USA Russia Australia Japan Indonesia -Supports Philippines for Spratly Disputes

In a historic bilateral meeting held in Moscow on Tuesday, Foreign Affairs Secretary Albert del Rosario and Russian Foreign Minister Sergey Lavrov agreed to further improve relations between the two countries, particularly in matters of political security, the fight against terrorism and transnational crime, trade, investment and tourism, migration, energy and culture.

According to the Department of Foreign Affairs (DFA), Del Rosario and Lavrov have "agreed to craft a joint plan of action that will chart their future relations in the next five years."

The Moscow visit, the DFA said, was a first by a Philippine foreign secretary in seven years and capped the yearlong celebration of 35 years of Philippine-Russian relations.

Del Rosario and Lavrov also discussed the challenges posed by maritime security in the Asia-Pacific region. "They agreed that the threats in this area should be approached using a rules-based regime based on transparency and diplomacy," the DFA said. "They affirmed their commitment to ensure safety of navigation and other security issues in the region."

The Philippines considers Russia an important bilateral partner as it shares similar views in the United Nations, the East Asia Summit, the Association of Southeast Asian Nations Regional Forum, the Asia-Pacific Economic Cooperation, the Asia-Europe Meeting and other regional groupings.

"These similar aspirations are based on both countries' adherence to sovereignty, territorial integrity and the maintenance of peace and stability in the Asia-Pacific region," the foreign office added.

The bilateral meeting was preceded by a wreath-laying ceremony at Alexandrovsky Garden, and was followed by a working lunch.

The DFA said the visit is deemed timely as Russia prepares to host the Asia-Pacific Economic Cooperation (APEC) Leaders' Meeting on September 5 to 6 in Vladivostok

Russia will support the Philippines for the Spratly Disputes against China's force

March 13, 2012: Russia Pronounce its support to the Philippines over Spratly disputes with china and other claimants.  Philippines - Russia is supporting the Philippines' stand that rules based on transparency and diplomacy should be used to resolve maritime issues.

Russian Foreign Minister Sergey Lavrov aired his government's support during his bilateral meeting with Foreign Affairs Secretary Albert F. del Rosario in Moscow on March 13, the Department of Foreign Affairs (DFA) said on Thursday.

The 2 officials tackled regional and international issues, including maritime security in the Asia-Pacific region.

"They agreed that the threats faced in this area should be approached using a rules-based regime based on transparency and diplomacy.  They affirmed their commitment to ensure safety of navigation and other security issues in the Asia-Pacific region," the DFA said.

The Philippines earlier asked China to end the disputes in the West Philippine Sea or South China Sea by validating the 2 countries' territorial claims under the United Nations on the Law of the Sea (UNCLOS).

Chinese Ambassador Ma Keqing declined to make a commitment on the issue but said Beijing is not ignoring the UNCLOS as a way to resolve territorial disputes.

Del Rosario and Lavrov also discussed Syrian crisis and the Arab Spring phenomena in their bilateral talks, according to the DFA.

The DFA chief met with Russian businessmen, diplomats and leaders of the Filipino community during his visit to Moscow.

He encouraged Russian businessmen to invest in the Philippines in the energy, tourism, public-private partnership, and business process outsourcing sectors.

USA Supports the Philippines for the Spartly Disputes

June 14, 2011. The Unites States (US) on Tuesday threw its support to the Philippines amid the escalating tensions over the disputed Spratly Islands in the West Philippine Sea (South China Sea).

"I assure you, in all subjects, we, the United States are with the Philippines," US Ambassador Harry Thomas said in his speech during the grand launch of the National Renewable Energy Program in Makati.

"The Philippines and the United States are strategic treaty allies. We are partners. We will continue to consult and work with each other on all issues, including the South China Sea," he added.

Malacañang earlier expressed confidence that the US will side on the Philippines, citing Mutual Defense Treaty (MDT) in case the territorial dispute in the West Philippine Sea heightens.

China warned the US should not intervene in the issue, noting that the US is not a party to the dispute.

