Philippines Defence Forum

[Cossack25A1]

Business News:

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World Bank keeps 6.5% growth forecast for Phl this year
By Ted P. Torres (The Philippine Star)
Updated June 12, 2015 - 12:00am

MANILA, Philippines - The World Bank has retained its growth outlook for the Philippines at 6.5 percent this year and in 2016, an improvement from last year’s gross domestic product (GDP) growth of 6.1 percent.

“Growth in the Philippines is projected to remain strong, benefitting from a recovery in Japan and from low fuel prices,” the latest Global Economic Prospects (GEP) report of the World Bank said.

However, the report warned that budget execution bottlenecks in the Philippines could contribute anew to weaker economic activity, as first quarter GDP slipped to 5.2 percent due to poor public spending.

The GEP, meanwhile, tempered its growth forecast for global and developing countries.

Growth outlook for developing countries stood at 4.4 percent this year, from the 4.6-percent GDP growth rate in 2014.

Similarly, its growth outlook for East Asia and Pacific cooled to 6.5 percent from 6.7 percent.

In a press statement, World Bank Group president Jim Yong Kim described developing countries as the engine of global growth following the financial crisis.

“But now they face a more difficult economic environment,” Kim added.

With an expected lift-off in US interest rates, the report said borrowings would become more expensive for emerging and developing economies over the coming months. This process is expected to unfold relatively smoothly since the US economic recovery is continuing and interest rates remain low in other major global economies.

Just as the initial announcement of US policy normalization caused turmoil in financial markets in 2013 – now referred to as the “taper tantrum” – the US Federal Reserve’s first interest rate increase since the global financial crisis could ignite market volatility and reduce capital flows to emerging markets by up to 1.8 percentage points of GDP, the report said.

World Bank chief economist and senior vice president Kaushik Basu said the ground beneath the global economy is shifting. China has avoided the potholes skillfully for now and is easing to a growth rate of 7.1 percent.

India, with an expected growth of 7.5 percent this year, for the first time, is leading the World Bank’s growth chart of major economies.

For commodity-exporting emerging markets that are already struggling to adjust to persistently low commodity prices, or for countries experiencing policy uncertainty, a slowdown in capital flows would add to their policy challenges.

In contrast, high-income countries’ recovery is gaining momentum, as growth in the euro area and Japan picks up, and the United States continues to expand, despite a weak start to the year.

High-income countries are on course to grow by two percent this year, 2.4 percent in 2016 and 2.2 percent in 2017.

The global economy is likely to expand 2.8 percent this year, 3.3 percent in 2016 and 3.2 percent in 2017, the World Bank added.

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World Bank keeps 6.5% growth forecast for Phl this year | Business, News, The Philippine Star | philstar.com
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Politics and International Diplomacy News:

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PNoy to Chinese envoy, other diplomats: Respect int'l law
By Louis Bacani (philstar.com)
Updated June 12, 2015 - 1:52pm

MANILA, Philippines - President Benigno Aquino III on Friday marked the country's Independence Day with a call for mutual respect among nations.

In his message during the traditional Independence Day vin d'honneur, Aquino told foreign diplomats that countries must foster greater cooperation in confronting the world's problems.

"Excellencies, as we are determined to join your nations in the struggle to overcome the obstacles you face, so too do we ask you to join us. In this way, we can truly forge a global community in which each nation-state realizes that their growth and stability hinge on their ability to work with others," Aquino said in his toast at the Casa Real de Iloilo, Iloilo City.

"This is the clearest path towards a world where there is mutual respect, where we are all bound by international law and by a single definition of our entitlements and obligations; where we are all brothers, all of equal footing, working side-by-side," the president added.

Among the diplomats who were present during the Independence Day celebration in Iloilo was Chinese Ambassador to the Philippines Zhao Jianhua.

Zhao made headlines earlier this week after not attending the Filipino-Chinese friendship day, which was marred by the continuing territorial dispute between the Philippines and China.

The country is celebrating its 117th Independence Day in the face of a big threat to its sovereignty - China's aggression in the West Philippine Sea.

Manila has filed an arbitration case before an international tribunal to question Beijing's execessive territorial claims. The Asian giant, however, has refused to participate and has increased its efforts of building artificial islands in the contested waters.

During his state visit to Japan last week, Aquino again criticized China's unlawful maritime actions, likening its large-scale reclamation to Nazi Germany's imperialism before World War II.

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PNoy to Chinese envoy, other diplomats: Respect int'l law | Headlines, News, The Philippine Star | philstar.com
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Chinese envoy to attend Independence Day celebration in Iloilo
By Pia Lee Brago (The Philippine Star)
Updated June 12, 2015 - 12:00am

MANILA, Philippines - After skipping last Monday’s advance Independence Day celebration in Manila by Filipino-Chinese businessmen, Chinese Ambassador Zhao Jianhua has confirmed his attendance at today’s rites in Iloilo where President Aquino is guest speaker.

“He is attending the celebration in Iloilo,” embassy spokesperson Li Lingxiao told The STAR, referring to Zhao.

The ambassador’s begging off from Monday’s event came on the heels of President Aquino’s comparing China’s activities in the West Philippine Sea to pre-World War II Nazi Germany’s annexation of European territories.

Aquino made the comparison in a speech before Japanese business leaders in Tokyo on the sidelines of his state visit recently.

Li claimed Zhao was supposed to attend the event last Monday where the President was guest speaker but “changed his schedule for another appointment.”

The Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. organized the event last Monday.

Li said Zhao was among the foreign dignitaries who flew on a chartered Philippine Airlines (PAL) flight to Iloilo for the event.

Aquino’s “Nazi” remarks drew condemnation from Beijing. He was more conciliatory in his speech in the FFCCCII event, where he reminded his audience of the long history of friendship between the Philippines and China.

Zhao later acknowledged Aquino’s “positive” remarks and expressed confidence the two countries can “properly handle” their differences.


Documentary launched

As part of the commemoration of the 117th anniversary celebration of Independence Day, the Department of Foreign Affairs (DFA) is launching today a three-part documentary on the West Philippine Sea called “KALAYAAN.”

Each episode focuses on a different angle of the issue: economic, historical and legal.

The production is in partnership with the Presidential Communications Operations Office (PCOO). The first episode is set to air today.

Foreign Affairs spokesman Charles Jose said the documentary is part of a nationwide information campaign aimed at increasing the level of public awareness of the West Philippine Sea issue.

KALAYAAN is directed by RA Rivera Jr. and hosted by broadcast journalist and writer Lourd de Veyra and Jun Sabayton.

A preview of the first episode of the documentary was shown at the DFA yesterday. The first episode centers on the projected economic losses if China is left to impose its so-called nine-dash line.

The documentary also tackles the case filed by the Philippines against China before the International Tribunal on the Law of the Sea challenging Beijing’s nine-dash line claim.

“It’s said in the economic aspect (of the documentary) that if you leave unchallenged the nine-dash line we will be losing 90 percent of the Philippines’ exclusive economic zone (EEZ) and its natural resources,” Jose said in a press briefing.

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Chinese envoy to attend Independence Day celebration in Iloilo | Headlines, News, The Philippine Star | philstar.com
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[Zero_wing]

Happy Independence day sa lahat ng mga pilipino

 

[Cossack25A1]

Business News:

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‘Still a lot of work to achieve inclusive growth’
By Danessa O. Rivera (The Philippine Star)
Updated June 13, 2015 - 12:00am

MANILA, Philippines - State think tank Philippine Institute for Development Studies (PIDS) said the country is still far from achieving inclusive growth even after sustaining strong economic growth in the past few years.

A PIDS panel, led by its president Gilberto Llanto, said the Philippines has made numerous attempts to foster job creation but these efforts have yielded few satisfactory results.

This is even after the World Bank said the Philippines has reached a level towards inclusiveness with a five- to seven-percent average economic growth in the past several years.

The PIDS comment was made after United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) released its recently developed inclusiveness index.

According to UNESCAP’s Economic and Social Survey of Asia and the Pacific 2015 released in May, the Philippines ranks 10th out of 16 countries in the inclusiveness of growth index for the period 2002 to 2012.

The report showed the country’s various components of growth and development, like an index for social opportunities and access to electricity index.

It also discussed the country’s performance in comparison to other Asia-Pacific countries.

However, one data index shows the Philippines has one of the highest rates of unemployment in Southeast Asia.

Latest data from the Philippine Statistics Authority showed the jobless rate was at 6.4 percent, a decline from seven percent a year earlier, while underemployment went down to 17.8 percent from 18.2 percent last year.

UNESCAP economic affairs officer Steve Loris Gui-Diby said measuring growth inclusiveness is important to determine the best policies for achieving sustainable development.

He suggested the Philippines could start by reflecting, investigating, and understanding the dynamics affecting the young people’s career mindset.

However, Llanto said despite the recent spate of entrepreneurial courses burgeoning across the country’s top universities, the sense of entrepreneurship remains at a “non-poor level.”

“The upper income group is more likely to start a business because they can afford to and they are willing to take the risk. But there is no support system for those in the poorer bracket to comparably afford the same risks,” he said.

The UNESCAP official also recommended the country should focus on enabling a good business environment and improving the elements of infrastructure, investor protection, financial development, and competitiveness.

He also pointed out the importance of improving the rural sector’s access to basic services.

“It has been proven the level of productivity in the rural areas is parallel to the level of access. Policies should help and encourage small and medium enterprises to foster creation of quality employment to mitigate poverty and truly accomplish more inclusive development,” Gui-Diby said.

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‘Still a lot of work to achieve inclusive growth’ | Business, News, The Philippine Star | philstar.com
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Remittances sustain pace in April
By Kathleen A. Martin (The Philippine Star)
Updated June 13, 2015 - 12:00am

MANILA, Philippines - Remittances should continue recovering in April although at a slower pace than the five-year high growth rate seen in March, UK-based Barclays said.

In its latest Emerging Markets Weekly, the bank has forecast an eight-percent increase in remittances for April from the same month last year.

“We expect the recovery in remittances to continue, but growth likely eased from the strong pickup recorded in March,” Barclays said.

Official April remittances data will be released by the Bangko Sentral ng Pilipinas on Monday, June 15.

Latest central bank data showed cash remittances surged 11.3 percent to $2.101 billion in March from $1.888 billion in the same period last year.

The growth rate was the fastest following December 2009’s 11.4-percent climb.

The uptick followed a 4.2-percent rise in February and a dismal 0.5 percent increase in January, all blamed to a high base in the previous year.

