China is invading gas rich South Korean Ieo Island, Spratlys of the Philippines, Senkaku Japan

By: Denis Somoso (OFW/ Independent writer)

China's communist hegemony hits Japan, Korea, Philippines and other 4 ASEAN Nations (Vietnam, Brunei, Malaysia and Indonesia).

The Philippines, Royal Sultanate State of Sulu and China's dream Empire

Conflict in the West Philippines Sea (South China Sea) flare-up recently between China and the Philippines after china fired the Filipino fishermen in their waters claiming the waters surrounding Palawan Island of the Philippines as China's territory. Vietnam also protested as China sabotaged the Vietnam Exploration vessel in their sea. Not only Vietnam and the Philippines hit by China's hegemony but also it is expanding both East to South Seas creating disputes and challenging each country affected to build up their navies that includes  the powerful Japan and South Korea.

Though it is still far for the other countries to be controlled by China's communist hegemony; the Philippines' Old sultanate state of Sulu is hardly affected as China claimed the whole Spratlys archipelago which was owned and under the territory of the old Sultanate State of Sulu during the 1400 years or prior to the Spanish invasion to the Philippines.

Sultanate of Sulu - Sultan Kiram turned over his territorial and proprietary rights of the Sultanate of Sulu to the Republic of the Philippines in 1960s and the Philippine Government officially recognized the continued existence of the Royal Sultanate of Sulu under its regime.

Spratlys Archipelago become a core of interest of china as it stored the huge untapped deposit of oil and Gas in line with Saudi Arabia and the gulf countries that could sustain china's dependents in oil if they could control the whole archipelago. The Archipelago is not just rich in untapped oil and gas reserves but also a rich in marine resources and an important sea route for commerce.

The Benham Rise of the Philippines could be the next China Rise?

This year 2012, the Philippines is waiting for the approval from the United Nations for an official declaration that Benham as under Philippines's territory but china is now eyeing the seas in the Philippines Sea that includes Benham Rise facing the waters of Guam of the United States of America to be included in its communist hegemony.

Benham Rise is a Benham Plateau (with coordinates: 17°N 125°ECoordinates: 17°N 125°E) a seismically active undersea region and extinct volcanic ridge east of the Philippines, in the Philippine Sea.

Under the Philippine Sea lies a number of Basins including the West Philippine Basin (WPB) of which inside the Basin is located the Central Basin Fault (CBF). The Benham Plateau is located in the CBF and its basement probably represents a micro-continent.

Several scientific surveys have been made on the feature to study its nature and its impact on tectonic subduction, including one about its effects on the 1990 Luzon earthquake, which devastated the northern city of Baguio. The area is currently claimed, as part of its continental shelf, by the Republic of the Philippines, which has lodged a claim with the United Nations Commission on the Limits of the Continental Shelf on April 8, 2009.

This future new Philippines territory could face another challenge like the Spratlys Archipelago if china will continue it expansionism attitude to its surrounding waters which give a hint to the Philippines to continue building up their coast guards and navy capabilities for deterrence.

South Korean Ieo Island and Senkaku Japan - new China's territory

China has included South Korea's Ieo-do (Ee-yoo-do Island) on the list of regular monitoring by maritime surveillance vessels and planes, claiming that the island is inside Chinese territorial waters. Ieo is an underwater rock 149 kilometers southwest of Korea's southernmost island of Mara. Ieo-do is located where South Korean and Chinese economic exclusive zones overlap but is closer to South Korean waters. The closest Chinese island is Sheshan at 287 kilometers from Ieo. South Korea set up a maritime research center on the island in 2003 and Korean researchers live there. The island belongs to South Korea but China is trying to flex its hegemonistic agenda based on its economic and military power.

Beijing has begun shifting the focus of its defense strategies from land to sea and building up its naval power. By dividing its maritime defense boundary lines into two -- one from Okinawa and Taiwan to the Philippines and the other from Saipan and Guam to Indonesia -- China apparently seeks to control the Pacific. A case in point is China's first aircraft carrier Varyag, which will go into commission this year. China announced last year its intent to enter the East Sea separating South Korea and Japan by sending two military vessels there for the first time in 15 years.

To brace for China`s claim to South Korea's sovereign waters, the planned naval base on Jeju Island is a must. China is locking horns with Southeast Asian countries over the South China Sea and with Japan over the Senkaku Islands, or Diaoyu in Chinese. If disputes arise over Ieo, the South Korean Navy should respond to them. It will take 23 hours for the South Korean Navy to reach the island from Busan, but the Chinese east fleet in Ningbo can get there in just 18 hours. If the Jeju base is established, the South Korean Navy can make it in just eight hours. Response time is a critical factor that determines the outcome of a military operation.