US press attaché Rebecca Thompson over the weekend said the US does not take sides on the issue on Spratlys when it escalates into a shooting war.

This statement dismayed several lawmakers prompting them to call for the abrogation of the MDT since it is not beneficial to the country.

"It only proves that the MDT is a mere piece of paper that doesn't bind the two countries at all," said Anakpawis party-list Representative Rafael Mariano.

The Philippines is among the six countries claiming all or in part the disputed oil rich area at the West Philippine Sea.

Australia expresses support for Philippines on Spratlys dispute

November 14th, 2011. President Benigno Aquino III on Saturday received Australia's support for the Philippines' move to declare the West Philippine Sea (South China Sea) as a zone of peace, freedom, friendship and cooperation.

Mr. Aquino met with Australian Prime Minister Julia Gillard on the sidelines of the Asia-Pacific Economic Cooperation (Apec) summit, according to presidential spokesperson Edwin Lacierda.

"(The) Australian prime minister just mentioned that 20 percent of their exports pass through the West Philippine Sea. Basically, that's it and the President spoke on the solution of the West Philippine Sea being a zone of peace, freedom, friendship and cooperation," Lacierda said in a news briefing.

Asked whether there was an expression of support, Lacierda said, "Yes, yes."

Foreign Undersecretary Laura del Rosario, who attended the bilateral meeting, said Gillard also lauded Mr. Aquino's efforts to promote transparency and accountability.

"The Australian prime minister congratulated or applauded the President on his governance initiatives, in all his steps that he has taken to make sure that, he called it technical corruption, is also being addressed and that resources are being freed to address our need," Del Rosario said.

Del Rosario said Gillard asked Mr. Aquino to visit Australia possibly in mid-2012.

Asked about the invitation, the President told reporters on Saturday, "We're working on it."

Gas deposits

Energy Secretary Jose Rene Almendras on Saturday also elaborated on the President's statement on Friday about the discovery of substantial gas deposits.

"We're talking about Recto Bank, which really is not in the Spratlys area," said Almendras, a member of the Philippine delegation to the Apec summit.

He told reporters that Forum Energy, the contract service provider in the area, had been conducting seismic testing in the area. "The exploration has been continuing," he said.

On Friday, Mr. Aquino said that the gas fields included disputed areas in the West Philippine Sea and that the deposits there "dwarfs" the Malampaya oil fields. The President said operations there would begin next year.

But Almendras clarified on Saturday that the Philippines' gas fields were outside the Spratlys.

He also said that Manila would honor its agreement with its fellow claimants over disputed territories.

Seismic evaluation

"In the terms of China, depending on what they claim to be their basis of their claims, some of these areas will be questioned but as far as the acknowledged contested area is concerned by all of the parties involved whether China agrees to it or not is really the Spratlys area," Almendras said.

The gas fields in the Recto Bank, Almendras said, showed "very good results on seismic evaluation and even previous wells that were dug as early as 1976 (and) are not in the Spratlys area."

The President, in his State of the Nation Address this year, made an unequivocal claim over Recto Bank, saying being in the area is like being on CM Recto Avenue in Manila.

China, however, is also claiming the bank as one of its territories. Aside from the Philippines and China, claimants over the Spratlys include Vietnam and Malaysia, Taiwan and Brunei.

During a session of the Apec CEO Summit on commodity security, Mr. Aquino told a panel that work in a gas-rich area would commence next year.

Almendras clarified the President's earlier statement that the area would be in northern Philippines. He said the area of Recto Bank lay just north of Palawan.

"This is not in the contested area," Almendras said.

He acknowledged that the area was "a new field," as Mr. Aquino said, because it has yet to go into the "development mode."

New gas fields

The President referred to the new gas fields during a session on commodity security of the Apec CEO Summit when asked what his government was doing to address cost of electricity in the country—one of the highest in the region.

"There are substantial gas deposits that we believe are already in the proven scale at this point in time that will dwarf the Malampaya oil fields. Some of them are in areas that are part of the contentious disputes as to sovereignty over the same."

