Philippines, USA, Japan plus Australia Strengthen Maritime Power to Counter China

Philippines Offers Strategic Partnership With Australia

 

President Benigno S. Aquino III disclosed on Monday that the Philippines wants Australia to be its third strategic partner after the United States and Japan.

 

The President sought closer bilateral cooperation between the two countries, citing the shared values and principles of the two nations.

 

"We're offering Australia actually a strategic partnership. We only have two strategic partnerships -- one in the United States of America and the other with Japan. We're offering the third to Australia and they are presently studying it," the President told the foreign media at the historic landmark Manila Hotel.

 

Pending the approval of the partnership agreement, the President said Australia has started to help the Philippines with the coast watch system.

 

"There are various trainings being conducted by their military security forces with our own personnel in the form of scholarships or they're meeting with various institutions," he said.

 

The President is scheduled to make a state visit to Australia on Oct. 24 to 26 to strengthen economic, defense, and development cooperation. Prior to his Australian tour, the President will travel to New Zealand on Oct. 22 to 23 for meetings with government and business leaders.

 

The President also cited the friendly ties between Manila and Canberra, saying "we share the same values, we're both democracies."

 

"We have been normally on the same side of issues that have confronted our respective peoples since at least World War II, the Korean War, the Vietnam War. We face the same challenges be it terrorism, global climate change, relationships with the superpower in the neighborhood," he said.

 

"So all of these lend to shared values, in a sense, shared background and therefore it promotes closer cooperation between our peoples," he added.

 

Earlier yesterday, the Department of Foreign Affairs (DFA) announced that President Aquino has decided to take the trips upon the invitation of New Zealand Prime Minister John Key and Australian Prime Minister Julia Gillard.

 

In New Zealand, the President's visit aims to deepen and strengthen relations in terms of political, defense, economic and development cooperation and people-to-people relations.

 

The President will first proceed to Auckland where he will meet with the Filipino community there. Currently numbering at around 36,000, Filipinos comprise 1 percent of the total population of New Zealand.

 

He is also slated to deliver a speech in a business forum to be attended by the Philippines New Zealand Business Council and the New Zealand Philippines Business Council.

 

Aquino is also expected to have one-on-one meetings with some New Zealand corporations.

 

From Auckland, Aquino will proceed to Wellington, the country's capital, to meet with Prime Minister Key and Governor-General Sir Jerry Mateparae.

 

The President will exchange views on regional and international developments of mutual concern with the two leaders, as well as share updates on national developments, including the conclusion of the Framework Agreement on the Bangsamoro between the Government of the Philippines (GPH) and the Moro Islamic Liberation Front (MILF).

 

In Australia, the Chief Executive will first fly to Canberra where he will meet with Prime Minister Gillard and Governor-General Quentin Bryce.

 

The leaders are expected to update each other on national developments, including the signing of the GPH-MILF Framework Agreement on the Bangsamoro.

 

The DFA said discussions will likewise focus on cooperation in the political, economic, defense, and development fields, and on the future direction of Philippine-Australian bilateral relations. At the same time, regional and international issues will also be taken up.

 

From Canberra, the President will proceed to Sydney where he is scheduled to deliver his keynote address at the Philippines-Australia Business Forum.

 

He will also meet with top CEOs in a roundtable setting and have one-on-one meetings with several Australian companies.

 

President Aquino will again deliver another address to The Asia Society of Australia and the Australia Philippine Business Council.

 

While in Sydney, President Aquino will unveil a statue of Philippine national hero Dr. Jose Rizal in Campbelltown.

 

He will also meet and interact with the members of the Filipino Community in Australia where he is expected to encourage them to help raise the profile of the Philippines by being knowledgeable and competent sources of information on their home country, be it on history and culture, business, and tourism, among others.

 

The Philippines is among the top 10 source countries for recent migrant arrivals in Australia where there are about 224,000 Filipinos.

 

During the State Visits, President Aquino will be accompanied by Foreign Affairs Secretary Albert F. del Rosario, Trade and Industry Secretary Gregory L. Domingo, Defense Secretary Voltaire T. Gazmin, and other Cabinet Secretaries who will also be meeting with their counterparts.

