“Lenovo Mobile” China Phone sets to dominates Philippines to spy Filipinos

Cheap Lenovo Mobile - China is infected with Backdoors China Military Spy for antichina Filipinos

Lenovo Mobile Communication Technology Ltd. ("Lenovo Mobile"), one of China's biggest mobile handset manufacturers, is seeking to become the second leading brand in the Philippine handset market.

As the smartphone market in the Philippines increases dramatically, Lenovo's distributor, Open Communications, is " committed to offer more affordable, cutting-edge devices, superior customer service and relevant value-added services to Filipinos," John Rojo, Open Communications' Business Unit Head, said in a statement today.

Lenovo Mobile has recently released new Android phones such as the A65 - a 3.5 inch entry level Android phone selling for ₱5,499 ($131.24) and the ₱700 - a four-inch screen Ice Cream Sandwich powered Android with a longer lasting battery worth ₱10,999 ($262.51).

Rojo said in the next few months, Lenovo Mobile will introduce more phones in the Philippine market to target both entry level devices in the ₱5,000 ($119.33) price range as well as top-of-the-line devices.

"Our goal is to allow majority of Filipinos to own smartphones, " Rojo said.

In May 2012, Lenovo Mobile's market share increased by 1. 2 percent in China's mobile phone market (feature phones and smart phones combined), accounting for 11 percent of the total. This elevated the Lenovo brand to No. 2 position, next only to market leader Samsung.

All U.S. Electronics from China Could Be Infected of Backdoor China Military Spy

Well, it's been pretty obvious for a while now that China's been hacking into some of America's most important businesses and government agencies and stealing reams of data. We've heard countless reports about Pentagon info being stolen or about critical data on the F-35 Joint Strike Fighter being plucked from defense contractors networks — with China being the main suspect.

Well, former U.S. counter-terrorism czar –currently running his own cyber security firm — Richard Clarke is coming out and saying that all electronics made in China may well have built-in trapdoors allowing Chinese malware to infect American systems on command. The malware could do everything from take over a device to disabling it to secretly siphoning information off of it.

Just remember, plenty of military electronics parts are sourced from China too. U.S.-based defense contractors routinely buy things like processors and circuit boards — that end up on the Pentagon's most advanced weapons, everything from fighter jets to nuclear submarines — from brokers who get such parts in China. As you know, these parts often prove fake, something that's dangerous enough due to the high risk of a fake part failing. What's to stop real parts made in China from carrying an equally dangerous cyber trapdoor?

Here's what Clarke Recently told Smithsonian Magazine:

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"My greatest fear," Clarke says, "is that, rather than having a cyber-Pearl Harbor event, we will instead have this death of a thousand cuts. Where we lose our competitiveness by having all of our research and development stolen by the Chinese. And we never really see the single event that makes us do something about it. That it's always just below our pain threshold. That company after company in the United States spends millions, hundreds of millions, in some cases billions of dollars on R&D and that information goes free to China.…After a while you can't compete."

But Clarke's concerns reach beyond the cost of lost intellectual property. He foresees the loss of military power. Say there was another confrontation, such as the one in 1996 when President Clinton rushed two carrier battle fleets to the Taiwan Strait to warn China against an invasion of Taiwan. Clarke, who says there have been war games on precisely such a revived confrontation, now believes that we might be forced to give up playing such a role for fear that our carrier group defenses could be blinded and paralyzed by Chinese cyberintervention. (He cites a recent war game published in an influential military strategy journal called Orbis titled "How the U.S. Lost the Naval War of 2015.")

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As Gizmodo points out, this may just be clark doing his job as the head of a cybersecurity company to drum up business or it might be another prescient warning from the man who predicted a "spectacular" al Qaeda attack before 9/11. All I have to say is that implanting trapdoors in electronic goods bound for the U.S. would make perfect sense.

Via Smithsonian Magazine.

Proof That Military Chips From China Are Infected?

For years, everyone has warned that counterfeit microchips made in China and installed on American military hardware could contain viruses or secret backdoors granting the Chinese military cyber access to  U.S. weapons systems. These warnings/predictions recently expanded beyond counterfeit parts, now we're worried that any Chinese-made components could be infected. The problem was that until this week, these warnings were educated guesses and theories. Well, a scientist at Cambridge University in the United Kingdom claims to have developed a software program proving that China — and anyone else — can, and is, installing cyber backdoors on some of the world's most secure, "military grade" microchips.

