Philippines & China Send Warship to Disputed Seas

The tensions is fueled again for China vs. Japan, Taiwan, Philippines, South Korea, Vietnam and ASEAN Nation

Breaking News: The Philippines has relaunched an U.S. Coast Guard Hamilton Cutter Class as its biggest and most modern warship to guard potentially oil-rich waters that are at the center of a dispute with China.

President Benigno Aquino III witnessed the commissioning of the 3,390-ton Philippine navy frigate BRP Gregorio del Pilar in an austere ceremony Wednesday (December 14, 2011)  that he said symbolized his country's struggle to modernize its underfunded military despite many obstacles.

Aquino said the Philippines cannot guard its territorial waters and islands "with dilapidated vessels and old and faulty equipment."

The newly repainted warship can carry a surveillance helicopter and is mounted with anti-aircraft guns. The navy says it will be deployed near contested waters in the South China Sea.

China sends patrol ship to disputed waters

China has sent its largest patrol ship to the East China Sea to guard the country's territorial rights, state media said Wednesday (December 14, 2011), in a move likely to fuel tensions over the disputed waters.

China has repeatedly locked horns with its neighbors Japan and Taiwan over a group of uninhabited islands -- called Senkaku in Japan and Diaoyu in Chinese -- which Beijing claims are in its territorial waters.

Japan and Taiwan also claim sovereignty over the area, which is believed to be rich in oil and gas.

The 3,000-tonne Haijian 50 began its maiden voyage on Tuesday, the Global Times reported, citing the head of the East China Sea branch of the country's marine law enforcement agency.

The vessel will visit Rixiang Rock, Suyan Rock and the offshore oil and gas fields of Chunxiao and Pinghu, as well as China-Japan joint development zones, Liu Zhendong was quoted saying.

The Chinese-made vessel is equipped with the country's "most advanced marine technology and is capable of accommodating China's Z9A helicopters", the report said.

It will conduct joint patrols with the Haijian 66, a 1,350-tonne ship deployed in March.

Disputes over the East China Sea and South China Sea have intensified recently, with Chinese President Hu Jintao earlier this month urging the navy to prepare for military combat and a US campaign to assert itself as a Pacific power.

Several Asian nations have competing claims over parts of the South China Sea, believed to encompass huge oil and gas reserves, while China claims it all.

Separately, Beijing and Seoul are involved in a dispute over the Yellow Sea, where a South Korean coastguard was stabbed to death by a Chinese fisherman this week.

Continue reading

‘God particle’: Scientists close in on evidence How God Created the Universe

Dec. 13 (Bloomberg) -- Scientists at the European Organization for Nuclear Research have narrowed the range where the hypothetical "God particle" created at the beginning of the universe may be found, closing in on evidence of its existence.

The particle, also known as Higgs boson, most likely has a mass in the region between 116 and 130 gigaelectronvolts of energy being studied by one research team and between 115 and 127 gigaelectronvolts under observation by another team, according to data presented today by the Geneva-based research institute. Independent measurements point to a range of 124 to 126 gigaelectronvolts, researchers said.

The Higgs boson, named after U.K. physicist Peter Higgs, in theory allows other particles to have mass. Finding the Higgs boson could be a gateway to discovering new physics, such as superparticles or dark matter, part of the universe's building material that went missing at the beginning of time. While the scientists found "tantalizing hints" of the particle, it's too early to say whether it exists, the scientists said.

No Conclusions

"We cannot conclude anything at this stage," said Fabiola Gianotti, a spokeswoman for the institute's ATLAS experiment, one of the two research teams. "We need more study and more data. We will not need to wait long for enough data and can look forward to resolving this puzzle in 2012."

Scientists at the research institute, also known as CERN, are using the Large Hadron Collider, a 27-kilometer (17-mile) circuit of magnets running under the French-Swiss border, to smash beams of atomic particles and record the resulting collisions. The researchers have been creating conditions as close as possible to the so-called Big Bang that formed the universe 13.7 billion years ago in their search for the Higgs boson.

"Higgs bosons, if they exist, are very short-lived and can decay in many different ways," CERN said in a statement. "Discovery relies on observing the particles they decay into, rather than the Higgs itself."

Both groups exclude a broad range of possible Higgs masses, from 115 to 600 times the weight of a proton, Lawrence Sulak, chairman emeritus of Boston University's physics department, said via e-mail.

Significant Hints

"The significance of the hints reported today could turn into proof beyond a doubt come next October," Sulak said.

If the researchers don't find the particle by the end of next year, they will exclude its existence, Rolf-Dieter Heuer, director-general of CERN, told reporters in Geneva in October. Failing to find the Higgs boson would lend credibility to alternate theories that explain the mechanism that allows particles to have mass.