 

Manila Bulletin 

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Spain rating hold, US earnings lift Philippine Peso & Asian Foreign eXchange; intervention seen

Emerging Asian currencies led by the Korean won and the Philippine peso hit new highs on Wednesday as concerns over the global economy eased after strong U..S. corporate earnings and a credit ratings affirmation for Spain.

 

Traders said the potential for further gains was limited, with central banks seen as stepping into the market to stem the rise of the currencies, which make exports more expensive.

 

The South Korean won hit a one-year high, while the Taiwan dollar climbed a five-month peak on inflows from foreign financial inflows.

 

The Philippine peso reached its highest in more than five and half years, but it gave up some of the gains after the central bank was spotted buying dollars, traders said.

 

The Singapore dollar barely moved on similar intervention by the authority, dealers said.

 

Asian stocks also rose on Wednesday, boosted by Moody's decision to retain Spain's investment grade rating, assuaging widespread fears that it would be cut to junk status.

 

Strong earnings from US firms also improved risk appetite.

 

"The positive sentiment appears to be sustained," said Frances Cheung, senior strategist at Credit Agricole CIB in Hong Kong.

 

"However, Asian policy makers may not want to see their currencies too strong. I expect them to jump into the market trying to cap currency strength," she added.

 

Emerging Asian countries heavily rely on exports and the recent slowing global economy, especially China, has kept investors from chasing regional assets including currencies.

 

The risk sentiment is likely to depend on China's third-quarter growth due on Thursday.

 

Still, Credit Agricole's Cheung said slowing growth in the world's second-largest economy may not much deter a firm trend in emerging Asian currencies.

 

"There could be downside risk from China GDP, but the data may not be very worrying, given China's recent yuan-fixing," Cheung said.

 

The People's Bank of China has been fixing the yuan's mid-point firmer, helping the currency hit record highs, even though its economy has cooled.

 

TAIWAN DOLLAR

 

The Taiwan dollar strengthened to 29.142 to the US dollar, its highest since May 2 on inflows from foreign financial institutions.

 

Its upside was limited as the island's importers including oil companies bought greenbacks, dealers said.

 

The central bank was spotted intervening to stem the Taiwan dollar's strength, but its US dollar bids were not that strong, they added.

 

KOREAN WON

 

The won advanced for a fifth consecutive session to hit 1,103.3 per dollar, its strongest since Oct. 31.

 

The South Korean currency is seen heading to the previous peak of 1,100, given improving risk appetite, but investors stayed cautious over possible dollar-buying intervention by the foreign exchange authorities.

 

Importers bought dollars for payments on dips, while some offshore funds took profits.

 

"We may see the 1,100. But not that soon. Exporters are not active enough to push the won there," said a foreign bank dealer in Seoul.

 

PHILIPPINE PESO (₱)

 

The Philippine peso jumped to ₱41.160 to the dollar, its strongest since March 2008, on remittance inflows and solid economic fundamentals.

 

The peso found some resistance as the central bank was spotted buying greenbacks below 41.20, prompting offshore funds and interbank speculators to chase dollars, dealers said.

 

But some dealers saw the peso's retreat as opportunities to buy the local unit on dips.

 

"Market sentiment is still to sell the dollar on rallies. So any bounce to 41.30 would be a chance to either reinstate or add on to short-dollar positions," said a foreign bank dealer in Manila.

 

RINGGIT

 

The ringgit hit 3.0390 per dollar, its firmest since Sept. 14, as interbank speculators chased the local currency, tracking a firm euro and other risky assets.

 

Still, the Malaysian unit could not extend gains as the Singapore dollar was capped by spotted intervention.

 

SINGAPORE DOLLAR

 

The Singapore dollar barely changed as the central bank was spotted buying US dollar to stem the local unit's strength, dealers said.

 

Agent banks of the Monetary Authority of Singapore were seen preventing the city-state's currency from strengthening past 1.2180 to the greenback, according to dealers.

 

The intervention came as Singapore reported a surprise drop in non-oil domestic exports in September, disappointing market expectations of a slight growth.

 

Business Recorder 

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