Philippine Lawmaker filled a bill to fine $50 Dollars all OFW Filipinos leaving to work abroad

A proposed law Bill No. 6195 has been filed by Manila lawmaker Ma. Theresa Bonoan-David aimed at generating funds for the repatriation program of troubled Overseas Filipino Workers (OFW)s, but the funds will be collected from them.

The bill, which seeks to amend Republic Act 8042 or the Migrant Workers and Overseas Filipinos Act of 1995, provides that for every worker recruited or deployed overseas, recruitment agency or its employer, in addition to the obligation to repatriate its workers shall contribute $50 to OWWA's Emergency Repatriation Fund.

The House measure provides that for every worker recruited or deployed overseas, the recruitment agency or its employer shall contribute $50 to Owwa's Emergency Repatriation Fund.

 "The bill intends to provide the necessary measures for the government to carry out its responsibilities to assist distressed OFWs in cases of war, epidemic, disaster or calamities, natural or man-made, and other similar events, and promote their general welfare," said Bonoan-David.

RA 8042 has already created and established an Emergency Repatriation Fund under the administration, control and supervision of OWWA with an initial funding of P1 million.

"There are millions of OFWs all over the world which the Philippine government is mandated to protect and safeguard under RA 8042 but it seems incapable to efficiently help distressed OFWs due to financial constraints," said Bonoan-David.

Under the bill, distressed OFWs can be repatriated during wars, epidemics, disasters or calamities, natural or man-made, and other similar events.

The bill will also establish and maintain an up-to-date database and locator system of OFWs for their repatriation, as well as the necessary disaster preparedness and mitigation measures

OFWs opposed for the no-knowledge law maker for ₱13 billion OFW fund

The overseas Filipino workers' group Migrante-Middle East is opposed to a legislator's proposal to collect an additional $50 fee from every departing OFW to help sustain the government's emergency repatriation fund under the Overseas Workers Welfare Administration (OWWA). 

Migrante-Middle East regional coordinator John Leonard Monterona said that Manila Rep. Ma. Theresa Bonoan-David's proposal "is ill advised."

"She may be misinformed because the issue is not about lack of funds," Monterona said in a statement issued on Saturday.

According to him, the OFW trust fund under OWWA is now about ₱13 billion and is earning. However, the OWWA allegedly does not have enough programs and welfare services to OFWs and their dependents.

"The OWWA has not been transparent on the real status of the OFWs trust fund and where it is being spent," Monterona said.

He claimed that Bonoan-David's proposal "is clearly anti-OFW" because it would just be an added burden to Filipino migrant workers. Monterona also said that it is against the mandate of Republic Act 10022 or the Migrant Workers Act of 2010.

"Instead of imposing additional fees or charges upon our heavy shoulders, considering the huge contribution of OFWs in terms of yearly remittances posting to $1.7-B on April 3 to 4 percentage point higher than the same month of last year, Rep. Bonoan-David must give up and volunteer to channel her millions of pork barrel allocation to OWWA's emergency repatriation fund," Monterona said.

Migrante hopes that Vice President Jejomar Binay, presidential adviser on OFWs concern, will defend the interest of Filipino migrant workers.

"We hope that....[he] is on our side as we have heard him several times issuing statements against additional unnecessary fees and charges overburdening our OFWs," Monterona said.

MIGRANTE International scored a lawmaker's proposal to require overseas Filipino workers (OFWs) to pay $50 or around ₱2,100 as contribution to the Overseas Workers Welfare Administration (Owwa) Emergency Repatriation Fund before leaving the country.

Who to blame for the OFW Philippine Economy Army (PEA) exodus?

The Philippines have already suffered for the highest unemployment rate of 6.9% as of April 2012 lower than the previous years with the 94 Million people living within the country.

Counting the more than 10 Million Filipinos working abroad as jobless if they remain in the country, it would sum up to approximately 17 Million Filipino jobless or 18% unemployment rate of the country which might lead to the collapse of the Philippines.

The Philippine Government just failed to address the need of the people resulting to the exodus to find a living outside the country.

The exodus also give a better effect to the Philippines economy as it help the Philippines afloat in spite of the US and European financial crisis as the Filipinos working abroad keep on supporting their family and relatives in the Philippines which accounted $1.7 Billion USD in the month of April 2012 alone which grew 5.3% year on year.

The Overseas Filipino Workers or OFW has been praised and named as the Modern Day Heroes or "Bayani in Filipino term" for helping the Philippines to survive from the global financial crisis.

In fact, International economist named the Overseas Filipino Workers (OFW) as Philippine Economy Army (PEA) as the Philippines had been so dependent on the OFW Remittances for the foreign currency needs of the country as its export earnings could not sustain the needs for the demand of Dollars.

OFW tried to survive even in the midst of turmoil in their host countries particularly in the Middle East, a home of Millions of Filipinos investing their lives just to support the needs of their family back home.

The Anti OFW bill of Manila lawmaker Ma. Theresa Bonoan-David is an act of shameless jealous to the OFW after helping the country to survive, they would be penalized for leaving the country.

