Europe - Japan- Australia pouring in BPO & KPO in the Philippines - broader outsourcing role

The Philippines is the world's call-centre capital, but will need more graduates and better trained professionals if it's to be a major force in the broader outsourcing market, where growth is in providing research and analytics for the legal, healthcare and financial industries.

In little more than a decade, the Philippines has overtaken India in running call-centers, helped by an affinity for the language, culture and work ethic of the United States, its former colonial master.

The number of Filipinos offering a cheery "Have a nice day" while working the graveyard shift to answer calls on behalf of multinational clients such as Citigroup (C.N) and JPMorgan Chase now far exceeds India's 350,000, and the government wants to double the market to $25 billion by 2016, employing 1.3 million workers.

But to do that the Southeast Asian nation must convince investors it has more to offer than just a huge pool of talent speaking English with an American accent.

Research firm Everest Group has forecast the global business process outsourcing (BPO) industry could be worth $220-$280 billion this year, with 90 percent of that in non-voice work - providing more complex skills and services in research and analytics for lawyers, doctors and bankers.

In the Philippines, non-voice work last year accounted for just over a fifth of total BPO revenues of $10.9 billion, but employed a third of the BPO workforce, or around 220,000 people.

"The goal is aggressive but achievable as long as we know one thing: that what got us here won't get us to where we need to be," said Maulik Parekh, president and CEO of outsourcing services provider SPi Global, part of Philippine Long Distance Telephone Co (PLDT) (TEL.PS), the country's most valuable listed company.

"A lot of the focus of the tripartite relationship between the government, educational institutions and the private sector has been about English language skills. We need to start to focus on how we can have a thriving healthcare, publishing, finance, human resource, procurement, IT-related BPO," Parekh said.

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Video: Call centre boom: r.reuters.com/fag66s

GRAPHIC: BPO data: r.reuters.com/jeh96s

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India is expected to continue to dominate in outsourcing; with its first-mover advantage and skills in software development, but the Philippines has its eye on the non-voice market's potential.

"While some providers are leveraging the Philippines for non-voice functions, the scale of work is relatively low. However, tremendous market potential exists if service providers can successfully manage talent-related constraints," Nikhil Rajpal, partner at Everest, wrote in a study.

With China, Latin America and other Asian markets such as Malaysia also making strides in outsourcing, the Philippines must ensure it has a steady supply of professionals and highly-skilled workers to offer the more complex, added-value services to meet clients' changing and increasing demands.

In Manila, Cebu and beyond, demand for outsourcing is growing at around 20 percent a year, but the number of local university graduates is growing at only 3 percent, and only 5-8 percent of them are hire-able, based on government data, highlighting a need to re-engineer the country's educational system.

The Philippines has a 10-year basic education system, which the government is looking to extend by two years, by adding a pre-school kindergarten program, to match its Asian rivals.

"The challenge is to be able to supply the human resources to support the industry both from the entry level to middle managers and executives," said Trade Secretary Gregorio Domingo.

The country turns out 470,000 accountants, lawyers, nurses and engineers each year, but that figure is dwarfed by the 4 million college graduates in India and 2 million in China.

INSOURCING

The Americas remain the biggest clients for the Philippine outsourcing industry, accounting for nearly three-quarters of the domestic BPO market, but Europe, Australia and Japan are increasingly knocking at the door for business.

Some local BPO operators worry about the possible impact of U.S. President Barack Obama's election-year pledge to close tax breaks for companies that move U.S. jobs overseas and offer incentives to firms bringing those jobs back home.

But Jose Cuisia, Manila's ambassador to Washington, has sought to allay those fears, saying a pending bill in the U.S. Congress to end job exports lacks support from the Republicans that dominate the lower house of the Congress.

"I don't think that will pass, even in an election year," Cuisia said at a recent forum with Deputy U.S. Trade Representative Demetrios Marantis, noting that outsourcing backroom functions makes U.S. companies more competitive.

In its 2011 Global Services Location Index, consultancy firm A.T. Kearney ranked the Philippines 9th out of 50 outsourcing destinations, saying: "Politicians are using global services offshoring as an easy scapegoat for current economic woes and high unemployment levels in their home countries, stoking resentment against globalised firms and their host countries."