The BSP earlier said the high base could be traced to a leap in transfers a year ago after the deadly Typhoon Yolanda devastated the Visayas region in November 2013.

In the first quarter of the year, cash remittances went up 5.5 percent to $5.791 billion from $5.492 billion in the same period in 2014.

BSP data showed these were mainly sent from the United States, Saudi Arabia, the United Arab Emirates, the United Kingdom, Singapore, Japan, Hong Kong, and Canada.

Personal remittances, which includes non-cash items, also jumped 5.1 percent to $6.414 billion in the three months to March from $6.1 billion last year.

The sustained inflows from remittances abroad was owed to the steady deployment of overseas Filipino workers and the continuous expansion of banks’ services abroad.

Remittances support household consumption, the main driver of the Philippine economy. Last year, cash remittances accounted for 8.5 percent of the country’s gross domestic product.

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Remittances sustain pace in April | Business, News, The Philippine Star | philstar.com
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Oil price slump stalls San Miguel’s bid to acquire foreign energy firm
By Richmond S. Mercurio (The Philippine Star)
Updated June 13, 2015 - 12:00am

MANILA, Philippines - Plunging global oil prices, earlier seen as an ally in San Miguel Corp.’s bid to expand its oil and gas empire overseas, have turned into an adversary, slowing down a potential acquisition for the diversified conglomerate.

SMC president and chief operating officer Ramon S. Ang said their planned overseas purchase has not advanced so far as the owners of the target company have become reluctant on selling as their firm’s valuation has gone down due to the slump in oil prices.

“Nothing has happened yet because the valuation price has dropped. So now, the owners are holding back,” Ang said.

The drop in oil prices to new lows over the previous months was supposed to serve as an advantage for SMC to shop for cheaper energy assets abroad, but it has not been the case so far.

Last year, SMC said the firm has set its sights on a possible overseas acquisition of a company that has similarities in business operations with Esso Malaysia Berhad.

Esso Malaysia Bhd and its two subsidiaries, ExxonMobil Malaysia Sdn Bhd and ExxonMobil Borneo Sdn Bhd, were acquired by Petron’s Malaysian unit for nearly $600 million in 2012.

Esso Malaysia’s operations then included a refinery located in Port Dickson on the west coast with a capacity of 88,000 barrels per day, seven fuel distribution terminals, and a network of about 560 retail stations.

“The opportunity we are looking into is something like that of Malaysia (Esso Malaysia), which we bought already having a refinery, a tank farm, and gas stations,” Ang said in an interview last year.

SMC reported it has already invested about P300 billion for acquisitions and another P150 billion for expansion over the past seven years.

Despite the standstill in the overseas oil and gas talks, Ang said SMC continues to scout for other potential acquisitions not only for energy assets but also in food, beverages, packaging and infrastructure.

“We are still in talks with all the possible targets. We will consider that is viable and affordable,” he said.

Ang believes SMC already has the expertise and experience to bring its business abroad.

SMC is one of the most diversified conglomerates in the country, with investments in beverages through San Miguel Brewery Inc. and Ginebra San Miguel Inc.; food through San Miguel Pure Foods Co. Inc.; packaging through San Miguel Yamamura Packaging Group; fuel and oil through Petron Corp.; power through SMC Global Power Holdings Corp.; and infrastructure through San Miguel Holdings Corp.

The conglomerate posted an eight percent increase in net income in the first quarter of the year to P2.3 billion as strong results in its core businesses managed to offset weak results from Petron.

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Oil price slump stalls San Miguel’s bid to acquire foreign energy firm | Business, News, The Philippine Star | philstar.com
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PSE to launch new trading system
By Richmond Mercurio (The Philippine Star)
Updated June 13, 2015 - 12:00am

MANILA, Philippines - The Philippine Stock Exchange (PSE) has received the go-signal from the Securities and Exchange Commission (SEC) to start with the use of its new trading system.

The PSE will launch PSEtrade XTS on June 22 following its receipt of the SEC’s approval of the trading system’s rollout.

“The PSE has been working closely with the SEC on the implementation of the new system to ensure their requirements from a regulatory standpoint are addressed. We shall continuously provide the SEC with updates and information they need as we launch PSEtrade XTS to ensure its successful implementation,” PSE president and CEO Hans B. Sicat said.

The PSE deferred the debut of its new trading system last June 1 on further testing and approval required from the SEC.

In July last year, the PSE announced it would use Nasdaq’s X-stream Trading technology to power its new trading engine.

Nasdaq’s exchange technology operates in over 100 marketplaces across the US, Europe, Asia, Australia, Africa and the Middle East.
Nasdaq’s trading technology is also used by Asean exchanges such as Bursa Malaysia, Singapore Exchange and the Indonesia Stock Exchange.

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PSE to launch new trading system | Business, News, The Philippine Star | philstar.com
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Politics and International Diplomacy News:

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P-Noy calls for mutual respect among nations
By Delon Porcalla (The Philippine Star)
Updated June 13, 2015 - 12:00am

ILOILO CITY, Philippines – With only a year left before he steps down, President Aquino yesterday called on the people to help ensure the “permanence of positive change” and for the community of nations to observe “mutual respect” and strict adherence to international law.

“I ask you to join me in a toast, to the continued success of the Filipino people: may we further harness our unity as we tread the straight path, towards ensuring the permanence of positive change,” he said during the traditional vin d’honneur in celebration of the country’s 117th Independence Day anniversary yesterday.

Addressing the diplomatic corps at the Casa Real de Iloilo, Aquino expressed his wish for nations to realize their interdependence as well as the importance of working together to achieve progress.

Aquino made the call as the West Philippine Sea issue continues to rankle Manila-Beijing relations. Beijing’s expansive claim in the West Philippine Sea, including its frenzied island-building activities, has sparked tension in the region. Manila is contesting Beijing’s claim before an international arbitral court based in The Hague.

Aquino, in a speech before Japanese business leaders on the sidelines of his state visit early this week, compared China’s threatening moves with pre-World War II Nazi Germany’s annexation of European territories.

Chinese Ambassador Zhao Jianhua, who had skipped an advance Independence Day celebration in Manila last Monday where Aquino was guest of honor, attended yesterday’s Independence rites here.

Monday’s event, sponsored by the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc., also marked the 40th anniversary of the Philippines-China diplomatic relations and the 14th Filipino-Chinese Friendship Day.

“Excellencies, as we are determined to join your nations in the struggle to overcome the obstacles you face, so too do we ask you to join us,” he told his audience, who also included national and local officials, senators and congressmen, as well as Cabinet members.

“In this way, we can truly forge a global community in which each nation-state realizes that their growth and stability hinge on their ability to work with others,” the President said.

“This is the clearest path towards a world where there is mutual respect, where we are all bound by international law and by a single definition of our entitlements and obligations; where we are all brothers, all of equal footing, working side-by-side,” he said.

“In your presence, we pledge: the Philippines is committed to the task of building that true community of nations,” he pointed out.

Aquino also acknowledged the significant and substantial role other countries play in local development. He reassured them that Filipinos are ideal development partners, especially now that the government has achieved a lot in eliminating poverty and corruption.

“My country has indeed achieved so much, yet we did not do this all on our own. We reached our goals sooner because of the international community, who recognized our earnest efforts and saw an honest government and a people truly worth helping,” he said.

“Fostering even greater cooperation amongst all nations need not even be on the basis of our universal rights or of altruism,” Aquino stressed, noting that Filipinos owe the international community a “debt of gratitude.”

“Any practical mind would recognize that we must be concerned with our brother by necessity, especially in this shrinking world, where problems are less and less localized, and more and more common,” he maintained.

In an interview with reporters after the President’s speech, Zhao said Beijing “respects” the pronouncements from Aquino. He also said Aquino’s message of respect and adherence to international law should be the guiding principle of every nation.

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P-Noy calls for mutual respect among nations | Headlines, News, The Philippine Star | philstar.com
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[Pinoy]

First defense eco-zone in Southeast Asia to be established in Philippines
June 15, 2015


First defense economic zone in Southeast Asia will soon be established in Bataan, Philippines where Government Arsenal is located. Government Arsenal is providing government security forces from Armed Forces of the Philippines and Philippine National Police with basic weapons, ammunition and other munitions.

“There are a lot of defense companies lining up to come in, according to [Government Arsenal] Director Jonathan Martir. We’re just waiting for the Presidential proclamation for the incentives,” Bataan Governor Albert Garcia said as quoted byPhilistar.com.

“I think they’ll be able to formalize things with PEZA (Philippine Economic Zone Authority) by September to give incentives to locators,” Governor Garcia added.

The AFP Modernization Act (Republic Act 7898) mandates “the government arsenal shall be utilized in the production of basic weapons, ammunition and other munitions for the use of the AFP and the Philippine National Police (PNP), and for the sale and export of products in excess of AFP/PNP requirements.”

Furthermore, GA is authorized to use production facilities as it may own or be provided under the law or as it may arrange under joint venture, co-production or similar arrangements with local and foreign entities.

GA is located on a 370-hectare defense industrial estate in Lamao, Limay, Province of Bataan.

First defense eco-zone in Southeast Asia to be established in Philippines

 

[Reashot Xigwin]

SSVs can Act as Command-and-Control Platforms, Floating Government Centers


PN Strategic Sealift Vessel (image : pdff)

MANILA — Aside from improving the transport and logistics capability of the Philippine Navy (PN), the two strategic sea-lift vessels (SSVs) can also serve as command-and-control platforms or floating government centers during national emergencies.

This was disclosed by PN flag-officer-in-command Vice Admiral Jesus C. Millan in a message to the PNA.
"(These ships can also be converted into) floating hospitals or evacuation centers," he added.

The first SSV had its steel-cutting ceremony last Jan. 22 and is slated for delivery in May 2016.

While the second SSV had its steel-cutting last June 6 and is scheduled for delivery in May 2017.

Both ships are being constructed by PT PAL (Persero), an Indonesian shipbuilder, at its Surabaya facility.

"The two SSVs will be a big boost to our transport capability once they will be phased-in/commissioned to our inventory. The SSVs will address our gaps on troop transport support for internal security and they could also improve our humanitarian assistance and disaster relief capabilities as these vessels are multi-role platforms," Millan stated.

The Philippines has a two-SSV order with Persero for Php3,870,000,000 which is sourced from the AFP Modernization Fund.

The strategic sealift acquisition project for the PN was initiated upon the approval of Acquisition Decision Memorandum Number 2012-060 by the Secretary of National Defense last Oct. 30, 2013.

The Department of National Defense declared Persero as the Single Calculated Responsive Bidder with a bidding price of Php3,870,000,000 on Nov. 18, 2014.

