After US Warship, Chinese fishing boat runs aground in Tubbataha Reef, Sulu, Philippines

A US Navy ship also ran aground on Tubbataha in January. It was stuck for more than 10 weeks. Photo: AFP

A Chinese fishing boat has run aground on a World Heritage-listed coral reef in the Philippines, roughly 1,600 kilometers from China's nearest major landmass, authorities said on Tuesday.

The vessel, with 12 crew members, was found stranded in the shallows of Tubbataha Reef in the Sulu Sea just before midnight on Monday, coast guard spokesman Lieutenant Commander Arman Balilo said.

"This is a small fishing boat, but we are wondering how they strayed into Tubbataha. Apart from illegal entry, we are investigating them for possible poaching as well," Balilo said.

Balilo said the boat was to be pulled off the reef on Tuesday and then towed to the nearby island province of Palawan, where the fishermen would be detained and questioned by authorities.

Balilo said Chinese fishermen frequently strayed into Philippine waters, but this was the first time in recent years that they had been detected as far south as Tubbataha.

The grounding of the vessel comes as the Philippines and China are locked in a bitter dispute over competing territorial claims to the South China Sea.

China claims nearly all of the sea, even waters approaching the coasts of the Philippines, Vietnam and other countries in Southeast Asia.

The Philippines accused China of occupying a shoal, which is home to a rich fishing ground, near its main island of Luzon last year. The Philippines has asked a United Nations panel to rule that China's claims are invalid.

However Tubbataha reef is in the Sulu Sea, which is further southeast and not claimed by China. The Sulu and South China seas are separated by Palawan, one of the Philippines' biggest islands.

Hainan Island, China's nearest major landmass.

Balilo said he did not want to speculate how the Chinese fishermen reached Tubbataha.

But one navy official said the fishermen likely sailed through the South China Sea and then a narrow strait at the southern tip of Palawan.

Tubbataha is famous among divers around the world for its walls of coral and diverse marine life that many say rival that of Australia's Great Barrier Reef. Sailing in the Tubbataha Park is illegal without a permit.

However a US Navy minesweeper also ran aground on Tubbataha in January, and salvage crews had to break it down in pieces in a delicate operation that only ended on March 29.

Philippines authorities estimate that the USS Guardian damaged at least 2,345 square meters of the reef and are seeking 58 million pesos (US$1.4 million) in compensation.

SCMP

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Philippine led ASEAN with 74% Investor's confidence -Frontrunner Foreign Investments

The Philippines seen as ASEAN economic frontrunner by Standard Chartered bank. (Credit: Standard Chartered Bank)

With the improvement of economies affected by the global recession in recent years, world renowned debt watcher Standard & Poor's (S&P's) and British banking giant Standard Chartered Bank recently said in separate reports that the Philippine economy is seen to continue on its upward trend and become the standout economy in Southeast Asia in 2013.

The Asia-Pacific region, which has endured half a decade of economic challenge, is expected to make progress in 2013. External factors affecting the region's economy with the European recession easing. The United States of America is also expected to grow faster. China has avoided an economic slowdown.

According to S&P's, Philippine growth is expected to reach 5.9 percent this year as the recession in Europe and America eases. More investments in tourism and the business process outsourcing industries have spurred economic growth to become more broad-based. These, combined with increased fiscal space, are putting the Philippine economy on a higher growth trajectory. The country holds a BB+ credit rating with S&P, a notch investment grade. It also obtained a positive outlook in 2012, indicating that an upgrade could be announced over the next 12 to 18 months.

According to the Standard Chartered Bank, a recent survey of more than 900 investors in the Association of Southeast Asian Nations (ASEAN) saw the Philippines emerge as the frontrunner in the region. The survey showed that 74 percent of investor-respondents in Manila expect to see better business prospects in 2013 compared to the year before, dwarfing scores in Jakarta (46%), Bangkok (44%), Singapore (44%), and Kuala Lumpur (41%).

We congratulate the government of the Republic of the Philippines headed by H.E. President Benigno S. Aquino III and Vice President Jejomar C. Binay, in their unrelenting efforts in boosting the Philippines' economic growth.

Further Positive Outlook for Foreign Investments

Ellspermann's sentiments are ones that are shared by an overwhelming number of foreign businesses.

The projections of Standard Chartered Bank for the Association of Southeast Asian Nations (ASEAN), drawing from a sample of over 900 investors, indicate the Philippines is in the lead for areas of development—edging out even Singapore and Malaysia, a fact illustrated in the adjacent chart:

"The Philippines was the standout country in terms of the strength of on-the-ground sentiment," Standard Chartered noted. "We expect the Philippines to see stronger investment growth this year, sustaining the strong momentum from 2012."

"The case for investment grade is supported by a number of factors, including a resilient economy, a current account surplus, stable fiscal policy, and the narrowing of the budget deficit," the bank explains, solidifying its outlook.

The study also cited improvements in infrastructure, the peace process with the rebellious Moro Islamic Liberation Front, the increasingly strong peso, and the progressing decreases in the national deficit (aided by the new "Sin Tax") as additional reasons for their report.

"We are optimistic that the Philippines will outperform the region and enjoy another year of strong growth momentum in 2013," Standard Chartered said, adding that they expected that the Philippines will reach investment grade by the end of fiscal year 2014.

Furthermore, the continued strengthening of the stock market has increased confidence in companies seeking to invest in the Philippines. The expansion of BPO offices is ongoing as well, despite the waning of this type of business in other nations in Asia. For the Philippines, the indications are clear.

The international economy continues to recover from far-ranging economic crises, and more and more businesses are veering away from established practices and looking towards a sustainable future.

As an investor favorite, the Philippines is at the forefront of development, ready to lead a region on the cusp of becoming a global economic giant.

With reports from Tempo and the Washington Times

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