. We have to improve our military posture," he said. The bulk of the new recruits, however, will go to the Army, which is not the primary force in external defense.

The AFP has highlighted the new challenges posed by the row between Manila and Beijing over the West Philippine Sea. Commanders have been instructed to "conclude" these internal security threats by 2016 so the military can focus on external defense and other tasks.

READ: Finish insurgency, AFP chief tells commanders

Coballes said the additional troops will help achieve this. "The performance of the organization will be improved," he said. "We now have a population of 100 million. We have to increase our soldiers to protect security fo the people."

READ: Retired generals want ROTC back in colleges

Coballes also supports new calls to make the ROTC mandatory in colleges. — Rappler.com

http://www.rappler.com/nation/35627-aquino-approves-more-troops-military

 

[Fsjal]

Funny how Aquino wants more soldiers, yet the military is lightly armed. The Australian army, smaller than the AFP, has better firepower.
As for your economy, it won't go any faster, and Philippines is not an industrialized nation.

 

[Pinoy]

Philippine Navy special operations group on board speed boats patrol off Subic Bay.

 

[Pinoy]

US looking forward to successful base access talks with PH
By Tarra Quismundo
August 13th, 2013

MANILA, Philippines — The United States is confident about the positive conclusion of its base access talks with the Philippines, reiterating its support for the country’s defense buildup and preparedness for disaster response.

In a statement on Tuesday, US Embassy officials expressed hopes that negotiations, set to begin on Tuesday, in Manila, would reinforce the long-standing partnership between the two allies as both keenly pursued a common bid for a more stable Asia-Pacific region.

“We support the Philippine Government in its desire to build a credible defense and respond rapidly during times of humanitarian crisis and natural disasters,” said US Embassy officials in a statement sent to the Philippine Daily Inquirer.

“We are optimistic that the first round of negotiations will result in positive outcomes that will further strengthen our 62-year alliance,” officials said.

Foreign Affairs Secretary Albert del Rosario and Defense Secretary Voltaire Gazmin on Monday announced the formal start of negotiations between the Philippines and the US on the latter’s expanded access to Philippine military bases, a move that has invited criticism from those long opposed to US military presence here.

Del Rosario earlier said the talks would include discussions on “modalities and parameters” within which US troops would be allowed greater rotational presence in the Philippines under existing bilateral agreements and in compliance with Philippine law, particularly the Constitution.

The Department of Foreign Affairs (DFA) reiterated this on Tuesday and said the bounds of the agreement had already been defined in deference to Philippine law.

“The parameters have already been set and both secretaries (Del Rosario and Gazmin) have already stated this yesterday (Monday). These are very clear parameters — respect for Philippine Constitution, the laws and jurisprudence, the preservation of Philippine sovereignty, the non-permanence of US troops and non-exclusivity of use of facilities by US side and the mutuality of benefits,” Foreign Affairs Assistant Secretary Raul Hernandez, the DFA spokesman, said.

He also addressed criticism thrown at Del Rosario for leading the effort, particularly remarks of Senator Antonio Trillanes IV, saying the official was “drawing attention to himself” in making announcements on the Philippine-US negotiations.

Del Rosario and Trillanes were at opposite ends in 2012, when the top diplomat said the senator’s backchannel effort to settle the territorial dispute with Beijing was “doing more harm than good.”

Trillanes, who has long showed displeasure over Del Rosario’s stay at the DFA, meanwhile accused the official of using the territorial dispute as a leverage to pursue business interests.

“Defending what is ours, securing our nation and keeping our people safe is a combined effort of diplomacy and defense. The close partnership of the DFA (Department of Foreign Affairs) and the DND (Department of National Defense) is of paramount importance. So we need to be transparent to the public. We need to let our people know how we intend to safeguard their welfare at all times,” said Hernandez.

The Philippines looks to the US, its strongest defense ally, in building a “minimum credible defense posture” as it fortifies territorial security amid disputes with military giant China over the West Philippine Sea (South China Sea).

Most recently, the Philippine Navy acquired a former US Coast Guard cutter as the country’s latest warship, the BRP Ramon Alcaraz. Both countries also continue joint military exercises — activities set to increase once the new agreement is firmed up.

While neutral on the dispute, the United States has been keenly watching over security in the waters, a critical international trade route, as it pursued a strategic pivot to the Asia Pacific amid its gradual troop withdrawal from the Middle East.

The move is viewed in China as an effort to “contain” its rise as an economic and military power in the region.

The Philippines has meanwhile been vocal in criticizing China for incursions in the West Philippine Sea, including sea patrols and fishing trips to the country’s exclusive economic zone. Government believes Chinese ships come and go in at least two of shoals within the country’s maritime boundaries, including the Ayungin Shoal off Palawan and the Panatag (Scarborough) Shoal off Zambales.