Many OFW criticized this law maker as selfish, inggitera at "Walang utang Na loob" for the proposed additional $50 US Dollar fine for leaving the country to work abroad.

Pagkatapos makikinabang ang Pilipinas sa pinag hirapan namin na kahit mahirap at mapanganib ay hinarap namin, kahit parang si kamatayan ay halos nasa tabi na namin pinilit namin, ibinubuwis namin ang buhay namin mapakain lang ang pamilya naming naiwan sa Pilipinas dahil walang trabaho sa Pilipinas at iyon ay dahil sa kapalpakan ng govyerno tapos ngayon pag multahin kami, pag bayarin kami ng $50 Dollars kasi lalabas kami para makapag hanap ng trabaho? Bakit lalabas ba kami kung may trabaho diyan? decried by many OFWs.

read more in OFW Forum

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China’ funded communist in the Philippines will Block VFA Australia

Australia is caught in a political row in the Philippines over American forces in Asia and the Pacific.

Against a clamor from activist groups, the Philippines senate leader has warned that with China flexing its muscle, now is not the time to block Australian forces.

Anti-war and civil society groups in the Philippines are campaigning against the renewal of a military agreement with Australia.

The Visiting Forces Agreement, or VFA, with Australia goes before the Philippines senate next month for a final vote on ratification.

Philippines non-government organizations see the agreement with Australia as part of a US-led military build-up in the Asian region, and plan to stage a protest outside the Australian embassy in Manila later this week.

60 per cent American Power in Asia

The protesters point out - as recently announced - that America plans to station about 60 per cent of its war fleet in the Asian region by 2020.

Agreements on big US bases in the Philippines were revoked after the fall of dictator Ferdinand Marcos.

However, activist groups say since then Philippines governments have used the VFAs to effectively re-base significant US military forces there.

Corazon Fabros, lead convenor of the Stop the War Coalition in the Philippines, told Radio Australia's Asia Pacific program: "The presence of foreign troops in our country does not help in terms of maintaining peace and security."

She claims the Philippines constitution prohibits a US armed presence.

The coalition says joint military exercises are bad for local communities because they generate prostitution and sexual abuse of women.

Also, "we've had many experiences with the United States forces of injuries and damage to properties," Ms Fabros said.

"We feel that the VFA has been a way for the United States and our government to get around the prohibition against the presence of US troops in our country."

Overseas forces, she said. are not bound by local laws. "We've had a very controversial experience in the recent past, of the rape of a Filipina by a US marine.

"That had been a classic example of how a US soldier has been treated and privileged, if they commit a crime on Philippine soil."

The Philippines senate will be considering the issue of the VFA with Australia at the end of July.

Philippines Senate president Juan Ponce Enrile has warned that now is not the time to abandon the VFA with Australia - especially given China's muscle-flexing in the West Philippines Sea (South China Sea).

Ms. Fabros said the "China question" is often trotted out as a justification.

"We are definitely against using our territory for the training and military exercises," she told Radio Australia.

"We're not at war with any country; we need to uphold the Philippine constitution. We need strong allies, far beyond being used as military training ground and the rest and recreation of foreign troops.

"The Philippines should develop strong diplomatic ties with other countries, especially with its neighboring nations, around Asia and the Pacific, to forge cooperation.

"We need to maintain our friendly relations, our independence, our neutrality."

Reasons:

China funded communist party in the Philippines want to block the VFA Australia for the following reasons:

• The coalition says joint military exercises are bad for local communities because they generate prostitution and sexual abuse of women.
• Philippines is independent and must stand alone without Australia or US Powers

The Question is.. What shall be done? Who to stand with? 

ABC Radio Australia

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Philippines Will award Oil and Gas Bidder July 2012 for Recto Bank Exploration

THE Department of Energy Philippines (DOE) is expecting to finish the technical evaluations for the oil and gas contracting round by the end of the month, an official told reporters said.

Evaluations for the coal contracting round however are not expected until July 2012.

"We are proceeding with the technical evaluation, by the end of this month and we will finish at least the technical evaluation of all the bids we have received. So after that we will recommend already to the Secretary. Coal will be sometime in July because it's a larger number," said Energy Undersecretary Jose M. Layug, Jr. in an interview.

He added the department will be choosing "the best bids from those areas with multiple bids for approval."

AREAS UP FOR BID

The government is offering 15 oil and gas exploration areas in the 4th Philippine Energy Contracting Round.

The department earlier offered 12 other areas for oil and gas exploration on April 27, 2012.

Three other areas will be bid out by the end of July 2012.

These areas are located in northwest Palawan, near the Galoc oil field and the Malampaya natural gas field.

Of the 12 areas bid out last month, seven areas received bids.

Some of the bidders included:

1. Forum Pacific, Inc., a consortium of The Philodrill Corp. and Philex Petroleum, MinEnergy Pte. Ltd.,
2. Loyz Oil Pte. Ltd., the consortium of Mitra Energy Ltd.,
3. Kuwait Petroleum Exploration Corporation
4. Tapoil Ltd.,
5. Helios Mining and Energy  
6. Dil Moro Energy Corp.
7. NorAsian Energy Ltd.,
8. Black Swan Energy Ltd.,
9. Frontier Oil Ltd. and Planet Gas Ltd Clean Rock Renewable Energy Resources Corp.
10. Monte Oro Resources Energy, Inc.