The SSVs are programmed to be the PN’s floating command center carrying out their main purpose as military sealift and transport vessels and also for humanitarian assistance and disaster response.

Further, these vessels are critical assets for civil-military operations due to their capability of transporting large number of soldiers, logistics, and supplies.

Moreover, each SSV has the capacity to house three helicopters. The Navy’s Augusta Westland-109s are programmed to be on-board components of these vessels.

These forthcoming landing platform dock strategic sealift vessels will improve the transport capability of the PN and boost the defense capabilities of the country.

(ZamboTimes)

 

[Cossack25A1]

National Development(?) News:

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Meralco reveals earthquake preparedness plans
By Rosette Adel (philstar.com)
Updated June 16, 2015 - 11:43am

MANILA, Philippines – The Metro Manila Electronic Company (Meralco) began to set up their earthquake preparedness plan for the potential 7.2-magnitude earthquake in Metro Manila.

During Meralco’s presentation at the Carlos P. Romulo Foundation's Earthquake Resilience Conference held late last month, they revealed that their Crisis Management Team (CMT), the top level organization that manages situation that adversely affects the company, laid out its Emergency Preparedness Plan (EPP) and Crisis Management Plan for the said disaster.

The EPP was defined as the component of the Crisis Management Plan that integrates functional responsibilities of all organizations required to ensure business continuity when an earthquake hits Meralco franchise area.

According to the assumptions derived from the MMEIRS Study and Stimulations performed on REDAS provided by Phivolcs about 70 percent of Meralco’s facilities will be affected and in order to attend to their consumers’ needs during crisis, they already set up gaps and action plans which are as follows:

• For restoration effort slowed down huge debris, Meralco would partner with the Department of Public Works and Highways and Metro Manila Development Authority (MMDA) to prioritize clearing operations to determined power restoration highway.
• Meralco will address electrical facilities prone to thievery by coordinating with military and Local Government Units (LGUs) that would create security arrangements.
• Regarding stock and spares limitation, Meralco will partner with other utilities and seek Energy Regulatory Commission’s approval for increased stocks/spares provision
• Meralco will collaborate with MMDA/LGUs for rescue efforts and partner with other distribution utilities.
• In the event that Meralco’s operation is hindered by communication, they plan provision of satellite communication devices and arrange quick restoration of cell sites.
• To assess damages caused by earthquake, Meralco will acquire and deploy aerial drones that could monitor the situation.

For MMEIRS Study and Stimulations, Metro Manila will be subdivided into four quadrants. They also estimated 3.6 million Meralco customers will be affected with 155 employee casualties and seven fatalities.

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Meralco reveals earthquake preparedness plans | Business, News, The Philippine Star | philstar.com
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Business News:

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Remittances sustain climb in April
By Kathleen A. Martin (The Philippine Star)
Updated June 16, 2015 - 12:00am

MANILA, Philippines - Remittances further rose in April amid a sustained demand for Filipino workers abroad, the Bangko Sentral ng Pilipinas reported yesterday.

“The steady demand for skilled Filipino manpower overseas provided support to the continued growth in remittance flows,” the central bank said.

Personal remittances, which includes cash and non-cash items, went up 4.9 percent to $2.233 billion in April from $2.128 billion in the same month last year. This brought the four-month total to $8.647 billion, up 5.1 percent from $8.228 billion a year ago.

Cash remittances alone climbed 5.1 percent to $2.015 billion in April from $1.918 billion in the same period in 2014. In the four months to April, cash transfers grew 5.4 percent to $7.807 billion from $7.409 billion last year.

Bulk or $5.9 billion of the cash remittances during the four-month period were sent by land-based workers, while the remaining $1.9 billion were from sea-based workers.

The BSP said the funds were mainly remitted from the United States, Saudi Arabia, the United Arab Emirates, the United Kingdom, Singapore, Japan, Hong Kong, and Canada.

Citing data from the Philippine Overseas Employment Administration, the central bank noted there were 310,727 job orders as of April. These were mainly for service, production, and professional, technical and related work in Saudi Arabia, Kuwait, Qatar, Taiwan, and the United Arab Emirates.

At the same time, the continuous expansion of bank and non-banks’ remittance services here and abroad supported the increase in remittances from overseas Filipino workers.

Remittances are a big contributor to domestic consumption, the main driver of the Philippine economy. Last year, cash remittances reached a fresh annual peak of $24.348 billion, equivalent to 8.5 percent of the country’s gross domestic product.

The BSP has forecast cash remittances to swell by five percent this year over 2014’s levels.

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Remittances sustain climb in April | Business, News, The Philippine Star | philstar.com
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Government debt payments up 6.3% in Q1
By Zinnia B. dela Peña (The Philippine Star)
Updated June 16, 2015 - 12:00am

MANILA, Philippines - The government spent P205.46 billion in the first quarter to pay down its debt, 6.33 percent more than the amount it settled in the same period a year ago.

Latest data from the Department of Finance showed P104.85 billion was used to pay principal obligations comprising P73.09 billion in domestic debts and P31.76 billion in foreign borrowings.

Total principal payment from January to March was 16.36 percent higher than the P90.1 billion paid out the previous year.

The government also paid P103.13 billion in interest covering P64.94 billion in local loans and P35.67 billion in foreign obligations.

Total interest payment for the period was 2.4 percent lower than the P103.1 billion paid a year earlier.

In March alone, the government paid a total P97.1 billion in financial obligations including P66.775 billion in principal and P30.32 billion in interest.

Debt-management strategies, coupled with efforts to shore up tax collections, have allowed the government to significantly trim its debt burden to a more manageable level.

The country borrows from the international and domestic markets to supplement revenues and finance development programs.

The National Government’s outstanding debt stood at P5.79 trillion as of the end of April, 2.7 percent higher than the P5.64 trillion recorded in the same period last year.

Domestic debt amounted to P3.85 trillion, representing an increase of 4.5 percent. The amount accounted for 68 percent of the country’s total obligations.

The country’s debt as a proportion of the country’s entire economy declined further last year, reflecting the government’s successful efforts to manage finances and sustain the growth of the economy.

Debt-to-GDP (gross domestic product) ratio improved to 45.4 percent at the end of December last year from 49.2 percent in 2013 due to efficient spending.

The debt-to-GDP ratio, which peaked at 78.1 percent during the 1998 Asian currency crisis, has been on a downward trajectory in the past three years as the government stepped up efforts to manage the country’s debt.

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Government debt payments up 6.3% in Q1 | Business, News, The Philippine Star | philstar.com
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Stocks struggle as Wall Street weakens, end in red
By Richmond S. Mercurio (The Philippine Star)
Updated June 16, 2015 - 12:00am

MANILA, Philippines - Local stocks came out struggling yesterday following an extended weekend to join the downtrend across markets in the region brought about by a negative finish in Wall Street last week.

The bellwether Philippine Stock Exchange index (PSEi) shaved off 0.63 percent or 47.56 points to close at 7,456.16 while the broader All Shares index slipped 0.46 percent or 19.97 points to 4,294.27.

“Wall Street’s weak performance Friday clouded sentiment early this week, despite optimistic economic outlook from the World Bank,” said Jason Escartin, an investment analyst at F. Yap Securities.

Indexes in Wall Street ended in negative territory on Friday ahead of a Federal Reserve policy-setting meeting slated this week.

With the S&P 500, Dow and Nasdaq posting losses, majority of the Asian markets followed their leads, led by a 0.4 percent slide in Japan’s Nikkei yesterday.

“Most foreign fund managers are seen to check indicative trend from the Fed’s meeting mid-week,” Escartin said.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
All local counters were buried in the red yesterday, with industrial firms and property companies leading with a 1.09-percent and 0.99-percent drop, respectively.

Market breadth started the week on a negative note as decliners pummeled advancers, 91 to 72, while 56 stocks were unchanged.

Value turnover, meanwhile, declined slightly to P7.46 billion from last Thursday’s P8.55 billion.

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Stocks struggle as Wall Street weakens, end in red | Business, News, The Philippine Star | philstar.com
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CARS seen a boon to SME parts makers
By Louella D. Desiderio (The Philippine Star)
Updated June 16, 2015 - 12:00am

MANILA, Philippines - Car parts makers classified as small and medium enterprises (SMEs) are expected to grow and contribute more to manufacturing and employment with the Comprehensive Automotive Resurgence Strategy (CARS) Program in place, the Philippine Automotive Competitiveness Council, Inc. (PACCI) said.

In a statement yesterday, PACCI chairman Feliciano Torres said the group welcomes the issuance on May 29 of Executive Order 182 which provides for the CARS Program.

“The program comes at an opportune time when SME development has become an important global agenda. The participation of OEMs (original equipment manufacturers) in the CARS Program will drive the growth of SME automotive parts manufacturers that account for over 90 percent of the local automotive supplier base. We expect a meaningful increase in the industry’s manufacturing value-added and employment generation not only in automotive manufacturing but in manufacturing-related services as well,” he said.

The CARS Program aims to position the country as a regional automotive manufacturing hub.

Under the program, the government will support the assembly of three vehicle models by providing incentives to manufacturers that would meet production volume and investment requirements over a six-year period.

Beginning next year, the government is setting up the Automotive Development Fund in the General Appropriations Act for the fiscal support to be given to participating car manufacturers in the program.

The government is allotting a total of P27 billion for the program, with each enrolled vehicle model entitled to fiscal support at a maximum of P9 billion.

The fiscal support will be in the form of tax payment certificates which will allow participating companies to defray excise tax, income tax, import duties and Value Added Tax.

The CARS is a result of the automotive industry road map crafted by the industry under the Department of Trade and Industry’s road map initiative.

“PACCI thanks the government for visualizing new horizons for the Philippine automotive manufacturing industry,” Torres said.

This, as the program would allow the local industry to become an important production base in the Southeast Asian region.

“PACCI recognizes the government’s intention for the local auto manufacturing industry to operate at the highest possible level of efficiency and become an engine of growth for the Philippine economy. We will partner with the government in realizing the resurgence of automotive manufacturing in the Philippines to support inclusive growth,” Torres said.

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CARS seen a boon to SME parts makers | Business, News, The Philippine Star | philstar.com
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Philippines kicks off international roadshows for infrastructure projects
By Danessa O. Rivera (The Philippine Star)
Updated June 16, 2015 - 12:00am

MANILA, Philippines - The Philippines is kicking off a series of international road shows in the United Kingdom and in major cities in the US later this month in a bid to attract foreign companies to invest in infrastructure projects under the Aquino administration’s Public Private Partnership (PPP) program.