Asserting “indisputable sovereignty” over almost all of the waters, China has lashed back at the Philippines for “internationalizing” the regional dispute, an apparent reference to the country’s defense alliance with the US.

In January, the Philippines haled China before the United Nations arbitral tribunal, the only standing legal action in the six-way dispute that also involves Vietnam, Malaysia, Brunei and Taiwan.

The legal action aims to nullify China’s nine-dash line claim, which encompasses almost all of the West Philippine Sea, and to halt its incursions into the country’s maritime borders. China has refused to take part in the arbitration but proceedings continue before the five-member ad hoc panel holding court in The Hague.

 

[Pinoy]

PH expected to outperform regional rivals
Citi notes country’s resilience to shocks from US or China
By Doris C. Dumlao
Philippine Daily Inquirer
August 15th, 2013

MANILA, Philippines—American banking giant Citigroup sees the Philippines outperforming neighbors in the region and better withstanding external shocks arising from the tapering of the US Federal Reserve’s easy money policy and a slowdown in China.

The Philippines can attain an above-trend gross domestic product (GDP) growth rate of 7 percent this year and 6.8 percent for next year, said Johanna Chua, the managing director and head of Asia-Pacific economic and market analysis at Citi.

The Hong Kong-based Filipino economist said the Philippines was beating global growth forecast trends and that the stage was set for an investment-led recovery in the country.

Chua said growth in the country was “very resilient,” supported by ample fiscal space for government spending alongside high business confidence levels.

Economic growth in the second quarter would likely be slower than the first quarter, when the domestic economy grew by 7.8 percent year on year, but the growth rate would still be “quite elevated,” she said. In the last decade, Philippine trend growth rate was at less than 5 percent.

The economist said emerging markets in the region continued to face two major external risks: the tapering of the US Federal Reserve’s $85 billion in monthly bond purchases and a structural slowdown of the Chinese economy. Citi sees the tapering of easy money starting by September this year and going down to zero by the middle of next year.

“If we look at and combine both risks, the Philippines stands out as the country most insulated to both, with macroeconomic and financial stability intact,” she said.

“The sudden reversal of capital flows may hurt the domestic growth of some markets but the Philippines is in better shape,” she added.




Taiwan investors back in PH
By Othel V. Campos | Aug. 15, 2013

Taiwanese companies are reinvesting in the Philippines, following the lifting of trade sanctions by Taipei, with three groups committing $42 million worth of new capital, the Manila Economic and Cultural Office said Wednesday.

“High labor cost is driving Taiwanese companies from mainland China to invest here,” Meco chairman Amadeo Perez said in an interview. Meco serves as the government’s trade office in Taiwan.

Perez said Taiwan’s interest in the Philippines “never waned, but everything was put on hold in the last three months due to the unfortunate shooting incident.”

Taipei lifted the sanctions against the Philippines, after an official apology from Manila, following the May 9 shooting of a Taiwanese fisherman by the Coast Guard in Philippine waters.

Perez said Biotech Medical, a Taiwanese manufacturer of syringes and medical supplies, would invest $12 million for a three-hectare facility at the Hermosa Economic Zone in Bataan.

Taiwan Fructose is putting up a $10-million sweetener plant inside the First Philippine Industrial Estate in Tanauan, Batangas. Taiwan Fructose will supply liquid sweetener to Nestlé Philippines Inc.

Perez said Tai Han would build a $20-million plant to manufacture printer parts for Epson and Brother.

He said apart from these companies, a supplier of Coach leather goods was also keen on putting up a facility in the country to complement its China and Taiwan operations.

An agro-industrial company based in Taiwan also expressed interest to invest in a fish processing plant in Pangasinan.

“These two investments are still understudy. In fact, we could have a deluge of Taiwanese firms locating here, if not for the recent impasse,” said Perez.

Taiwan’s imports from the Philippines reached $1.5 billion in 2012, while its exports to the Philippines amounted to $4.8 billion.

Taiwan exported $1.9 billion worth of merchandise to the Philippines in the first four months while imports from the Philippines reached only $517 million.

http://manilastandardtoday.com/2013/08/15/taiwan-investors-back-in-ph/



'PH is Asia's most insulated economy to external risks'
08/15/2013

MANILA, Philippines - The Philippines shouldn't worry about financial stability risks at this point, unlike its Asian counterparts, according to Johanna Chua, Citi managing director and Asia-Pacific head of economic and market analysis.

