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)