"Although signs of a slowdown in the growth of global services are evident in this environment, don't expect offshoring to end. In fact, the global services industry's full potential is ready to be tapped."

FORMIDABLE FORCE

The growth in the Philippine outsourcing sector has made it indispensable to the economy and to employment, with local officials citing it as one of the reasons the country escaped recession in the wake of the 2008 global financial crisis.

In 2009, when much of the world was reeling from the crisis, the United States invested $1.4 billion in the Philippine BPO sector, up from $986 million a year earlier, central bank data showed.

"The BPO industry is one that takes advantage of the strength of the Philippines, which is its people," Finance Secretary Cesar Purisima said.

"It's an industry that not only offers direct employment (but) also supports the real estate industry and the service industry, and, together with remittances from Filipinos working abroad and tourism, will form part of the three strong legs that will be the platform for growth of the Philippines in the next years."

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Philippines stop China from double digit Military Spending intended for War in the Disputed Seas

Wen urged China to enhance ability to take victory in 'local wars': South China Sea

Premier Wen Jiabao urge China to enhance the ability of its military to win "local wars, (South China Sea)"  said, as Beijing grows increasingly assertive about its territorial claims in Asia.

Beijing lays claim to large swathes of the West Philippines Sea (South China Sea) which are also claimed by its smaller neighbors, and must also secure supply routes and new sources of raw materials to fuel its booming economy.

Wen's made his comments at the opening of the National People's Congress (NPC), China's parliament, a day after the government announced military spending would top US$100 billion in 2012 — an 11.2-percent increase on last year.

"We will enhance the armed forces' capacity to accomplish a wide range of military tasks, the most important of which is to win local wars under information age conditions," Wen said in his "state of the nation" speech.

China's territorial disputes with countries including Japan, South Korea, the Philippines, Taiwan and Vietnam have grown rockier in recent years and its neighbors have accused it of behaving aggressively.

The Asian giant already has the world's largest armed forces and its defense budget has seen double-digit increases every year for much of the last decade, rattling the United States, which is forging ahead with plans to expand its own military power in Asia.

Analysts say actual defense spending is probably double the published figure, with funding for modernizing the country's military not included in the budget.

China has made advances in satellite technology and cyber warfare in recent years and invested in advanced weaponry including its first aircraft carrier, a 300-meter-long (990-foot) former Soviet naval vessel that had its first sea trial in August.

But it remains technologically far behind the United States. Wen said Beijing aimed to "enhance our capacity for making innovations in defense-related science and technology and in weapons and equipment development."

"We will vigorously carry out military training under information-age conditions," he told the 3,000 delegates gathered in Beijing's Great Hall of the People.

Philippines asks China to cut military spending for WAR in the disputed Sea

Foreign Secretary Albert del Rosario urged the Chinese government yesterday not to spend a huge part of its budget for military expansion that could lead to further intrusions into the disputed Spratly Islands of the South China Sea (West Philippine Sea to the government). He said Beijing should instead use its vast financial resources for peaceful purposes.

The Philippine government is impressed with the fast economic growth of China that is likewise benefiting the Philippine economy, he said.

"With this growth, China is also increasing its defense spending, which is its sovereign right to do so," del Rosario said.

But he also said the Philippines was "relying on China to fully utilize its vast global influence in the most responsible way, especially in terms of promoting peace, prosperity and stability in the region."

Beijing announced over the weekend that it would increase its defense budget by 11.2 percent after the US also bared plans to increase budget allocations for military spending by 2013 as part of its comprehensive plans to increase its military presence in the Southeast Asia amid increasing tensions in the disputed islands in the region.

Li Zhaoxing, spokesman of the National People's Congress, said Beijing would increase its military spending to 670-billion yuan ($106.4 billion) in 2012 which is 68-billion yuan more than its 2011 spending.

The US defense budget for the 2013 fiscal year is $613.9 billion, including $525.4 billion in base spending.

The Philippines has been protesting increasing military presence and activities in the West Philippines Sea (South China Sea) and proposed the adoption of a Zone of Peace and Freedom before the Association of Southeast Asian Nations (ASEAN).

ASEAN foreign ministers are now drafting a legally binding Code of Conduct in the South China Sea to ease tensions in the disputed Spratly Islands believed to be sitting on rich natural gas, oil and marine resources.

