Deportation delay for PHL- Malaysian Govt condemned "Sulu Royal Army" in North Borneo

Muslims at the Golden Mosque in Quiapo district of Manila on Saturday express their support to Sulu Sultan Jamalul Kiram III and followers who are Sabah in press for their claim. DANNY PATA

Reprieve for Pinoys in Sabah

The Sulu sultan's "royal army" in North Borneo got a reprieve as the Philippine and Malaysian governments adopted a wait-and-see stance on the standoff in Lahad Datu town in Sabah that entered second week on Saturday.

The Malaysian government did not take any action in the remote village of Kampung Tanduo although the Filipinos insisted on staying in the forested area beyond the Friday deadline set by Kuala Lumpur.

"While there is a standoff, all the parties concerned have expressed commitment and desire to have this end peacefully," said Deputy Presidential Spokesperson Abigail Valte in an interview over state-owned dzRB radio.

She said the Department of Foreign Affairs had yet to receive word from Kuala Lumpur regarding the four-day extension Manila requested from Malaysian security forces, but Malaysian Home Minister Hishammuddin Hussein told journalists in Malaysia that he had been informed of Manila's request for an extension, but he said the Malaysian foreign minister will be the one to decide the matter.

"Foreign Minister Datuk Seri Anifah Aman just called me this morning and I told him I would leave it (the extension) for Wisma Putra (the foreign ministry) to decide," Hishamuddin was quoted as saying by Malaysia's New Straits Times.

"If there is a request to extend the deadline, do not extend it for too long as there is a limit to it in our quest of safeguarding our own country," he added.

At the same time, Valte said Malacañang Palace has rejected a proposal of the Moro National Liberation Front to send peacekeepers to Sabah because all parties involved had "conveyed preference to have situation resolved peacefully."

On Friday, Malaysian Deputy Prime Minister Muhyiddin Yassin also said their government is aiming for a peaceful solution, adding that it was important to resolve the issue without bloodshed.

The group of around 200 Filipinos, some of whom are armed, arrived in Sabah on February 9 and refused to leave, claiming that they were followers of the Sultan of Sulu who owned Sabah. They were promptly surrounded by Malaysian security forces and a standoff ensued.

Malaysian security forces have adopted a cautious wait-and-see stance in the ongoing standoff, but the standoff has taken a political color in Malaysia which is expected to hold general elections not later than June 27.

At the same time, the Philippines has deployed six naval ships to Tawi-Tawi to prevent other Filipinos from crossing the sea border.

President Aquino had earlier asked the armed group to give up peacefully because their actions may lead to a confrontation, but the group rebuffed the request. (http://bit.ly/15bvepq)

Manila Standard Today

Continue reading

Philippines: winning Japanese investment at the expense of China

Japan Sumitomo Corp : Sumitomo Corporation Launches Expansion of Industrial Park in the Philippines

The First Philippine Industrial Park, some 50km south of Manila, is already a whopper, accounting for about 3 per cent of the country's total exports. Which is why it is notable that Sumitomo Corporation, the Japanese trading house that owns 30 per cent of it, wants to make it even bigger.

By 2014, the 67 companies that currently call it home – including Honda, Canon, Nestle and Philip Morris – could be joined by 20 more, as Sumitomo spends about Y5bn to expand the 349-hectare site by almost a third.

The plan confirms two things. First, that Japanese companies will continue to steer funds into faster-growing, more dynamic economies – even as the recent depreciation of the yen makes investment back home that little bit more attractive.

The Philippines scores particularly well for its "rich human resources with good levels of English and high hospitality," says Yasushi Fukuda, general manager of Sumitomo's overseas industrial park division, which also runs parks in Vietnam, Indonesia and Thailand.

Japan's total FDI stock in the Philippines stood at just over $10bn at the end of 2011, according to government data, more than five times the level of a decade earlier – a rate of growth exceeded only by investment in India (13x), China (8x) and Thailand (6x) over that period, within Asia.

The second conclusion to be drawn is that a fair amount of this newer investment by Japan Inc is happening at the expense of China, as companies baulk at spiralling labour costs after the blow-up over a tiny chain of islands in the East China Sea.

Osaka-based Funai Electric was hit by wage-hike demands from Chinese workers after anti-Japan demos broke out last year, the Nikkei newspaper reported this week. It is now shifting production to a new site near Manila.

China was getting expensive already. Monthly base salaries for manufacturing workers in China grew by roughly 40 per cent over five years to $328 as of October 2012, according to the Japan External Trade Organization. By contrast, workers get $253 in the Philippines, $145 in Vietnam and $53 in Myanmar.

This year Japanese companies expect to pay Chinese factory workers 10 per cent more than in 2012, says Jetro – double the equivalent rate of increase in the Philippines.

Without naming China in particular, Fukuda of Sumitomo notes that wage hikes and worker shortages are driving many Japanese companies to consider "diversification of production facilities."

And where better than the Philippines, where about 97 per cent of Japanese companies with overseas operations are yet to venture?

Notably, it is not just the Hondas and Canons that Sumitomo is looking to lure. It says it is considering offering factory facilities for lease, with logistics and procurement support, as a way to encourage small and mid-sized Japanese businesses to set up shop.

Although the official sales promotion is yet to begin, "inquiries from prospective customers have been rapidly increasing," says Fukuda. (http://on.ft.com/XKxQHB)

FT

Continue reading