Specifically, the  American-designed, Chinese-made Actel/Microsemi ProASIC3 A3P250 — commonly known as the PA3 — chip was found by Cambridge researcher, Sergei Skorobogatov, to have a backdoor, or trojan, deliberately built into it. The PA3 is what's called a Field Reprogrammable Gate Array (FRGA); an almost blank slate of a microchip that can be programmed by its owner to perform a variety of tasks.

Most alarming is that the PA3 is considered to be one of the "most impenetrable" designs on the market. The chip is used in military "weapons, guidance, flight control, networking and communications" hardware, according to Skorobogatov's report on his findings that was published last weekend. The PA3 is also used in civilian "nuclear power plants, power distribution, aerospace, aviation, public transport and automotive products," according to Skorobogatov.

(In an example of just how military-grade these chips are supposed to be, the image above is actually taken from Actel/Microsemi's promotional material for the PA3)

Basically, Chinese cyber spies can gain use the chip's built-in malware to decipher military passcodes and gain remote access to the chip and reprogram it to do their bidding; "permitting a new and disturbing possibility of a large-scale Stuxnet-type attack via a network or the Internet on the silicon itself," reads his report.

The worst part, this backdoor, installed on chips used on critical weapons systems and public infrastructure around the word, is almost impossible to remove from the chip since, well, it was built into the device during manufacturing. That mean's you can't just issue a software patch to repair the vulnerability.

The backdoor is close to impossible to fix on chips already deployed because, unlike software bugs in a PC Operating System, you cannot issue a patch to fix this. Instead one has to replace all the hardware which could be extremely expensive. It may simply be a matter of time before this backdoor opportunity, which has the potential to impact on many critical systems, isexploited.Having a security related backdoor on a silicon chip jeopardises any efforts of adding software level protection. This is because an attacker can use the underlying hardware to circumvent the software countermeasures.

So uh yeah, this stuff is everywhere. When people warn of the potential for widespread disruption from cyber espionage and warfare, they're not just crying wolf. Makes you feel safe, huh?

Here's Skorobogatov's full report where you'll learn how the backdoors are installed and activated.

Backdoors Embedded in DoD Microchips From China

Sources: philSTAR , Defensetech.org

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Sabah Government eyed linking Palawan – Sabah RORO Service

KOTA KINABALU,  (Aug 14, 2012) -- The Government will consider the proposal to operate a roll-on and roll-off (RORO) vessel service between Kudat and Palawan in the Philippines, Deputy Transport Minister Datuk Abdul Rahim Bakri said today

In welcoming the proposal, he said, the service would bolster trade in the two provinces, particularly in Kudat, in north Sabah

The RORO vessel is designed to ferry heavy machinery, cars, trucks, lorries and trailers.

"We at the ministry welcome the suggestion. If it materialises, it's not only profitable in terms of trade, but will also boost Sabah's tourism industry," said Abdul Rahim, who is also Kudat Member of Parliament, to reporters after attending the 2.0 National Transformation Program Roadmap Open Day.

Sabah Bumiputera Chamber of Commerce Honorary Treasurer Roselan Johar Mohamed said recently that the RORO service was made possible following the conclusion of an agreement between the Brunei Darussalam-Indonesia-Malaysia-Philippines and East Asean Growth Area (BIMP-EAGA), National Chamber of Commerce and Industry Malaysia and the RORO operator based in Batangas, the Philippines, last month.

BERNAMA  

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USA Eyes Transfer its Mideast's Logistics to the Philippines

As part of its force posture strategy in the Asia-Pacific, the United States is eyeing the transfer of some of its logistics assets being drawn down in Afghanistan to the Philippines and other areas in the region, the US Department of Defense (DOD) said.

The planned pre-positioning of its logistics assets aims to support future disaster response or other contingency in the region as the US Pacific Command (US Pacom) implements President Barack Obama's guidance to make the Asia-Pacific a top priority.

It comes along with more rotation deployments of US forces in the region.

In a report by the American Forces Press Service posted on the DoD website, it was stated that, "As US forces draw down in Afghanistan, Pacom is working with the Defense Department and the US Agency for International Development (USAID) to identify what materiel assets might be transferred to the Asia-Pacific."

Air Force Gen. Mark M. McLeod, Pacom director for logistics, was quoted as saying that part of what his office is doing "is looking at the options of where we can forward locate humanitarian assistance capabilities in the theater."

"We want to posture them somewhere in the theater that would allow us to react very quickly," he added.

Among the materials to be disassembled from the expeditionary camps in the US Central Command area of operation in Afghanistan include tents, blankets, and generators, which McLeod said could be vital in a humanitarian crisis.