The government has slated investment road shows in the UK on June 17 to 19, in Washington on June 24, in New York City on June 26 and in San Francisco on June 29, PPP Center deputy executive director Eleazar Ricote said in an interview last week.

“These are the ones in the pipeline so far,” he said.

The road show in UK was organized by the Philippine embassy in London and by the Department of Trade and Industry (DTI) where several PPP infrastructure investments will be presented to high-level and senior representatives from British firms.

The US road show will be composed of officials from the DTI, Department of Finance, Department of Public Works and Highways, PPP Center, Department of Transportation and Communication and the Bangko Sentral ng Pilipinas.

Also included in the trip are representatives from the National Competitiveness Council and the

The US road show is aimed at taking advantage of the current keen interest of US firms to invest in the Philippines by highlighting economic gains and opportunities in infrastructure and other growth areas.

Partners in the US investment road show are Citi, Deutsche Bank, Development Bank of the Philippines, Landbank of the Philippines, Goldman Sachs, Hong Kong Shanghai Banking Corp., JP Morgan, Morgan Stanley, Standard Charted and UBS.

In February, the PPP Center held a roadshow in Singapore.

Last year, it held roadshows in Australia, Europe, Singapore, Japan and North America to invite foreign companies to invest in PPP projects in the Philippines.

The Aquino administration targets to award 15 PPP contracts before its term ends in 2016. So far, it has awarded nine PPP projects with a total indicative cost of P136.37 billion since 2010.

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Philippines kicks off international roadshows for infrastructure projects | Business, News, The Philippine Star | philstar.com
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National Development News:

Small steps leading to a giant leap?
BIZLINKS By Rey Gamboa (The Philippine Star) | Updated June 16, 2015 - 12:00am

Good news first. The government has taken the first step to consolidate all of its agencies involved in information and communications technology.

The Senate has passed its version of a law which would establish a Department of Information and Communication (DICT), separate and distinct from existing government agencies, and would take the role of promoting information and communication technology (ICT) across the country, both in the public and private sectors.

This ICT function is currently within the mandate of the Department of Transportation and Communications (DOTC); when the bill becomes law, the DOTC will focus only on transportation, which already is an area that requires its full concentration.

Under the proposed DICT law, all other existing ICT functions in other government agencies, including the Department of Science and Technology, will also cease to exist.

Affected agencies and government offices are: the Information and Communications Technology Office, the National Computer Center, the National Computer Institute, the Telecommunications Office, and the National Telecommunications Training Institute.

Three other agencies, namely the National Telecommunications Commission, the National Privacy Commission and the Cybercrime Investigation and Coordination Center, would also be linked to the DICT to enhance the country’s fight against cybercrimes.


More legislative work needed

The bad news is the House is still not ready to pass its counterpart version, a move that is a precursor to bicameral meetings, and finally, the passage of the law.

The Philippines could well be one of the last countries in the world in this day and age which has both transportation and communications under one major government body.

Let’s hope this initiative to separate the functions of transportation and ICT, which was first proposed during the previous administration, will finally push through during P-Noy’s term given the need for the country to have a single agency focused on ICT-related concerns.


Martial law legacy

Born in 1979 during the martial law regime as the Ministry of Transportation and Communications (MOTC), it formerly shared one umbrella known as the Ministry of Public Works, Transportation and Communications. The public works function was then moved to the Ministry of Public Works and Highways.

The MOTC was already partial to transportation-related functions, counting as its first major projects the Light Rail Transit System, a computer-controlled traffic lights system, and the Manila International Airport (now Ninoy Aquino International Airport).

Other major projects included the establishment of a motor vehicle registration and control system, and the introduction of permanent vehicle license plates and the staggered registration system. A bus leasing program was also introduced to add 1,000 new buses in Metro Manila.

The operation of the Metro Manila Transit Corporation was also expanded and the rehabilitation of the Manila South Line of the Philippine National Railways serving the Bicol Region was initiated.

Clearly, just by looking at these starting concerns, the MOTC (which eventually became the Department of Transportation and Communications after the martial law days) had its hands full.


Free Wi-Fi

Another spot of good news, if just for the fact the purpose is laudable, is the initiative by the DOST’s Information and Communications Technology Office to provide free Wi-Fi access for the whole country in public areas.

The listed areas, in order of priority, are plazas and parks, public primary and secondary central schools, libraries, rural health units and government hospitals, state universities and colleges, train stations of the MRT and LRT systems, airports and seaports, city and municipal halls, and national government offices.

At first glance, I would question plazas and parks as being the priority in the list. I would have thought schools would be best served first, or health centers, or local and national government offices.

Reminds me of the scandalous national broadband deal involving the Chinese firm ZTE.


Pa-pogi DOST initiative?

The underlying reason should be not to provide the public per se free Wi-Fi access since this would be a waste of time, effort, and finances – clearly misguided reasoning given the current conditions of the ICT sector in the Philippines.

Unless, of course, this was a pa-pogi initiative by DOST Sec. Mario Montejo, politically motivated either by the upcoming 2016 elections or the passage into law of a DICT.

There is seemingly a strong financial reason for government to undertake its own free Wi-Fi project given the huge amounts government pays to private telecommunications service providers, on top of what public servants dish out from their own pockets.

Enabling a government Wi-Fi system, even if the speed access is severely limited at first, could still prove to be beneficial just as long as the end goal would be to continually upgrade, improve, and expand the system to cover more essential public spaces.


Stronger broadband

But more than free Wi-Fi, government needs to seriously look at its own broadband backbone to connect all its offices under one network at a significantly lower cost and hopefully improved connectivity.

So far, South Korea has been the only country that has managed to structure its broadband services so that it is now regarded as a model for empowering its citizens to securing access to the Internet at very affordable rates.

The DICT that will be formed should make Internet access available to more and more Filipinos, especially now the country is emerging as one of the hottest economies in the world.

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Small steps leading to a giant leap? | Business, News, The Philippine Star | philstar.com
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[Cossack25A1]

SCS/West Philippine Sea News:

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China’s ‘selfish acts’ leading to ‘irreparable consequences’
Iara Jolo
June 17, 2015

The Philippine government is validating China’s claim that its construction and reclamation activities in some reefs in West Philippine Sea will be finished in the coming days. “We have to validate that report,” Department of National Defense spokesperson Dr. Peter Paul Galvez said.

The Chinese foreign affairs ministry did not mention a reef when asked to specifically name a reef where reclamation and construction activities will soon be completed. “The progress of projects on different islands and reefs may vary. As for when the completion is due, it depends on the progress of construction and various conditions,” the Chinese ministry said.

The Defense department says China’s action may lead to irreparable consequences. “We reiterate that their activities if not stopped only draws the world closer to further uncertainties and untoward incidents with irreparable consequences,” Galvez said.

“We call on China to refrain from these selfish acts and consider the call of all nations for them to abide by the internationally accepted rules as stipulated in UNCLoS (United Nations Convention on the Law of the Sea),” the Defense spokesman added.

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China’s ‘selfish acts’ leading to ‘irreparable consequences’ | Ang Malaya Net
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China reveals construction in West PHL Sea completed in upcoming days to meet military defense need
Grace Gonzales
June 16, 2015

The Chinese foreign affairs ministry revealed today that reclamation and construction activities in West Philippine Sea will be finished in the coming days. “They are not targeted at any other country, do not affect the freedom of navigation and overflight enjoyed by all countries in accordance with international law in the South China Sea, nor have they caused or will they cause damage to the marine ecological system and environment in the South China Sea, and are thus beyond reproach,” Chinese foreign affairs ministry claims.

“It is learned from relevant Chinese competent departments that, as planned, the land reclamation project of China’s construction on some stationed islands and reefs of the Nansha Islands (Spratly Islands) will be completed in the upcoming days,” the Chinese ministry added.

The Chinese spokesman from the ministry added that facilities and structures built in West Philippine Sea will meet necessary military defense need.

Apart from satisfying the need of necessary military defense, he added that structures will also help maritime search and rescue, disaster prevention and mitigation, marine scientific research, meteorological observation, ecological environment conservation, navigation safety as well as fishery production service.

This announcement from China was made after international communities, including the G7, called to stop massive reclamation activities in disputed maritime territories.

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China reveals construction in West PHL Sea completed in upcoming days to meet military defense need | Ang Malaya Net
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[Reashot Xigwin]

Outgoing AFP chief gets award of recognition from Indonesian military
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General Gregorio Catapang Jr.

Outgoing Armed Forces chief General Gregorio Catapang Jr. was recognized by Indonesian armed forces on Friday, the military said.

Catapang, who will reach the mandatory retirement age of 56 on July 11, was given the Bintang Yudha Dharma Utama (Grand Meritorious Military Order Award) by his Indonesian counterpart General Dr. Moeldoko at the Tentara National Indonessia Headquarters in Jakarta, Indonesia, AFP public affairs office chief Lieutenant Colonel Harold Cabunoc said.

The award is also known as the Defense Meritorious Service Star, the highest recognition granted to foreign nationals for invaluable services rendered not only to the TNI but also to the Republic of Indonesia.

Catapang was recognized for his dedication in improving and strengthening the partnership and good cooperation between the governments of the two countries, Cabunoc said.

The award also signifies the strong bond between the two countries, he added.

Catapang is scheduled to start his farewell visits to troops next week.


Read more: Outgoing AFP chief gets award of recognition from Indonesian military | Inquirer News
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

 

[Cossack25A1]

Business News:

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Foreign debt down to $75.32 B in Q1
By Kathleen Martin (The Philippine Star)
Updated June 20, 2015 - 12:00am

MANILA, Philippines - The country’s foreign debt fell to $75.32 billion in the first quarter amid repayments made mainly by banks, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

The figure is five percent below the $78.93 billion recorded in the first three months of last year and also three percent lower than the $77.67-billion debt stock in end-2014.

The central bank said the negative foreign exchange revaluation and a rise in investments in Philippine debt papers contributed to the reduction in outstanding external debt.

“Key external debt indicators were observed to have remained at very prudent levels in the first quarter of 2015,” BSP Governor Amando M. Tetangco Jr. said.

The external debt ratio or the capacity to repay obligations over a long-term horizon stood at 21.5 percent when measured against the gross national income, an improvement from the 23.9 percent seen in the same period last year.

When weighed against the gross domestic product, the ratio also was better at 26.1 percent from 29.1 percent.

The bulk or 82.6 percent of the outstanding external debt carried medium to long-term maturities or those payable in more than a year.

“This means that FX (foreign exchange) requirements for debt payments are well spread out and, thus, more manageable,” the BSP said.