Mr. Layug said the department will put a premium on bidders with more aggressive work programs for the potential exploration site.

The government is expecting $7.5 billion in investments from the contracting round.

The coal contracting round offered 38 exploration areas with about 28 sites receiving bids from investors. Due to the interest in oil and gas exploration in the country, Mr. Layug said there have been several seismic firms that have approached the government to offer surveying services.

"We noticed that the areas that did not that did not get any bids were areas that did not have that much data. After the offering round, we were approached by several firms who want to conduct seismic surveys," said Mr. Layug.

The department however would not disclose which firms approached them.

Mr. Layug said the government does not have the capability to conduct many of the seismic surveys needed for oil exploration.

Energy Undersecretary Jose M. Layug Jr. said that once completed, the group will be able to make its recommendations to the energy secretary as to which party or company should be awarded a petroleum service contract.

According to Layug, the 13 offers being processed now included the nine submissions that were accepted during the opening of the bids last April, and the four other offers, which were initially rejected by the DoE but later reconsidered.

The move to fast-track the processing of the bid offers, which were opened only last April, was meant to hasten the development of local indigenous resources, cut costly oil imports and help ensure the country's energy security over the long term.

The last time that the DoE had awarded a petroleum service contract was in April 2009, to UK-based Pitkin Petroleum Ltd. and South China Resources Inc., for Service Contract 71, which covered 1.16 million hectares within the Mindoro-Cuyo basin.

Layug remained hopeful that the DoE would receive more offers from big foreign exploration players when the Philippine government auctions off Areas 3,4 and 5, all located within northwest Palawan, by end-July.

The northwest Palawan basin is reportedly one of the most prolific oil and gas basins in the Philippines and is home to the country's most successful natural gas project, the $4.5-billion Malampaya gas field.

Currently, production within this basin alone had reached roughly 58 million barrels of oil, 800 billion cubic feet of gas and 40 million barrels of condensate.

It is estimated that the basin has further resource potential of 400 million barrels of oil and 2.200 trillion cubic feet of gas.

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Roman Catholic Ban in the Philippines Offices

 

"Religious Freedom in Government Offices Act"

Philippines's Roman Catholic churches availability in the country makes majority of Filipinos claimed that they are roman catholic members of which majority of the Philippine Government offices are headed by RC members.

Many of the Philippine government properties are even used by the church by building their permanent roman catholic's statues such as Grotto of famous saints, and other Roman Catholic symbolism.

Even public owned small streets in Manila areas are clogged by small Purok catholic churches showing the dominance of roman catholic in the country and even small budgetary of the government offices apportioned costs for Roman Catholic fiesta decorations, and other related expenses.

With the dominance of the Roman Catholic in the Philippines which is not also a big issue for the Filipinos as religion and being religious is already part of  the Filipino Culture, passing of a law to ban the religious symbol of the government offices might pass through the holes of small spikes.

A party-list lawmaker is seeking to ban religious symbols and the holding of religious ceremonies in government offices, citing the provisions on freedom of religion in the Constitution.

Kabataan party-list Rep. Raymond Palatino, in filing a measure titled "Religious Freedom in Government Offices Act," said his bill seeks to empower heads of offices and departments to strictly follow the constitutional provision on the freedom of religion in the exercise of their official functions, and in the use of government facilities and property.

"The constitutional provision asserts the republican and secular nature of the state, such that although laws could be religious in its deepest roots, it must have an articulable and discernible secular purpose and justification to pass scrutiny of the religion clauses," he said.

Under Section 4 of the bill, religious ceremonies shall not be undertaken within the premises and perimeter of their offices, departments and bureaus, including publicly owned spaces and corridors within such offices, departments and bureaus.

"Religious symbols shall not be displayed within the premises and perimeter of their offices, departments and bureaus, including publicly owned spaces and corridors within such offices, departments and bureaus," the measure stated.

Palatino cited Section 5 of the Constitution's Bill of Rights that "the free exercise and enjoyment of religious profession and worship, without discrimination or preference, shall forever be allowed.  No religious test shall be required for the exercise of civil or political rights."

"Recognizing the religious nature of the Filipinos and the elevating influence of religion in society, however, the Philippine Constitution's religion clauses prescribe not a strict but a benevolent neutrality," Palatino said.

He said "benevolent neutrality" recognizes that government must pursue its secular goals and interests but at the same time strive to uphold religious liberty to the greatest extent possible within flexible constitutional limits.

"However, despite the clear provisions and jurisprudence on the non-establishment and non-sponsorship of the state of any religion, it has been observed that religious ceremonies and symbols are prominently done or placed, respectively, in several government offices," the lawmaker said.

He noted that religious ceremonies are also undertaken preparatory to the conduct of state affairs, such as the recital of ecumenical prayers before court hearings, flag ceremonies, government meetings, and among others.

"The state cannot be seen to favor one religion over the other, in allowing the prominent conduct and display of religious ceremonies and symbols, respectively, in public offices and property," Palatino said.