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PHILIPPINES: Women Weather Climate Change

As the world commemorates International Women's Day March 8, 2012, women around the globe are speaking out on various issues that affect them. In light of recent natural disasters and calamities in the Philippines, women are increasingly citing climate change as one of their most pressing concerns. According to the Philippine Commission on Women (PCW)'s executive director Emmeline Versoza, the traditional role played by women makes them one of the most vulnerable populations to climate change.

"During disasters, women attend to the needs of the family and prioritize the safety of family members, especially their children, which makes them more vulnerable," Versoza told IPS.

The Philippines is one of the most disaster-prone nations in the world, with an average of 20 typhoons hitting the country every year. The United Nations International Strategy for Disaster Reduction reported that in 2011, a total of 33 natural disasters ravaged various parts of the country, resulting in huge losses of life and massive damages to agricultural produce, infrastructure, and properties.

Tropical cyclones, storm surges, heavy rain, floods and landslides are expected to worsen as a result of climate change, putting people, particularly the urban and rural poor at risk, according to Versoza.

Pangging Santos, Advocacy Officer of Sarilaya, a community-based organization working on women's issues and the environment, told IPS that female farmers are feeling the impact of climate change most acutely.

"Extreme weather events have really been on the rise, which has affected the farming sector. When yields are low, it's usually the women farmers who have to find a way to make ends meet," Santos told IPS.

Irregular rainfall, unexpected droughts and an unusually high incidence of insect infestations have all impacted the agriculture sector, which contributes to a large chunk of the Philippine economy.

Sarilaya works with rural women in Nueva Ecija, an agricultural province in the North dubbed the 'rice granary' of the country. Following several killer typhoons that battered the country, thousands of hectares of rice-farming land and corn plantations were destroyed, affecting local women's livelihood.

"As the men of the farming households sought occupations in the city, it was the women left to tend the fields. As early as six in the morning, they are exposed to extreme heat and harsh weather conditions. Many of the women we've worked with are suffering from urinary tract infections and other health problems that often go untreated," explained Santos.

Meanwhile in urban centers, flashfloods brought by intense rains over the past few years regularly displace thousands of people into cramped evacuation centers, where women and girls face further risks.

The United Nations Population Fund (UNFPA) has documented cases of child birth in unsafe conditions in evacuation sites during extreme disasters.

At the height of the killer typhoon Ketsana in 2009, Maritess Gural gave birth to her sixth child inside a basketball court, which had been converted into a makeshift evacuation centre. Hours before going into labor, she had been wading in murky floodwaters to save what she could of her family's belongings.

"Fear was the farthest thing from my mind. I told my husband I couldn't leave until I had salvaged our belongings," recounts Gural in the documentary "A Woman's Story" produced by UNFPA.

According to UNFPA added that the risk of sexual violence is also high in emergency situations when "protection mechanisms are absent."

"There have been reported cases during natural disaster of gender-based violence because of the open living conditions in evacuation centers. Women's special needs - such as safety, privacy, separate toilets and gender-sensitive hygiene kits should be taken into consideration by local government during disaster-planning," said Versoza.

In light of the global impact of climate change, PCW highlighted the importance of governance and accountability in their month-long celebration of National Women's Month. The theme "Women Weathering Climate Change" highlighted that disaster risk reduction is everyone's responsibility and underscored women's role as agents of change.

"We want women and local governments to be more informed and prepared for any disaster - because climate change is here. We will be visited by many more typhoons in the years to come and we have to be prepared," said Versoza.

Government agencies and women's community groups gathered in a tree-planting activity to help reforest Marikina watershed, the source of most of the flood waters that inundated Metro Manila during the height of tropical storm Ketsana.

"Women are very active at the village level and they are the ones mobilizing the community to help rehabilitate the watershed and take care of the nursery," said Versoza.

Groups like Sarilaya are also working with women famers to mitigate climate change.

"We're training women to practice organic farming. We've set up a sustainable farm school and established the use of organic (and) traditional rice and vegetable seed banks," said Santos.

Meanwhile, other local governments are stepping up efforts to address climate change.