Short-term external debt made up the remaining 17.4 percent of the total loans during the period and these were mainly bank borrowings, intracompany accounts of foreign bank branches, trade credits, and deposits of non-residents.

The BSP said public sector debt amounted to $39.1 billion in the first quarter, while private sector loans reached $36.2 billion.

Foreign holders of Philippine bonds and notes made up the lion’s share of external debt during the period at 33.5 percent, followed by loans taken out from multilateral and bilateral creditors at 30.4 percent, the BSP said.

Foreign banks and other financial institutions accounted for 28.9 percent, while foreign suppliers and exporters made up the remaining 7.2 percent.

By denomination, the central bank said 64.6 percent of the debt stock were in US dollar, while 12.7 percent were in Japanese yen.

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Foreign debt down to $75.32 B in Q1 | Business, News, The Philippine Star | philstar.com
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BOP reverts to $58-M deficit in May
By Kathleen A. Martin (The Philippine Star)
Updated June 20, 2015 - 12:00am

MANILA, Philippines - The country’s balance of payments (BOP) position went back to a deficit in May from a surplus in the same month last year due to debt payments made by the government and the private sector, Bangko Sentral ng Pilipinas data showed yesterday.

The country incurred a BOP deficit of $58 million in May, a reversal of the $373-million surplus in the same period last year. This was also a turnaround from the $380-million surplus recorded in April.

“This resulted mainly from debt servicing by both the public and private sectors even as remittances and BPO (business process outsourcing) revenues remain strong,” BSP Deputy Governor Diwa C. Guinigundo said in a text message.

The BOP is a summary of a country’s transactions with the rest of the world. Its components include trade, foreign direct and portfolio investments, revenues from the BPO and tourism sectors, and remittances from Filipinos overseas.

A surplus means more money went into the economy during the period, while a deficit means otherwise.

In the first five months of the year, the BOP position stood at a surplus of $1.199 billion, a reversal of the $4.12-billion deficit in the same period a year ago.

“We continue to be optimistic we would sustain a BOP surplus for 2015,” Guinigundo said. The central bank expects a $2-billion BOP surplus by year end.

The BOP ended in a deficit of $2.858 billion in 2014 after nine consecutive years of being in surplus mainly due to the US Federal Reserve’s tapering of its massive bond buying program.

Emerging markets including the Philippines experienced capital outflows last year as investors rebalanced their portfolios amid the normalization of monetary policy in the US. Volatilities in global financial markets, however, remain pending the Fed’s rate hike.

The country’s current account surplus more than doubled to $3.305 billion in the first quarter from $1.495 billion in the same period last year.

This was due to a narrower trade-in-goods deficit, higher receipts from services amid the continued revenues from the BPO sector, and sustained strong inflows of remittances from overseas Filipino workers.

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BOP reverts to $58-M deficit in May | Business, News, The Philippine Star | philstar.com
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DTI holds conference on business startups
By Louella Desiderio (The Philippine Star)
Updated June 20, 2015 - 12:00am

MANILA, Philippines - The Department of Trade and Industry (DTI) is organizing Slingshot MNL, a conference focused on startups, in line with the Philippines’ thrust to push for the growth of micro and small enterprises as this year’s host of the Asia Pacific Economic Cooperation (APEC) meetings.

Raymond Albert Batac, executive director of the DTI’s Foreign Trade Service Corps. said in a press conference Thursday Slingshot MNL 2015, which would serve as the venue for startup companies, investment firms and representatives of the government and academe to meet and learn about how the startup model could drive the growth of economies in the Asia-Pacific region, is an official event of APEC Philippines 2015.

The conference to be held on July 6 to 7, at the Philippine International Convention Center in Manila, will feature discussions with leading figures in the international startup community, a pitching competition and local startup exhibitors.

The event is expected to be attended by startup incubators and investment and venture capital firms from the US, Latin America and Asia, as well as successful startup businesses such as UBER, GrabTaxi, Rags2Riches, AirBnb, and mClinica, along with global entrepreneur support networks Endeavor and Ashoka.

“The event is being held in line with the Boracay Action Agenda for MSMEs (micro, small and medium enterprises),” Batac said.

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DTI holds conference on business startups | Business, News, The Philippine Star | philstar.com
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National Development News:

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AboitizPower unit starts 14-MW Sabangan hydro plant
By Iris Gonzales (The Philippine Star)
Updated June 20, 2015 - 12:00am

MANILA, Philippines - Hedcor, a wholly-owned subsidiary of AboitizPower, has started commercial operations of the 14-megawatt Sabangan hydroelectric power plant, its first venture in Mt. Province.

The hydropower facility would now be able to provide additional power supply to the Luzon grid, which plunged into Yellow Alert twice this week.

The plant is set to deliver 55 gigawatt-hours of power capacity annually to the grid.

Sabangan hydro harnesses the natural force of the Chico River by diverting part of the water into the system. The water then exits the powerhouse and goes back to the river, said AboitizPower president and chief operating officer Antonio R. Moraza.

“Hedcor’s Sabangan hydro plant is a fulfillment of AboitizPower’s continual promise to bring a better future to the country and to our host communities. Sabangan hydro is hoped to energize communities connected to the Luzon grid,” he said.

The Sabangan project is Hedcor’s 22nd run-of-river hydro plant, bringing the total capacity of its entire portfolio to 185 MW of its Cleanergy brand.

The Aboitiz subsidiary also owns and operates hydro plants in Benguet, Davao City, Davao del Sur and Ilocos Sur.

AboitizPower, meanwhile, aims to continue expanding its Cleanergy portfolio as its looks for more potential areas across the country, mainly through geothermal, hydro and solar power sources.

In April, Hedcor broke ground for the construction of the P12.5 billion, 68.8-MW Manolo Fortich run-of-river hydro plant in Bukidnon, marking the first hydro plant venture of Hedcor in the province.

Last year, AboitizPower partnered with US-based solar power developer SunEdison Inc. to explore, develop, construct and operate up to 300 MW of utility-scale solar photovoltaic power generation projects in the Philippines over the next three years, the company said.

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AboitizPower unit starts 14-MW Sabangan hydro plant | Business, News, The Philippine Star | philstar.com
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Overseas Filipino Workers News:

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Japan needs Pinoy nurses, caregivers
By Mayen Jaymalin (The Philippine Star)
Updated June 20, 2015 - 12:00am

MANILA, Philippines - Filipino nurses and caregivers are needed in various hospitals and clinics in Japan.

The Japan International Corporation of Welfare Services (JICWELS) is looking for 75 nurses and 300 caregivers, according to Philippine Overseas Employment Administration (POEA).

Nurses must be licensed with three years’ hospital experience and preferably between 20 to 35 years old.

They must also be medically and psychologically fit to work.

Those applying to be care workers must be a graduate of any four-year course and certified as caregivers by the Technical Education and Skills Development Authority (TESDA).

Under board nurses or graduates of any allied profession may also apply as caregivers.


Qualified applicants must register online at www.eregister.poea.gov.ph , and personally submit the requirements to the POEA on or before July 10.

Several years ago, the Philippines and Japan entered into a memorandum of understanding for the training and employment of candidate Filipino nurses and caregivers in Japanese health care facilities under the Japan-Philippines Economic Partnership Agreement.

Under the agreement, fully qualified nurses and certified caregivers, after passing the Japanese national licensure examination, shall have the option to stay for an unlimited period in Japan to practice their profession.

Applicants can only get jobs legally through the POEA since the Philippines and Japan signed an agreement allowing only the POEA to facilitate the recruitment and deployment of Filipino nurses and caregivers.

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Japan needs Pinoy nurses, caregivers | Headlines, News, The Philippine Star | philstar.com
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[Cossack25A1]

Military and Defense News:

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Philippine Air Force Flight Plan 2028 - A Mid-Year 2015 Progress Update on the PAF's Horizon 1 & 2 Asset Acquisition and Bases Development

Saturday, June 20, 2015

Previously, MaxDefense discussed the Philippine Air Force's (PAF) medium term goal (2015-2022) under their organization plan titled PAF Flight Plan 2028. Most of the entry was devoted to the PAF's equipment acquisition and organizational changes until 2022 that will allow the establishment to achieve their goals to build a capability to detect, identify, intercept, and neutralize intrusions in the Philippine Air Defense Identification Zone from Area Readiness 4 to 3 by 2022.

The advancement of the flight plan as of mid-2015 has produced modest results so far, with the program still in the early stages and is still about to gain traction.

This blog entry is a mid-year 2015 update on the progress made by the PAF in accordance to its Flight Plan 2028's acquisition of assets and bases development. Other factors of the Flight Plan like doctrines, training, human resources, and others are not discussed here.

*****

KAI FA-50 and Munitions Acquisitions:


The PAF ordered 12 FA-50 from KAI, with the 1st 2 units expected to arrive either December 2015 or January 2016.

The PAF initially reported in the past that the first 2 units of the FA-50 lead-in fighter trainers it ordered from South Korea's KAI will be delivered by early December 2015, but it will depend on the capability of KAI to meet the schedule. Recent PAF information releases shows that there might be some changes in this, which could see the first 2 FA-50 delivered as late as the end of January 2016. The rest of the 10 units will be delivered by batches from 2016 until 2017.

Pilot training was provided for 3 PAF pilots with high flying time and experience with the PAF's AS-211 Warrior light jet aircraft. Pilot training was done at KAI's facility in Sacheon City, and in ROKAF's 1st Fighter Wing at Gwangju Air Base and 16th Fighter Wing at Yecheon Air Base. Ground crew training for maintenance will also be provided to existing Air Defense Wing personnel, which is scheduled from June to November 2015 in South Korea.

The DND and PAF is also expecting to award the contracts with a combined worth of around Php 4.5 billion ($99 million) to supply air launched munitions for the FA-50 by September 2015, if all issues regarding budget and procurement can be cleared by Malacanang and the DND before August 2015. Among those in the acquisition are short range air-to-air missiles on the same category or better as the Sidewinder AIM-9L, air-to-ground missiles like the AGM-65 Maverick, 20mm cannon ammo, and countermeasures including chaffs and flares. No confirmation yet though if the air-to-air munitions will include medium-range beyond visual range (BVR) missiles similar to the Derby missile.

*****

Air Defense Surveillance Radar System Acquisition:

The DND has already awarded the contract for 3 air defense surveillance radar systems to IAI-Elta of Israel for the Elta ELM-2288 AD-STAR system. It is not expected for the radars to be in the country within the year, but it is expected that the first system could be online by 2nd quarter of 2016. As part of the deal, a gap filler radar is expected to be fielded by the PAF using a radar system provided by IAI-Elta as part of the deal. Originally MaxDefense posted that this radar system will be used to secure the airspace as part of the APEC Summit in November, so it is expected that the system will be activated before November 2015.