The naval base is also essential to protecting the Jeju sea route, where more than 90 percent of inbound and outbound maritime freight passes. Up to 100 billion barrels of oil and 7.2 billion tons of natural gas are also presumed to be buried underwater near Ieo as well. Such an ample volume of natural resources is another reason behind Beijing's dispatch of a naval vessel in July last year to waters near Ieo and its territorial claim to the island.

Like the Philippines, Korean government still encountered China's supporters from South Koreans using the environment activist groups. South Korean Government Supporters called the anti government to reunite. "Those in South Korea opposed to the construction of the Jeju base present themselves as peacekeepers and environmentalists, but are eventually helping China and North Korea. Therefore, they must stop hindering the project. Going against the construction of the naval base is tantamount to giving up national security and interest".

 

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Philippines Gross Int'l Reserves GIR surge 6 Notches rank 25th Global Ranking - Economy resilient

The Bangko Sentral ng Pilipinas (BSP) has identified four countervailing forces that would help the Philippines survive the weak global demand amid the fragile economic growth in advanced economies led by the US as well as the sovereign debt crisis in Europe.

BSP Governor Amando Tetangco Jr. said the country's strong external payments position, resilient banking system, demographic dividends, and manageable inflation would serve as countervailing forces to offset weak global demand.

"The country enjoys three... no, four factors that have become countervailing forces to offset the slack in external demand that we now face (because of the volatile global market)," Tetangco stressed.

He pointed out that the favorable external sector dynamics would continue to be a source of strength for the Philippine economy.

He said sustained foreign exchange inflows, including remittances of overseas Filipinos and earnings from the business process outsourcing (BPO) sector have provided the BSP the opportunity to build up its international reserves.

Once the revitalized tourism program of the national government goes into full swing, Tetangco said the country's external liquidity position would improve even more.

"This will further enhance the country's self-insurance. The BSP maintains a policy of a market-determined exchange rate, with scope for official action only against excessive rate movements. With the varying effects of exchange rate movements on different economic sectors, this policy has proven to be most equitable and efficient for the overall economy," he said.

The BSP sees the country's gross international reserves (GIR) - the sum of all foreign exchange flowing into the country - hitting a new all time high of $79 billion this year from $75.3 billion last year. As of February 2012, Philippine Gross International reserves surges up 6 notches world rank from 31 to rank 25 of $77.766 Billion US Dollar. It also expects the balance of payments (BOP) surplus stabilizing at $2.8 billion this year from $10.9 billion last year. The BOP position refers to the difference of foreign exchange inflows and outflows on a particular period and represents the country's transactions with the rest of the world.

The BSP chief also cited the country's banking system that continued to remained stable amid the mounting challenges posed by the current global economic conditions.

"The reforms - which were instituted well ahead of this crisis — paved the way for banks to enhance their risk management systems, adopt international accounting standards and improve transparency and disclosure to clients. These have, in turn, promoted well-capitalized, better-governed, and ... profitable banks," Tetangco said.

He pointed out that the bank regulator does not foresee a significant adverse impact on banks even if the BSP announced an accelerated adoption of higher capital requirement under the Basel 3 framework starting January 2014 as the industry's capital adequacy ratio (CAR) stood at 17 percent way above the BSP treshhold of 10 percent and the international standard of eight percent.

He also noted the country's demographic dividends and domestic consumption continued to be fuelled by strong remittances from Filipinos working abroad.

'We have a vibrant, young, skilled, ready-to-consume population. The country's domestic consumption has certainly continued to buoy our economic growth. Consumption has also remained to be underpinned by strong remittances from overseas Filipinos and receipts from the BPO sector," he added.

According to him, the country's inflation remained manageable and is expected to fall within the mid-point of the BSP target of three percent to five percent this year and next year.

Monetary policy has certainly been successful in providing just the right amount of domestic liquidity.. to fund the productive sectors of the economy. This favorable inflation outlook has allowed BSP to accommodate economic growth, without fuelling an asset price bubble," Tetangco stressed.

The BSP's Monetary Board has so far slashed interest rates by 50 basis points this year due to benign inflation outlook and slower than expected global economic growth. The 25 basis point reduction last January 19 followed by another 25 basis point cut last March 1 brought the overnight borrowing rate back to a record low of four percent and the overnight lending rate at six percent.

