OFW Filipino Heroes

Wednesday, November 7, 2012

Huffington Post: Benigno Aquino; Transformational or Transitional Leadership?

How could you describe the leadership of the world famous Philippine leader President Benigno Simeon Cojuangco Aquino III?

  • (A) Transformational Leadership?
  • (B) Transitional Leadership?
  • (C) None of the above?
  • (D) No Comment

This Article is written by Richard Javad Heydarian, and published in Huffington Post. The author described Mr. Aquino as more of a transitional rather than a transformational leader. The world want to know your point of view to Mr. Aquino. 

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Without a doubt, the Philippines is finally on the move -- and well on its way to regain its long-sought place of pride among Asian nations. After decades of stagnation, political uncertainties, and anemic economic performance, the country has emerged from the ashes of despair, confidently riding on a wave of cautious optimism.

Today, the country has one of the world's fastest growing economies, one of Asia's most bullish stock markets, a constantly improving credit rating, a booming real estate, and a strong currency that is helping an increasingly mobile and confident consumer class.

Despite its reputation as Asia's 'sickman,' or even a regional basket case as others have suggested, the Philippines hasn't been a stranger to success -- definitely far from being a lifetime laggard. Back in the '50s, the country was one of the world's fastest growing economies, relishing Asia's second highest per capita income after Japan. Manila's soft power lied in its status as a regional hub of fashion, commerce, travel, and culture. It was a beacon of democratic capitalism in the whole Asia -- reflecting the relatively benign colonial legacy of America.

However, over succeeding decades, the Philippines found itself steadily falling behind its regional peers. First came the Newly Industrialized Countries (NICs) of South Korea, Taiwan, and Singapore. Then, the Philippines watched with much envy the likes of Malaysia and Thailand overtaking it. By the early 21st century, Vietnam and Indonesia -- to Manila's horror -- began outdoing their Filipino counterpart. With Myanmar opening up its economy, some commentators have sardonically suggested a new competition for the Philippines.

There is nothing romantic about a former high school jockey watching all his classmates cruising past him.

So, why has the Philippines -- a former regional leader -- fallen behind its Asian peers? Why does it suffer from one of the highest rates of underemployment, malnutrition, inequality, and poverty in Asia? Well, basically because of a lethal cocktail of bad policies, cultural complacency, and weak (if not bad) leadership.

The issue of culture is a tricky one. In his award-winning essay, 'A Damaged Culture,' veteran journalist James Fallows suggested that a culture of dependence, complacency, corruption and ineptitude lies behind Philippines' dramatic decline in the latter half of the 21st century. Yet, the problem with 'culture arguments' is that they have a static analytic approach, failing to understand the dynamic and mutually constitutive interaction between culture, on one hand, and the broader political economy, on the other.

Modern history is replete with examples of how so-called 'backward societies' -- described as lazy and savage by status quo powers -- have been transformed into one of the world's most innovative and progressive nations. After all, at the beginning of the 19th century, who would have thought that the feudal-agricultural Japan would rise -- thanks to the 'Meiji Restoration' -- as a global industrial power? Or, at the beginning of the 20th century, who would have imagined that relatively isolated Scandinavian states such as Sweden and Finland or resource-poor Northeast Asian countries such as Singapore, South Korea, and Taiwan would leapfrog to the top of global indices, in terms of infrastructure, innovation, science, and technology? This is where policy and leadership come into the picture.

In Southeast Asia alone, if there is one thing that the likes of Malaysia's Mahathir or Singapore's Lee Kwan Yu could teach the Philippines, it is the fact that culture is malleable; it can change and be shaped along a particular vision -- thanks to information technology, universal education, and varying forms of state indoctrination and/or mainstreaming.

The very concept of 'nation-state' is in itself a construct, so when we say 'national culture,' we are also describing a specific construct. Thus, I find it a bit 'orientalist' to ascribe an essential cultural trait to a particular country, especially one as globalized and cosmopolitan as the Philippines.

In short, the maladies of Philippine society could be traced back to decades of bad leadership and wrong polices, which have failed to create the conditions for sustainable economic growth and political stability along democratic lines. For decades, a combination of corrupt leadership and technocratic incompetence has given birth to crony capitalism, oligarchic politics, and concentrated economic growth.

This is where the second question comes in: So, why is the Philippines re-emerging? Well, largely because of the new leadership of President Benigno Aquino III. When one starts from a relatively low base -- high rates of poverty, corruption, cronyism and political indifference -- it simply takes a clean, credible, and sincere leader such as Aquino himself to a) restore a measure of trust in state institutions and b) calm nervous markets.