He said his government was working on "steps to determine as to who actually owns them consistent with the United Nations Convention on the Law of the Sea."

"We are hoping that all the signatories to the United Nations convention will adhere to the stipulations of the convention," Mr. Aquino said.

He said this included the 370-kilometer (200-Nautical miles) exclusive economic zone, "which clearly shows that the areas in dispute are in our favor."

The President said the Philippines could go for arbitration to settle the matter "once and for all and to have these resources benefit not only our country but our neighbors in the region."

Philippines gets Japan support on Spratlys dispute

September 28th, 2011.  President Benigno Aquino III on Tuesday night secured Japanese Prime Minister Yoshihiko Noda's support for a peaceful resolution of the six-nation dispute over the potentially oil-rich Spratly islands.

The maritime issue in the South China Sea, which Manila calls the West Philippine Sea, ranked high in the agenda of the two leaders' meeting that sought to elevate their country's bilateral relations to a more meaningful "strategic partnership."

In a joint statement, Mr. Aquino and Noda "confirmed that the South China Sea is vital, as it connects the world and the Asia Pacific region, and that peace and stability therein is of common interest to the international community."

The President reiterated the Philippines' "commitment to the Declaration on the Conduct of Parties in the South China Sea and to the peaceful resolution of maritime disputes over the South China Sea."

He also emphasized the importance of "a rules-based regime for addressing and resolving disputes and promoting cooperation."

Following the meeting, the President and Noda "confirmed that freedom of navigation, unimpeded commerce, and compliance with established international law including the UNCLOS and the peaceful settlement of disputes serve the interests of the two countries and the whole region." UNCLOS refers to the UN Convention on the Law of the Sea.

"They shared the recognition that these same interests should also be advanced and protected in the South China Sea," according to the statement.

Though not a claimant to the Spratlys islands, Japan came into the picture, saying vessels that deliver oil it imports from the Middle East pass by that vital sea lane.

Japan promised to assist the Philippine Coast Guard so it could better patrol the country's vast coast line. It will dispatch patrol vessels of the Japan Coast Guard to train its Filipino counterparts. Both countries also agreed to "promote exchanges and cooperation between their defense authorities."

The Philippines and China, along with Brunei, Malaysia, Taiwan and Vietnam, have conflicting claims to the Spratlys. Tensions spiked this year after the Philippines and Vietnam said China had become increasingly aggressive in staking its claims to the area, believed to hold vast deposits of oil and gas.

Deal for Filipino nurses

Mr. Aquino and Noda tackled the 3-year-old Japan-Philippine Economic Partnership Agreement (JPEPA), specifically addressing claims Filipino health workers are not getting a fair treatment from Japanese employers.

The two leaders agreed "to continue consultations in order to further improve the current situation, including the smooth dispatch and acceptance of Filipino candidates for qualified nurses and certified workers.".

The President thanked Japan for agreeing to conduct Japanese language training before nurses are sent to Japan.  He also "emphasized the importance of increasing the passing rates of Filipino nurses in the Japanese National Examination for nurses."

"We agreed to sustain our active economic cooperation founded on the framework of the JPEPA," Mr. Aquino said after the meeting. "Our governments will be working closely for its effective implementation and for the success of its first general review this year, so that we can maximize its prospective benefits."

During his four-day Japan visit, the President travelled to the tsunami-hit Ishinomaki in the north and will meet with Emperor Akihito before returning home on.

Before the start of the bilateral meeting at his official residence, Noda expressed his sympathy for the battering the Philippines was getting from Typhoon "Pedring."

"We hope the threats would be minimized as soon as possible," Noda told the President.

Development aid

The two leaders witnessed an exchange of notes on a package of development assistance from Japan, specifically on disaster preparedness and mitigation projects.

Topping the list was a forest management project worth 9.22 billion yen (or P5.87 billion), which was part of the overall official development assistance by Japan to the Philippines.

Mr. Aquino said the project would "help preserve critical river basins" in four regions of the country.