The results of further experiments will have implications for theories on dark matter, which makes up about 23 percent of the universe. Such research could help scientists gain a better understanding of the universe and how galaxies hold together, according to CERN.

CERN said in September that an experiment showed a neutrino beam appears to have moved faster than the speed of light. The finding, if confirmed, would contradict Albert Einstein, who said nothing can exceed light speed.

Continue reading

Comelec Chair - Abalos Jailed for Electoral Fraud - ordered by Gloria Arroyo

Former Elections Chairman Benjamin Abalos, center, walks out of a regional trial court after surrendering with his lawyers Tuesday, Dec. 13, 2011 in suburban Pasay City, south of Manila, Philippines. Police arrested Abalos who has been charged with elections fraud with already-detained former President Gloria Macapagal Arroyo. (Pat Roque / AP)

(AP)  MANILA, Philippines — Police arrested the Philippines' former elections chairman Tuesday on charges he aided the vote fraud allegedly ordered by former President Gloria Macapagal Arroyo.

Former Elections Chairman Benjamin Abalos surrendered to a Manila regional trial court in suburban Pasay city and was placed under arrest, police Supt. Samuel Turla said. He will be held in a police detention facility, unlike Arroyo, who is under arrest in a government hospital.

Police took his fingerprints and mugshots before detaining Abalos at a regional police headquarters in the capital, Turla said.

Abalos said he surrendered to underscore his innocence to charges that he played a role in rigging 2007 senatorial elections to ensure the victory of Arroyo's candidates in a Muslim autonomous region then governed by her political ally.

President Benigno Aquino III succeeded Arroyo last year after a landslide election victory due in part to his promise to fight corruption and crushing poverty. He has blamed Arroyo for a decade of scandals that eroded public trust in government and held back foreign investment.

Arroyo, 64, has denied any wrongdoing and accused her successor of using "black propaganda" to damage her image. She was arrested last month at a private hospital and later was moved to a public veterans' hospital amid calls for her to be treated like other crime suspects.

Indonesian Foreign Minister Marty Natalegawa, who arrived in Manila Tuesday for talks with Aquino and his counterpart, Albert del Rosario, said that by strongly dealing with past cases of corruption, countries like the Philippines would discourage future cases of graft.

"You can only deter future possible acts of corruption if you're seen to be robust in dealing with the past," Natalegawa said in a news conference, adding he was glad that the Philippines, like his country, was taking steps to root out graft.

On Monday, Aquino's allies in the House of Representatives impeached Supreme Court Chief Justice Renato Corona on eight complaints of alleged corruption and that court he led improperly favored Arroyo. She appointed him chief justice shortly before her presidential term ended last year.

Corona vowed to fight back. Senate President Juan Ponce Enrile said Corona is likely to face trial there in January after Congress returns from a monthlong Christmas break.

Aquino thanked lawmakers Tuesday for impeaching Corona.

"We are now going through a process to stop the continued destruction by a wayward magistrate of the sacred institution that is the Supreme Court," Aquino said.

But Supreme Court spokesman Midas Marquez called Corona's impeachment "an assault on all the rights, power and privilege of the entire judiciary," which he said was being "forced to surrender its constitutionally mandated powers and functions to the whim and caprice of political machinations."

___

Associated Press writers Teresa Cerojano and Oliver Teves contributed to this report.

Continue reading

Miriam Santiago wins International Criminal seat

Feisty Philippine Senator Miriam Defensor Santiago has "overwhelmingly" won a seat in the highly powerful International Criminal Court, according to the Department of Foreign Affairs (DFA) Tuesday (December 13, 2011).

DFA said Santiago is the first woman from an Asian developing state to join as a judge in the Netherlands-based international court.

ICC is an "independent, permanent court that tries persons accused of the most serious crimes of international concern, namely genocide, crimes against humanity and war crimes," according to the court's website.

Santiago reportedly topped the poll's first round, effectively gaining a seat with 79 votes out of 104 valid votes, which DFA said was "an indication of the strong support from States Parties."

DFA noted that to be elected, candidates must receive two-thirds majority of the total number of votes cast, mostly States Parties voting.

"She was the first to be elected out of 18 candidates vying for six seats on the Court.  For the first round of voting, she bested candidates from every region," DFA said in a statement.

"This is the message that we emphasized in the campaign.  We are pleased that the international community has listened to us.  Indeed, it is a new day for the Philippines, a day of pride for our country and a day of honor, knowing that this is a tremendous responsibility and mandate placed upon our compatriot," DFA Secretary Alberto del Rosario said.

Sen. Santiago recently went on a four-month campaign to get States Parties' support.

In October, Santiago said she would be resigning from the Senate should she win a seat in the International Criminal Court.

"I'll have to resign [as senator]. Isn't that good news for my enemies? I would have to live in The Hague. I will look like a European and speak like a European and I will be as snooty as a European when I come back," she reportedly said.