Since the Philippines is the home of the largest number of religious group on the world; the Filipinos are ranked as the most Godly and the most religious people in the world,  religious freedom from the government offices would make sense as it would show fair from other religious minorities who did not lead any government offices of the country.

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Roman Catholic Ban in the Philippines Offices

"Religious Freedom in Government Offices Act" 

Philippines's roman catholic churches availability in the country makes majority of Filipinos claimed that they are roman catholic members of which majority of the Philippine Government offices are headed by RC members.

Many of the Philippine government properties are even used by the church by building their permanent roman catholic's statues such as Grotto of famous saints,  and other roman catholic symbolism. 

Even public owned small streets in Manila areas are clogged by small Purok catholic churches showing the dominance of roman catholic in the country and even small budgetary of the government offices apportioned costs for Roman Catholic fiesta decorations, and other related expenses.

With the dominance of the Roman Catholic in the Philippines which is not also a big issue for the Filipinos as religion and being religious is already part of  the Filipino Culture, passi

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4 notches down underrated Philippines

(Limasawa Island, Philippines)

Credit rating companies are failing to keep up with the bond market in recognizing that the Philippines deserves to be classified as investment grade, Finance Secretary Cesar Purisima said.

"They need to adjust their model to reflect the realities," Purisima said in an interview at Bloomberg's headquarters in New York yesterday. "My biggest frustration is really with those watching from the outside."

The Philippines is rated two steps below investment grade at Moody's Investors Service and Standard & Poor's, in line with Turkey and Jordan. The average yield on the Philippines' foreign debt has declined 32 basis points, or 0.32 percentage point, this year to 4.13 percent, compared with an average of 4.26 percent for investment-grade countries, according to data compiled by JPMorgan Chase & Co.

Philippines bonds have rallied, and the cost to insure the securities against default has fallen, as the government cracked down on tax evasion and reduced debt levels. Both S&P and Moody's have a positive outlook on their ratings, indicating they may upgrade the classification.

"On the implied ratings, we are between three to four notches underrated, which is the largest gap in the world," said Purisima, who is in the U.S. to meet with investors and credit-rating companies. "What I am asking for is to reduce that gap."

(Caramoan Island, Philippines)

'Asset Bubbles'

The cost of protecting Philippines' bonds against default for five years with credit-default swaps is 179 basis points, 67 basis points below that of Russia, which is rated three notches higher at S&P, according to data compiled by Bloomberg.

Rating companies are facing increasing scrutiny from investors and regulators after their top ratings on bonds backed by U.S. subprime mortgages underestimated the risks of the securities and contributed to the global financial crisis in 2008. S&P's decision to strip the U.S. of its top credit grade in August was followed by gains in the nation's Treasury debt.

While rated four steps below Spain at S&P, Philippines raised funds in the international market at lower costs. The Southeastern Asian country sold $1.5 billion of 25-year dollar- denominated bonds in January to yield 5 percent in January. Spain's bonds with similar maturities yielded 190 basis points more.

Purisima, 52, said policy makers are examining foreign capital inflows and investment in real estate as they seek to ward off excessive increases in currency valuation and housing prices.

"We are monitoring carefully the situation to make sure we don't create problems down the road for us in terms of asset bubbles," Purisima said. "We are very far from the situation."

Peso Rally

The peso has rallied 2.2 percent versus the dollar this year, the best performer among the most-traded Asian currencies tracked by Bloomberg. The Philippine Stock Exchange Index climbed 16 percent this year, outperforming a 0.4 percent retreat for the MSCI Emerging Market Index.

Remittances from overseas workers and outsourcing from multinational companies, rather than speculators, are the main reasons supporting the peso, according to Purisima.

The government is trying to direct foreign capital into infrastructure investment to help boost growth, he said.

'Right Direction'

The Philippine economy expanded 6.4 percent in the first quarter from a year earlier, the fastest pace since 2010, as President Benigno Aquino boosted government spending to counter faltering global demand.

In December, S&P boosted the rating outlook to positive, while citing a narrow tax revenue base, low household income and high foreign debt burdens as constraints for credit improvement.

Philippines' per capita gross domestic product was about $1,383 in 2010, less than one third of Brazil, according to the World Bank. About 43 percent of its debt was denominated in foreign currencies, leaving it "vulnerable to adverse" currency movements, the S&P said in a statement on Dec. 16.

While there's room for improvement, the government is moving in the "right direction," as Aquino's administration cracks down on tax evasion and reduces the proportion of foreign bonds in the total debt mix, Purisima said.

Tax revenue increased 12 percent in April from a year earlier, according to the government data. In January, the Treasury raised $1.25 billion by selling 25-year peso bonds to global investors as part of its strategy to reduce the reliance on foreign debt for financing.

"The important thing is that we are pointing in the right direction and moving forward," Purisima said. "It's dangerous to look at measures in isolation."

Bloomberg Businessweek

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114th Philippine Independence Day – June 12, 2012

June 12, 2012: The Philippines is celebrating in today's very significant 114^th Philippines Independence Day.

President Benigno Aquino III Message

President Benigno S. Aquino III today stressed that upholding the constitution is the true essence of democracy as the ideals and aspirations of the nation are embodied in it.