The Cabinet-level Development Budget Coordination Committee (DBCC) sees the country's gross domestic product (GDP) growing between five percent and six percent this year after slackening to 3.7 percent last year from 7.6 percent in 2010 due to weak global trade and cautious spending by the Aquino government.

"Given all these factors, I believe there is basis for continued optimism on the country's growth prospects," the BSPchief said.

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Philippines will launch Real Time Solution PBR Online Business Registration portal

In a statement, the department said PBR offers a "real time solution" for entrepreneurs who need to transact with several agencies prior to starting a business.

The Department of Trade and Industry (DTI) will launch the Philippine Business Registry (PBR) at the Securities and Exchange Commission (SEC) Office in Mandaluyong City on 12 March 2012, Monday, to provide a faster and more efficient service to those who will set up a corporation and partnership.

The launching of PBR will be led by DTI Secretary Gregory L. Domingo, together with Undersecretary Zenaida Maglaya, SEC Chairperson Teresita Herbosa, and other DTI and SEC Officials.

Entrepreneurs Do NOT need to go to each agency to register their businesses as they are interlinked thru the PBR. These line agencies include the DTI, SEC, Bureau of Internal Revenue (BIR), Social Security System (SSS), Home Development Mutual Fund (PAG-IBIG), and Philippine Health and Insurance Corp (PhilHealth)

The process eliminates red tape, and streamlines business registration.

IN a bid to speed up business registration in the country, the Philippine government has launched the Sole Proprietorship New Registration (SPNR) module of the Philippine Business Registry System (PBRS).

The Philippine Business Registry (PBR) is a government-initiated web-based system that will facilitate business registration-related transactions by integrating all agencies involved in business registration The SPNR allows registration to the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC), Cooperative Development Authority (CDA), Bureau of Internal Revenue (BIR), Social Security System (SSS), Home Development Mutual Fund (Pag-IBIG), Philippine Health Insurance Corporation (PhilHealth), Local Government Units (LGUs) and other permit/license-issuing agencies.

However, application through a teller at the DTI offices is also available. This involves submission of a filled up application form which may be downloaded from the website or completed and printed by the public online for submission to the PBR kiosks or tellers.

The DTI also announced the fees for registering a New Business Name (BN) New Business Name (BN) registration fees in effect; the Department of Trade and Industry (DTI) is now implementing the following registration fees for business name registration (original and renewal) depending on the territorial jurisdiction covered in the application:

• For Barangay Areas- ₱ 200.00 PHP (Approx. $4.7 USD)
• City / Municipality- ₱ 500.00 PHP (Approx. $11.7 USD)
• Regional / Provincial Capital- ₱ 1,000.00 PHP (Approx. $23.5 USD)       
• Metro Manila /NCR-  ₱ 1,000.00 PHP (Approx. $47 USD)

For more information, please call DTI Direct at (+63-2) 751.3330.

Those who wish to register their business can go the nearest DTI office or the LGUs in Metro Manila, fill up the application form and in less than 30 minutes, applicants can get their Business Name Registration, Taxpayer Identification Number (TIN), and Employer Registration Numbers for PhilHealth, SSS, and Pag-ibig, if they are applying as sole proprietorship.

To avail of PBR, applicants need to go to SEC Office and register their corporation/partnership. Then the applicant will proceed to the PBR kiosk located inside SEC's registration area and fill up the PBR Application Form, to be submitted to the teller for processing. The applicant should present their SEC Registration Certificate and Articles of Partnership/Corporation to the teller for verification.

The teller will submit the client's application to SSS, Pag-ibig, and PhilHealth. The applicants will still have to pick up their certificates or employer's registration numbers (ERNs) from the said agencies by presenting their PBR-generated ERNs. This alone saves them the time to line up.

It provides a faster process for business registration, thus strengthening the government's effort of providing quality service to the people and realizing its commitment to curb corruption and reduce red tape in the bureaucracy.

At present, sole proprietorships can already validate existing/register their Business Names (BNs) from the DTI, get or validate their existing Tax Identification Numbers (TINs) from the BIR and employer registration numbers from the SSS, PhilHealth, and Pag-IBIG through the PBRS.

The PBRS can be accessed via http://www.business.gov.ph

With fewer steps and faster process, PBR will be able to strengthen the government's effort of providing quality service to the people and realize its commitment to curb corruption and reduce red tape in the bureaucracy. Through the PBR, the country will become more attractive to investors and will improve our ranking in global competitiveness.