Late last year, the province of Albay, which is located right in the path of tropical cyclones coming into the country from the Pacific Ocean, set up the country's first Climate Change Academy.

The academy provides training to local government units to study actual preparations, evacuation, and mitigation measures for disasters and evaluate climate risk hazards and adaptive capabilities.

Find out more about the forces behind climate change - but also about the growing citizen awareness and new climate policies towards sustainable development http://ipsnews.net/climate_change/

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Big Manufacturers quitting China for Philippines – PHL rating ups

Philippine officials say rising labor costs in China's southern coast are driving big foreign manufacturers to relocate to the country.

Trade Secretary Gregory Domingo said Tuesday there has also been "very strong" interest from Japanese investors who are looking for tracts of land in Philippine export processing zones. They include electronics, ship building and steel companies.

He said investors relocating to the country include foreign garments factories closing in China. A big company which left the Philippines has decided to return, while another one is seriously considering coming back, he said.

Domingo told a government economic briefing that so far this year the country is seeing "the most we've ever seen" of investor fact finding missions.

China, which after economic liberalization in the 1980s became the world's low-cost factory, is now grappling with rising wages and production costs that have made it less attractive to some foreign manufacturers.

The Philippine officials did not have estimates of the value of the incoming investment or the jobs that would be created. Domingo refused to name the companies that are relocating to the Philippines.

Foreign direct investment in the Philippines totaled ₱87.3 billion pesos ($2.04 billion) in the first nine months of last year, up slightly from ₱79.4 billion pesos ($1.85 billion) a year earlier.

The Philippine economy is forecast to grow 5 percent to 6 percent this year, driven by increased spending on infrastructure and more efficient budget spending, Socio-economic Planning Secretary Cayetano Paderanga said.

Domingo thinks economic growth could exceed 7 percent this year with the stock market achieving a new record high Monday, and strong growth in exports, the outsourcing industry, tourism and investments.

Officials also said the Philippines is estimated to hit its demographic "sweet spot" by 2015, when majority of Filipinos will be of working age, a situation which usually fuels growth.

Philippines seen getting credit-rating upgrade from S&P

Philippines stands a good chance of getting a credit rating upgrade in the short term from Standard & Poor's, which expects the country's debt profile to further improve as the economy grows and revenue collection rises.

In its latest outlook report for Asia-Pacific, S&P cited the Philippine government's focus on shoring up revenue collection and plans to help pump-prime the economy by enticing private firms to invest in infrastructure projects.

Currently, S&P assigns the Philippines a credit rating of BB and an outlook of "positive." This is two notches below investment grade, while the outlook indicates probability of a credit-rating upgrade within the short term if expectations of better indicators materialize.

"The positive outlook is based on our expectation that continued adherence to fiscal consolidation, combined with improved medium-term growth prospects, will further moderate the Philippines' public debt and interest burden," S&P said in the report titled "Asia-Pacific Sovereigns: Mixed Outlook in an Uncertain Year."

The ratio of the Philippines' public sector debt to the country's gross domestic product stands at about 55 percent. The ratio has declined from more than 70 percent in the early 2000s.

The country's economic managers are hoping to bring the ratio down closer to 50 percent or even lower to get a credit-rating upgrade. Such an objective requires making economic growth consistently exceed the rise in the country's debts.

The officials are hoping the Philippines will get investment-grade rating by 2013, claiming that macroeconomic indicators of the country are improving and are just about the same as those of other developing countries that are already enjoying investment grade.

Indonesia, which the Philippines would like to consider as its counterpart, recently obtained an investment grade rating.

"The rating [of the Philippines] could be raised on material progress in achieving a sustainable structural revenue improvement or further strengthening of the public balance sheet, thus reducing fiscal vulnerability," S&P said.

The credit-rating firm said its baseline projection was that the Philippines would be able to post better fiscal numbers over the short term.

However, it stressed that should actual developments on the fiscal front veer away from the baseline projection, the country may see its current rating being kept, if not downgraded.

S&P said the Philippines would likely grow by 4.2 percent this year on the back of government commitments to raise public spending and likelihood of rising investments by the private sector in public infrastructure under the Public-Private Partnership (PPP) program.

