OFW Filipino Heroes

Sunday, July 15, 2012

WARNING! Japan, USA, China: South China Sea WAR - Ready to Explode

A U.S. Navy F/A-18E Super Hornet launches from the aircraft carrier USS George Washington during routine operations in the South China Sea last week. U.S. Navy photo / Lt. Cmdr. Denver Applehans

The South China Sea: From Bad to Worse

TOKYO – Territorial disputes in the South China Sea are about to get a whole lot worse — and at the worst possible time.

Whether the U.S. can avoid being dragged into a shooting match will depend on how far Beijing and its unruly mix of military, maritime and natural resources agencies choose to push their claims. And whether China's increasingly frustrated neighbors decide to push back.

Last week's regional security talks in Cambodia were a step in the wrong direction. China refused to look at a written code of conduct being drafted to govern navigation, resources and related issues in the South China Sea, one of the world's most important waterways. It also blocked discussion – let alone resolution — of the conflicting territorial claims in the region.

China claims exclusive rights to virtually all of the South China Sea, including its vast reserves of oil, gas and ocean resources; four other countries and Taiwan claim large parts of the region, as well. The disputes have led to increasingly tense standoffs between China and its neighbors.

The weeklong security talks, hosted by the Association of Southeast Asian Nations (ASEAN), dissolved amid charges of Chinese bullying, without even a customary closing statement. China made its point, but it may be a short-lived victory, says Mark Valencia, a Hawaii-based maritime policy analyst and senior associate at the Nautilus Institute for Security and Sustainability in San Francisco.

"What China is saying is, 'We have this historic claim to the South China Sea and we own everything within it – islands, reefs, submerged areas, resources, you name it. That's the way it is, and we're not even going to talk to you about it.' But they've painted themselves into a corner now, and that's very dangerous for everybody," says Valencia.

So far, the U.S. has stayed out of the territorial disputes. That's wise. The U.S. cannot referee the welter of legal, historical and emotional arguments that accompany each dispute (all or parts of the Spratly Islands, for example, are claimed not only by China, but also by Taiwan, Vietnam, Brunei, Malaysia and the Philippines, with evidence and documentation of varying degrees of credibility and relevance, dating back hundreds of years in some cases).

The primary U.S. interest in the region is in ensuring freedom of navigation. Half the world's commercial shipping passes through the South China Sea — $5 trillion a year — and U.S. warships regularly transit the region on their way to and from the Persian Gulf, Southwest Asia and the Indian Ocean.

China has promised not to interfere with any ships passing through region. But China has also signaled that it may require prior notice, and that military exercises and surveillance activities by foreign ships and planes may not be permissible. Those are hot-button issues for the U.S., which insists that under international law, nations cannot restrict activity other than economic development within most of their their 200-mile limits – assuming that those claims are internationally recognized to begin with.

An early test could be shaping up with Vietnam. In June, China issued an invitation for foreign companies to explore for oil in a region where Vietnam has already awarded exclusive contracts to U.S., Russian and Indian oil firms. The region is within Vietnam's standard 200-mile exclusive economic zone. China's move is likely in retaliation for a law enacted by Vietnam's parliament earlier in the month that asserts sovereignty over the Paracel and Spratly islands, which of course, China says it owns.

There's little love lost between the two countries, which fought a short but bloody border war in 1979. Last year, a Chinese fishing ship and government fishery patrol boats cut the cables of a Vietnamese exploration vessel in an area claimed by both countries.

Valencia says he won't be surprised if the latest dispute results in bloodshed.

"I don't think it will be war, per se. But Vietnam has shown that it's not afraid of China, so I can see them sending out their navy, and I can see China shooting back at them," says Valencia.

A far more dangerous confrontation could be shaping up outside the South China Sea, with an even older and better-armed rival.

On the same day that Japan's foreign minister was due to meet with his Chinese counterpart at the ASEAN security talks last week, three Chinese maritime patrol ships entered Japanese waters near the disputed Senkaku Islands.

The two governments have been sparring over the islands – which China calls Diaoyu – since 2010, when Japan seized a Chinese fishing vessel that it says rammed a Japanese patrol ship in territorial waters near the islands; the ship and crew were released only after intense economic and political pressure from China.

Japan Foreign Minister Koichiro Genba initially said he wasn't sure whether the intrusion last week "just happened, or was timed to coincide with the bilateral meeting." But all doubt seemed to disappear when another Chinese patrol boat entered Japanese waters the very next day. Tokyo summoned the Chinese ambassador and Genba complained again to Foreign Minister Yang Jiechi, who responded by repeating China's claim to the islands, located in the East China Sea near Taiwan,  were "inherently" Chinese.