The President "renewed his appreciation for Japan's continuous assistance for the climate change mitigation and adaptation measures" in the Philippines and promised the "steady implementation" of other projects made possible by Japan loans.

Earlier, the President offered a "win-win" opportunity for Japanese investors in the Philippines and received pledges of  potential fresh investments worth at least $1.1 billion, according to spokesperson Herminio Coloma.

Japan is already the Philippines' top trading partner, with bilateral trade reaching $14.4 billion last year, according to government data.

Culture of transparency

The President sat down with more than 30 Japanese businessmen at the Tokyo Kaikan Hotel, presenting investment opportunities in the Philippines. Mr. Aquino also engaged in a round-table discussion members of the Japan-Philippine Economic Coordinating Committee and the Philippine-Japan Economic Coordinating Committee.

Coloma said Toyota Motor Corp. alone would invest P3.6 billion, which would create some 5,000 jobs. He said the top car-maker was also looking to put up a $170-million "next generation" manufacturing plant in the Philippines.

Murato Manufacturing Co. Ltd., one of the world's top producers of digital components, was also planning to establish a factory for its cutting-edge "monolithic ceramic capacitor" in a 23-hectare property in Laguna by October next year.

Coloma said Marubeni Corp. would engage in at least four power projects: the expansion of the Pagbilao coal power plant by 2015, expansion of the Sual facility, a 600-megawatt coal power plant in Subic, and the Leyte-Mindanao interconnection project.

"This is a good time to invest in the Philippines because this culture of transparency we are cultivasting will lead to a win-win situation for all stakeholders involved," he told the Japan Chamber of Commerce and Industry during lunch at the Tokyo Kaikan Hotel.

Rule of law

A palpable change, Mr. Aquino said, was the streamlining of business applications, which was part of a larger effort to "eliminate the preponderance of under-the-table transactions with bloated commissions secretly pocketed by corrupt officials."

Mr. Aquino noted that efforts to review previous government contracts led the Department of Public and Works and Highways to save  P4.652 billion worth of supposedly "questionable projects."

Critics blamed his cautious approach to public spending to the country's 3.4-percent economic growth rate in the second quarter this year. A recent Senate budget hearing showed that the DPWH spent only P16 billion out of its P90-billion budget for infrastructure as of last month.

But in his meetings here, the President said it was better to have a problem with "underspending" than to worry about lost money due to corruption. "All our efforts are governed by an overarching principle: an end to corruption means an end to poverty," he said.

Indonesia supports PHL stand on Spratlys

14 DECEMBER 2011.  Indonesian government assured the Philippines that its proposal to segregate parts of the disputed West Philippine Sea will not be rejected by the Association of Southeast Asian Nations (ASEAN) amid alleged bullying by China.

The Philippines and Indonesia concluded on Wednesday the 5th Joint Commission for Bilateral Cooperation (JCBC) in Manila where they discussed extensively the scheduled drafting of the legally binding Code of Conduct that will govern claimant countries to the disputed parts of the West Philippine Sea.

The drafting of the Code of Conduct will be adopted in time for the 10th anniversary of the signing of the Declaration of Conduct of Parties in the South China Sea between members of the ASEAN and China.

Claimant countries to the Spratly islands include four ASEAN members—the Philippines, Malaysia, Vietnam and Brunei—as well as China and Taiwan. Other ASEAN countries include Indonesia, Thailand, Laos, Burma, Cambodia and Singapore.

Indonesian Foreign Minister Marty Natalegawa said the Philippines's proposal on the establishment of a Zone of Peace, Freedom and Cooperation in the West Philippine Sea is not rejected by the Asean.

"The overall aura during the ASEAN summit [is] how we will link the Philippine proposal in drafting the Code of Conduct in the South China Sea next year. We won't move out of the script from what has already been [agreed upon]," said Natalegawa, adding that the Philippines's proposal is supposed to be integrated in the Code.

He said ASEAN leaders are looking forward to adopting the Code next year in time for the 10th year anniversary of the signing of the landmark Declaration of Conduct of Parties in the South China Sea.