Under the PPP program, the government invites private enterprises to invest in public infrastructure projects. The objective of the program is to fulfill the country's needs for infrastructure without derailing the government's goal of reducing its budget deficit and debts.

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IMF Lauds Philippine Economic Policies

The International Monetary Fund (IMF) praised the Philippines for sound monetary and fiscal policies, while saying the central bank could let the peso rise further if needed in response to capital inflows.

"Prudent policies…have underpinned a strong recovery and supported confidence," the IMF said in its annual Article IV report on the Philippines, released Tuesday in Asia.

"The outlook for the near term is broadly favorable, but subject to significant external risks," the lender said. "In this context, the key policy challenge is to safeguard macroeconomic stability while building the foundations for stronger and more inclusive growth over the medium term."

The National Statistics Office (NSO) said Tuesday that inflation decelerated to a 29-month low in February, as price increases in food, beverages and most other commodities moderated,

The consumer-price index, the country's main inflation barometer, rose 2.7% in February from a year earlier, its slowest pace since September 2009, when inflation stood at 2.2%. Annual inflation in January was revised up to 4.0% from the initial estimate of 3.9%, and was 4.7% in February last year.

The central bank projected inflation in February settling within the 2.7%-3.6% range, while the median forecast of 10 economists polled by Dow Jones Newswires tipped the annual increase in the CPI at 3.3%.

Despite the easing inflation, economists doubt the Bangko Sentral ng Pilipinas (BSP) will lower policy rates further, given the two 0.25 percentage point rate cuts it has implemented this year and the three-percentage-point reduction in banks' reserve requirement effective next month.

"This supports our assessment that inflation is manageable. Over the policy horizon, we expect inflation to be below the midpoint of our target range [for the year] of 3%-5%," said Bangko Sentral ng Pilipinas Gov. Amando Tetangco in a statement.

Economists expect the central bank to leave overnight rates at the current levels for the rest of the year, unless the global economy slows further.

"Besides the influence of base effects, inflation is expected to remain nonthreatening for the year barring a sharp upswing in global crude prices," said Forecast Singapore Economist Radhika Rao. She noted that because of subdued demand-pull cost pressures and the policy scope available to the central bank, any unexpected spurt in retail fuel prices could be mitigated by temporary administrative measures.

"We expect the BSP to leave rates unchanged for the year, after last week's cut," Ms. Rao said.

Philippine monetary policy is "appropriately supportive" of the economy, the IMF said in its report, with inflation "firmly in the middle of the target range," while fiscal policy is "appropriately focused" on supporting growth in the near term while curbing the budget deficit over the medium term.

The lender expressed support for the Philippine central bank's policy of "allowing orderly adjustments of the exchange rate to market pressures." It said, however, that the bank has "scope for further flexibility of the exchange rate in response to sustained inflows" and could draw down its ample foreign reserves, suggesting Manila could intervene less to curb rises in the peso when investors pile into Philippine assets.

The IMF said the report was based on discussions with the Philippines that ended Dec. 13.

By WILLIAM MALLARD And CRIS LARANO - Write to William Mallard at william.mallard@dowjones.com

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China grabbing "Reed Bank" 50 Miles off Palawan Philippines

Colliding China and the Philippines in West Philippines Sea (South China Sea) over oil surveys

The looming conflict in the Philippines waters as china's aggression and assertiveness in invading neighboring territory flared over the oil race in the sea. The conflict begun last year 2011 when Lieutenant-General Juancho Sabban received an urgent phone call from an oil company saying two Chinese vessels were threatening to ram its survey ship, the Philippine commander's message was clear: "Don't move, we'll come to the rescue."

Within hours, a Philippine surveillance plane, patrol ships and light attack aircraft arrived in the area of Reed Bank in the West Philippines Sea (South China Sea). By then the Chinese boats had left after chasing away the survey ship, Veritas Voyager, hired by UK-based Forum Energy.

But the tension had become so bigger; Forum Energy chief Ray Apostol wanted to halt two months of work in the area.

"They were so close to finishing their work. I told them to stay and finish the job," Sabban, who heads the Western Command of the Philippine Armed Forces, said at his headquarters in Puerto Princesa on Palawan Island, the main Island of the Province of Palawan that administer the Spratlys Archipelago.