In his Independence Day message, Aquino imparted that "even in the early years, our forefathers were already cognizant of the principles underlying democracy- that absolute power lies on the Filipino people. This served as the guiding principle of the 70 statesmen from various provinces of the archipelago that gathered here in Barasoain Church and drafted our first Constitution."

The Chief Executive added "it is the responsibility of every public official to read, understand and lived by the Constitution, thinking of the general welfare of his/her constituents more than his/her own."

Aquino narrated that when he was just starting his political career as representative of the second district of Tarlac, he already had the Constitution as the pillar of his public service, guiding him in fulfilling his mandate.

That is why the President bared he sometimes gets dismayed over some public officials who use their constitution-given powers to satisfy their personal interests even to the point of circumventing laws and neglect their duties.

This led to widespread corruption brought about not only by greed but also of muteness of the constituents and institutions that are tasked to enforce punishment to these lawbreakers.

Aquino underscored that during his administration, which has taken off to the straight path, will never allow detours to the grim roads.

As the constitution provides, the President noted "the strength of the nation stems from its people. That is why it is just that they benefit from the fruits of our labor."

"That's why with all the reforms that we push- from jobs to enforcement of social justice; from improving the social system to prudent fiscal reforms- should reflect the principles adopted right in this church in 1898" the Chief Executive ended. (WLB/CLJD-PIA 3)

VP Binay leads flag raising in Luneta

Vice President Jejomar Binay and Manila Mayor Alfredo Lim led the flag raising and wreath laying ceremony today at Rizal Monument to commemorate the 114th Araw ng Kalayaan.

The weather cooperated during the flag raising as rain abruptly stop shortly before the program starts.

Simultaneous flag raising ceremonies were also held in different historical sites in the country as part of the celebration of the Araw ng Kalayaan.

The National Historical Commission of the Philippines executive committee prepared several events fitted for the occasion to make it more meaningful and memorable.

This year's theme for the 114th Araw ng Kalayaan is "Kalayaan: Pananagutan ng bayan para sa tuwid na daan." NHCP will also commemorate the 25th anniversary of the 1987 Philippine Constitution. The celebration shall stress on accountability and responsibility of the citizenry.

A mega job fair is also being conducted today, led by the Department of Labor and Employment (DOLE). More than 40,000 jobs are being offered in the said activity to assist Filipinos land a job. Different line agencies also set up their respective booths to serve the general public who wants to avail of their services.

A program dubbed "LUZVIMINDA: A kalayaan cultural dance drama musicale" will also be at 6:00 p.m. to 9:00PM at the Luneta Grandstand. It is a three-segment cultural show featuring renowned folkloric, cultural, ballet and modern dance groups, classical, indigenous, alternative and contemporary song artists and musicians and it will be capped by a 25-minute firework display with music titled as Pailaw ng bayan. (PIA-Central)

OFW – Celebrates 114^th Philippines Independence Day 2012-06-12

10 Million OFW around the world celebrates the 114^th Philippines Independence Day. From USA, to Middle East back to East Asia in Japan and South Korea to Canada and around the world.

 Though many are still in their work but the spirit of Philippine independence day is still celebrated in each and everyone's OFW heart.

"Mabuhay ang Pilipinas.. Mag malambuon- ug mag madaugon ang Pilipinas" 

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President Aquino brings home $2.5 B investments from US-UK trip

President Benigno Aquino III brought home $2.5 billion-worth of investments from his recent foreign trips in United Kingdom and USA.

In his speech upon his arrival at the Ninoy Aquino International Airport (NAIA) on Sunday, June 10, Mr. Aquino said the bulk of the committed investments, or around $1.5 billion, were in power generation and transportation and included the following:

 a $500-600 million pledge by Philippine Associated Smelting and Refining Corp., majority owned by commodities trading giant Glencore, to expand its smelting capacity and build a power plant to support its operations;

$150-million agreement between Aboitiz Equity ventures and GazAsia Ltd. creating Asea Gaz Corp., which will develop a plant that will convert organic waste into liquid methane;

 an agreement between Pilipinas Shell Petroleum Corp. with the Philippine government to explore the potential of building a liquefied natural gas terminal in Batangas; and

a $280-million memorandum of understanding between Rolls Royce Holdings PLC, a global power systems company, and Cebu Pacific on the acquisition of new Trent 700 engines for up to eight leased Airbus aircraft that will be used on long-haul flights to be launched in the second half of 2013.

Officials of Nestle SA, meanwhile, reiterated a plan to increase investments in the Philippines, particularly on raising coffee sourced from local farmers.

The remaining $1 billion in secured investment pledges, said Mr. Aquino will come from companies whose officials he met in the US.

Sithe Global Denham and GNPower Ltd. Co. are looking at construction of additional coal-fired power plants in Mariveles, Bataan, while Underwriters Laboratories pledged that the Philippines would be one of the Asian locations for the expansion of its research and development facilities.

"Overall, we expect at least $2.5 billion in investments to come in to the country from Britain and the US. This means jobs ... that will bring food to the tables," Mr. Aquino said.