The report noted that, "although no part of the world is immune to natural disasters, none experiences them in the number or severity as the Asia-Pacific region. Located on the earthquake-prone ring of fire, it also suffers from cyclones, tsunamis, flooding, wildfires, and volcanic eruptions," thus the plan to move some of the US military's logistics assets closer to where it could be of more use.

McLeod said that with equipment and supplies being moved out of the combat theater (Afghanistan), "logic dictates sending at least some of it where it's most likely to be needed."

"As opposed to bringing it home [and] putting it in central storage facilities, it might make more sense, when we do this calculus, to forward move [materiel] to a place where we could get access to very low-cost storage capabilities," he said.

The Pacom official noted several locations, such as Singapore and the Philippines, "which offer not only low-cost warehouse space, but also good airfield and port access."

"Even regional nations not comfortable with a visible US military presence on their soil tend to be open to accepting pre-positioned equipment and supplies, typically tucked away in shipping containers and storage facilities, to support a humanitarian response."

"It supports the local economy while providing a ready force of equipment and supplies for US troops to fall in on if called to support a disaster response. That, in turn, allows them to move in faster and hit the ground running because they don't have to transport it thousands of miles to where it's needed," said McLeod.

"So it is very much a win-win... We are looking for the opportunities to place those assets out there that will help us address that tyranny of distance," he further stated, although he also admitted that "budget constraints demand good decision-making and business practices."

The Armed Forces of the Philippines (AFP) welcomed the report, saying that the pre-positioning plan of the US Pacom to the Asia-Pacific is a welcome development, especially for countries like the Philippines that are perennially hit by natural disasters and calamities.

"The Logistics assets of the US Pacom will be of great help in complementing the efforts of the AFP in its humanitarian assistance and disaster response operations," said AFP spokesman, Col. Arnulfo Marcelo B. Burgos Jr.

"This will also allow for rapid responses and quick reactions to emergency situations brought forth by typhoons, earthquakes, and other natural calamities that frequent the Asia-Pacific region," he added.

The AFP spokesman went on to say, "As we have already established strong ties with the US Armed Forces and other foreign military partners, exemplified mainly through the numerous bilateral exercises, training, and other undertakings such as the Balikatan, CARAT and Pacific Partnership, the pre-positioning plan will augment and support our efforts to improve and enhance further our interoperability and effectiveness in conducting HADR (humanitarian and disaster response) operations."

On Friday last week, in the wake of the deadly floods that hit Metro Manila and Central and Southern Luzon, a senior US military official arrived in the country to offer their unique capabilities to help further enhance the AFP's disaster response capability.

General James F. Amos, the United States Marine Corps (USMC) Commandant, met with Defense Secretary Voltaire T. Gazmin at Camp Aguinaldo where they discussed about further strengthening military cooperation between the United States and the Philippines.

During the meeting, both Gazmin and Amos expressed their mutual interest in forging stronger ties, especially in Humanitarian Assistance and Disaster Response (HADR).

The AFP together with the US Armed Forces are also set to undertake the month-long Pacific Unity 12-6 (PU 12-6) in Pampanga and Tarlac from August 20 to September 20.

Pacific Unity is a Pacific Command (Pacom)-funded humanitarian assistance mission. It is a bilateral and joint engineering civic action program conducted in cooperation with the provincial government of Pampanga and Tarlac.

Manila Bulletin 

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Submarine Cable linked Philippines, HK, Japan, Singapore, Malaysia Completed

The $400-million Asia Submarine-Cable Express (ASE) optical fiber system was completed last Friday, Philippine Long Distance Telephone Co. said in a statement Tuesday.

"This is the largest-capacity international submarine cable system ever to land in the Philippines," said PLDT president and CEO Napoleon L. Nazareno, noting, "It is also the most secure."

Among members of the ASE consortium are NTTCom of Japan, StarHub of Singapore, and TM of Malaysia. The submarine cable system was supplied by NEC Corp. and Fujitsu Ltd.

The system initially links Japan, Philippines, Hong Kong, Malaysia and Singapore.

With its landing station at Daet, Camarines Norte, the ASE provides the first and only direct cable connection from the Philippines to Japan that avoids the earthquake-prone seas south of Taiwan which the cable systems of other carriers pass through.

"The timing of this project is excellent," said Nazareno. "This will enhance the country's global competitiveness in attracting investments for business process outsourcing industry and other ventures at a time when investor interest in the Philippines is on the upswing," he added.

In December 2006, a magnitude 7.1 earthquake off the southwest coast of Taiwan damaged several undersea cables and disrupted telecoms services in several Asian countries including the Philippines.