Reed Bank or Recto Bank is an undersea territory of the Philippines located 50 miles or 80 Kilometers from the province of Palawan believed to rich in oil and natural gas deposits

Over the next few days, Philippines President Benigno Aquino III would call an emergency cabinet meeting, file a formal protest with China, and send his defense secretary and armed forces chief to the Western Command in a show of strength.

The March 2011 incident is considered a turning point for the Aquino administration. The president hardened his stance on sovereignty rights, sought closer ties with Washington and has quickened efforts to modernize its military capability by spending billions.

A year later, Forum Energy is planning to return. Top company executives said the company intended to sail to Reed Bank within months to drill the area's first well for oil and natural gas in decades, an event that could spark a military crisis for Aquino if China responded more aggressively.

The US military has also signaled its return to the area, with war games scheduled this month with the Philippine navy near Reed Bank, Palawan Province of the Philippines that China is bound to view as provocative.

"This will be a litmus test of where China stands on the South China Sea issue," said Ian Storey, a fellow at the Singapore Institute of Southeast Asian Studies. "They could adopt the same tactics as they did last year and harass the drilling vessels, or they might even take a stronger line against them and send in warships."

A decades-old territorial squabble over the South China Sea is entering a new and more contentious chapter, as claimant nations search deeper into disputed waters for energy supplies while building up their navies and military alliances with other nations, particularly with the US.

Reed Bank, Palawan Province is claimed by China in which is under the province of Palawan Philippines, it's just one of several possible flashpoints in the West Philippines Sea (South China Sea) that could force Washington to intervene in defense of its Southeast Asian allies.

US President Barack Obama has sought to reassure regional allies that Washington would serve as a counterbalance to a newly assertive China, part of his campaign to "pivot" US foreign policy more intensely on Asia after a decade of war in Iraq and Afghanistan.

Obama brought up the South China Sea at an Asia-Pacific summit in Bali in November. He had a surprise one-on-one with Chinese Premier Wen Jiabao on the subject, although Beijing had insisted the issue should not be on the agenda at all.

"As Southeast Asian countries run to the US for assistance, Beijing increasingly fears America aims to encircle China militarily and diplomatically," said Stephanie Kleine-Ahlbrandt, Northeast Asia director for the International Crisis Group.

"Underlying all of these concerns is the potential that discoveries of oil and natural gas beneath the disputed sections of the West Philippines Sea (South China Sea) could fuel conflict."

The area is thought to hold vast untapped reserves of oil and natural gas that could potentially place China, the Philippines, Vietnam and other claimant nations alongside the likes of Saudi Arabia, Russia and Qatar.

Manila is beefing up its tiny and outdated naval fleet and military bases, adding at least two Hamilton-class cutters this year and earmarking millions of dollars to expand its Ulugan Bay naval base in Palawan.

It's no match for China's fleet, the largest in Asia, which boasts 62 submarines, 13 destroyers and 65 frigates, according to the International Institute for Strategic Studies.

China last month launched the fourth of its new 071 amphibious landing ships that are designed to quickly insert troops to trouble spots, for example, disputed islands.

The US Navy has announced it will deploy its new amphibious assault vessels, the Littoral Combat Ships, to the "maritime crossroads" of the Asia-Pacific theatre, stationing them in Singapore and perhaps the Philippines.

Washington's renewed presence in the Philippines – a former US colony that voted to remove US naval and air bases 20 years ago – follows the US announcement last year of plans to set up a Marine base in northern Australia and possibly station warships in Singapore.

Manila is talking about giving Washington more access to its ports and airfields to re-fuel and service US warships and planes. The two countries will conduct war games off Palawan Island in late March – focusing on how to deal with a take-over of an oil rig in the West Philippines Sea (South China Sea).

China has warned oil companies not to explore in the disputed South China Sea, over which Beijing says it has "indisputable sovereignty". Chinese ships have repeatedly harassed vessels that have tried.

After ExxonMobil discovered hydrocarbons off the coast of Danang in central Vietnam, an area also claimed by China, one of China's most popular newspapers warned in October nations involved in territorial disputes should "mentally prepare for the sounds of cannons" if they remain at loggerheads with Beijing.

Despite the threats, the Philippines and Vietnam have continued to explore for oil and natural gas further offshore in the West Philippines and  South China waters, driven by persistently high oil prices and more advanced deepsea technology.