Although Tokyo has been publicly trying to tamp down the dispute, it's clear that patience is wearing thin.

Tetsuo Kotani, a maritime security specialist with the Japan Institute of International Affairs, a leading Tokyo think tank, said at a forum in Washington DC in late June that it is time for Japan's naval forces to begin actively tracking Chinese submarines in the South China Sea, and to be prepared to intervene militarily.

China's Warship intruded July 11, 2012 and stranded to Half Moon Shoal of the Philippines near the tip of Palawan Island's northern part of Balabac island.

"If an armed conflict results between the South China Sea claimants – for example, China and the Philippines, or China and Vietnam – we have to protect our ships in the South China Sea. And what I am proposing to the government is that if anything happens in the South China Sea, we have to send our self-defense forces to the vicinity of the conflict area to protect Japanese ships," said Kotani, who is not affiliated with the government but who is believed to reflect government views.

Japan's Maritime Self-Defense Force is designed largely for anti-submarines and anti-mine warfare and generally operates in home waters and the Western Pacific. Venturing into the South China Sea could be seen as a provocative move not only by China, but by some of the regions smaller powers, which still view Japan with suspicion. Japan's constitution currently forbids military action except in self-defense.

The South China Sea already is heavily militarized and is certain to become more so as the "re-balancing" of U.S. forces in the Asia-Pacific gains traction. The U.S. Seventh Fleet, based in Yokosuka, Japan, routinely operates there. Three U.S. littoral combat ships are scheduled to begin operating from Singapore next spring.  Japan is supplying the Philippines with 10 patrol boats. China has completed construction of a major naval base at Yalong, on the southernmost tip of Hainan Island, which can hold nuclear-powered ballistic missile and attack submarines and large surface warships, including aircraft carriers.

Although the U.S. does not have a security treaty with Vietnam, it does with mutual defense pacts with other nations that have disputes with China. U.S. officials said earlier this month that a Chinese attack directed at the Senkaku Islands would fall under the U.S.-Japan Mutual Security Treaty, which requires the U.S. to come to the aid of Japan. The U.S. has a similar pact with the Philippines, which was involved in a months-long standoff with China earlier this year as the Scarborough Shoal, a collection reefs in the South China Sea.

The U.S. Energy Information Administration said in a 2008 report that the South China Sea has potential oil reserves as high as 213 billion barrels, larger than then Saudi Arabia.

In addition to the People's Liberation Army Navy, at least four other government agencies or ministries operate patrol craft or have a degree of authority over maritime-related issues. At a forum hosted by the Center for Strategic and International Studies, in Washington DC, one Chinese participant stated that even if a procedure were developed to resolve the territorial disputes, it is not clear which agency within the Chinese government would have the authority to settle the issue.

And that's how you go from bad to worse.

South Korea could be like a roasted piggy with Japan and China; Philippines must PRAY 24/7 for Peace.

Written by KIRK SPITZER of Time

Philippines NO Protest Against China’s Intrusion in Half Moon Shoal - 60 Nautical Miles

China's Warship Intruded half Moon Shoal (Hasa-Hasa Shoal) 60 Nautical Miles of Palawan near Balabac Straight. Chinese Dongguan, Type 053H1G (Jianghu-V Class) Missile Frigate

The Philippines said it would not lodge a diplomatic protest after China extricated a naval frigate from illegal entering the Hasahasa Shoal (Halfmoon Shoal) which is 60 Nautical Miles from Main Land Palawan. The Hasa Hasa or Halfmoon Shoal in not part of the disputed islands but recently disturbed by china keep of expanding more and more closer to the Main Island of the Philippines.

The intrusion of China's warship in Hasa Hasa (halfmoon Shoal) was downplayed by the Mister of Foreign affairs. Last week's stranding of the ship on Half Moon shoal, which Manila calls Hasa Hasa, was likely an accident, Foreign Secretary Albert del Rosario said.

"We don't believe that there were ill-intentions that accompanied the presence of that ship in our EEZ (exclusive economic zone)," del Rosario said.

"As far as filing a diplomatic protest is concerned, my stance is that we will probably not do that," he said.

The ship was reportedly on "routine patrol" when it got stranded Wednesday on the shoal, which sits just 60 nautical miles from the western Philippine island of Palawan, within the country's exclusive economic zone (EEZ).

International law defines a country's exclusive economic zone as being up to 200-nautical-miles from its shores.

The Chinese embassy in Manila said the frigate was "refloated successfully" before daybreak Sunday, and del Rosario said he was informed it was already en route back to China.

"We wish its crew a safe voyage back to China," he said.

HALF MOON SHOAL or HASA-HASA Shoal is not part of the Disputed Spartlys

The Half moon shoal or Hasa-Hasa Shoal is NOT PART of the Spratly Islands - which the Chinese call Nansha - a string of atolls and islands straddling vital shipping lanes in the South China Sea believed sitting atop vast mineral deposits.