"Leaving things hanging and not addressed is [will continue to cause conflict] to the peace and stability in the region," said Natalegawa.

"ASEAN as a whole has a very strong interest to settle the dispute peacefully in accordance with maritime laws."

In a joint statement on Tuesday, Filipino and Indonesian diplomats agreed to conclude a plan of action covering the period 2013 to 2015 that will cover trade, security, defense and border cooperation as well as cultural issues.

The Philippines also offered to host the 6th Meeting of the Joint Working Group of Senior Officials next year to implement the existing Agreement on Trade, Investments, Handicraft and Shipping, as well as to review and update the Border Trade Agreement.

The two archipelagic countries also agreed to cooperate on marine and fisheries development as well as push for programs that protect the rights of their migrant workers, with the most numbers particularly in Hong Kong, Malaysia and Singapore. 

"There were discussions at the JCBC on developments on the evolving regional architecture in East Asia and the international financial situation," said the joint statement.

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After clashed and killed ASEANs China denied of using force in Spratly

Chinese envoy Ma Keqing: Asia-Pacific wide enough for China and the US

After the previous clashed and killings of ASEAN people in Spratlys; China denied of using force by its recent statement.

"China does not intend to invade or use its military might to interfere in the affairs of any of its neighbors, including the Philippines and four other countries claiming ownership of the Spratlys in the West Philippine Sea (South China Sea)", Beijing's new ambassador to Manila said Thursday March 15, 2012.

Chinese envoy Ma Keqing's statement is opposite of what real happening in the Spratlys as they fired Filipino Fishermen and forced to leave their waters.

China already invaded one of the reefs in the Philippine waters during the Ramos Administration and tried to establish a military garrison near Palawan.

"We have no ambition or ability to pose a threat to other countries … What we want to do is to protect China's interests, protect its borders and sovereignty. That's all," Ambassador Ma Keqing told a news conference held Thursday at her residence in Dasmariñas Village, Makati City.

China's calming tactics means in the preparation status for a full blown invasion. China has secretly scheduled the deep water research equipment to be launched for the waters in Spratlys in the Philippines.

Asked about the US plan to increase its military presence in the region, Ma said "China has responded very calmly" to the issue.

"The Asia-Pacific is wide enough to accommodate (both) the US and China," she said.

Ma, who assumed her post only two months ago, noted the 11.2-percent increase in China's military budget this year might have "aroused suspicions" among other countries about its real intentions. She emphasized that China's military policy was "purely defensive in nature."

Even Ma keqing's denial, Chinese mouthpiece already expressed that the Philippines must prepare a sound of cannon and must pay a high price for inviting USA to intervene the disputes.

The disputes in the spraltys is continuously crawling from the boundary of the Philippines 200 Nautical Miles Exclusive economic Zone into the waters and shore of Palawan.

China included the Reed bank or Recto Bank to the disputes which is in fact the area is not part of the spratlys but at a Philippines undisputed waters.

Recently China is also crawling and create a dispute with South Korea over the Ieo-do (Ee-yoo-do) or Ieo Island in the South of Jeju island.

Ieo-do (Ieo Island of South Korea is claimed by China)

Ma Keqing pointed out that the growth in China's military budget had been "very minimal" for a long time. "We increased the growth just to compensate for the previous years of neglecting the military budget," she said. A copy-cut terms from the lagging of security defense of the Philippines.

Ma said the bulk of military expenditures had been used "for logistics, for improvement of the officers' well-being, to increase wages and so on. It was only in the last few years we used the increase in budget to purchase hardware for the military."

The military budget was "only 1.3 percent of the total (government) budget," she stressed, pointing out that it was much lower than that of the United States, United Kingdom, Russia, India and Brazil.

"So with such a military budget, I believe the Chinese Army will not pose any threat to other countries," she said.

Ma Keqing tried to cool down the tension so that the neighbor would be complacent in their presence in ASEAN territory.

Military Pie

Early this March, Beijing announced that its defense budget would increase to 670.27 billion yuan (about $106.41 billion) this year. The amount marks a slowdown from 2011 when its budget rose by 12.7 percent but still set off alarm bells across Asia and the United States.