Banking on his larger-than-life pedigree, Aquino's main focus has been to rid his country of corruption, especially in the upper echelons of the state. Staying true to his campaign promises, he has successfully pushed for the impeachment of leading magistrates (tied to the previous administration), who have been accused of public misconduct and corruption -- paving the way for the execution of Aquino's ultimate plan: to put former President Gloria Arroyo in jail for good.

Since President's Aquino's economic policies are not significantly different from his predecessors, the current economic resurgence is largely a reflection of growing market confidence in the leadership's ability to maintain political stability, shun draconian regulatory reforms, and provide a measure of macroeconomic predictability, especially in terms of interest rates and inflation.

Even rebel groups such as the Moro Islamic Liberation Front (MILF) have been encouraged by Aquino's sincere leadership, precipitating a historic 'framework peace agreement' that was signed between the rebels and the Philippine government -- potentially ending decades of conflict in southern Philippines. Overall, the Philippines' resurgence is not so much about Aquino's technical expertise as it is the good will expressed in his actions.

However, Aquino is yet to propose an economic agenda that will reverse Philippines' highly unequal, unsustainable, and concentrated patterns of growth. He has also been criticized for his lack of support for important transparency-boosting measures such as the Freedom of Information (FOI) bill.

This is why Aquino is perhaps more of a transitional rather than a transformational leader.

Written by Richard Javad Heydarian, Published in Huffington Post

Huffington post 

Philippines’ Investments in economic zones rise 10% to ₱138 Billion — PEZA

Commercial hub of Embarcadero, the ₱1.8-billion IT Park Promenade which will be the very first IT ecozone in the Bicol region

The Philippine Economic Zone Authority reports a 10.30-percent jump in investment commitments in the country's economic zones for the first 10 months of 2012 to 137.992 billion.

The total comes from 480 projects, 6 percent fewer than last year's 510, but the amount is 12.988 billion more than last year's 125.104 billion.

As of September, actual exports went down 6 percent year-on-year to $29.785 billion from $31.624 billion, as the country continues to experience the slowdown in global demand for electronics products in particular.

However, the data showed that actual direct employment increased 8 percent to 884,510 from 822,147 a year ago.

The agency said earlier that despite the decline in electronic shipments, investment commitments still grew, with other sectors remaining bullish about better export numbers in the coming months.

However, the data showed that actual direct employment increased 8 percent to 884,510 from 822,147 a year ago.

The agency said earlier that despite the decline in electronic shipments, investment commitments still grew, with other sectors remaining bullish about better export numbers in the coming months.

An official said PEZA remains optimistic of meeting its target this year of a 12-percent growth for all investments, exports and employments amounting to 323 billion.

PEZA has been aggressively conducting marketing and investment missions overseas, just like what its counterpart Board of Investments has been doing for the past months.

GMA News

President Obama wins 2nd term: 'The best is yet to come' – US-Philippines as usual

U.S. President Barack Obama delivered a blistering victory speech to a cheering crowd of supporters in Chicago early Wednesday morning after winning another four years in the White House.

After walking on stage with his family to Stevie Wonder's "Signed, Sealed, Delivered," Obama waited for the crowd to finish chanting "four more years," before promising them that "the best is yet to come."

After trailing in both Electoral College votes and the popular vote to Republican challenger Mitt Romney, Obama surged ahead with victories in key battleground states of Ohio and Virginia to win the election.

He told supporters that, "Tonight, more than 200 years after a former colony won the right to determine its own destiny, the task of perfecting our union moves forward, it moves forward because of you."

Obama said the election result reflects "the belief that while each of us will pursue our own individual dreams, we are an American family and we rise and fall together as one nation and as one people."

Obama thanked campaign workers and voters, and praised the nation's teachers, soldiers, workers, and vowed not to squander the opportunity given to him to continue his work for a second term.

"I believe we can build on the progress we've made and continue to fight for new jobs and new opportunities and new security for the middle class," Obama said.

"I believe we can keep the promise of our founding, the idea that if you're willing to work hard, it doesn't matter who you are or where you come from or what you look like or where you love. It doesn't matter whether you're black or white or Hispanic or Asian or Native American or young or old or rich or poor, abled, disabled, gay or straight. You can make it here in America if you're willing to try."

Obama also touched on the divisiveness of the campaign, saying Americans "are not as divided as our politics suggests.

"We are not as cynical as the pundits believe. We are greater than the sum of our individual ambitions and we remain more than a collection of red states and blue states. We are, and forever will be, the United States of America."