A program which seeks to make it easier for entrepreneurs to register their businesses launched by the Department of Trade and Industry (DTI) will go nationwide beginning this month.

Dubbed as the Philippine Business Registry (PBR), the trade department said the scheme will already be offered in its regional and provincial offices and at the head office of the Securities and Exchange Commission in Mandaluyong City.

The DTI said that local governments in Metro Manila such as Quezon City, Caloocan and Mandaluyong will also start offering PBR services in their city halls.

DTI Davao Region Director Marizon S. Loreto said this is milestone in business registration that entrepreneurs must take advantage of.

"Since this is a web-based system, this actually serves as a one-stop shop for entrepreneurs who would like to register their business wherein they don't need to visit these offices physically. Thus, business registration now costs less since transportation cost need not be considered anymore," Loreto said.

Loreto added that registration has also become convenient because it can be done anywhere there is internet access like internet cafés, DTI offices with designated PBR kiosks, or even right at their homes/offices.

For further inquiries about the PBRS, clients may call up the nearest DTI office in their areas. DTI Regional Office 11, in particular, can be reached at (+63-82) 224-0511 local 417 or 206. (DTI/Jen Mendoza)

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Philippines tycoon & other 7 - Top 116th richest men in the World 2012

Six business tycoons from the Philippines led by SM group patriarch Henry Sy made it to Forbes Magazine's 2012 list of richest people on the planet.

For the Philippines top $US Dollar Billionaires includes:

• Henry Sy
• Lucio Tan,
• Andrew Tan,
• Enrique Razon Jr.
• Eduardo Cojuangco Jr.
• Roberto Ongpin

Top 10 World's Richest People

1. Carlos Slim Helu & family $69 B (72) - Telecom - Mexico
2. Bill Gates $61 B (56) - Microsoft -  United States
3. Warren Buffett $44 B (81) - Berkshire Hathaway - United States
4. Bernard Arnault $41 B (63) - LVMH - France
5. Amancio Ortega $37.5 B (75) - Zara - Spain
6. Larry Ellison $36 B (67) Oracle - United States
7. Eike Batista $30 B (55) mining, oil - Brazil
8. Stefan Persson $26 B (64)         H&M - Sweden
9. Li Ka-shing $25.5 B (83) diversified - Hong Kong
10. Karl Albrecht $25.4 B (92) Aldi - Germany

In the Philippines, it was the first time for Cojuangco and Ongpin to join the roster of the world's billionaires (in US dollar terms).

Forbes published on March 7 its latest gallery of the world's richest people, an all-time high 1,226 billionaires, who were worth a record $4.6 trillion. When the magazine started this tradition of counting billionaires around the world 25 years ago there were only 140 names.

At the top of Forbes' global list is Mexican Carlos Slim, 72, who has an estimated net worth of $69 billion. Microsoft founder Bill Gates, 56, is second and investment guru Warren Buffet, 81, chair of Berkshire Hathaway, third.

Sy and family ranked 116th richest in the world, cementing his title as the wealthiest man in the Philippines. Forbes estimated his net worth at $8 billion.

Banking, retailing

The 87-year-old Sy leads SM Investments, the dominant player in Philippine banking, retailing and shopping mall development. It is also a fast-growing player in residential and tourism-oriented property development. Sy's group has recently added mining to its portfolio.

Lucio Tan and family ranked 314th on the list with an estimated net worth of $3.5 billion. Lucio Tan, 77, has interests in tobacco and liquor manufacturing, airline, property and banking. He has vast property interests in mainland China and is likewise a big investor in Guam.

Property tycoon Andrew Tan ranked 601st on the global list with a net worth of $2.1 billion. Andrew Tan, 59, built a fortune on real estate development, particularly in offering high-rise residential units to the mass market and in pioneering mixed-use developments to attract business process outsourcing firms.

He has also successfully ventured into the gaming business in partnership with the Genting group of Malaysia. He likewise has consumer-based interests, including a beverage unit and the Philippine chain of McDonald's fast-food stores.

Port operations

Razon, 52, is the fourth and the youngest tycoon from the Philippines with an international rank of 683rd. Forbes estimated his net worth at $1.9 billion. He has built a fortune on international port operations.

Razon has unloaded his interest in the country's electricity transmission superhighway and is now building a casino-hotel complex in Pagcor City. He also has an interest in oil exploration.

Cojuangco, 76, is the fifth Philippine tycoon on the list with a global rank of 960th. The 76-year-old chair of San Miguel Corp. (SMC) has an estimated net worth of $1.3 billion.