In January, Washington disclosed a defense strategy focused on countering China's rising power.

In her first news conference in the country, Ma expressed hopes the Philippines and China could "finally find a way to start the negotiations" on the joint development of areas in the West Philippine Sea.

"As Chinese, we are patient. But with patience and wisdom and goodwill, we can finally find a way," she said. "Our thinking is that pending the final resolution of (the Spratlys dispute), we should shelve and put aside our differences and have a joint cooperation (agreement)."

"The resources are there to tap," Ma said, adding that economic development "is our priority" for China, the Philippines, Vietnam, Taiwan, Malaysia and Brunei, which are claiming ownership over the Spratlys.

Philippines regret of inviting investor from china for the Reed Bank

China expected that the Philippines have already given up its ownership in the Reed bank that makes China rejoiced sending their warship in the area for a possible takeover. The Philippines position clarified that they invited Chinese investor for the Reed bank not for a joint cooperation but will explore the oil under the Philippines law. Ma Keqing reassert is claim crawling the Reed Bank "But since it's in the disputed islands, no one can take action unilaterally. So the proper way to do that, or the starting point is to shelve differences and disputes and have joint cooperation," she said.

Earlier, Foreign Secretary Albert del Rosario told the Philippine Daily Inquirer that the joint development of areas in the West Philippine Sea that "are clearly ours is not a viable option" to the country's problem with China. But he said the Philippines "is open to considering joint development in the disputed areas."

Del Rosario said he "reiterated our position that we are open to inviting China to the Recto Bank (Reed Bank) as an investor to be governed by our laws" during a recent meeting with Wang Yingfan and Wang Chunqui, two former Chinese ambassadors to the Philippines who were here on a goodwill visit.

The Recto Bank is an "integral part of the Philippines and, as such, cannot be jointly developed," he said.

During the news conference yesterday, Ma said China "is not against the rules-based interpretation of the dispute."

"We also endorse international norms that we should abide by. But one cannot side only with few clauses of the (UN Convention on the Law of the Sea or UNCLOS) and neglect other clauses," she said.

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Philippines golfers' paradise and Longest White Beach spend shines

Golfers in Clark

The Philippines, a popular destination for Korean golfers, is taking part in the country's largest golf trade show here to promote its golf courses and other leisure facilities as part of efforts to attract 1 million Korean visitors this year.

The Korean office of the Philippines Department of Tourism said it has set up 10 exhibition booths at the Korea Golf Fair 2012, the country's largest golf convention. The fair, which began Thursday and will last through Sunday, is being held at KINTEX in Ilsan, Gyeonggi Province.

The Philippines tourism office said it has and will award visitors to its booths with free airline tickets and other rewards through a prize draw.

``To attract more than 1 million tourists from Korea, we will take full advantage of the ongoing golf exhibition,'' said Maricon Basco-Ebron, director of the Philippines Department of Tourism Office in Korea. ``There are many world-class but affordable golf courses throughout the Philippines. We will make more efforts to promote those in Manila and Clark, which have been extremely popular with Korean golfers.''

She also said during the four-day trade fair, the Southeast Asian country will showcase a number of attractive tourism assets in Palawan, which was designated as one of the New7 Wonders of Nature.

``At our exhibition booths, we will hand out brochures and other tourism-related materials to visitors free of charge. They can also win prizes if they participate in a range of our promotional events,'' the director said.

For instance, those who play on a mini-golf course set up inside the exhibition hall and score above average will be given dried mango and other souvenirs from the Southeast Asian nation. Among visitors that enter for an event, one individual will be selected through a draw and awarded with two complimentary round-trip tickets for the Incheon-Manila route. Another will be given two free round-trip tickets between Incheon and Cebu.

On the last day of the trade show, the winners will be announced. They will be individually notified by the Philippines tourism office.