Continue reading

Philippines: UN relief official in funding appeal for displaced in Mindanao

Big Family is still common in the Philippines as said to be this tropical country is a good breeding place for both human and animals and a haven of baby boomer in the world. Heavy rains in the Philippines in June 2011 left scores of homes like this one in Cortabato City, Mindanao, inundated with water

12 December 2011 – A senior United Nations relief official today called for a surge in financial support to provide humanitarian aid to hundreds of thousands of people driven from their homes by conflict on the Philippine island of Mindanao.

At the launch of the Philippines (Mindanao) Humanitarian Action Plan 2012, Jacqui Badcock, the UN Humanitarian and Resident Coordinator for the Philippines, appealed for $38 million in funding as part of the UN's ongoing efforts to provide emergency relief, protection and livelihood support to those in Mindanao affected by conflict and natural disasters.

"The situation remains fragile, and the people continue to live in fear and uncertainty," Ms. Badcock warned in Manila. "Our goal is to help them rebuild their lives as quickly as possible," she added.

The UN estimates that 680,000 people in central Mindanao are in urgent need of humanitarian aid, with new displacements continuing to occur as a result of sporadic armed fighting and the compounding effects of severe flooding caused by heavy seasonal rains.

"We have strengthened our needs assessment and analysis, and expanded programmatic and geographic areas where organizations work more cohesively," Ms. Badcock said.

"This will help level the imbalances and ensure a more seamless response to the complex needs of the people in Mindanao," she added, further noting that early and sustained donor funding was "critical" to the success of the action plan.

As of 11 December, the 2011 action plan had received 54 per cent of the required support with slow and imbalanced funding being a major concern. The 2012 action plan seeks $38 million to cover 30 projects over the next 12 months.

Continue reading

Japan lawmaker eyes Military base on China-claimed islands

Nobuteru Ishihara (pictured in 2008), sometimes seen as a future prime minister if his Liberal Democratic Party returns to power, on Monday said that Japan should look more broadly at stepping up defense spending in the face of a rising China, during his visit to the United States

Japan should consider building a military base on islands disputed with China to counter Beijing's rising assertiveness, a leader of Japan's opposition said on a visit to the United States.

Nobuteru Ishihara, sometimes seen as a future prime minister if his Liberal Democratic Party returns to power, on Monday said that Japan should also look more broadly at stepping up defense spending in the face of a rising China.

Asia's two largest economic powers dispute control of a set of uninhabited islands -- known as the Senkaku in Japanese and the Diaoyu in Chinese - where Japan's arrest last year of a Chinese fishing captain led to a standoff.

Ishihara, secretary general of the conservative opposition party, said that Japan should move "quickly" to put the islands under public control. Tokyo considers most of the area to be privately owned by Japanese citizens.

"Following this change, a port should be developed where fishing boats may take refuge," Ishihara said at the Hudson Institute, a Washington think-tank.

"I further believe that we must seriously begin contemplating the establishment of a permanent post for the Self-Defense Force in this area," he said, referring to officially pacifist Japan's armed forces.

Japan said in 2008 that it reached an agreement with China for joint development of potentially lucrative gas fields near the disputed islands. But the deal has gone nowhere, with China saying its stance has not changed.

Prime Minister Yoshihiko Noda's Democratic Party of Japan - which swept out the long-ruling Liberal Democrats in a 2009 election -- has mostly sought smooth ties with China, which says its growing military spending is for peaceful purposes.

Noda asked Chinese President Hu Jintao for movement ahead on the 2008 deal during talks last month on the sidelines of an Asia-Pacific summit in Hawaii, although Japanese officials said Hu was non-committal.

But Ishihara said that China has become "assertive, one may even say aggressive," in recent years and pointed to its actions in separate maritime disputes with the Philippines, Vietnam and other Southeast Asian nations.

"Emboldened by its new economic weight and growing military might, China's proclamations of its 'peaceful rise' appear more and more at odds with the emerging reality," Ishihara said.

Ishihara, 54, is the son of Tokyo Governor Shintaro Ishihara, an outspoken nationalist who has often caused controversy by urging Japan to develop nuclear weapons and to be less dependent on its alliance with the United States.

The younger Ishihara distanced himself from his father's positions, calling for close ties with Washington and saying that his party's current leadership has not discussed seeking nuclear weapons.

Ishihara, however, said that Japan should consider boosting its overall defense budget which has long been equivalent to one percent or less of the economy.

Ishihara, leading a delegation from his party, was in Washington partly to ease concerns over the opposition's stance on the Trans-Pacific Partnership, a proposed Pacific Rim trade pact championed by President Barack Obama.

Noda announced last month that Japan would enter talks but has faced strong opposition from farmers worried over foreign competition and threats of a censure motion by the Liberal Democrats, who consider the countryside a key political base.