The president thanked his wife, Michelle, his running mate, Vice President Joe Biden, and also congratulated his opponent on "a hard-fought campaign."

Obama pulled ahead late after Romney was ahead in Electoral College votes for much of the night. Romney also had a slight edge in the popular vote, but even that lead eventually slipped away and Obama led by nearly a million votes.

Hours after polls closed, Virginia was finally declared for Obama early Wednesday, which gave Obama 303 electoral votes to Romney's 206.

In the U.S., the popular vote does not decide who wins the election. Rather, the winner of each state gets that state's Electoral College votes, and 270 are needed to win.

Romney emerged shortly before 1 a.m. Wednesday to address his supporters at his campaign's headquarters in Boston.

"I have just called President Obama to congratulate him on his victory," Romney said.

"His supporters and his campaign also deserve congratulations. I wish all of them well."

Romney also thanked his wife, Ann, and his running mate, Paul Ryan.

"I believe in America. I believe in the people of America," Romney said to cheers and applause from the crowd.

"Paul and I have left everything on the field...I so wish that I had been able to fulfill your hopes and lead the country in a different direction, but the nation chose another leader." 

Obama's headquarters in Chicago erupted in wild cheers after he was declared the winner shortly before 11:30 p.m. ET Tuesday.

"This happened because of you," Obama tweeted. "Thank you."

Prime Minister Stephen Harper issued a statement early Wednesday to "congratulate President Barack Obama's re-election as President of the United States of America."

U.S. President Barack Obama, first lady Michelle Obama, Vice President Joe Biden and Jill Biden wave at his election night party in Chicago, Wednesday, Nov. 7, 2012. (AP / Chris Carlson)

Harper said he is looking forward to working with Obama over the next four years on the economy, jobs and border security issues.

Obama will once again face the challenge of leading the country with a divided Congress, as Democrats retained control of the Senate and Republicans maintained their hold over the House of Representatives.

Indeed, Obama will be tasked with turning around a sluggish economy and reining in a national debt that tops $16 trillion and a budget deficit that has reached $1 trillion.

When it comes to the issue of most concern to voters, a national exit poll found that 59 per cent of voters believe the economy is the top issue facing the nation.

Tuesday's exit poll of more than 19,000 voters conducted by Edison Research for The Associated Press and the major U.S. networks also found that:

Just under four in 10 voters said unemployment was the biggest economic problem they are facing.

Four in 10 voters said the economy is improving, while 3 in 10 said it is getting worse.

As voters headed to the polls earlier Tuesday, long lines at polling stations and concerns that some residents affected by Hurricane Sandy would be left disenfranchised raised the spectre of a protracted court battle like the one that marred the 2000 vote.

More than 45 million voters had cast ballots before Election Day in early voting. However, voters in several states complained of long lineups, while others encountered technical glitches, including one voting machine in Pennsylvania that indicated a vote had been cast for Romney when the Obama button was pressed.

In other precincts, voters complained of robocalls giving them false voting information.

Romney Took Early Lead

As polls began closing at the dinner hour on the East Coast, Romney took a handful of states, including Kentucky and its eight electoral votes, followed by West Virginia, Indiana and South Carolina.

Obama was quickly declared the winner in Vermont, taking its three electoral votes, and sat there until nine states came through for him, including his home state of Illinois and its 20 electoral votes.

Unlike Obama, Romney lost his home state, with Massachusetts' 11 electoral votes going to the president.

Romney had been ahead for much of the evening, bolstered by wins in Texas, Arizona and North Carolina, the latter being the only battleground state the GOP candidate ended up winning.

However, results posted shortly before 10 p.m. ET gave Obama Pennsylvania and its 20 electoral votes, shortly after he won Michigan and its 16 electoral votes, as well as New York and its 29 votes and New Jersey's 14 votes. Romney took Texas as expected and its 38 electoral votes.

Romney attended a last-minute rally in Pennsylvania Tuesday afternoon in what turned out to be a fruitless bid to appeal to undecided voters in the state.

But hours after polls closed, a victor had yet to be declared in major battleground states such as Ohio, Virginia and Florida, which left the outcome unclear for some time. Of the big three battleground states, Florida had yet to be called early Wednesday.

Obama surged ahead with a victory in Colorado and Wisconsin, as well as California, Washington and Minnesota.

US and the Philippines as usual

America's pivot to Asia will continue as earlier planned by Obama Administration which means Americas' Arc protection to the Philippines with West Philippine (South China) Sea disputes as usual or going more and more better.