Apart from the Philippines and China, the Spratlys are claimed in whole or in part by Taiwan and the other Southeast Asian countries of Brunei, Malaysia and Vietnam.

Overlapping claims to the islands have perennially caused tensions among the claimants, with the Philippines and Vietnam recently accusing China of increasingly becoming aggressive in staking its claims.

The dispute also marred an annual meeting of Southeast Asian foreign ministers held in Cambodia last week, where Manila's chief diplomat accused China of "duplicity" and intimidation.

The dispute divided the grouping, with host Cambodia siding with China, thus preventing them from issuing a customary joint statement that summarizes achievements and concerns.

But in a marked turn-around of rhetoric Sunday, Philippine Defense Secretary Voltaire Gazmin said the Chinese frigate apparently made a navigational mistake that caused it to run aground.

He said there appeared to be no signs that it was on a mission to intrude in a Philippine claimed area, noting the absence of structures on the shoal.

"It may have been human error. The CO (commanding officer) may have not seen the rocks," he said.

China says its naval frigate that ran aground close to Philippine shores, while patrolling disputed waters in the South China Sea, has been refloated.

The frigate became stranded on Wednesday in a shoal, which sits just 60 nautical miles from the western Philippine island of Palawan, within the country's exclusive economic zone.

A statement from the Chinese Embassy in the Philippines said the ship was refloated on Sunday morning, and that all its personnel were safe.

"Now the preparation for return to the port is underway. No contamination has been caused in the incident area," it said in a statement.

The ship was on "routine patrol" when it became stranded Wednesday evening, according to the Chinese government.

ACT Party-list’s ‘pork’ to fund school on Pag-asa island Spratly

PAG-ASA CLASS OF 2012 The Philippine flag flies in the breeze as Kalayaan town Mayor Eugenio Bito-onon (center) poses with the teacher, schoolchildren and their parents at the opening of Pag-asa Elementary School on a disputed West Philippine Sea island on June 15. AP/OFFICE OF KALAYAAN MUNICIPAL MAYOR

The Alliance of Concerned Teachers (ACT) party-list group will use the second tranche of its Priority Development Assistance Fund (PDAF), more popularly referred to as pork barrel, this year to construct a two-story six-classroom elementary school building on Pag-asa, the largest island in the West Philippine Sea (South China Sea) occupied by the Philippines.

ACT Rep. Antonio Tinio said the project was proposed by the local government led by Kalayaan Mayor Eugenio B. Bito-onon Jr. In his proposal, Bito-onon raised the need to address the Pag-asa children's right to education after 34 years.

The school will stand on a one-hectare property provided by the local government. Initial estimates by the municipal engineer set Phase 1 at P4.3 million.

"A school standing on Pag-asa is an earnest affirmation of Philippine sovereignty in the Spratly group of islands—the provision for education, a basic social service," Tinio said.

"This school will guarantee that the hope of Pag-asa's children for a better future is secure," he added.

Tinio urged Malacañang to do the same for similarly disadvantaged schools in other areas nationwide.

Several lawmakers have called on the national government to strengthen its territorial claim on the disputed Spratlys by fortifying existing structures on the island chain.

Pag-asa Island is part of Kalayaan town in Palawan. Home to about 200 Filipinos, the island has been under the Philippine government's control since the 1970s. It has a town hall, a health center, an airstrip and a naval station, among other facilities.

Last week, China warned the Philippines against operating a public kindergarten on Pag-asa.

Hong Lei, a Chinese foreign ministry spokesperson in Beijing, said that China "opposes any illegal activity that may infringe on China's sovereignty."

He said that Manila should "refrain from taking any measures that will complicate and exacerbate the current situation and affect peace and stability in the South China Sea."

Last week, the Kalayaan municipal government inaugurated a public kindergarten.

The school was inaugurated without fanfare on June 15 with five students, their parents and a teacher. A Philippine flag stood in the schoolyard.

The Philippines and three other Asean member-states—Malaysia, Vietnam and Brunei—are among the Spratlys claimants, along with China and Taiwan.

Inquirer 

Filipinos in USA boycott Chinese products – Continue Worldwide

Loida Nicolas-Lewis, chair of the US Pinoys for Good Governance (USP4GG), in a protest rally in June against Chinese attempts to dominate the South China Sea, including territories historically and geographically belonging to the Philippines. Photo by ELTON LUGAY/INQUIRER FILE PHOTO

A group of Filipinos based in the United States, who led a worldwide day of protest against China in May, is spearheading a continuous boycott of Chinese products.