Ishihara said that discussions on the Trans-Pacific Partnership were "at the starting line" and that Japan's government must do all it can to address public concerns and ensure food security.

"We would like to understand what the US wants to get out of the TPP. If it's an effective tool to establish a free trade zone for the Pacific that benefits both the US and Japan, that would be reason to pursue it," he said.

"But if we cannot identify enough merit for Japan and the US, then maybe we should pursue another way to establish a free trade zone," he said.

Continue reading

Chief Justice Corona Impeached - betrayal of public trust and violation of constitution

The Philippine Congress impeached the country's chief justice on Monday (December 12, 2011) as allies of President Benigno Aquino lined up behind his drive to root out corruption.

Chief justice Renato Corona has been tagged as the "Chief of injustice" of the Philippines after bending his integrity just to save his treated lord who is jail now for electoral sabotage former president Gloria arroyo.

The Executive body and the Judicial body has been in battle after Justice Renato Corona show his face to face and bias full support to the former President Gloria Macapagal Arroyo.

Chief Justice Renato Corona is illegally installed in his position as midnight appointee  by the former President Gloria arroyo a week before Aquino win the election which is unconstitutional base in the Philippines law.

80 to 90% of the people of the Philippines are at full support to the Aquino administration's "right path" and to drive out corruption of the country.

A total of 188 members of the 285-seat House of Representatives lower house signed an impeachment complaint against Chief Justice Renato Corona on the grounds that he betrayed public trust and violated the constitution.

Aquino accuses Corona and the court of bias in favor of former President Gloria Macapagal Arroyo, the focal point of the president's campaign to eliminate graft.

Corona will go to trial in the Senate upper house next year. Before the outcome of the parliamentary vote was disclosed, he vowed to fight on and uphold the court's independence.

Legal officials suggest an impeachment could pitch the country into a battle between the executive and the judiciary.

But the president's allies saw the vote as an important moment in exposing what they see as his predecessor's endemic corruption.

"This is an important step in holding former president Gloria Macapagal Arroyo accountable for her crimes against the people," Teodoro Casino, a leftist member of Congress, said in a statement.

"We need to hold (the chief justice) accountable for the long list of anti-people rulings he supported to favour his patron, Arroyo."

Arroyo, president in 2001-2010 and now a member of Congress, appointed Corona as chief justice a week after last year's election that voted Aquino in but before he actually took power.

Arroyo is under guard at a hospital after her arrest on charges of electoral sabotage. She denies the charges and her lawyers have asked the Supreme Court to overturn an arrest warrant against her.

Corona is the first member of the judiciary to be impeached, but lawmakers believe he may resign to avoid embarrassment. In April, the head of the anti-graft agency, an Arroyo ally, resigned after she was also impeached in Congress.

Aquino, son of venerated former president Corazon Aquino, remains popular 18 months after being elected and hopes public opinion will place an additional burden on Corona to quit.

The president says the Supreme Court has blocked efforts to pursue Arroyo after it ruled against the creation of a truth commission on her activities in office.

The court also overturned a travel ban imposed by the government on the former president as she was about to fly out of Manila airport for medical treatment.

The leader of a small opposition bloc, Edcel Lagman, said the government had offered various funds as inducements to persuade lawmakers to support the impeachment motion.

Aquino's allies disputed the allegations.

Hours before the impeachment vote, the chief justice talked about a "secret plan to oust me from office by any means fair or foul", threatening to destroy democratic institutions.

"I want you to know that your chief justice continues to be in command and will lead the fight against any and all who dare to destroy the court and the independence. We shall not meekly walk away," Corona told a gathering of court employees.

Continue reading

New Philippine military Chief will prioritize on Spratlys protection

 

Philippines' President Benigno Aquino III (L) and newly installed Chief of the Armed Forces of the Philippines Lieutenant General Jessie Dellosa salute during the Armed Forces of the Philippines Change of Command ceremony at Camp Aguinaldo in Quezon City, Metro Manila December 12, 2011. The Philippine Catholic Church and military, the two most powerful institutions in the country that have helped topple two previous leaders, installed new heads on Monday as acrimony over investigations into another former president intensified. REUTERS/ Cheryl Ravelo (PHILIPPINES - Tags: POLITICS MILITARY)

MANILA, Philippines (AP) - A battle-scarred general took leadership of the underfunded Philippine military Monday, vowing to bolster his country's external defense so it could adequately respond to "untoward incidents" amid territorial disputes in the South China Sea.

The 125,000-member Philippine military, one of Asia's weakest, has been struggling to modernize its dilapidated air force and navy and train its forces due to a lack of funds. President Benigno Aquino III recently said he would seek modern fighter jets from longtime ally Washington when he visits next year.