"The ASE cable system thus significantly raises the resiliency of the country's international communications links," according to the PLDT president.

It can be expanded to other economically vibrant Asian countries, such as China, Vietnam and Indonesia. The ASE can also be connected to other major cable systems to Europe, the Middle East, other parts of Asia, and the United States.

"We can also expand our broadband services with new bandwidth-heavy applications requiring international access such as IP-based data, external video content and other external multimedia services," Nazareno noted.

PLDT said it invested $55 million in the 7,200-km undersea cable network which uses 40 Gigabits per second (Gbps) technology upgradeable to 100 Gbps, with a minimum design capacity of 15 Terabits.

Philippine internet connection for upload and downloading speed is expected to up and continue to vie the European countries which is important for the outsourcing business.

GMA News

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₱4.91 Billion flood control projects for 24 river systems unleashed by DPWH

A soaking wet child sits on a post on a flooded street in suburban Manila, on August 8, 2012. More than one million people in and around the Philippine capital battled deadly floods on August 8 amid relentless monsoon rains, not predicted to let up until Thursday at the earliest. (Jay Directo/AFP/Getty Images

DPWH Philippines unleashed the Master Plan for flood control Project throughout the Philippines.

 Aside from its flood control master plan for Metro Manila and outlying provinces, the Department of Public Works and Highways has completed similar plans for effective and comprehensive flood management of 12 of the 56 river systems throughout the country that are on DPWH's priority list.

In a copy of a DPWH report furnished the Inquirer, the agency's Project Management Office for Major Flood Control Projects disclosed that feasibility studies are ongoing for 12 other river basins.

There are 421 major river basins all over the country, according to the DPWH.

The government has allocated at least ₱4.91 billion in the next two years for the construction of water impounding and other flood control structures in the 56 priority river basins.

The completed master plans cover the following river basins (with their respective budget allocations):

• ₱37.6 million - Amburayan in Region 1 and Cordillera Administration Region,
• ₱19.3 million - Agos in Region 4-A,
• ₱12.7 million - Balete in Region 4-B
• ₱9.68 million - Yawa-Basud-Quirangay in Region 5
• ₱28.4 million - Aklan in Region 6
• ₱9.23 million - Guinabasan in Region 7
• ₱9.52 million - Dungcaan in Region 8
• ₱12.3 million - Tumaga in Region 9
• ₱6.54 million -  Lipadas in Region 11
• ₱251 million - Silway-Popong-Sinaual in Region 12; Lake Maitum-Tubay in Region 13
• ₱6.7 million - Cagayan de Oro.

River basins with ongoing feasibility studies:

• ₱14.7 million - Bauang in Region 1 and CAR
• ₱27.8 million - Pamplona, Region 2 and CAR
• ₱8.53 million - Sta. Rita-Kalaklan in Region 3
• ₱44.4 million - Caguray in Region 4-B
• ₱42.03 million - Bago in Region 6
• ₱12.7 million - Daguitan Marabong in Region 8
• ₱113.8 million - Sibugay in Region 9
• ₱12.8 million - Iponan in Region 10
• ₱24.5 million - Buayan-Malungun in Regions 11 and 12.

Three other river basins — Tandag in Surigao del Sur and Amnay and Mag-asawang Tubig in Occidental Mindoro and Oriental Mindoro, respectively — are also undergoing feasibility studies. However, the DPWH did not disclose their respective budget allocations.

Despite the absence of master plans, other major river basins were also allocated funds, the biggest of which were the Mindanao River Basin and Agno Upstream in Pangasinan, with allocations of ₱626.6 million and ₱295 million, respectively.

On the same list are the following river basins:

• ₱100.9 million - Abra in Region 1 and CAR
• ₱66.3 million - Patalan-Cayanga-Angalacan in Region 1 and CAR
• ₱159.3 million - Sinocalan-Marosoy-Dagupan in Region 1 and CAR
• ₱192.09 million - Abulug in Region 2 and CAR
• ₱648.7 million - Nangalisan-Baggao-Pared in Region 2 and CAR
• ₱42.8 million - Angat in Region 3
• ₱410.1 million - Kabilugan-Velasco-Batu in Region 5
• ₱42.03 million - Bago in Region 6
• ₱188.5 million - Panay-Mambusao in Region 6
• ₱114.4 million - Jalaur in Region 6
• ₱49 million - Davao in Region 11
• ₱119.3 million - Upper Agusan in Region 11
• ₱103.6 million - Tagum-Liboganon in Region 11
• ₱126.8 million - Tuganay in Region 11
• ₱127.5 million Tago in Region 13, among others.