The Philippines had reported as many as 12 incidents of Chinese vessels intruding into its sovereign waters in the past year, an unusually high number, Sabban said.

In one of the most serious incidents last October, a Philippine navy ship seized Chinese fishing boats after colliding with one of them, prompting protests from China for their return. At least 12 Chinese fishermen have been arrested over the past year. Half of them remain in detention in Palawan.

"China has no right to tell us we should first ask for permission from them to explore the area," Sabban said. "We have explored that area back in the 1970s, so why can't we explore it now? We knew there was a substantial deposit of natural gas even before all of these things started."

Manila said Reed Bank, about 80 Kilometers or 50 nautical miles west of Palawan Island at the southwestern end of the Philippine archipelago, was within the country's 200-nautical-mile exclusive economic zone.

But Beijing believed it was part of the Spratlys, a group of 250 uninhabitable islets spread over 265 542km2, claimed entirely by China, Taiwan and Vietnam, and in part by Malaysia, Brunei and the Philippines.

While China prefers to solve the disputes one on one with its smaller Southeast Asian neighbor, Washington has sought to internationalize the issue, given half the world's merchant fleet tonnage sails across the sea and around these islets each year, carrying $5 trillion (R37.35 trillion) worth of trade.

"If we don't develop our positions in our exclusive economic zone, then we will only be giving it away and will be at the losing end," Saban said. – Reuters 

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BCDA Funds Boost Philippines AFP Capability with recent upgrades

6 APC M113

CAMP GENERAL EMILIO AGUINALDO, Quezon City – The Armed Forces of the Philippines (AFP) was able to complete a total of 43 modernization and capability upgrade projects amounting to ₱4.7 Billion which was rooted out from the AFP's shares and proceeds remitted by the Bases Conversion and Development Authority (BCDA).

Out of the 43 completed projects, 19 were already delivered to the AFP and are now being used in the performance of our troops' duties.

Among the delivered for the Philippine Army (PA) were the following:

• 1,621 Night Fighting System and
• 6 APC M113
• 402 Squad Automatic Weapon for the three Major Services and 8,100 Force Protection Equipment for Philippine Army (PA) and Philippines Navy ( PN).

For the Philippine Air Force (PAF):

• 18 Basic Trainer Aircraft and one Aerial Camera

For the Philippine Navy (PN)

• 2 Multi-purpose Attack Craft,
• 4 Landing Craft Utility and 76mm Ammunition;

Multi-Purpose attack craft

For the General Headquarters:

• 1 Integrated Radio Tracking System,
• Base Communication Network Project,
• Mobile Communication Network and Special Operations Communication Equipment,
• Improvement of four AFP Medical Center Operating Rooms and Busbus Station Hospital

For the Public Affairs:

• 62 units of Audio-Visual System.

And for the last tranche of remittance for 2011, the BCDA turned over recently ₱2.64 Billion to the national government as proceeds from the disposition of former military bases. As one of the long-term major beneficiaries, the AFP got the largest share of ₱2.37 Billion. This will add-up to the total previous remittances by BCDA amounting to ₱12.7 Billion which paved way for the obligation of the military's modernization projects.

The military is truly grateful for this particular milestone by the BCDA. The amount generated will be exhausted in observance of the budget execution guidelines by the military in other outlined and obligated projects. This will further equip the AFP in the necessary requirements of its capability upgrade and modernization projects which does not only benefit the men and women in uniform, but ultimately the whole Filipino nation as well.

Shares of the military will augment its BCDA funds to be consumed in the purchasing of obligated projects which fall under the AFP Modernization Program. Acquisition of several military equipment and the improvement of other military facilities across the country have been some of the major undertakings of which BCDA shares becomes a major contribution.

Aside from the shares received in the disposition of mentioned lots, the military also received share from non-sale transactions in forms of leases from several corporations.

Transactions of BCDA in which the military had its shares include the sales of Fort Bonifacio, DOE/JUSMAG property in Quezon City, expanded Big Delta lot, and Camp Bagong Bantay.

The disposition of former military camps such as the current Bonifacio Global City and Newport City brought about the turnover of the said amount to the national government. Said camps used to be the biggest military bases formerly known as Fort Bonifacio and Villamor Air Base.