Army Lt. Gen. Jessie Dellosa, who took over the military leadership in austere ceremonies led by Aquino on Monday, said recent developments in the South China Sea - obviously referring to renewed territorial spats in the potentially oil-rich region  have made upgrading external defenses inevitable for the Philippines.

"It compels us to look into our maritime security deeply," Dellosa said in his speech. "Development of navy and air force bases and facilities to efficiently respond to untoward incidents is something we can no longer ignore."

Dellosa formerly was an army combat officer and was wounded twice while battling Muslim guerrillas and al-Qaida-linked militants in the southern Philippines. He also led an elite unit that helped Aquino's mother, the late pro-democracy Philippine leader Corazon Aquino, subdue coup attempts.

Filipino soldiers march in honor of new Philippine Forces Chief Lt. Gen. Jessie Dellosa during the turnover-of-command ceremony Monday Dec. 12, 2011 at the Armed Forces headquarters at suburban Quezon city, northeastern Manila, Philippines. Gen. Dellosa is the 43rd armed forces chief in the history of the Philippine military. (AP Photo/Bullit Marquez)

Dellosa replaced Gen. Eduardo Oban Jr., who focused on battling graft and corruption in the military during his stint. Dellosa said he would also wage "an all-out-war" against military corruption.

Already spread thinly while dealing with raging Muslim and communist insurgencies, the military began to focus on external defense especially after Filipino officials accused Chinese government vessels of repeatedly intruding into Philippine-claimed territories in and near the South China Sea's disputed Spratly Islands in the first half of the year.

Philippine and Vietnamese authorities also accused Chinese vessels of trying to sabotage oil explorations within their territorial waters, an allegation Beijing has denied.

China, the Philippines and Vietnam, along with Taiwan, Malaysia and Brunei claim the South China Sea and its cluster of islands, islets, reefs and coral outcrops partly or in its entirety. The region is believed to be sitting atop vast deposits of oil and natural gas and also straddle busy sealanes.

The South China Sea has long been regarded as Asia's next flashpoint for conflict.

Continue reading

Chinese Illegal poaching After the Philippines then Korea

A body of a South Korean coast guard officer is carried by his colleagues at a hospital

SEOUL, South Korea (AP) — A Chinese fishing boat captain stabbed two South Korean coast guard officers Monday, killing one and injuring the other, after his boat was stopped for illegally fishing in South Korean waters, officials said.

The Chinese captain pulled an unidentified weapon after officers from two coast guard ships boarded the fishing boat over suspicions that it was illegally operating in Yellow Sea waters rich in blue crabs, anchovies and croaker, coast guard spokesman Kim Dong-jin said.

A South Korean officer stabbed in the side was taken by helicopter to a hospital in the port city of Incheon but later died, Kim said. Also brought to the hospital were an officer stabbed in the abdomen, who was to undergo surgery, and the Chinese captain, who had minor injuries from the fight, he said.

South Korea's Foreign Ministry summoned China's ambassador in Seoul later Monday and lodged a strong protest over the fight.

2 weeks past, Chinese illegal fishermen captured in the Philippines for illegally poaching endangered sea green turtle and now detained in Palawan. The same incident happened year past and with court charges on progress when they pouched sea green turtle with the tag of the University of the Philippines in the West Philippines Sea near the Spratly Islands.

Last week in South Korea, Foreign Ministry officials said they asked the ambassador to make efforts to prevent illegal Chinese fishing from undermining bilateral ties.

Also last week, South Korean authorities raised fines levied on foreign fishing vessels caught operating in Seoul's self-declared exclusive economic zone, an apparent reflection of Seoul's impatience with a rising number of Chinese boats found fishing in the waters.

"Eradicating Chinese boats' illegal fishing in our waters is a most urgent task to safeguard our fishermen and fisheries resources," South Korea's Yonhap news agency said in a recent editorial. "The government should mobilize every possible means and continue the crackdown on illegal fishing."

Besides the captain, eight other Chinese fishermen on the boat were arrested and taken to Incheon, the coast guard said in a statement.

The coast guard says it has seized about 470 Chinese ships for illegal fishing in the Yellow Sea so far this year, up from 370 last year. The coast guard usually releases the ships after a fine is paid, though violence occasionally occurs.

Chinese fishing fleets have been going farther afield to feed growing domestic demand for seafood.

In 2008, one South Korean coast guard officer was killed and six others injured in a fight with Chinese fishermen in South Korean waters.

Last year, a collision between a Chinese fishing boat and Japanese coast guard vessels led to a diplomatic spat between the countries over disputed islands in the East China Sea.

Continue reading

Philippines deemed Better-positioned than others to face Global Risks

THE GLOBAL economy faces continued risks -- particularly from a mild recession in Europe and slowing growth in China - but the Philippines and some other countries should be able to better weather these pressures with support from strong domestic demand, Barclays Capital said in its report for this month, titled: "Global outlook: a cautious step forward."