``There are so many beautiful and distinguished golf courses in Manila and Clark. Restaurants and other amenities at golf courses are ready to serve Korean golfers,'' The director said. ``We strongly encourage golfers to visit the ongoing golf fair and obtain valuable travel information on the Philippines, as well as win various prizes by taking part in our promotional events.''

The country's bid to attract more tourists through the "It's more fun in the Philippines" slogan has started to bear fruit by perking up foreign onshore spending, global payments firm Visa said.

A boost in tourism in the next five years is expected by government officials in San Vicente, Palawan, where the longest white sand beach in the country is

Longest White beach in the Philippines…

The town of San Vicente is a three-hour trip from Puerto Princesa.

Its stretch of white sand beach is about 14-kilometers long, three times longer than the shores of Boracay island.

There are still no resorts built in the area but local officials expect establishments to be set up as soon as the construction of the town's airport is completed.  

Officials said over 50 investors have already bought properties along the white beach.  

San Vicente Mayor Ma. Carmela Alvarez believes that the town will soon be a prime tourist location.

For now, most tourists stay in the San Vicente town proper or in the coastal town of Port Barton.

Businesses, which will be set up along the white beach, are also expected to provide thousands of jobs for residents of San Vicente

VISA spenders up for "It's more fun in the Philippines"

In a press briefing, Visa country manager for the Philippines and Guam Iain Jamieson said this recent surge in inbound spending was complementing the robust growth of business from cardholders in the Philippines, where Visa cards have reached seven million. Of those cards, 4.5 million are debit and prepaid cards and 2.5 million are credit cards. Total payment volume in this market hit around $4 billion in 2011, he said.

Jamieson said the number of Visa cardholders had increased by 17 percent in this market in 2011 alongside a 12 percent rise in payment volume and 16-percent growth in e-commerce transactions. He also noted a 27 percent rise in spending on international transactions as more Philippine residents travel overseas for shopping, sightseeing or business or make online purchases from overseas merchants.

The Visa chief also noted that inbound spending by foreign cardholders have surged by double-digit levels since November last year and has so far been sustained.

"When we look at inbound market, half of amount spent is coming on cards. When we see double-digit growth from inbound customers, then that has positive ramification for the country," Jamieson said.

He reported that there was a sudden flip to double-digit level growth in inbound spending by foreigners since November of last year hitting 12-13 percent or about double the 6-7 percent growth in 2010.

"The new national tourism campaign has some parts to play in this," Jamieson said, adding that people now had more reasons to see great places in the Philippines.

The new tourism slogan was unveiled before Christmas last year. "It just rings. It has a nice ring to it," Jamieson said.

The Visa country chief said he initially thought this spike in foreign spending would tail off by February as westerners come back from their tropical holidays but this hadn't happened.

As of February, Visa's top 10 largest foreign spenders are from the following countries:

1. United States;
2. Korea;
3. Australia;
4. United Kingdom;
5. Japan;
6. Canada;
7. Norway;
8. Singapore;
9. Sweden;
10. Germany.

Based on recent trends, he added that Australians have been increasingly looking at the Philippines, which Jamieson attributed to direct flights from Qantas.

For Visa, he said it's crucial to look at these trends. "We have beautiful places and destinations to visit and we just want to ensure that we get to the right people in the right countries," he said. Visa, likewise, has launched a campaign to encourage foreign visitors to get local currency from the automated teller machines using their Visa cards as they hit the ground.

Meanwhile, Jamieson noted that 16 percent of payment volume from Philippine cardholders has been coming from e-commerce, mostly from the booking of airline tickets such as with Cebu Pacific and Philippine Airlines. This ratio has doubled over the last five years.

This year, Visa expects payment volume continuing to grow by mid-teens in percentage while issued cards are seen expanding by over 17 percent.

Average transaction value per usage of Visa cards is currently at around $75 while the amount is even half or less for debit and prepaid cards. Jamieson said the average value would likely further decline as consumers would be more comfortable using cards for the littlest transactions and as people who otherwise cannot get credit cards are able to access debit and prepaid cards.

Sources: ABS-CBN News, Korea Times, & Philippine Daily Inquirer

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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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