The president also claimed that "along with good news for the economy, the trip has also resulted in enhanced political and economic ties with UK and the US."

British Prime Minister David Cameron promised continued support to the peace process in Mindanao. The UK is a member of the International Contact Group that facilitates peace talks between the government and the Moro Islamic Liberation Front.

US Aid

Talks with US President Barack Obama at the Oval Office, meanwhile, were highlighted by discussions on defense and security cooperation as Washington shifts its military focus to Asia.

Mr. Obama said the US would help the Philippines beef up its antiquated materiel and build a "minimum credible defense posture," while stressing the importance of diplomacy in resolving tensions in the South China Sea.

"President Obama himself stressed the importance of the Philippines as an ally. We are partners in pushing for freedom of navigation in the West Philippines Sea," Mr. Aquino said.

US Secretary of State Hilary Clinton, who also met Mr. Aquino in Washington, said the US would help the Philippines build a National Coast Watch System to enhance maritime security.

"The president makes sure that whatever expenses are incurred will be returned by way of investments---the investments that we get whenever the President goes out of the country," presidential spokesperson Abigail Valte said in a radio interview.

Aquino also reported that during his US trip; he was informed that the Philippines have become a beneficiary of the debt-for-nature swap. The country does not have to pay its $23 million-worth of debts to the US government, and instead the Aquino government could just channel it to tree planting activities in the country.

The Philippines also received an additional $30 million under its Partnership for Growth program with the US for poverty alleviation.

Aquino added that President Barack Obama himself "stressed the importance of the Philippines as an ally" with a shared interest to maintain freedom of navigation in the West Philippine Sea.

Secretary of State Hillary Clinton told Aquino that they will help construct a Coast Watch system and deploy additional Peace Corps volunteers in the country.

"These will come a long way in protecting our shores," Aquino said.

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8 Philippine companies named Top firm in ASEAN

AN investment publications has named SM Investments Corp. (SMIC), Ayala Corp., Megaworld, Banco de Oro Unibank (BDO), Bank of Philippine Islands (BPI), Globe Telecom, Philippine Long Distance Telephone Co. (PLDT) and San Miguel Corp. (SMC) as the top companies in the country.

Hong Kong-based Alpha Southeast Asia made the announcement after it revealed the results of its second annual poll to find Southeast Asia's top companies. The magazine said the awards are based on tallied votes among 460 investors, pension funds, hedge funds, equity and fixed income brokers and analysts with investment interests in the region. Companies in each country were ranked on their financial management, adherence to corporate governance, corporate social responsibility (CSR) and investor relations' strategy, transparency and disclosure.

Jose Sio, chief financial officer (CFO at SM Investments, was named as the best CFO in the Philippines.

Across the region, the award for Best CFO in Southeast Asia went to Jeann Low, CFO at SingTel. The award for the Best Annual Report in Southeast Asia went to Keppel Corp. while the award for the Strongest Commitment to Sustainable Energy in Southeast Asia went to Thai Oil.

In its statement, Alpha Southeast Asia also said a distinguishing feature of its poll is that it not only names investor favorites, but also names the companies perceived to have "poor management access and investor relations (IR)" by the same group of investors. In the Philippines, Lepanto Consolidated Mining, Metropoitan Bank & Trust Co. and Security Bank Corp. were noted for their "poor and unpredictable investor relations' strategy."

Most organized investor relations went to BDO, Megaworld and SMIC while companies with the best senior management IR support are BPI, Globe Telecom and PLDT.

Firms cited for having the strongest adherence to corporate governance are Ayala Corp., Megaworld and  SMIC while those with the most consistent dividend policy are Globe Telecom, PLDT and SMC.

Companies with the best strategic CSR are Ayala Corp, San Miguel Corp. and SMIC; the most improved IR citation went to SMC. The best annual report in the Philippines award was bagged by Ayala Corp.

Now in its sixth year of publication, Alpha Southeast Asia is an institutional investment magazine focused on Southeast Asia's banking and capital markets.

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France, Australia, Philippines teams up Oil & gas exploration near ReedBank

Total of France is looking at the possibility of teaming up with Nido Petroleum Ltd. of Australia in oil and gas exploration in the Philippines, a source privy to the negotiations disclosed Monday (June 11, 2012).

"Total is also conducting due diligence on Nido's existing oil and gas portfolio," the source said.

Nido Petroleum Philippines Pty. Ltd., a unit of Nido Petroleum Ltd., is teaming up with Total over exploration opportunities offered by the government in its latest bidding round.

"The consortium was supposed to submit a bid but it was not able to get the approval in time for the bidding [last April]," the source said.

The two parties earlier executed a joint study and bid agreement to evaluate exploration acreage released in the so-called Philippine Energy Contracting Round 4.

Nido earlier said it would do technical and commercial evaluations of all 15 blocks offered in the government auction on behalf of partner Total.

PECR4 is a competitive bidding round over several exploration blocks conducted between April and July. The awarding of blocks to the successful bidder is expected in the second half of 2012.

"Nido and Total will definitely look at and most probably participate in the bidding of areas 3, 4 and 5 this end-July," the source said.