The turned over amount is seen by BCDA President and CEO Arnel Casanova as very opportune for the government agencies that benefitted from their earnings to consume their respective share through the advancement of their projects.

"We, at the BCDA believe that it is only fitting to compensate our soldiers' hardship and sacrifices by contributing to the advancement of their capabilities and equipment so that they will be able to fulfill their mandate more efficiently and effectively. We sincerely appreciate the honorable service of our hardworking soldiers especially those who are in the frontlines bravely risking their own lives to make sure that our citizens are able to live a safe and peaceful life," Casanova said.

"We are truly inspired and grateful for the achievement of BCDA as their recent milestone provided more opportunities for the government in the realization of existing programs. The military will compensate the recent juncture with our sustained efforts in delivering better public service to the country and further boosting our external capabilities to uphold our sovereignty and integrity of our national territory," AFP Chief of Staff, LtGen Jessie D. Dellosa said.

Source: Armed Forces of the Philippines (AFP)

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PH Football Azkals Sorry Ramos for Sexual Harassment Scandal

By Olmin Leyba (The Philippine Star)

MANILA, Philippines - Azkals team manager Dan Palami has apologized to Cristy Ramos, the match commissioner of the recent Phl XI-Malaysia showdown at Rizal Memorial who was offended by some of the Azkals' behavior during her pre-game inspection at the team's dugout.

"On behalf of the team, I sincerely apologize to Commissioner Ramos for the distress this situation has caused her," Palami said in his official statement, assuring Ramos of prompt action on the matter.

Two Azkals, Angel Guirado and Lexton Moy, are under fire for their banter before the Malaysia gig that Ramos perceived as "sexual harassment and disrespect." She filed a complaint with the Asian Football Confederation (AFC) and met with Palami and officials of the Philippine Football Federation (PFF) last Friday, the same day the Azkals left for Nepal for the final stretch of preparations for the AFC Challenge Cup.

"Since the players have already left the country for the AFC tournament, a dialogue between them and commissioner Ramos is not possible at the moment. Nonetheless, we will not put off the investigation even as we prepare for a major tournament," said Palami, who postponed his flight to Nepal to discuss the incident report with Ramos right away.

"I will sit down with my players and staff and get to the bottom of this," he added.

 Ramos took offense with Guirado being in his undies during the inspection, which is supposedly not an unfamiliar sight at dugouts during pre-games, and Moy's alleged statement on bra size that the Azkals claimed were not directed at Ramos at all. Palami expressed belief there was "no intention to disrespect" Ramos or any official.

"In my personal experience of the usual goings-on in the men's locker room, the tension, excitement and nervous energy before a match often result in a lot of boisterous bantering. For someone who walks into this situation, this might appear as bordering on disrespect.

"But again, I am speaking only from my personal experience. I was not witness to the particular incident which was the subject of the incident report. Until I hear from all sides, I cannot comment substantially on the matter," Palami said.

He stressed that management and the PFF is taking the alleged incident seriously. The PFF is conducting a parallel investigation while awaiting further instructions from the AFC.

"Like commissioner Ramos, I also believe that sexual harassment should not be tolerated in any situation. I will look into the circumstances of this alleged incident and cooperate with any investigation. If it is proven that there was in fact malicious intent, I will make sure that proper sanctions are meted out," Palami said.

The Azkals arrived in Kathmandu, Nepal last Friday, and hope to stay focused despite the controversy to prepare for their AFC Challenge Cup bid beginning March 9 against defending champion North Korea.

"I still wish all the best for the Philippines," Ramos said in a radio interview.

"Gusto kong manalo ang Pilipinas, why not, di ba eh Filipino rin naman tayo, taga-Pilipinas. Ngunit ang sinasabi ko lang din mag-ingat din sila. Isa-puso nila, isa-diwa, isaisip nila na Filipino sila at sila ay dapat magpakita ng katanggap-tanggap at kung ano ang pinakamaganda sa lahi natin (I want the Phl Azkals to win since I'm a Filipino too. But what I'm just trying to say is they should be conscious and careful of their actions. They should put into heart that they're Filipinos and they should display all the good things about our race)," she added.

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