Loida Nicolas-Lewis, chair of the US Pinoys for Good Governance (USP4GG), said the group's move to stop using all kinds of Chinese products was a way of matching China's diplomatic and military arrogance in claiming Panatag Shoal and the Kalayaan Group of Islands in the West Philippine Sea.

The USP4GG is an umbrella organization of professional Filipinos with a membership of thousands.

"The 'Boycott China Products Initiative' will not be limited to Filipinos. This campaign will be carried out worldwide," Lewis said in a press conference.

Immigration lawyer Ted Laguatan, the group's spokesperson, said he expected the campaign to go viral.

"We hope to achieve the level of response and outrage that was generated when the Americans found out that the US Olympic team's uniforms for the London 2012 Olympics were made in China, despite being designed by Ralph Lauren, who is a distinctively American designer," Laguatan said.

Laguatan further said that China's claim to the Kalayaan Group of Islands and Panatag Shoal, which are within the Philippines' 200-nautical mile exclusive economic zone, should not be taken seriously.

"As a basis of their claim, they are using a 2,000-year-old map produced during the Han Dynasty which showed that all the territory covered by the waters of the South China Sea belonged to China.

"The argument is about as valid as Italy claiming that the whole of Europe and parts of Africa and Asia are theirs because it was once a part of the Roman Empire, or Macedonia claiming also most of Europe and Africa because it was once part of the Alexandrian Empire," Laguatan said.

"It is no wonder China does not want the United Nations' International Tribunal on the Laws of the Sea to settle the issue regarding its claim. They know the ridiculous argument will fail," he added.

Inquirer

Saturday, July 14, 2012

FHM Philippines 100 Sexiest Women of the World 2012: Land of Amazing Beauties

Sam Pinto and the rest of the women of FHM Philippines' 100 Sexiest Woman in the World for 2012


The World Trade Center in Pasay City was definitely the place to be last Thursday, July 12, 2012 as the FHM Philippines 100 Sexiest Women of the World for 2012 walked the runway for the male magazine's victory party. (Photos by NPPA Images)

Sam Pinto, FHM Philippines Sexiest Woman in the World for 2012

 

Kapuso young comedienne Chariz Solomon during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12, 2012

Michelle Madrigal during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12

FHM Philippines Sexiest Woman in the World for 2012, Sam Pinto

Aubrey Miles during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12

Aubrey Miles shows she's a hot momma at the FHM Philippines Sexiest Woman in the World 2012 Victory Party

Chariz Solomon makes it to the FHM Philippines 100 Sexiest Woman in the World list this year

Diana Zubiri during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12, 2012

Ehra Madrigal during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12 2012

Diana Zubiri, FHM Philippines' Sexiest Woman in 2003, was only the model to walk the runway in a gown during the FHM Philippines Victory Party

Ehra Madrigal during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12 2012

GMA Kapuso star Ehra Madrigal

Sam Pinto and the rest of the women of FHM Philippines' 100 Sexiest Woman in the World for 2012

Ellen Adarna during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12, 2012

Ellen Adarna during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12, 2012

Jackie Rice during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12 2012

Sam Pinto and the rest of the women of FHM Philippines' 100 Sexiest Woman in the World for 2012

Sam Pinto during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12

Daiana Menezes during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12. 2012

LJ Reyes during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12 2012

LJ Reyes during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12 2012

Jackie Rice is FHM Philippines' cover girl for July 2012

Michelle and Ehra Madrigal both did an FHM Philippines cover

Michelle Madrigal, FHM Philippines cover girl last April 2012

Ellen Adarna and Jackie Rice during the FHM Philippines 100 Sexiest Women in the World 2012 Victory Party at the World Trade Center on Thursday, July 12 2012

Cambodia a Pro-China Might be KICK-OUT from ASEAN over BIAS Summit

45 Years Association of Southeast Asia Nation (ASEAN) is founded by the Philippines, Indonesia, Malaysia, Singapore and Thailand on August 8, 1967 signed in Ministry of Foreign affairs in Bangkok, Thailand.

ASEAN is a geo-political economic organization to promote the rights of every member to lead its national existence free from external interference, subversion or coercion, Effective cooperation between members, justice, equality, freedom and integrity in ASEAN countries.

Cambodia an adopted member of ASEAN is entitled of a rotation chairmanship as ASEAN member but during the recent summit for the existence of ASEAN for 45 years, Cambodia is showing it's less capability to promote justice, and lost its integrity to favor a country which is not an ASEAN member for a return of economic favor. This summit is hinted with a massive corruption of Cambodia and embarrassment to the world. 

Cambodia might face sanction from ASEAN members or might be kickout from ASEAN bloc for its violation and betrayal to other ASEAN member and founder of the organization

Philippines, one of the founder of ASEAN is disappointed of the bias Cambodia..