The IAI-Elta ELM-2288 AD-STAR air defense surveillance radar system.

*****

Long Range Patrol Aircraft Acquisition:

Currently, the re-bidding for the acquisition of 2 units Long Range Patrol Aircraft (LRPA) for the PAF has not yet started as of this writing, without formal confirmation from the PAF on the reason. But recent agreements between the Philippine government and the US and Japanese governments might have an impact on this project. Recent press reports indicated that the both the US and Japanese governments may provide the Philippines, either by grant or by sale, of used and refurbished Lockheed P-3C Orion maritime patrol aircraft. Previous reports indicated that the US may provide between 1 or 2 units, while Japan may provide somewhere between 2 to 4 units. If traced back to the PAF's Flight Plan 2028, the PAF is planning to acquire 4 LRPA in 2 batches, targetted to arrive by 2016 and 2020, respectively.
Should the plan to acquire P-3C Orion from either the US and/or Japan comes to fruition, it is expected that the PAF and DND may totally cancel the acquisition of new platforms, subject to the performance and longetivity of the P-3s and availability of additional funds after 2020.


Japan and the US are being touted to provide the Philippines with the Lockheed P-3C Orion maritime patrol aircraft, either by sale or grant, to improve the maritime surveillance and domain awareness capability of the country.

*****

Repair of PAF Air Bases and Air Stations:

Several existing facilities of the PAF are slated, or are currently undergoing repair and rehabilitation as part of the Flight Plan, to enable them to accept the upcoming new PAF assets.

Among those already in the advance stages are the basing facilities for Search and Rescue (SAR) units of the PAF at Antonio Bautista Air Base in Palawan and the Sanga-Sanga Air Station in Tawi-Tawi which were awarded last year.
Also being prepared is the new base for the 15th Strike Wing, which is scheduled to vacate their home base at Antonio Bautista Air Base (Sangley Point) in Cavite to give way to civilian development. The unit will be transfering to the Lumbia Airport in Cagayan de Oro, which was transfered to PAF after civilian traffic was permanently transfered to the new Laguindingan Airport.

Other basing projects are being prepared to accommodate several new upcoming assets:

1. Antonio Bautista Air Base (Palawan), Basa Air Base (Pampanga), and Subic International Airport (Zambales) will be prepared and refitted to accomodate air defense aviation assets, which will include the AS-211, the FA-50, the future MRF. It is also expected that all 3 air bases will also benefit from construction work related to the PH-US Enhanced Defense Cooperation Agreement (EDCA) which is still waiting for approval with the Supreme Court, and possibly the Philippine Senate.
.
2. The facilities at the Paredes Air Station in Ilocos Norte, Gozar Air Station in Lubang Island, and Salakot Air Station in Palawan will be accepting the first batch of Air Defense Surveillance Radar systems from Israel.

3. Fernando Air Base (Batangas), Antonio Bautista Air Base (Palawan), and Edwin Andrews Air Base (Zamboanga) are scheduled for improvements to accomodate Long Range Patrol Aircraft / Maritime Patrol Aircraft assets, with the bases expected to be partially ready by 2016.

4. Ground Based Missile Air Defense assets will also be requiring their own facilities, and the initial bases to receive these assets are the Paredes Air Station (Ilocos Norte), Gozar Air Station (Lubang Island), and Basa Air Base (Pampanga). The missile systems will be working hand-in-hand with the Air Defense Surveillance Radar, while at the same time are expected to defend these radar and air defense facilities from air attacks.

5. Command and Control Facilities will be erected at the PAF Headquarters in Villamor Air Base, and will probably connected to the C4ISTAR system being developed for the entire Armed Forces of the Philippines.

6. Basing support systems will be improved together with the improvement of the airstrip and facilities at the Rancudo Air Station in Pag-asa Island, Kalayaan Group of Islands in the West Philippine Sea. Currently the runway is in poor condition, and plans to repair it has not been moving forward due to the government policy in relation to its case with the United Nations against China.

7. The use of Crow Valley Gunnery Range in Tarlac for aerial gunnery and bombing practice will be reimplemented, aside from the use of the range for ground military training and testing purposes. The Flight Plan includes a program on rehabilitating the facility for air force use.

*****

Reactivation of the 105th Fighter Training Squadron and 5th Fighter Wing:

The PAF is scheduled to reactivate the 105th Fighter Training Squadron (105th FTS), which is the primary unit tasked to train pilots that are to be assigned to fly air defense aircraft like the AS-211 and FA-50. The unit previously operated T-33 Shooting Star and S-211 trainer jets in the past to prepare pilots to fly the F-5A/B Freedom Fighter and other PAF fighter aircraft in the past. It was expected that the activiation could be made by May 2015, although there is no confirmation yet if this was realized by now.

To consolidate its air defense aircraft assets, the PAF is also on its way to reactivate the 5th Fighter Wing (5th FW), its foremost air defense unit since the PAF's inception, to replace the current Air Defense Wing. This could become a reality by 2016. The 7th Tactical Fighter Squadron will return back to the 5th FW, and is expected to be the unit to receive the FA-50s. Like before, the 5th FW will be based in Basa Air Base in Floridablanca, Pampanga, although they would also be expected to operate from other bases including the Antonio Bautista Air Base in Palawan, and the Subic International Airport in Zambales, which is expected to be converted to a PAF air base with emphasis on territorial defense.

________________________________________


Horizon 2 Asset Acquisitions:

The PAF has already started the acquisition planning for several assets that will be acquired as part of the Flight Plan's Horizon 2 phase, which is from 2017-2022. The PAF expects the acquisition planning for at least 6 systems to be completed by end of June 2015, and the procurement stage to proceed afterwards. Procurement for these systems may depend, and could either be by negotiated procurement or by public tender.

*****

1. Ground Based Air Defense System:

With the formation of the 780th Ground Based Air Defense Group (780th GBADG) and the basing facilities in several PAF facilities to house the unit's assets, it is now expected that the PAF will be acquiring missile-based air defense systems. Previous press releases by the DND, AFP, and PAF pointed out to at least two systems: the SPYDER (Surface-to-Air PYthon & DERby) system from Rafael and IAI of Israel, and the Hawk XXI from US company Raytheon. Other systems were reportedly offered but official confirmations were not made as to what models were among those considered by the PAF or DND. There is no confirmed choice yet as of this writing, and anything can happen even after previous reports of interest from the DND, AFP, or PAF existed. MaxDefense previously covered the possibility of acquiring the SPYDER in a blog entry dated June 18, 2013.

3 systems are planned for acquisition by 2016, and another 3 systems are to be acquired by 2020. Each system will be based on one of the PAF's air bases or air stations, and are assigned to defend PAF facilities and nearby areas from air attacks.

*****

2. Heavy Lift Helicopters:

To improve the helilift capability of the PAF, the 205th Tactical Helicopter Wing will be diversifying their fleet aside from its light combat utility helicopters by adding heavy lift helicopters into its inventory. Much empahsis was given by the PAF's lack of large helicopters that could carry huge amounts of cargo and personnel to areas without airfields as shown during the rescue and relief operations after the Typhoon Haiyan/Yolanda in 2013. The PAF relied on US Marine Corps MV-22 Osprey to carry heavier load on affected areas, releagating the PAF's small UH-1H Huey and the Canadian Armed Forces CH-146 Griffon (similar to what the PAF's upcoming Bell 412EP) to lighter duties.

Great consideration will be on the helicopter's ability to load and unload cargo and men from a rear ramp, a feature present on two choices being eyed by the PAF if they decide to go brand new: the Boeing CH-47 Chinook of the US, and the AgustaWestland AW-101 from the UK. 2 units are eyed for procurement by 2019, and another 2 by 2022, although MaxDefense believes that the numbers and the schedule could change depending on funding and future decisions by the PAF to prioritize this project in anticipation of more HADR missions from natual disasters. It is also still unclear if the PAF will consider acquiring refurbished units due to the greater numbers it could acquire as compared to new ones using the same budget.

Previously, Boeing announced a global offer to sell refurbished and modernized CH-47 Chinooks to friendly countries at a considerably lower price than their new CH-47F. The PAF could be among the possible buyers.

******

3. Multi-Role Fighter Aircraft Acquisition:

As the FA-50 comes into service and prepare PAF's pilots into flying more advanced combat aircraft, the PAF has also started the acquisition planning to acquire multi-role fighters (MRF). Originally the PAF Flight Plan 2028 indicated a requirement to order an additional 12 SAA/LIFT aircraft, possibly more FA-50 from KAI, to beef up the PAF's requirements. But that could change due to the FA-50's limited capability compared to contemporary fighter aircraft fielded by its neighbors, particularly China.

The FA-50, as discussed in several forums including in MaxDefense, is considered a bridge for the PAF from its existing aircraft and technology to modern fighter aircraft. Its size has affected a lot of performance factors, limiting the aircraft to light combat aircraft capable of air policing, point interception, and ground attack roles. Even South Korea will only be using the FA-50 to replace the F-5E/F Tiger II, while replacement for the F-4 Phantoms will be of a more capable type.

The FA-50 has a limited range, limited carrying capacity, limited weapons compatibility, limited radar range and technology, and can be considered as totally substandard compared to larger, more expensive, and more capable fighter aircraft. This could become a deciding factor in the PAF's decision to skip acquiring more SAA/LIFT and instead start investing in acquiring multi-role fighters.

As reported by the PAF, they are about to finish the acquisition planning by the end of June 2015 and will be deciding soon on how the DND could implement the acquisition by either negotiated bid or through public tender. If the PAF will replace more SAA/LIFTs with the MRF, then they expect the PAF to have its new fighters by 2019. Should this happen, it is expected that the PAF may initially acquire 12 units, and may order another 12 units a few years later as part of its Horizon 2 (2017-2022) phase.

Recently, Saab reported that the PAF has asked questions regarding their JAS-39 Gripen, but admitted that no formal process has started yet. Saab has been active in pushing their Gripen, and has been present in several of the PAF's annual Air Power Sympotiums and at ADAS 2014.

MaxDefense also expects American companies to push hard for their wares should the DND and PAF confirm an existing MRF acqusition project, with Boeing expected to bring their F/A-18E/F Super Hornet, and Lockheed Martin their F-16C/D Blk. 52 or F-16V.