Areas 3, 4 and 5 are located in northwest Palawan, considered as one of the most prolific oil and gas areas in the country and is home to the Malampaya field in the Philippines, the largest and most successful natural gas industrial project in the Philippines.

Total is one of the largest oil and gas companies in the world. Its upstream business includes oil and natural gas exploration, development and production, as well as coal, gas and power activities.

Total's exploration and production activities are found in over 40 countries with production in 30 of them. Its main production regions are the North Sea, Africa and the Middle East, followed by Southeast Asia and North and South America.

Nido, meanwhile, aims to "unlock" the estimated combined resource potential of 2.9 billion barrels in its Philippine oil and gas portfolio.

(Published in the Manila Standard Today newspaper on /2012/June/12)

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Korean firms leading exodus from south China’s manufacturing hub- Moving to the Philippines

Workers leave a recently closed factory in Dongguan, China. On the factory's wall is a poster that states the factory has been foreclosed by court decree and is off limits to workers. (Xinhwa Newsis)

By Park Min-hee, Beijing correspondent in Guangdong province

Falling demand from abroad and increasing operating costs pushing foreign firms to look elsewhere

An executive from a Korean electronics company operating in Dongguan, Guangdong province, China said his firm recently built a plant in the Philippines. His and other companies working in China are apparently considering an exodus from China.

The company runs one of the biggest businesses in Dongguan. As a result of the financial crisis in Europe and the U.S., export orders are falling fast. Meanwhile, labor and other production costs are soaring. These factors are combining to make doing business in China much less profitable than it once was.

"If the situation in China doesn't get any better, there's no choice but to leave," the executive said.

"Our company's situation is the least bad among companies in Dongguan. Still, our business volume is 20 to 30 percent below where it was at this time last year. Some companies are 50 percent behind where they were," said the executive. "I heard that five other electronics companies are preparing to move to the Philippines."

Labor-intensive industries such as textile, shoe and toy manufacturing have already started leaving Guangdong, facing the critical situation. Companies in high-tech areas, while their situations are quite as bad, are nevertheless suffering from the effects of a financial crisis.

"Only the smart phone-related businesses are profitable right now. Other electronics are all in danger," said a businessperson in Guangdong. The area is a major manufacturing hub and has been called the engine of China's economy. That engine is apparently cooling.

Guangdong province's GDP was $833 billion in 2011, which accounted for 11 percent of China's total output. The province's per capita GDP of $7,819 has been China's highest since 1998. The volume of foreign trade is $913 billion, 25 percent of the entire nation.

But things have changed since the start of the Eurozone fiscal crisis and downturn in the U.S. Guangdong's export volume between January and April 2012, was $169 billion, showing a 5.5 percent increase compared to the same time last year. It was only one-sixth of last year's rate of increase, 32.8 percent. For the same period, the operating profits for companies in Guangdong dropped 21.1 percent from last year.

Even before the crisis in Europe, small Chinese companies had been going bankrupt one after the other in Guangdong. The area's new struggles illustrate the limitations faced by businesses that rely on cheap labor. In Dongguan, labor is no longer very cheap. Between 2009 and now, the minimum wage more than doubled from 540 yuan to 1,150 yuan (from about US$85 to $180) per month.

"Not only has the minimum wage increased, but the Chinese government has cut incentives for foreign companies," said a financial executive. "A loss in foreign exchange due to the appreciation of the yuan also threatens the company's financial well-being."

In recent years Guangdong, has been the face of a suggested new development model for China. Under the slogans of 'From manufacturing Guangdong to creative Guangdong' and 'Empty the birdcage to attract new birds', Guangdong implemented new policies to advance value-added industries.

As an effect of the policy, 7,044 companies were expelled and 72,220 companies were broken up. Guangdong province then attracted new firms. The government emphasizes that 55 percent of those new companies are in the high-tech manufacturing and service industry.

Guangdong province has been actively expelling companies in labor-intensive areas, saying 'Leave if you are not competitive'. Experts reported, however, that the government is quite embarrassed now, as a lot of companies have fled Guangdong.

"Last summer, the central government of China dispatched investigators to Dongguan to evaluate the flight of businesses," said a businessman. "After that, there has been no wage increase in Dongguan."

"We are doing our best to open up a new market despite the difficulties of falling international demand and increasing operating costs," said Zheng Zhen-rong, a deputy director of Ministry of Foreign Economic Relations and Trade of Guangdong province. "The government officers will make 25 overseas trips this year to attract emerging markets."

Hengqindao, an island of Zhuhai, southern Guangdong, facing Macau at front, is a huge construction site as an island itself, 106 square kilometers in area. Only a few years ago, Hengqindao was a small fishing village. The island is now transforming into a financial and high-tech industrial zone.

In 2009, Beijing designated Hengqindao as the third special development zone due to its bridge connections to Hong Kong and Macao. Hengqindao follows Pudong in Shanghai and Binhai in Tianjin in being designated in this way.

The government has a hundred billion yuan-project up to merge three heartlands of the Chinese economy, Hong Kong, Macau and Guangdong by 2020.

"There is no confirmed foreign investment yet other than Hong Kong and Macau capital," answered a person in charge of a new project, when asked about the result of securing foreign investment.