Despite its disappointment over the Association of Southeast Asian Nations' failure to reach an accord on handling disputes in the West Philippine Sea, the Philippines is not keen on cutting ties with ASEAN chair Cambodia.

But deputy presidential spokesperson Abigail Valte said Malacañang is leaving to the Department of Foreign Affairs on what the Philippines' next action will be.

"We share the disappointment of the other foreign ministers. We have seen statements from different foreign ministers that attended the meeting in Cambodia. I think in 45 years this is the first time this happened, a communiqué was not issued despite the fact that Asean had dealt with contentious issues in the past," Valte said on government-run dzRB radio.

She said this has prompted the Philippines to consider its options, but deferred further comment on the matter to the Department of Foreign Affairs.

Asked if the Philippines should reconsider its ties with Cambodia amid perceptions it is "pro-China," Valte indicated this is a remote possibility.

"There are things that can still be hammered out without going down that road," she said.

Philippine Foreign Affairs Secretary Albert Del Rosario addresses the media during a press conference in suburban Pasay City, south of Manila, Philippines, after his return from the ASEAN Regional Forum in Cambodia on Friday, July 13, 2012

When asked if President Benigno Aquino III will attend the upcoming ASEAN summit this November, she said he has not indicated he would back out of it.

"Wala siyang sinabing anything to the contrary, that he will not (Aquino has not indicated he will back out of attending the summit)," she said.

On the other hand, Valte said the Philippines will respect China's claim that the ASEAN summit was productive.

"We will respect that assessment in the same way we have our own assessment," she said.

The ASEAN, with Cambodia holding the rotating chairmanship, on Friday (July 13, 2012) failed to reach consensus on handling disputes in the South China Sea.

Cambodia had rejected a compromise on the wording of a joint communiqué, amid China's assertiveness in the disputed waters.

But China said the foreign ministers' talks at the ASEAN summit had been "productive."

The DFA had deplored the non-issuance of a communiqué at the 45th ASEAN Foreign Ministers' Meeting, saying it was "unprecedented in ASEAN's 45 year of existence."

In a statement, the DFA also said the Philippines "takes strong exception" to the statement made by the Chair of the ASEAN Foreign Ministers' Meeting that this will be "the first time that ASEAN is not able to issue the Joint Communiqué due to bilateral conflict between some ASEAN Member States and a neighboring country."

Also, the DFA said the competing claims in the West Philippine Sea (South China Sea) involve four ASEAN member states – the Philippines, Vietnam, Malaysia, and Brunei – and so this dispute is not a mere bilateral conflict with a northern neighbor but a multilateral one.

Does Cambodia's chairmanship for ASEAN Bloc is justified? 

Malaysia: Chance to invest in the Philippines now! US$9.6 Billion 2013 Infra

Eduardo Malaya: 'What we need badly are airports in the remote areas and other tourism support fa cilities.'

Philippine Foreign reserves at US$76 Billion, US$6 Billon in foreign direct investments, a budget deficit of just 1%, Asia's second best performing stock market, 6.4% gross domestic product growth for the first three months of 2012, growing exports and the list goes on.

Philippines has even committed funds to the International Monetary Fund's facility to address the debt crisis in Europe.

Surprise, surprise!!! - this is the Philippines today. And the striking rise of the republic has certainly astounded the critics.

The tributes are certainly pouring in for the once net borrower nation of 98 million people, which is seeing growth accelerating to its highest levels since democracy was restored in 1986.

Morgan Stanley recently listed the Philippines as one of the "breakout nations", with Goldman Sachs proclaiming it among the "Next 11" countries.

HSBC forecast that the country would be the 16th biggest economy in 2050.

Unveiling the latest data on this country's vibrant progress and growth to StarBizWeek, Phillipine ambassador to Malaysia J. Eduardo Malaya says his country had broken free from the shackles of its difficult past.

"There are less young Filipinos looking for jobs overseas because of available good ones at home notably in the Business Process Outsourcing  (BPO),  Knowledge Process Outsourcing (KPO) which currently threaten India's dominance, and related sectors.

"Our perseverance and hardwork has paid off. We are no longer South-East Asia's consistent underperformer," he declared in an interview.

Malaya, who was posted in Malaysia last September 2011, says the economic advancement of the Philippines presented the Malaysian private sector with great opportunities, disclosing that the Government had allocated a record 404.6 Billion pesos (US$9.6 billion) for infrastructure projects next year 2013.

"What we need badly are airports in the remote areas and other tourism support facilities. We also need to address the energy and electricity shortage issue which is severe in Mindanao," he says.