The DPWH master plan for flood management in Metro Manila and outlying provinces calls for at least ₱351.72 billion in infrastructure spending.

The plan covers a total of 11 infrastructure projects, including the construction of a large dam in Marikina that will cost ₱198.43 billion, according to Patrick Gatan, head of the DPWH PMO-MFCP.

"The construction of Marikina dam plus improvements on the Pasig and Marikina river embankments, as well as the West Laguna lakeshore landraising project, are considered very high priority projects of the department," Gatan told the Inquirer.

Between 2011 and 2016, the DPWH plans to spend at least ₱83.9 billion on flood control projects, including the construction of river walls and revetments, dikes, mini dams, drainage mains, and flood gates, as well as waterway improvements.

Earlier, the DPWH completed at least 11 major flood control projects. Five of them were in Metro Manila: the Napindan Hydraulic Control Structure in 1983; Mangahan Floodway in 1988; Effective Flood Control and Warning System in 2002; West of Mangahan Flood Control in 2008; and Phase 2 of the Kalookan-Malabon-Navotas-Valenzuela River Channel Improvement this year.

Finished projects outside the metropolis include Phases 1 and 2 of the Ormoc City Flood Mitigation Project in 2001; Phase 1 of the Pampanga Delta Development Project in 2002; Laoag River Basin in 2008; Agno River in 2010; Camiguin Island Flood Disaster Mitigation Project in 2011; and Phase 2 of the Iloilo Flood Control Project this year.

Some completed flood control projects were funded by international aid organizations like the Japan International Cooperation Agency. They include the Iloilo Flood Control Project 2, which had a budget of ₱230 million; the ₱241-million Mt. Pinatubo Hazard Mitigation Project and the ₱239-million Pasig-Marikina River Channel Improvement Project.

Aside from extreme rainfall, the other main causes of flooding in Metro Manila and other parts of the country are denuded watersheds, illegal logging, limited river channel capacity, inaccessible waterways, informal and illegal settlements, and indiscriminate dumping of wastes, according to DPWH.

Read more in Inquirer

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The Philippines is strongest performing Asian economy - Deutsche Bank AG

STANDOUT NATION. In an interview with Bloomberg Television, Michael Spencer, the Hong-Kong based chief economist for Asia at Deutsche Bank AG said strong export growth was helping the Philippines become a leader in the region. Screenshot from BloombergBusinessweek.

The Philippines is the brightest economic star in Asia now, according to an economist of multinational Deutsche Bank AG.

In an August 9 interview with Bloomberg's Susan Li, Duetsche's chief economist for Asia Michael Spencer touted the Philippines as the strongest as well as the safest place for funds to be.

"The strongest performing economy in Asia today is the Philippines," he said when Li asked him where the best place to be across the Asia-Pacific region.

This southeast Asian country recorded an impressive 6.4% growth in the first 3 months, making it the best performing economy in the region next to China.

Spencer's bold pronouncements is the newest addition to the long-awaited attention from foreign investors that had traditionally included only neighbors Thailand, Malaysia and Indonesia in their investment radar.

Already, eastward-bound hot money have made it to the Philippine Stock Exchange, which hit record highs almost 20-times since President Aquino took over in 2010.

Is Philippines safe for investments?

Bloomberg's Li quickly followed-up Spencer: "Safest, as well?"

It's a question constantly considered by fund managers who have been stuck in western countries previously considered safe but are now in economic crisis.

To stress that the Philippines is indeed safe, Spencer cited the country's relatively low trade exposure to the U.S. and Europe, both now experiencing fiscal pains.

"Historically it's at least been very less dependent on the U.S. and Europe. Although what's really been driving growth today is exports [which is] surprisingly enough for them," said Spencer.

"There seem to be exports to Japan. I suspect there's something of a Japan outsourcing after the earthquakes last year from the Philippines. They've suddenly have discovered a billion dollars a month almost is the last two or 3 months. For them it's huge," said the chief economist.

Other economists and investors have also noted the Philippines relatively low budget deficit of 2.6% of gross domestic product (GDP), a measure of the overall economy.

A low deficit-to-GDP ratio is a traditional indicator that the country has the ability to pay back its debts or repay its investors.

Philippine Exports

A day after Spencer's interview, on August 10, official exports data for June and the first 6 months of the year was released.

Exports in June slowed to 4.2% and volume stood at USD$26.75 billion for the month. This was a reversal of the impressive 19.7% growth of the exports sector in the month of May.