This as the Philippines continues to enjoy sound fiscal management, strong growth, and stable primary surpluses, allowing the debt-to-GDP ratio to continue to decline.

Chua cited two regional risks: first, the slowdown in China, though still viewed to be at tolerable levels by authorities; and second, the tapering of the US Federal Reserve’s bond-buying program.

As markets brace for the liquidity withdrawal, they can expect a weaker foreign exchange (FX) to loosen monetary conditions.

“Our view is that inflation for most countries in Asia, including the Philippines, can absorb this FX weakness. The sudden reversal of capital flows may hurt the domestic growth of some markets, but the Philippines is in better shape," she said.

"And if we look at and combine both risks, the Philippines stands out as the country most insulated to both, with macroeconomic and financial stability intact," she added.

Chua welcomed the Philippines' proposed 15% spending increase in 2014. Citi viewed the resulting fiscal gap to still be prudent due to buoyant revenues.

Chua also noted that balance sheet concerns from FX weakness is also a non-issue. "The Philippines is an increasing net creditor nation," she said.

Citi cited two key catalysts for the Philippines' investment-led recovery: fiscal spending with strong bias toward infrastructure; and rising investment approvals.

She said this is the first time that they are seeing infrastructure spending to have a prominent share in capital outlays, exceeding the share of interest payments.

"Fiscal expenditures accounted for the fastest-rising demand component in the first half of 2013. The sustained improvements in collection efficiency have resulted in a rising tax-to-GDP ratio. We noted that the 2013 budget retains a bias for infrastructure spending," she said.

Citi also noted the rising contribution of FDI approvals when charted over the past two to three years.

“Clearly, the investment credit rating will help spur investment-driven growth. Historically, most investment-grade countries attracted billions of dollars of FDI over time... While some challenges remain, including how to address perceptions when it comes to the relative ease of doing business here, as reported in the World Bank 2013 survey, the stage is set for an investment-led recovery, and we believe the Philippines has started to take off," she said.

http://www.abs-cbnnews.com/business/08/14/13/ph-asias-most-insulated-economy-external-risks

 

[Fsjal]

Philippines will never outperform China.

1. Philippines is not industrialized. As a result, Philippines's economy will not grow any faster
2. Many people still live in poverty. Look at China in the 80's. Deng Xiaoping lifted 700 million people out of poverty. Did Aquino lift anyone out of poverty?
3. Many companies in Philippines are small, compare to big companies in Japan, S. Korea and China.

 

[Apothecary]

Philippines will never outperform China.

1. Philippines is not industrialized. As a result, Philippines's economy will not grow any faster
2. Many people still live in poverty. Look at China in the 80's. Deng Xiaoping lifted 700 million people out of poverty. Did Aquino lift anyone out of poverty?
3. Many companies in Philippines are small, compare to big companies in Japan, S. Korea and China.

1. Do please quote us when the Philippine nation explicitly said or implied that they want to overcome china's economy in this 24 page thread.
2. NEWS FLASH, poverty is found ALL around the world.
3. Why do you keep changing your flag? Are you a spineless turncoat in heart?

 

[Zero_wing]

1. Do please quote us when the Philippine nation explicitly said or implied that they want to overcome china's economy in this 24 page thread.
2. NEWS FLASH, poverty is found ALL around the world.
3. Why do you keep changing your flag? Are you a spineless turncoat in heart?

Na wala tapos bumalik wala talaga yan kabayan parang tipical na tongresita lang na militante hahahahaha pag gago lang talaga si fsjal at lahat ng mga imperilista tsinoka dito kahit iba bandila pinipirata nila

Any how your right but the economy is picking up but still we have to do more work

 

[Pinoy]

Otto Energy expands Philippines offshore oil and gas acreage with award of new block
Tuesday, September 03, 2013 by Bevis Yeo

Otto Energy (ASX: OEL) has been awarded Service Contract 73 in the Mindoro Basin offshore Philippines and will reprocess existing 2D seismic of over 3,000 kilometres.

The block has the potential to restock the company’s exploration inventory with oil been discovered near the block with an Extended Production Test conducted in 1994 at the Maniguin wells.

Oil seepages in the Mindoro Island region also confirms the presence of an active petroleum system in the area.

SC 73 covers 8,440 square kilometres with water depths ranging from 100 metres to 1,300 metres.

Petroleum play types identified are reef build-ups, fault blocks and anticlines with reservoir intervals in the Early Miocene to Pliocene carbonates and Early to Late Miocene carbonates and clastics. Source rocks are coaly and organic-rich claystones of Eocene to Middle Miocene.

http://www.proactiveinvestors.com.a...as-acreage-with-award-of-new-block-47500.html