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New shining trademark of the Philippines (Scrapping old tags)

By: Juan Mercado

What are chances of scrapping, for good, the derisive tag of the Philippines as the region's never-do-well?" Manuel de la Torre e-mailed. His query stemmed from the economy's 6.4 percent surge in the first quarter.

That growth, tracked by analysts from Standard & Poor to Hongkong Shanghai Bank trounced the earlier market consensus : "GDP growth is forecast to recover to 4.8 percent in 2012."

That ranked the Philippines "Asia's second fastest-growing economy after China". Once Asean's perennial "laggard", the Philippines grew faster than Indonesia (6.3 percent), Vietnam (4 percent), Singapore (1.6 percent) and Thailand (0.3 percent), the National Statistical Coordination Board said.

Is this smoke and mirrors? Does the feel-good mood stem from what people call a "halo effect", asked the column "Banyan" in the Economist?

"In a country fond of nicknames…the unlikely saint is ( Benigno Aquino III ) known as Noynoy, or P-Noy," Banyan adds.

'He swept to power in 2010, partly on a wave of affection… for Corazon Aquino, the first president after the dictatorship of Ferdinand Marcos. An undistinguished record as a senator did little to build ( P-Noy's) hopes of a bold presidency."

P-Noy is an aberration in a country where politicians salivate to take over Malacañang. Like his mother, he was prodded into running. Once elected, P-Noy crosses off on a calendar the days until his term ends, just as his mother did." That's another of those unverifiable yarns.

Aquino went on record, early on that he'd step down in 2016. This heeds the constitutional ban on president reelection. That stance buttresses P-Noy's clout for reform. He has not been dogged by the corruption charges that shackled predecessor Marcos, Joseph Estrada and Gloria Macapagal Arroyo.

The Philippines was once the basket case of Southeast Asia, David Pilling of Financial Times recalled. It's gross domestic product of US$2,200 per capita bracketed it with Bolivia. Manila was way behind Bangkok with a GDP per capita of US$5,400.

"But there are definite signs that the country – with its young population of nearly 100 million people, the world's 12th largest – has turned a corner." In its study of the world in 2050, Hong Kong Shanghai Bank highlights "the striking rise of the Philippines, which is set to become the world's 16th-largest economy, up 27 places."'

"There are three reasons to be hopeful, if not yet exactly cheerful," the Financial Times says:

First:  the external position of the Philippines improved dramatically". Manila is a net creditor to the International Monetary Fund. Overseas remittances from the roughly eight million Filipinos working abroad held steady despite Middle East turmoil.

Second: the country is getting its fiscal house in order'. The deficit has narrowed to a manageable 2 per cent…. Subsidies on fuel and power, the bane of many Asian Finance Ministers, were scrapped several years ago."

Third: the political situation of the Philippines is vastly improved." The conviction of a Supreme Court chief justice Renato Corona is about big fish." Tax evaders are being tracked down. "The tax take has edged up even without necessary tax reform. That a sitting President can be stripped of land (like Hacienda Luisita) is a hopeful sign that the separation of powers enshrined in the constitution is being honored."

After the nine-year presidency of Gloria Macapagal Arroyo, which in its final years was widely seen as corrupt, Aquino is "liked as a welcome change," the Economist states. "He has gained kudos for trying to bring Gloria Macapagal Arroyo, presently detained, to account." That includes fresh tenders for "suspicious contracts awarded by Mrs. Arroyo's government …and clean-ups in the tax and customs authorities.

(A Pulse Asia survey conducted nationwide from May 20 to 26 said Mr. Aquino scored an approval rating of 67 percent, down 70 percent in March. Parallel surveys by the Social Weather Station find the President holding unprecedented "good" ratings over the last two years).

Can these reforms be sustained? The Philippines is a country where "giving things a sleek appearance sometimes seems to matter more than fixing sordid reality."

The economic prospects are good. The stock market has been one of the world's rare performers this year. The population is young, the banking sector strong, mineral wealth still abundant. The economic potential of Mindanao may further be unlocked by the arrests of ARRM warlords and election reforms.

Efforts to jack up raise revenues—a paltry 12 percent of GDP— by sin taxes on alcohol and tobacco could be hijacked by embedded lobbies. It won't be the first time. Despite an aging leadership, the communist insurgency simmers. China's intrusion into waters of Southeast Asian countries exclusive economic zone bugs the region.

"A first step is to resolve pervasive constraints," says Asian Development. For the Philippines, these calls for three steps:

(a) Good governance;

(b) Improving the business environment; and

(c) Accelerating development of the physical, institutional and social infrastructure.

Indeed, "we must unclog the bottleneck in infrastructure," the mint-new Economic and Planning Secretary Arsenio Balisacan states. "The 7 percent to 8 percent GDP growth target is doable.

"The President's instruction is to speed it up, especially the infrastructure," Balisacan said.

"It's a tedious process that bureaucracy often find difficult to speed up. We need to declog the bottleneck in private investment."

Undoing decades of corruption won't come overnight. But those derisive old tags may yet be scrapped – finally.

INQUIRER 

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