Due to pricing, MaxDefense believes that other European offers like the Eurofighter and the Dassault Rafale will probably pass on this project. This could change, however, if easy payment schemes, counter-trade, or alternative payments sponsored by the manufacturer's government could be offered and is acceptable to the Philippine government, similar to what France offered to Egypt when they accepted to acquire Rafales, its munitions, and FREMM frigates for the Egyptian Air Force and Navy. A Russian offer might be possible from either MAPO-MiG and Sukhoi, but MaxDefense highly doubts the PAF's interests on such.

*****

4. Aerial Early Warning and Control System Acquisition:

Another important project to fill in the gaps of the air defense capabilities of the PAF is for the acquisition of Aerial Early Warning and Control System (AEWACS) system. This is expected to be operated by the 300th Air Intelligence and Security Group (300th AISG)

MaxDefense received information that among the strongest offers were those made by Saab for its Erieye AEWC system, which Saab is offering together with its JAS-39 Gripen. Should Saab captures the MRF project, it is expected that a counter-offer involving the Erieye AEWC system could be provided by Saab, similar to what they provided to Thailand.

Also a possible strong contender due to its recent wins in the Philippine military is IAI-Elta, which recently also have agreements with Airbus to supply the AEWC AESA radar systems for the C-295AEWC variant. With the PAF already a C-295 operator, its not far fetched for them to choose the Airbus-Elta offer.

An American offer could also be possible, with the Northrop Grumman E-2D Advanced Hawkeye, which was recently sold to Japan and is being actively marketed in the Asia Pacific region.

Another possible offer could come from India, with their newly developed AEWC by India's Defence Research & Develpment Organization, which it recently showed-off using an Embraer ERJ-145 business jet platform.
The PAF could have the choice of aircraft platform it wishes to use, and MaxDefense believes that Airbus' C-295 and Embraer's R-99 (EMJ-145) could be strong platform contenders, given Embraer's strong position to bag the pending Close Air Support Aircraft (CASA) project of the PAF.

*****

5. Unmanned Aerial System and C2 Center:

The PAF has also released information on the impending completion of the acquisition planning for an Unmanned Aerial System (UAS) and Command and Control (C2) Center. The PAF also expects the acqusition planning to be completed by June 2015, although no definite deadline was announced on when they expect these assets to be in service.

The UAS could supplement the different surveillance systems presently available or being acquired by the PAF and the AFP as a whole. Being a maritime country with no land borders, it is expected that any UAS system will take maritime surveillance as its main role, assisting the LRPA/MPA assets of both the PAF and PN (yes, the PN are still expected to use their BN-2 Islander limited MPA) in detecting surface targets.

Previously Elbit Systems of Israel presented the PAF with an offer to use its Maritime Hermes 900 UAS as maritime patrol assets, gaining positive response from PAF and PN representatives.

*****

The C2 Center will be used to closely coordinate and control all PAF aerial assets, radar systems, airbases and air stations from its headquarters in Villamor Air Base. It is also expected to be interconnected with the AFP's C4ISTAR system which the AFP intends to acquire very soon. This enables the AFP to have total control of all its units and assets during operations.

# # # # # # # #

Being a mid-2015 report, this analysis is still subject to change, still being in the early part of the entire Flight Plan. But it is expected that the PAF will be using this to chart their course of action in the near future in a similar fashion as the Philippine Navy's Sail Plan 2020. So MaxDefense advices its readers to take this interpretation of the PAF Flight Plan 2028's mid-2015 report as dependent on the PAF and may not be 100% accurate.

Although the plan looks good, the PAF should also consider the threat at hand, with China already banging its feet inside Philippine EEZ and interests in the West Philippine Sea. Instead of being too reliant on this Flight Plan, MaxDefense believes that the PAF should also consider an alternative option emphasizing on a faster phased modernization dependent on the DND and AFP high command's ability to push its goals to the National Government (Executive and Legislative). Although it is already unexpected for the Aquino administrtion to do something better than what is already laid beforehand, the PAF should push harder for more funding and support to hasten its modernization and strengthening in the face of Chinese aggression.

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MaxDefense: Philippine Air Force Flight Plan 2028 - A Mid-Year 2015 Progress Update on the PAF's Horizon 1 & 2 Asset Acquisition and Bases Development
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[Cossack25A1]

Business News:

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SMEs need support system to spur growth – PIDS
By Danessa O. Rivera (The Philippine Star)
Updated June 21, 2015 - 12:00am

MANILA, Philippines - While small and medium enterprises (SMEs) are seen as one of the main engines of the Philippine economy, the sector has remained weak in the past decade due to financial and institutional constraints and stiff competition with larger enterprises.

Thus, developing a support system at the community level would address social issues and provide the necessary stimulus for SMEs to move forward, the Philippine Institute for Development Studies (PIDS) said.

About 99.6 percent of Philippine-registered enterprises are SMEs, which contribute about almost two-thirds of the total jobs market.

In a study authored by Leonardo A. Lanzona Jr., a PIDS consultant and the director of the Ateneo Center for Economic Research and Development, the SMEs were found to have a low contribution to employment growth.

“Research evidence shows small firms make a disproportionately large contribution to job creation, given the percentage of the workforce they employ,” he said.

Lanzona said many small firms last relatively short, only three to five years.

“Most SMEs are presently in the ‘at risk’ or ‘insulated’ categories, and adapting to the increasing competitive pressure brought by open regionalism remains to be their biggest challenge,” he said.

Furthermore, Lanzona pointed out the lack of capital and financial support hinder SMEs to access better technology and quality inputs.

“Hence, direct interventions toward poverty reduction in the form of public goods are expected to support SMEs and to raise growth,” he said.

This intervention can be in the form of social enterprises (SEs) or small- and medium-sized commercial businesses that provide valuable social service to customers, and sustainable jobs and training for up to about 200 people.

It employs a blended workforce, consisting of non-government organizations (NGOs) and other community institutions working with production units, which are often from disadvantaged backgrounds.

Lanzona said these stakeholders are often struggling to maintain work in competitive labor markets due to their disability, mental illness, age, cultural background, housing status, or other barriers.

“SEs operate in markets to address social needs and reduce inequality, recognizing that this has value. In addition, the ability of an SE to create new innovations can be used to link their production activities to the global value chain,” he said.

The NGOs and international trade arrangements like the Asia-Pacific Economic Cooperation (APEC) could help these enterprises to reach the global value chain.

Lanzona said APEC can help in the technical know-how and infrastructure, including disaster relief and mitigation measures.

“Meanwhile, NGOs, given their expertise and broad connection, can link these SEs and production units (household enterprises) into the global value chain,” he said.

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SMEs need support system to spur growth – PIDS | Business, News, The Philippine Star | philstar.com
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Industrial policy overhaul urged
(The Philippine Star)
Updated June 21, 2015 - 12:00am

MANILA, Philippines - To catch up with progress in neighboring countries, the Philippines needs to overhaul its industrial policy to focus on progressive industries, according to civil society coalition Action for Economic Reforms (AER).

A framework paper done by the AER-Industrial Policy Team (IPT) pointed out the Philippines has failed to push for industrialization in the past three decades.

Dr. Rene Ofreneo, UP School of Labor and Industrial Relations professor and member of the AER-IPT, said the Philippines has a very narrow model of export-oriented industrial (EOI) policy which has failed the country massively.

“If you are strategizing, you will concentrate on those items that are highly value added where this requires higher skills,” he said.

In the paper, the AER-IPT said there has to be a political, social and economic transformation in Philippine society to form a new industrial policy.

“An immediate way forward is to build a broad coalition for industrial policy. This will have to involve representatives from labor, business, the academe, and segments of the bureaucracy and political leadership...,” it said.

Through this dialog, Ofreneo said the Philippines must strategize its position in the global market.

“To catch up with Asia, the Philippines must overhaul existing growth model and clarify industrial vision to really forge inclusive growth and sustainable development,” he said.

The AER-IPT said the industrial policy should not only apply to manufacturing but also to sectors in agriculture and services.

While the services sector has been one of the main drivers of economic growth, the agriculture sector has been deteriorating in terms of its contribution to overall growth. The latter sector also employs bulk of the poor in the workforce.

But the Philippine government has heralded the country’s economic growth performance in the first five years of the Aquino administration, which remains the highest five-year growth average recorded since the mid-1970s.

Dr. Joseph Lim, economics professor at the Ateneo de Manila University and a member of the AER-IPT, said the current economic growth is largely due business and investor confidence.

However, in the first quarter of 2015, Philippine gross domestic product (GDP) expanded at its slowest pace in over three years at 5.2 percent.

Lim said the loss in confidence most likely also had an adverse impact on this period’s GDP growth.

During the period, President Benigno Aquino III’s satisfaction ratings dropped to record low after the Mamasapano incident that took the lives of 44 Special Action Force members and some rebels.

“Obviously, economic confidence can’t be sustained without hard work, by just relying on private sector and the markets,” Lim said.

With less than a year before the May 2016 elections, investors are on a wait-and-see mode ahead of the change in administration.

“We have a weak state. Even if you put extremely sophisticated economic plan in front of a (weak leader), he’s not going to be able to implement it anyway,” he said.

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Industrial policy overhaul urged | Business, News, The Philippine Star | philstar.com
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[Cossack25A1]

While not exactly Philippine related, it appears this news is quite uhm... not well reported; refer to the paragraph on the article below that is highlighted in red and enlarged.

Military and Defense News:

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Paris Air Show 2015: IOMAX begins delivering Archangel BPAs to the UAE
Gareth Jennings, Paris - IHS Jane's Defence Weekly

15 June 2015

US-company IOMAX has begun delivering on its contract to supply the United Arab Emirates (UAE) with 24 Archangel Border Patrol Aircraft (BPA), a company official told IHS Jane's on 14 June.

Speaking at the Paris Air Show in Le Bourget, IOMAX chief executive officer (CEO) Ron Howard said that the first of the twin-seat turboprop strike and intelligence, surveillance, and reconnaissance (ISR) aircraft is being ferried to the UAE during the week of the show. Deliveries will then proceed at a rate of one aircraft per month through to January 2016, at which time production will ramp up to two aircraft per month through to the end of the contract.

The commencement of deliveries comes just seven months after the contract with the UAE was announced. At that time, IOMAX said that it was building the Archangel to UAE-specifications to replace the IOMAX AT-802 Block 2 BPAs currently in service. The emirate had originally received 24 Block 1 and Block 2 BPAs, of which six Block 1 aircraft were later donated to Jordan. The entire Block 1 and Block 2 fleet will now be replaced by the Archangel (which was originally designated the Block 3 BPA).