The Philippines is also one of the countries that "can afford" to ease monetary policy in order to prod economic activity in the face of a global slowdown, the investment banking unit of Barclays Bank PLC said in its separate The Emerging Markets Quarterly 2011 report, also for this month, titled: "Glass half full -- take a sip."

Both reports were released before European Union (EU) leaders meeting in Brussels announced on Friday that they had committed to stricter budget rules but failed to agree to enshrine such controls in a treaty.

"Prospects for avoiding either a double-dip recession or a catastrophe surrounding the euro area debt crisis have improved somewhat over the past couple of months," Barclays Capital noted.

At the same time, it said that while risks of a double-dip recession and "a disaster scenario" for the euro zone have subsided, "there are significant headwinds to growth both in developed and emerging market countries, and the solution to the euro area debt crisis will be bumpy and difficult."

Barclays Capital said failure by EU authorities to deal promptly with the region's debt crisis has already done some damage to their economies.

"We now believe that a mild recession has begun, with negative growth in Q4 and Q1 [2012], before stabilization next spring," it said.

But while "risks of a sharper or more extended contraction are significant" Barclays Capital said "a severe European recession is likely to be avoided, especially if there is progress toward a resolution of the crisis."

"With increasing confidence that the next move in growth is up in most of the world outside of the euro area and diminished risks of disaster in Europe, the probability of a global recession has declined significantly," it added.

At the same time, it clarified that risks to the global economy do not come from Europe alone.

"Europe is the dominant risk in markets today, but it is not the only one," the report read.

"We raise China not because it is the largest, but because it is likely to play out in the near future."

While it said a pronounced economic slowdown in China was "quite unlikely", a particularly weak 6.6% growth Barclays Capital has projected for the first quarter next year could intensify market doubts over the depth and duration of that giant's growth deceleration.

"We think it is a bit early to feel confident that anxiety about the Chinese slowdown has peaked…," the report read.

In the face of "a mild recession in Europe and a soft landing in China," Barclays Capital said "growth in India, Malaysia, Thailand and the Philippines will likely hold up better, given their domestic demand" as compared to others in Asia and the Pacific.

The Philippine government reported late last month that gross domestic product growth slowed to 3.2% in the third quarter from 7.3% in the same period last year, supported by a particularly strong 7.1% annual growth in household spending.

But the 3.6% GDP growth in the nine months to September had all but put the government's 4.5%-5.4% full-year outlook this year out of reach.

Barclays Capital added that while inflation in so-called "emerging markets" is expected to ease next year, due largely to base effect, and monetary policy bias has shifted from controlling inflation to prodding growth, "we expect only China, India, Philippines, Indonesia and Thailand to cut rates next year."

In its last monetary policy review for the year last Dec. 1, the Bangko Sentral ng Pilipinas maintained policy rates at 4.5% and 6.5% for overnight borrowing and lending, respectively -- the fifth consecutive time it had done so -- but has signaled that it would be ready to ease its policy stance next year should the economy slow further and if inflation remains manageable.

Inflation rate has averaged 4.5% in the 11 months to November, still within the 3%-5% target range and just below the revised 4.53% forecast for the entire year.

Overall, faced with improved prospects for the global economy, Barclays Capital said, "We think it is time for investors to dip their toes in the water and begin to re-engage in measured and careful risk-taking.

Continue reading

Philippines becoming International Healthcare Hub

By: Charles E. Buban

Philippine Daily Inquirer

Medical or wellness tourism is a term involving people who travel to a different country to receive treatment for a particular health condition or in other cases pursue activities that maintain or enhance their personal health and well-being to enjoy much lower cost of care, higher quality of care if not different care than they could get at their home country.

It is a huge global business—projected to reach $100 billion (₱4.32 trillion) by 2012.

From this figure, a total of $1.3 billion (₱56.2 billion) went to the Philippines from 2006 to 2010, thanks to foreign tourists and balikbayans who chose to get their healthcare and wellness services here.

Expensive medical treatment costs, as well as limited healthcare coverage in countries such as the United States and a number of countries in Europe, along with capacity constraints in these countries' healthcare facilities, are driving their citizens to seek elsewhere for more accessible, affordable and comparable medical and wellness services.

The Philippines wanted to grab a bigger share that is now being enjoyed by countries such as Singapore, Malaysia and Thailand.

During the 1st Philippine Global Healthcare Forum at the National Kidney and Transplant Institute, Health Secretary Enrique Ona acknowledged that the country already boasts world-class medical infrastructure and facilities (in fact, the top three tertiary hospitals located in Metro Manila even added hotel-quality facilities) as well as highly skilled and compassionate doctors, nurses and medical personnel.

Another advantage the secretary cited was the fact that the Philippines has the added competitive advantage of having English-speaking medical personnel.