The envoy said Tourism Minister Datuk Seri Dr Ng Yen Yen's visit to Manila in February had yielded results, with her proposal for joint tourism packages between the two countries to be implemented soon.

"We are going to use our strengths to tap into the European and American markets. Kuala Lumpur has good air connections with Europe, while Manila is well-linked with Honolulu, Los Angeles and San Francisco in the United States.

"So we are going to draw Europeans and Americans to our countries under joint tourism packages. A joint Kota Kinabalu-Boracay island tour package is to be introduced soon," he reveals.

He said AirAsia Philippines, which started this year, was doing very well in the domestic air sector, with AirAsia having daily flights between KL and Kota Kinabalu to Clark Airport in Pampanga.

"AirPhilExpress, a sister company of Philippine Airlines, also commenced flights three times a week to KL from June 21 from the Ninoy Aquino International Airport to the LCCT in Sepang and back. We are trying to get it to service the route daily," he adds.

Malaya said Malaysian firms were already carving a reputation in the Philippines, citing AlloyMTD Group's rehabilitation of the South Luzon Expressway and its current involvement in building nine mini-hydroelectric dams in northern Luzon and a government offices complex in Laguna province.

Other notables were CIMB Bank buying into the Philippine Bank of Commerce with investments reaching RM1bil. Genting, after making profits from operating the Resorts World Manila hotel-casino across Manila's international airport, is investing in a second casino complex by the famed Manila Bay (the new "Entertainment City" which aims to rival Macau) to be completed in 2016.

"There has been substantial Malaysian business presence in the Philippines since the 90s with the likes of Maybank, Berjaya and other companies. We like to see more Malaysian companies take up the new opportunities that are being presented," he adds.

He says the Philippines-Malaysia Investment Partnership Forum held in KL on May 29 was significant as it was successful in drawing sizeable investments in the Philippines infrastructure and other sectors.

He says 300 participants, including CEOs of leading Malaysian and Philippine companies, attended the forum which featured presentations on investment climate and opportunities in the Philippines and business matching sessions.

The 35-member Philippine delegation was led by vice-president Jejomar C. Binay, who was the keynote speaker.

Malaya says Binay had a very successful visit, holding discussions with Prime Minister Datuk Seri Najib Tun Razak, Foreign Minister Datuk Seri Anifah Aman and International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

"We exchanged ideas on how to further enhance our economic and investment partnership. It is important that we interact frequently," adds Eduardo, who took pride in Najib's tweet after the meeting: "Fruitful discussions that will hopefully strengthen socio-economic ties."

Philippine Central Bank curbs gains to decline Peso over Dollars for Exports & OFW

Strong Philippines Peso () over US Dollars ($) will hurt Exports and OFW

As Philippine economy continue its upward trend and Philippines Peso () keeps getting stronger against US Dollars ($), the highly affected industries would be the Philippine Exports and around 11 Million Overseas Filipino Workers.

Recently, Philippine exports hit the high records. Merchandise exports hit a 17-month high in May 2012, according to the National Statistics Office (NSO).

Total earnings from exports soared by 19.7 percent or $4.93 billion in May 2012, higher than the $4.12 billion recorded in the same period last year.

Month-on-month, it increased by 6.4 percent from the $4.64 billion reported in April 2012.

Meanwhile, aggregate exports for the first five months of the year grew by 8.4 percent to $22.44 billion from the $20.71 billion registered in the same period last year.

The projected exports growth in the following quarter of 2012 might also curb in the if the Peso would remain strong compare to the US Dollars and the OFW remittance value would become lower that would affects the domestic spending of the OFW dependents.

The stronger Philippines Peso () is an indicator of well performing Philippines Economy.

Bangko Central ng Pilipinas will curb gains

The Philippine peso completed its first weekly loss in three as the central bank took steps against speculative inflows amid a global slowdown. Bonds gained.

Bangko Sentral ng Pilipinas said on July 7 that it has tightened rules on capital inflows by limiting where foreign funds can put their money and today cut the rate on one-month special deposit accounts to 4.15625 percent from 4.1875 percent. China said today its economy expanded 7.6 percent in the second quarter, the slowest pace in three years. The peso is still the biggest gainer among the 11 most active currencies in Asia this year, rising 4.4 percent.

"The peso has strengthened a bit too far already," said Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo. "In addition, China shows signs of slowing and external demand is weakening, which is also negative for the Philippines. The scope for further sharp appreciation for the peso from here is quite limited."

The peso dropped 0.4 percent this week to 41.98 per dollar in Manila, according to Tullett Prebon Plc. The currency reached 42.162 earlier, the weakest level since June 29. It gained 0.2 percent today. One-month implied volatility, a measure of exchange-rate swings used to price options, climbed 20 basis points, or 0.20 percentage point, to 6.40 percent and rose 50 basis points this week.