Speaking at Le Bourget, where IOMAX has its Archangel prototype aircraft on static display, Jim Toole, chief technology officer, spelled out some of the UAE-requested features that have been incorporated into what is now the baseline Archangel platform.

"Before we started work on the Archangel, we sat down with UAE and [retired] US [A-10] pilots to talk through the lessons learned from the AT-802 [Block 1 and 2] aircraft, to provide a superior product," Toole said. "The A-10 guys in particular have an understanding of the air-to-ground missions, and delivering precision strike from long endurance platforms."

According to Toole, this 'superior product' is built around the fully integrated CMC Electronics Cockpit 4000, the centrepiece of which is the new head-up display (HUD) for the front-seater. Joel Hampton, a former US Air Force A-10 pilot and now an instructor pilot with IOMAX described the added capability that this HUD provides, "Before, in the AT-802, the pilot needed the target coordinates, but now with the HUD he can get 'eyes on target', which will then [automatically] enter the target coordinates into the aircraft's mission computer. With the AT-802 the pilot had to press up to nine buttons from lase [illuminating the target] to pickle [releasing weapons], but with the Archangel this has been reduced to just one."

Other improvements to the Archangel include a new German-made MT-Propeller MTV-27 scimitar-style composite propeller in place of the previous Hartzell unit, for a reduced audio signature as perceived from the ground; a sleeker nose profile; angling the exhaust rearwards to provide about 200 lb of additional thrust; remodelled wing roots and tips; a blended rear cockpit and tail section to reduce buffeting and drag; a remodelled tail and stabiliser roots and tips, and a generally cleaned-up fuselage, with as few protruding parts as possible; Terma countermeasures pods for operating in denied environments (one on each outer wing station for full hemispherical protection); cockpit and engine armour; self-sealing fuel tanks; satellite communications; and increased spacing of the six underwing hardpoints to accommodate dual-rails/launchers. With the four-rocket Cirit launcher, this new configuration will allow for the engagement of up to 48 separate targets from one aircraft.

The Archangel's blended tandem twin-cockpit has been moved forward and slightly stretched to increase the view forward and down for the pilot and the space available for the rear crew-member. While Toole said that the UAE has not taken up the option of ejector-seats and a bubble canopy in place of the standard crash-resistant seating and a roll-cage, he noted that this could be done if another customer requested it.

While the GBU-12/58 precision-guided bombs, AGM-114 Hellfire missiles, and Cirit guided rockets have all been tested and cleared for use on the Archangel, IOMAX is looking to integrate additional weapons systems also. The prototype Archangel shown at the Paris Air Show featured the Thales FreeFall Lightweight Multi-role Missile (FFLMM), which Toole told IHS Jane's should be integrated in 2016. Before then, IOMAX plans to integrate the Turkish-made Teber 250 lb and 500 lb laser-guided bombs, and the UMTAS long range air-to-surface anti-tank missile. A podded GAU-19 12.7 mm Gatling gun has been offered to the UAE, but to date it has not opted for this weapon system.

In addition to the weapons it can carry, the Archangel is also equipped with an electro-optic/infrared (EO/IR) turret housed on a pod that can be modified to carry a synthetic aperture radar, ground-moving target indicator radar, and datalinks.

With IOMAX now beginning to deliver on its contract with the UAE, CEO Howard said that the company is working to finalise a number of other regional contracts for the Archangel. While he declined to give details, he did say that he expects there to be about 70 such aircraft flying with Middle Eastern air arms in the next two years. Beyond the Middle East, Howard reported interest in the aircraft in Central America, Eastern Europe, and the Far East. In particular, he noted that the US government is close to fulfilling a Congressional 1206 Request (Security Assistance) to provide the aircraft to the Philippines. Previously, IOMAX has recorded interest also from Angola, the Ivory Coast, Niger, and Turkey, among others.

According to former A-10 pilot Hampton, what makes the Archangel so particularly attractive to potential operators is its endurance, its loadout, its ease of operations, its cheap sustainment costs, and its robustness. "The problem that has always been with the armed ISR mission is that some aircraft can carry lots [of weapons and sensors] but not much fuel, while others can carry lots of fuel but not much in the way of weapons and sensors. The Archangel is the only aircraft in its class that can do both, and prosecute the 'find, fix, and finish' mission from beginning to end.

"The Archangel has taken all of the good things from its agricultural heritage, in terms of being tough. It really is the Kalashnikov of aircraft - you can [figuratively] chuck it in the mud and beat it up, and it will still function just fine," he said.

Company-provided specifications give the (Thrush S2R-T660-710P-based) Archangel a 14,800 lb maximum gross take-off weight (including 4,519 lb maximum fuel and 4,810 lb of weaponry); a 210 kt maximum speed (180 kt cruise speed); a 1,350 n mile range at 175 kt; and a more than 8 hour endurance (at minimum payload). In terms of costs, procurement ranges from USD7.5 million to USD13 million per aircraft, with operating costs running at less than USD800 per hour.

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Paris Air Show 2015: IOMAX begins delivering Archangel BPAs to the UAE - IHS Jane's 360
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[Cossack25A1]

Business News:

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Gov’t borrowings up in Jan-April
By Zinnia dela Peña (The Philippine Star)
Updated June 23, 2015 - 12:00am

MANILA, Philippines - Government borrowings slightly went up in the first four months of the year due to higher foreign-denominated obligations, the Department of Finance (DOF) reported yesterday.

According to DOF, the government borrowed P128.63 billion in the first four months of the year, higher than the previous year’s P126.4 billion.

As of the end of April, foreign borrowings amounted to P79.68 billion, up 44 percent from P55.28 billion a year ago, while domestic borrowings fell 31.1 percent to P48.95 billion.

Net government borrowings reached P27.74 billion in April, 5.26 percent lower than the P29.28 billion in the same month last year.

Borrowings from local lenders fell 90 percent to P2.46 billion from P24.12 billion a year earlier.

The government incurred P25.28 billion in new foreign loans in April alone, or nearly five times the P5.16 billion in April 2014.

Foreign borrowings are done largely through the sale of sovereign bonds in the international capital market and by tapping cheap loans in the form of official development assistance (ODA) from multilateral development institutions.

The country’s biggest sources of ODAs are the World Bank, Asian Development Bank and Japan International Cooperation Agency.

Domestic borrowings, on the other hand, are done mainly through the sale of Treasury bills and bonds.

The country has seen the ratio of its debt-to-gross domestic product decline in the past few years from a peak of more than 70 percent a decade ago mainly due to improving tax collections and intensified tax audits.

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Gov’t borrowings up in Jan-April | Business, News, The Philippine Star | philstar.com
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Philippines pushes air talks with UAE
By Danessa O. Rivera (The Philippine Star)
Updated June 23, 2015 - 12:00am

MANILA, Philippines - The Philippines is keen on holding air talks with the United Arab Emirates (UAE) despite opposition from local carriers as the destination is seen as a critical connector to Europe, the Tourism chief said yesterday.

The Philippine government is now in the final stages of preparing for serious discussions with UAE, Tourism Secretary Ramon Jimenez Jr. told reporters in an interview.

“We have to renew air talks. When agreements are about to expire, we should renew (bilateral air negotiations),” he said.

The UAE is seen as a crucial connector destination to Europe and for overseas Filipino workers (OFWs).

“The UAE, which is fundamentally Dubai and Abu Dhabi, are critical jump-off points to Europe. So that’s very important from OFW and European market standpoint,” Jimenez said.

In January, Emirates pushed for the holding of a new round of air talks between the Philippines and UAE.

Jimenez said the government is “inclined to give in to that,” with preparations ongoing even with earlier oppositions from local carriers, particularly Cebu Pacific and Philippine Airlines (PAL).

“To be fair, they don’t oppose it, they just have point-of-view of how many, how much and how frequently. But nobody is opposing air talks per se,” he said.

In December 2014, PAL and Cebu Pacific issued a joint statement, saying increasing the flight frequencies between Manila and the UAE would only benefit Gulf carriers Emirates and Etihad Airways.

The airlines accused Emirates of influencing the Philippine Air Panel to hold air talks with the UAE in order to regularize its alleged illegal operations.

The Philippines concluded air talks with UAE in September 2012, which doubled the flight entitlements to 28 per week from 14 per week between the two countries.

Emirates and Etihad Airways have 14 flight entitlements per week, PAL has 14 while PAL Express and Cebu Pacific have seven each.

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Philippines pushes air talks with UAE | Business, News, The Philippine Star | philstar.com
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Miscellaneous News:

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Rainy season is here, PAGASA declares
By Rosette Adel (philstar.com)
Updated June 23, 2015 - 12:25pm

MANILA, Philippines – The weather bureau officially announced the onset of rainy season on Tuesday morning.

Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said they usually wait for the southwest monsoon otherwise known as “habagat” before declaring the onset of rainy season.

Dr. Vicente Malano, officer-in-charge of PAGASA, said the rain episodes started last Wednesday. However, based on the bureau’s criteria for declaring a rainy season were only satisfied last Sunday.

“For the past few days nakita natin, may criteria kasi tayong tinitignan na nasatisfy nitong Linggo. Kung babalikan natin, noon pang nagumpisa 'yung rainy episode na ito nun pang Miyerkules, nasatisfy ito nung Linggo,” Malano said in PAGASA’s televised press briefing.

Malano recalled that the weather bureau declared the onset of rainy season last year a little earlier, June 10 as compared to this year, June 23.

The weather bureau official said the El Niño which started last October affected the onset of rainy season. The weather bureau said their climate division is yet to issue a report on the current status of El Niño.

PAGASA advised the public that the rainy season may be expected in the next three months. After September, effects of El Niño will be felt.

According to the PAGASA, some areas will experience below normal rainfall from October to Decembe, while an estimated 11 to 16 tropical cyclones will arrive from June to December.

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Rainy season is here, PAGASA declares | Headlines, News, The Philippine Star | philstar.com
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[NarThoD]

Maiden flight of FA-50PH
Philippine will receive first batch of 2 FA-50's in the end of this year

Credit to original uploader

 

[Indos]

Maiden flight of FA-50PH
Philippine will receive first batch of 2 FA-50's in the end of this year

Credit to original uploader

With high economic growth and high tension at SCS, Philippine will likely to choose KFX/IFX after 2024............

Less expensive than F-35 but still uses Lockheed Martin technology and having two engine (better supercruise- at least two proven engine will create less problem than one new engine to get supercruise- /more payload in Stealth mode/ proven Engine) , at least 32 planes will likely be bought.