Overall for the past 6 months, exports grew 7.7%, or better than the 4.13% experienced in the first 6 months of 2011.

These show the sector's continuing vulnerability to conditions abroad.

A dampened global demand for trade products hit the Philippines hard in 2011, contributing the most to the deep cuts in the annual GDP growth to 3.7% in 2011 from 7.6% in 2010.

Nonetheless, Spencer focused on the Philippines' top destination for exports, Japan. This north Asian neighbor absorbs over 16% of Philippine exports.

Spencer surmised that after the earthquake and tsunami that devastated Japan in 2011, export orders poured into the Philippines to help support reconstruction efforts and fill the need for new products.

While exports to Japan shot up 81.5% in May, there was a sharp 24.7% drop in June.

"It's back to reality. The initial euphoria brought by a 19.7% increase in [total] exports [in May 2012] has been dashed back to a more realistic level in June," noted former budget secretary Benjamin Diokno.

Another reality check was the goings on in China, also a key trade partner of the Philippines.

Spencer and Li discussed the political revamp among China's top leaders, as well as inflation situation and monetary policy moves.

China's economy grew at its slowest pace in 3 years, as investment slowed and demand fell in key export markets such as the US and Europe. It reported a 7.6% GDP growth in the 2nd quarter, down from 8.1% in the previous first quarter.

Cooling growth in China has been a concern for other Asian economies and the global recovery. China is the destination for 12% of Philippine exports and a key source of investments and aid.

OFW (Economy Army) Remittances

Another source of dollars -- bigger than exports -- and also a major indicator of the strength of the Philippine economy is its resilient remittance story.

Millions of Filipinos working abroad have been sending about U$19 billion a year to loved ones abroad, fueling consumption, a pillar of economic growth.

Despite the global economic woes, which hit world trade, remittances to the Philippines maintained growth.

Remittance money has kept banks awash with cash (and helps them remain stable compared to peers in other crisis-hit countries), malls and other retail outlets active and thriving, and real estate investments thriving.

Remittances have also kept the country's levels of balance of payments and international reserves healthy.

Sustainable Growth?

In his 3rd State of the Nation Address (Sona), President Aquino touted the economic gains of the country under his watch.

He cited not just the impressive 6.4% first quarter growth, but also the 7 credit rating upgrades from international agencies and the historic highs achieved by the main stock index.

Can these be sustained?

The upcoming announcement of the Philippines' 2nd quarter growth rate this August will be telling. The economic managers have expressed optimism another 6.4% is attainable, though they are keeping year-end targets of 5% to 6% growth.

Already, neighbor Indonesia has announced an impressive 6.4% in the second quarter.

On Monday, August 13, a key Philippine economic indicator - the performance of the agriculture sector - was not impressive.

Farm output in the first 6 months of 2012 only grew a mere 0.93%, way below the government's year-long growth target of 4% to 5%.

The agriculture sector, hit by a fishing ban in the first two months of the year, makes up 1/5 of the economy and employs a third of the working population. Economists are mixed over whether the low initial figures will impact GDP growth for 2012.

Still, the Philippines has a number of factors working in its favor.

The country benefits from resilient consumers, a young population base that can boost consumption, and an expected pick-up in government infrastructure projcts this 2012 and 2013, financial analysts from COL Financial Group Inc recently told Rappler.

The government's capital-intensive infrastructure projects under the Aquino government's public-private-partnership (PPP) scheme was meant to take off in 2011 but were delayed due to good governance checks, officials said.

So far, the bidding for two big-ticket road projects -- the ₱20-billion LRT-Cavite extension project and the ₱13-billion NAIA Expressway project -- are scheduled to be finished this year.

When construction starts next year, the hope is these will spur economic activity through the supply chain and employment.

Meantime, the local stock market has been hailed the 2nd best performer in the world year-to-date, but also now the most expensive market in the region, twice as expensive as South Korea's Kospi and twice as expensive as Hong Kong's Han Seng.

The Philippines seems to be on an upward trajectory but there are bumps on the road. 

Rappler.com

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FMIC and UA&P see PHL economy growing 6-7% this year

The Philippine economy will likely to grow 6 to 7 percent this year (2012), fed by strong domestic demand as the government shoulders an additional P180 billion in deficit for the second half, according to a report by First Metro Investments Corp. (FMIC) and University of Asia and the Pacific (UA&P)

This is higher than the original forecast of 5 percent to 6 percent, according to the report "Market Call."

Quarterly, the gross domestic product (GDP) may expand by 6.5 percent to 7 percent in the June-to-September period, outperforming the first quarter output growth of 6.4 percent.