The monetary authority also lowered the one-week rate on its special deposit accounts to 4.03125 percent and the two-week rate to 4.09375 percent.

Oversea-Chinese Banking Corp., the most accurate forecaster of the peso over the past six quarters, according to data compiled Bloomberg, expects a 1.5 percent decline to 42.6 per dollar by the end of December, saying the currency may have strengthened too much.

The yield on the government's 5.875 percent bonds due March 2032 declined five basis points to 5.74 percent this week, according to prices from Tradition Financial Services. The rate slumped nine basis points, or 0.09 percentage point, as of July 13, 2012.

Friday, July 13, 2012

China navy patrol ship runs aground in shoal off Palawan Island Philippines

A Chinese naval frigate has run aground while patrolling disputed waters in the South China Sea, the defense ministry said Friday, amid tensions with the Philippines over territorial claims.

The ship was on "routine patrol" when it became stranded near Half Moon Shoal in the Spratly Islands on  July 11, 2012 Wednesday evening, the ministry said in a statement posted on its website.

The shoal is off the Philippine island of Palawan.

No one was injured or killed in the accident and the navy was now organizing a rescue, the statement said, but gave no further details.

The Philippines said it was trying to confirm the reports and would offer assistance to any vessel in distress.

"We have to find out why that ship was there, why it ran aground, whether it was an accident or whatever," Defense Secretary Voltaire Gamin told reporters.

"If we have to offer assistance to help them get out of that place, we will assist them," he added.

The Sydney Morning Herald on Friday quoted Western diplomatic sources as saying the frigate, which has been discouraging fishing boats from the Philippines from entering the area, was "thoroughly stuck".

China says it has sovereign rights to all the South China Sea, believed to sit atop vast oil and gas deposits, including areas close to the coastlines of other countries and hundreds of kilometers (miles) from its own landmass.

But Taiwan, Vietnam, Brunei, Malaysia, and the Philippines also claim parts of the West Philippines Sea (South China Sea).

The Spratlys are one of the biggest island chains in the area.

The rival claims have long made the South China Sea one of Asia's potential military flashpoints, and tensions have escalated over the past year.

The Philippines and Vietnam have complained China is becoming increasingly aggressive in its actions in the area, such as harassing fishermen, and also through bullying diplomatic tactics.

AFP

DOTC is asking for $13.28 Million Dollars loan from Korea

Department of Transportation and Communications (DOTC) is asking the Korean government for a $13.29-million loan to improve the navigation system at the Laguindingan Airport in Misamis Oriental province.

Department of Transportation and Communications (DOTC) Secretary Mar Roxas said the fund, which will come in the form of a loan from the Economic Cooperation Development Fund of the Republic of Korea, will be coursed through the Export-Import Bank of Korea.

Among the items needed to upgrade the soon to be the (Cagayan de Oro) Laguindingan International Airport's navigation system are the following:

  • Instrument landing system
  • Doppler radar
  • Communications system
  • Automated weather observation system
  • Electrical works for the air navigation system
  • Aeronautical ground lighting system.

Roxas said that the entire Laguindigan International airport development project is almost finished.

He said that about 90 percent of its civil works have been completed by the South Korea-based Yooshin Engineering Corp., the SCHEMA Konsult, Inc., and the Hanjin Heavy Industries and Construction Co. Ltd.

He said that economic activity in the region is projected to soar to as the airport is envisioned to be a major trunkline air facility.

Cagayan de Oro City Shopping Mall

"This will be a major trading and tourism hub. Its operation would have a multiplier effect in the region, and this would mean more jobs for the people," he noted.

The Laguindingan airport is being eyed to become the main airport of Cagayan de Oro and Iligan cities (Cagayan-Iligan Corigidor) in the northern Mindanao, as a counterpart of the Davao international airport in Southern Mindanao.

The government is expecting the airport's operation to boost Mindanao's potential as a national food basket being an exporter of the country's major agricultural exports such as banana and coconut.

Thursday, July 12, 2012

USA Pressed China over West Philippines Sea Dispute - ASEAN Meeting

PHNOM PENH, Cambodia — The Obama administration now has a taste of the difficult diplomacy necessary to sharpen the focus of American power on Asia, seeking investment opportunities alongside reforms from rights-abusing governments and working with China while defending U.S. interests.

From democratic Mongolia to once-hostile Vietnam and long-isolated Laos, Secretary of State Hillary Rodham Clinton this week faced governments eager to embrace the United States as a strategic counterweight to China's expanding military and economic dominance of the region, while still lukewarm about American demands for greater democracy and rule of law.