Cojuangco has a 15-percent stake in San Miguel which has diversified from its traditional food and beverage businesses into power generation, power distribution (via a minority but significant stake in Manila Electric Co.), oil refining, mining, toll road, airport, banking and telecommunications.

Ongpin's Ashmore

Ongpin, 75, is ranked 1,153rd on the list with an estimated net worth of $1 billion. Ongpin brought in London-based Ashmore as a partner in Philippine investments in recent years. Apart from his interest in San Miguel and Petron Corp., Ongpin is into real estate, mining and recently into banking.

Compared to last year, Sy, Lucio and Andrew Tan and Razon significantly increased their wealth.

Sy was worth $5.8 billion in 2011 while Lucio Tan, Andrew Tan and Razon were worth $2.3 billion, $2.2 billion and $1.1 billion, respectively. With the local stock market outperforming most bourses in the region, the market capitalization of their respective companies has surged.

Counting malls

"The Philippines' richest man, Henry Sy started out in his father's bodega (warehouse) and then opened a shoe store. He now controls the Philippines' largest mall developer, with 42 locations; has five in China, including one that opened last year. Shares in SM Investments, which makes up bulk of his fortune, popped 50 percent in the past year. BDO Unibank, run by daughter Teresita Sy-Coson, is the country's largest bank," Forbes said.

BDO is worth over P1 trillion, the first local bank to breach this mark in asset base. The Sys also own another big bank, China Bank, which is run by the tycoon's sons. The retailing group, operating through a chain of SM Department stores, hypermarts, supermarkets and SaveMore, had a turnover of P148.2 billion in 2011.

Tobacco king

Forbes described Lucio Tan as a "tobacco king" holding over a third in Philip Morris-Fortune Tobacco, a joint venture between his privately held Fortune Tobacco and Philip Morris. The combined entity has an estimated 80-percent share of the Philippine cigarette market. Tan's Asia Brewery is the country's second largest beer maker, according to Forbes.

"A big chunk of fortune comes from Hong Kong-based Eton Properties," the magazine said.

"He got his start as a chemical engineer and mopped floors to pay for school. Tan enjoys flying helicopters," Forbes said.

The publication noted reports that Lucio Tan was in talks to bring in San Miguel to help refurbish the aging fleet of Philippine Airlines. It also noted that three of Tan's companies, Eton Properties, Tanduay Holdings and PAL Holdings, faced delisting by the Philippine Stock Exchange for failing to maintain a 10-percent public float.

Second casino

"Son of a factory worker, Andrew Tan did odd jobs to put himself through college. Saved money he earned as a kitchen appliance salesman to buy a distillery and made his first fortune in brandy. His holding company, Alliance Global, has interests in food and beverage, real estate and gaming. With partner Genting Malaysia, he plans to build a second casino in Pasay City this year," Forbes said.

Cojuangco was described by Forbes as a "former Marcos crony" who controls San Miguel, a food and beverage conglomerate best known for its beer. Forbes noted that San Miguel had spun off its brewery unit in 2007, diversifying into power, infrastructure and heavy industry.

"In 2010, he sold an option to a group of investors to buy him out for an undisclosed sum. The country's Supreme Court has ruled that his stake in San Miguel, which the Presidential Commission on Good Government had alleged he got because of his links with the former dictator, wasn't ill-gotten," Forbes said.

To unload 15%

The Inquirer reported in May 2010 that Cojuangco had made plans to unload his entire 15-percent equity in San Miguel in favor of trusted allies.

The option to buy his shares for P75 per share was given to a holding firm, Top Frontier Investment Holdings. The holding firm is 49-percent owned by San Miguel itself as represented by Cojuangco's trusted lieutenant and concurrent company president Ramon Ang. An investor group, which includes Ongpin, Iñigo Zobel and condiments king Joselito Campos, controls 51 percent.

Forbes noted that Ongpin, a former minister of trade during the Marcos regime, had investments in property, gaming, mining and telecommunications. (His interest in telecoms was recently sold to San Miguel and Ongpin instead took a controlling stake in Philippine Bank of Communications).

Ongpin heads Top Frontier, the entity with a controlling interest in San Miguel. "Last November he appeared before a Senate inquiry over a loan from a state-owned development bank, which he claims was above board. He's a certified public accountant and Harvard Business School graduate," Forbes said.

Aside from the interests mentioned by Forbes, Ongpin has an interest in media being the deputy chair of South China Morning Post in Hong Kong.

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