Convened by HealthCORE, a private corporation specializing in healthcare research and communications and the official Philippine representative of National Accreditation Board for Hospitals and Healthcare Providers of India, the 1st Philippine Global Healthcare Forum discussed and exchanged information on how the Philippines, with the help of India, can develop into an international healthcare hub.

Medical tourism capital

India is regarded as the medical tourism capital of the world, offering the latest technological advances, experienced and expert physicians and surgeons and world-class patient care.

During the forum, India's Dr. Sanjiv Malik said the Philippines becoming a regional giant is something that is very achievable as the country already has a caring people.

"Your Filipino nurses, doctors and healthcare professionals give the highest level of caring and compassion to patients—it's in your DNA. What you need to do next is to modify your present healthcare practices and systems to conform with international benchmarks. When you do that, you are already on your way to providing the best healthcare to your people and to becoming an international healthcare hub," he advised.

He related that when India improved its international healthcare services, its entire healthcare sector also improved.

Upgrade

"India was able to upgrade its healthcare system to international standards. As a result, both overseas patients and Indian patients are now receiving international quality health services and medical treatments at prices that are affordable to them," Malik said.

India and the Philippines are now working together under a memorandum of understanding to exchange knowledge, expertise and training in various areas of healthcare and medicine for their mutual benefit.

These areas include medical education, public health, hospital management, health tourism, drugs and pharmaceutical products, medical consumable products, medical equipment, communicable disease control and surveillance, and traditional and alternative medicine.

A much-improved medical tourism, forum guests acknowledged, will have immediate effect in improving the country's economy, much like the business process outsourcing industry is doing at the moment, while retaining its medical talents in the country and reducing the brain drain and its social and economic costs.

Continue reading

Netherlands & S. Korean firm eyes $1B power projects in Philippines

Korea Water Resources Corp., the leading water resources and Power Company in South Korea, is looking to invest as much as $1 billion in equity for various water and power projects in the Philippines over the next three years.

Specifically, K-Water is considering the installation of floating solar power systems at the Angat Dam and the construction of the Kapangan hydropower project in Benguet, said K-Water representative in the Philippines, Jiheun (Peter) Yun.

According to Yun, the company is willing to invest as much as $60 million to install the "floating solar power system" in any of the dams in Luzon.

Once installed, it will be the first of its kind anywhere in the Philippines, the company claimed.

K-Water has already begun talks with potential partners including the Ayala group and conglomerate San Miguel Corporation.

K-Water explained in a separate statement that the floating solar power system involved the setting up of solar panels in a reservoir, which would allow it to generate higher power output and, at the same time, create an ideal environment for fish spawning since it constrains green algae.

Yun told reporters that the company would initially install a system that could generate 10 megawatts.

K-Water is still considering whether the system will be installed at the Angat Dam or in other dams, such as the San Roque (Pangasinan) facility, Casecnan (Nueva Vizcaya) or the Caliraya-Botocan-Kalayaan (CBK).

According to Yun, K-Water is set to conduct a feasibility study by early next year. This study is expected to be completed within six months. The actual construction of the power plant will take another six months.

"This is the first time (in the country) that the floating solar power system will be constructed within a water reservoir. In Europe and the US, similar projects … are being installed in oceans and/or rivers," Yun said.

It was only last year that K-Water started installing the system in a water reservoir. That same technology has been in use in Europe and the United States for the past decade.

Yun, meanwhile, assured the public that a power facility in water reservoirs would not pose hazards to the environment or to surrounding host communities, citing the company's experience in South Korea.

He stressed that the facility would not contaminate the water reservoir, such as the Angat Dam, which currently provides 97 percent of the water requirements of Metro Manila.

Since the initial project will have a 10-MW capacity, the company plans to sell the electricity to other private firms, Yun said.

As for its planned hydroelectric power project in Kapangan, Benguet, K-Water earlier announced that it would invest $200 million for a 65-MW facility.

Liquigaz expanding business in Philippines

Liquigaz Philippines Corporation., the local unit of SHV Gas of Netherlands, is planning to expand its business in the country by offering fuel products other than liquefied petroleum gas (LPG).

Liquigaz president and managing director Santanu Guha told reporters that although SHV Gas almost gave up its Philippine business a few years back, the management changed its direction and decided to stay put.

"We are looking at all the emerging countries, because as you are aware, Europe is going through a very bad phase. You have to invest somewhere else and Asia is the place which people around the world are seeing as an emerging (region). It is expected that the next 25 years will belong to Asia," Guha said.

"That's the reason our management has decided to stay here in Philippines and give it more time to focus on the deployment of products for brand build-up, not only in the LPG business but in other types of fuels as well," he added.

When asked if Liquigaz would participate in the local downstream oil retail sector once it decides to retail other types of fuel products, Guha said it was an option but nothing was definite.