A depreciation of peso against dollar would likely boost spending among OFW dependents, the report said, adding that this would support additional government spending.

"For the second half of the year, while the external sector may be weaker due to the lingering Eurozone recession, domestic demand should be stronger since the national government will likely incur an additional P180-billion deficit for the semester, while a slight peso depreciation will spur OFW-dependent spending," FMIC and UA&P said.

The first half budget deficit reached P34.482 billion – still below the P109.341-billion ceiling on program.

Also helping boost domestic demand is the 25-basis-point policy rate cut imposed by the Bangko Sentral ng Pilipinas that brought overnight lending and borrowing rates to record lows.

FMIC and UA&P see the agriculture sector expanding 2.5 percent in the second quarter from 1 percent in the first quarter, enhanced by the expansion in the manufacturing and construction sectors.

On the fiscal side, the Market Call noted slow government spending is less of an issue now compared to last year when the economy grew by only 3.7 percent from 7.6 percent in 2010.

The budget deficit ceiling is P279 billion or 2.6 percent of GDP for 2012, from the actual P197-billion shortfall recorded last year.

GMA News

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WAR with the Philippines is Cambodia’s ASEAN way

The abrupt recall last month of Cambodian Ambassador Hos Sereythonh from Manila a year short of his three-year posting left shock waves in the capitals of 10 Southeast Asian nations and sparked speculation on whether the Philippines and tiny Cambodia had plunged into a serious diplomatic crisis, something like being on the brink of war.

 Under diplomatic practice, envoys are relieved after an outrageous breach of protocol of civilized states, requiring urgent steps to avert armed conflict.

 That was not the case when Foreign Secretary Albert del Rosario made a surprise announcement to the press last week that the Cambodian foreign ministry had sent him a letter announcing that Sereythonh had been recalled and would not be able to complete his term that was supposed to end on July 27, 2013. The letter did not give any explanation for the relief.

 Last month, Del Rosario summoned Sereythonh to explain comments to a Manila newspaper blaming the Philippines and Vietnam for trying to "sabotage and hijack" the 45th Asean (Association of Southeast Asian Nations) ministerial conference, hosted by Cambodia in Phnom Penh.

 The ambassador, who accused the Philippine and Vietnam of engaging in "dirty tricks," did not show up, claiming illness.

 A Philippine official has claimed that during the Asean meeting, the Cambodian chair rejected at least five drafts of a joint statement that would have addressed the maritime row with China over the West Philippine Sea (South China Sea). China claims blanket sovereignty over all of the sea, but Taiwan and Asean members the Philippines, Vietnam, Malaysia and Brunei have overlapping claims on the area.

The Philippine-Cambodian row flared when Asean failed to issue a joint statement at the Phnom Penh meeting after Cambodia, perceived as an ally of China, blocked moves by the Philippines to mention the standoff between the Philippines and China at Scarborough Shoal (which the Philippines calls Panatag Shoal) in the proposed communiqué. Vietnam also wanted to include China's incursions into its waters in the proposed communiqué.

 Complicating matters, Foreign Undersecretary Erlinda Basilio issued a public statement saying that Asean failed to come up with a joint statement because of Cambodia's firm position not to reflect the recent developments in the West Philippine Sea, despite the view of the majority in the Asean meeting that these events impinge on the overall security of the region. By implication, this majority view seems to hold that Asean swept these developments under the carpet because China objected to this step.

 'Dirty tricks Accusation'

 In response, the Cambodian ambassador sent a letter to Philippine Star, accusing the Philippines and Vietnam of "sabotaging" the Asean's official statement that shut its eyes to the aggressive Chinese incursions in the disputed areas, and engaging in "dirty tricks"—a pretty strong language to use in diplomacy.

 It is not clear whether in summoning the ambassador to explain his letter to the newspaper the Department of Foreign Affairs considered the envoy persona non grata to justify his relief. What seems clear is that the Asean meeting ended fractured over the issue on the standoff at Scarborough Shoal and the Spratly Islands.

 In her paper on the communiqué, Undersecretary Basilio said the Philippines sought the consensus of the 10-nation Asean on the several drafts and revisions to make the draft acceptable. But, she pointed, the Cambodian chair "consistently rejected any proposed text that mentioned Scarborough Shoal."

 Singapore's Foreign Minister K. Shanmugan summed up the fiasco, saying it was a blow to Asean solidarity that "it was unable to deal with something that is happening in our neighborhood and not say anything about it."