And after meeting face-to-face with China's foreign minister Thursday as she began to wrap up a weeklong tour of Asia, Clinton lauded Washington's cooperation with Beijing even as she took up the case of several Southeast Asian nations threatened by the communist government's expansive claims over the resource-rich South China Sea.

In the discussions across the world's most populous continent, U.S. officials outlined their belief in greater democracy and freedom for Asian nations. The vision is part of a larger Obama administration effort to change the direction of U.S. diplomacy and commercial policy and redirect it to the place most likely to become the center of the global economy over the next century.

It is also a reaction to the region's slide toward undemocratic China as its economy has boomed and America's has struggled.

"As we've traveled across Asia, I've talked about the breadth of American engagement in this region, especially our work to strengthen economic ties and support democracy and human rights," Clinton told reporters Thursday. "This is all part of advancing our vision of an open, just and sustainable regional order for the Asia-Pacific."

Clinton will meet Friday with Myanmar's reformist President Thein Sein and introduce him to American business leaders looking for investment opportunities. The U.S. eased sanctions on the once reclusive military dictatorship this week, opening up new opportunities for the administration as it seeks to double American exports.

Still, Clinton said she would urgeThein Sein to do more. "Political prisoners remain in detention," she said. "Ongoing ethnic and sectarian violence continues to undermine progress toward national reconciliation, stability and lasting peace. And fundamental reforms are required to strengthen the rule of law and increase transparency."

The tour started in Japan, where Clinton assured a long-time ally the U.S. was committed to its security. From there, she visited four countries in China's backyard, part of a larger economic area among the world's most dynamic. Up to now, however, China has taken the most advantage.

In each place, Clinton was careful to make the case for American values alongside American business aspirations. It's unclear, however, if both messages were received.

In Ulan Bator, she credited Mongolia with liberalizing economically as well as politically, holding it up as a foil to the Chinese model of growth without freedom. And she offered deeper U.S. partnerships with communist governments in Vietnam, Laos and Cambodia, which have looked to Washington for fear of being swallowed up by China's expanding power.

But while two-way trade between Vietnam and the U.S. has soared by 40 percent in the last two years, there has been little improvement in the Vietnamese government's respect for dissidents. Laos may seek similar business relations with the U.S., but has yet to show any willingness to rectify its poor labor rights record.

What Washington doesn't want with these countries is what it has with Beijing, a partnership of unprecedented economic integration that stops when the discussion turns to human rights, democracy or sharing a vision for the world. It's a relationship that neither side appears able to change, both equally reliant on the other's goods and consumers, while mistrustful of the other's intentions.

"We are committed to working with China within a framework that fosters cooperation where interests align, and manages differences where they don't," Clinton said.

In probably her most difficult work of the week, Clinton pressed Beijing on Thursday to accept a code of conduct for resolving territorial disputes in the South China Sea, a U.S. mediation effort that has faced resistance from China.

Meeting on the sidelines of the Association of Southeast Asian Nations' annual gathering, Clinton stressed the different ways Washington and Beijing are cooperating, while Chinese Foreign Minister Yang Jiechi spoke of building even closer U.S.-Chinese ties.

Neither side mentioned the South China Sea while reporters were in the room. Afterward, according to U.S. officials, they got into the sensitive talk of the South China Sea, an issue that has caused grave concerns among China's neighbors and the wider world as tensions have threatened to boil over amid standoffs between Chinese and Philippine ships and competing Chinese and Vietnamese claims.

While China's claim over the entire area has driven countries closer to Washington, countless hours of talks between U.S. and Chinese officials haven't led to progress on a lasting solution. The waters host about a third of the world's cargo traffic, rich fishing grounds and vast oil and gas reserves – economic opportunities the U.S. would be locked out of if China were to seize total control.

Clinton, however, again framed it as a question of principles.

"The United States has no territorial claims there and we do not take sides in disputes about territorial or maritime boundaries," she told foreign ministers gathered in Cambodia's capital. "But we do have an interest in freedom of navigation, the maintenance of peace and stability, respect for international law and unimpeded lawful commerce in the South China Sea."

She singled out "confrontational behavior" in the disputed Scarborough Shoal off northwestern Philippines, including the denial of access to other vessels. The actions she cited were China's, though she didn't mention the offending country by name.

"We have seen worrisome instances of economic coercion and the problematic use of military and government vessels in connection with disputes among fishermen," she said. "There have been a variety of national measures taken that create friction and further complicate efforts to resolve disputes."

Despite publicly exhorting both China and Southeast Asian nations to diplomatically settle their disputes, a State Department release made no mention of the issue and instead spoke of Sino-American cooperation on everything from disaster relief to tiger protection. The issues were clearly secondary, but reflected an effort to compartmentalize any confrontation with Beijing and paint a larger picture of collaboration.

AP

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