Liquigaz is maintaining a bullish outlook on the Philippines despite an expected slower growth this year.

"Our results in 2011 have not been every good because of the fluctuation in gas prices as well as in foreign exchange—we're importing in dollars but selling in pesos. Those fluctuations were bad for us," Guha said.

Continue reading

Philippines – Europe & Russian (FTA) Free trade deal eyed to boost

After a three-year lull, the Philippines and the European Commission are scheduled to restart exploratory discussions that could eventually lead to the signing of a free trade agreement between the country and the 27-member European Union.

Peter K.J. Berz, EC Deputy Head of Unit for Trade Relations with South Asia, Korea and the Association of Southeast Asian Nations, said in a briefing with a group of Southeast Asian journalists here that he was leading a delegation to the Philippines from the EC that would discuss trade and industry matters with the Department of Trade and Industry.

Possible measures to improve trade relations between the European bloc and the Philippines as well as increase investments by European companies in the Philippines are high on the agenda of the half-day meeting scheduled for December 12 in Makati City.

According to data from the EU, the European bloc has become the Philippines' largest single export market in the past five years, accounting for about 17 percent of total exports. Following the EU is Asean with a share of 17.2 percent followed by the United States (16.8 percent) and Japan (15.6 percent).

Philippine exports to the EU expanded by over 40 percent to 5.4 billion euros in 2010 from about 3.8 billion euros in 2009. Electronics top the list of exports, followed by transport equipment, garments and textiles and agricultural products.

Philippine imports from the EU, on the other hand, grew by more than 26 percent in 2010 to over 3.7 billion euros from 2.9 billion euros in 2009.

Total two-way trade totaled over 9.1 billion euros in 2010, making the EU the Philippines' fourth-largest trading partner, accounting for 13 percent of total trade. Traditionally, the Philippines has enjoyed a trade surplus with the EU, which in 2010 increased to over 1.6 billion euros.

Berz said that the Philippines, Vietnam, Thailand and Indonesia were the four members of the Asean that the EC—the executive arm of the EU—was considering exploring free trade relations with, as part of Europe's overall plan to expand its already significant presence in Asia.

The EU this year signed a free trade agreement with South Korea and it came into force in July. It was the first FTA to be entered into by the EU and an Asian country, and negotiations with Singapore and Malaysia are now in full swing to add to the list of trade deals between EU and fast-growing Asian nations.

The EC, which handles trade negotiations on behalf of the member-states of the EU, hopes to conclude the negotiations with Singapore by the middle of next year, to be followed by Malaysia at the end of 2012.

How soon the other four countries can sign similar trade agreements with Korea, Singapore and Malaysia will depend on the level of commitment and ambition of both countries, according to EU officials, considering that the new FTAs pushed by Europe cover more than just trade and industry to specifically include such concerns as sustainable development, environmental impact and even labor practices.

Laos, Cambodia and Brunei were not high on the priority list of countries with whom the EC wants to conduct trade negotiations with considering their small internal markets. Myanmar is also ranked low because of the fluid political and economic situation there.

Boosting Philippine-Russian Trade Relations

The growing trade relations between the Philippines and Russia have been boosted by the creation of the Russian-Philippine Business Council (RPBC) recently, reaffirming the two countries' commitment to strengthen economic and cultural ties.

The RPBC was formed after the Chamber of Commerce and Industry of the Russian Federation approved it through a Memorandum of Agreement (MoA) with the Philippine-Russian Business Assembly (PRBA), its counterpart in the Philippines.

Under the RPBC, the 68th Business Council created under the Chamber of Commerce of the Russian Federation, Filipino entrepreneurs will have more opportunities to do business with Russia, especially in tourism, transport, communications, food, telecommunications, energy, and power. The promotion of other business opportunities will be undertaken, giving priority to medium-sized enterprises.

The Philippines expects the stronger ties with Russia to widen the market for local products. Top exports to Russia from the Philippines include aircraft parts, desiccated coconut, carrageenan, lighters, personal care products, and banana chips.

It is also expected to boost Philippine exports of car parts, processed and frozen food items to Russia. This year, bilateral trade between the Philippines and Russia stands at over $713 million, and is expected to hit a record of over $1 billion by the end of 2011.

The creation of the RPBC is another fruitful result of the 35-year diplomatic relations between the Philippines and Russia. The two countries forged diplomatic relations on June 2, 1976. Over the years, bilateral ties have developed through cooperation in defense and security, trade and investment, energy, agriculture, education, culture, and tourism. To date, a total of 31 bilateral agreements have been signed.

Much optimism has been generated by the creation of the Russian-Philippine Business Council, as it is expected to provide impetus to more dynamic economic relations between the two countries. The alliance is expected to translate into more tourists, more trade, and more investments from Russia, as well as further open the Russian economy for more products from the Philippines.

Continue reading