 "There is no point in papering over it. There was a consensus of the majority of countries. The role of the chair is to forge a complete consensus amongst all. But that did not happen," Shanmugan said.

 In the Phnom Penh meeting, the most contentious issue boiled down to the standoff at Scarborough Shoal where fleets of Chinese fishing vessels, escorted by armed maritime ships, have swarmed the lagoons to trawl marine life and resources, while puny Philippine Coast Guard vessels stood helplessly, unable to stop the pillage of Philippine marine resources.

 Armed conflict

 During the past few months of the expansive incursions of Chinese expeditions, the encounters between the Chinese predators and Philippine and Vietnamese maritime authorities have increased correspondingly.

 The Philippines and Vietnam have accordingly borne the brunt of these creeping penetrations of what they claim are their sovereign territories by Chinese maritime expeditions. Among the rival claimants on territories in the West Philippine Sea, they are the only two that have stood up to the Chinese expansive penetrations and blandishments.

 The recent encounters have caused the think tank International Crisis Group (ICG) to warn that tensions over competing claims in the West Philippine Sea could escalate into conflict, with arms buildup among rival nations raising the temperature.

 Prospects of solving the disputes "seem disturbing" after a recent failure by Asean to hammer out a "code of conduct" that would govern actions in the sea.

 "Without a consensus on a resolution mechanism, tensions can easily spill over into armed conflict," the ICG said. "As long as ASEAN fails to produce a cohesive (West Philippine Sea) policy, a binding set of rules on handling the dispute claims cannot be enforced."

Inquirer 

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People's trust in Bad China Plunges to its lowest -36 and UP to Good USA

People' s trust to China has continue declining to its lowest phase of -36  in the wake of the Scarborough Shoal standoff in the West Philippines Sea (South China Sea), the Social Weather Stations (SWS) said in a new report as posted in the Business World Online.

A May 24-27 2012, survey found 55% of the respondents saying they had "little trust" in China, versus the 19% who said they had "much trust", for a "bad" net rating of -36.

The last time this level was hit was in June 1995 during the Mischief Reef incident, one of a number of spats in the country's long-running row with China over conflicting South China Sea claims.

A few months earlier, in March, China's net trust rating among Filipinos was at a "moderate" +10 (39% "much trust", 29% "little trust").

Nearly half, or 48%, of the respondents also claimed to be paying close attention to the row, which started early April when eight Chinese fishing boats were caught carrying fish, corals and other endangered species in the disputed area.

The SWS said China's net trust rating among Filipinos has been mostly negative -- ranging from a "neutral" -1 to the record -36 low -- since 1994. It was positive in only seven out of 24 quarters, peaking at a "moderate" +17 in June 2010.

Significant drops were recorded in June 1999 -- a "bad" -32 -- during another Mischief Reef incident and in December 2008 -- a "bad" -33 -- following news of melamine-contaminated milk from China.

The SWS said the Scarborough Shoal issue was the fourth most followed by respondents during the May poll period, behind the impeachment trial of then Supreme Court Chief Justice Renato C. Corona (54%), the Maguindanao massacre trial (50%) and the Supreme Court decision to distribute Hacienda Luisita to farmers (50%).

It said China's net trust rating was particularly low among those who were closely monitoring the dispute, at a "very bad" -52, compared to the "bad" -36, -34 and -34, respectively, among those who were following the news "somewhat closely," "just a little" and "not at all."

Representatives of the Chinese embassy in the Philippines could not be reached for comment.

Raul S. Hernandez, Foreign Affairs department spokesman, declined to comment on the SWS survey but said the government was committed to "pushing for a peaceful, diplomatic solution to issues on West Philippine Sea in accordance to international laws, particularly UNCLOS (UN Convention on the Law of the Sea)."

China was not the only Asian country distrusted by Filipinos, with the SWS saying North Korea also had a "bad" net rating of -34 (53% "little trust" and 19% "much trust").

High public trust, meanwhile, is enjoyed by the United States -- which has taken the side of the Philippines, Australia and Japan, at a "very good" +62, "good" +39 and "good" +32, respectively, in the latest poll.

The SWS considers net trust ratings of +70 and above as "excellent"; +50 to +69, "very good"; +30 to +49, "good"; +10 to +29, "moderate"; +9 to -9, "neutral"; -10 to -29, "poor"; -30 to -49, "bad"; -50 to -69, "very bad"; and -70 and below, "execrable."

The May 24-27 survey involved face-to-face interviews of 1,200 adults nationwide. The error margins used were ±3% for national and ±6% for area percentages.

BusinessWorld Online

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