Several reasons why the selection of the American president should matter internationally, particularly in the Philippines:

Direction of foreign policy. Obama wins the election; the US will continue to view the Philippines as a "strategic ally" in the Pacific. The US ambassador to the country said. What may change though is how bellicose the US becomes. And that should matter to people around the world.

Obama has tried to dial back America's costly wars. He ended the Iraq war, one of the country's longest wars to date, and has been firm about the 2014 deadline for withdrawing troops from Afghanistan.

Outsourcing. The Fate for Outsourcing is in good hand? With America desperate to create more jobs at home, both men have tried to sound tough on outsourcing, the process of sending jobs abroad to countries with lower wages.

From the Philippine perspective, a shift in the policy of a country that supplies the majority of local outsourcing work would be worrisome. Outsourcing makes up about 5% of current economic growth and in 5 years' time the industry is projected to bring in more money for the country than the current economic lifeline of remittances.

Economy

Economic policy could be as ease. For one thing over the past year the Philippine economy has proven that it can power ahead largely sheltered from the economic slowdowns in Europe and the US. For another, economic experts are predicting that the American economy is due to expand regardless of who is elected.

A Bloomberg Businessweek article by Rich Miller and Steve Matthews pointed out that no matter who wins, the economy is "set for better times" since consumers are spending more, home prices are rising and banks are lending more.

Meanwhile, the Economist's "admittedly unscientific poll" of 312 researchers from the National Bureau of Economic Research and 51 forecasters at the National Association for Business Economics favored Obama's overall economic plan

In the end, everything is relative. And that's exactly the point. Since everything is a matter of where you stand, it is important to take your stand and vote. -

CTV News, AFP, Rappler 

Tuesday, November 6, 2012

Philippine Reserves another peak high- $82.1 Billion USD; Smoke, liquor tax up +₱32

Gross int'l reserves hit record high

The Philippines' gross international reserves (GIR) reached a new high of $82.093 billion last month, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.

The end-October level marked a "modest increase" from $82.028 billion posted in the first nine months, BSP Deputy Governor Juan de Zuñiga said in a statement.

The latest GIR, which serves as buffer in times of external shocks, is well above BSP's 2012 forecast of $77.5-$78 billion, breached as early as July. BSP has said revised forecasts will be revealed this month.

"The modest increase in the end-October 2012 GIR level was due mainly to inflows from the foreign exchange operations and investment income of the BSP," De Zuñiga said.

"These inflows were offset, however, by foreign exchange outflows for the payments by the national government of its maturing foreign exchange obligations, as well as revaluation losses on the BSP's gold holdings resulting from the decrease in the price of gold in the international market," he explained.

Reserves are now good to cover 11.9 months worth of imports of good and payments of services and income, De Zuñiga said. They are also equivalent to 11.7 times the country's short-term external debt based on original maturity and 6.6 times based on residual maturity.

Bill eyes P45B from 'sin' tax

A SENATE committee yesterday unveiled a substitute "sin" tax bill calling for higher tax rates on cigarettes than those proposed by the House, with the revenue take expected to be larger at 40-45 billion.

           "Our version adopts that of the Lower House with added features... and amendments," Senate ways and means Acting Chairman Senator Franklin M. Drilon said in his sponsorship speech yesterday.

The earlier version sponsored last month by Senator Ralph G. Recto -- who quit as ways and means chairman after receiving criticism for supposedly watering down the bill -- was expected to generate only 14 billion.

House Bill (HB) No. 5727 scrapped the unitary rate proposed by the Finance department and set two tiers for tobacco and three for alcohol products, with standard increases every two years after a transition period beginning 2015. HB 5727 is expected to generate 30 billion in incremental revenues.

The National Internal Revenue Code has a four-tier classification for cigarettes and three for fermented liquor and distilled spirits.

Mr. Drilon said the scheme will raise 40-45 billion in incremental revenues on the first year -- 26.87 billion from tobacco products, 7.17 billion from distilled spirits, and 12.5 billion from fermented liquor.

The new bill states that "on Jan. 1, 2016, all cigarettes will have a unitary tax rate of 32.00."

Before that, rates for cigarettes packed by hand will go up to 12.00 per pack on Jan. 1, 2013, 22.00 on Jan. 1, 2014, and 28.00 on Jan. 1, 2015, from the current 7.56.

The House version proposes only two tiers beginning January 2013, with an 8% increase every two years after the transition period, or from 2015 to 2025.

For cigarettes packed by machine, Mr. Recto proposed three tiers for the period March 2013 to 2019, with an 8% increment every two years. The tiers were supposed to be reduced to two by 2020 with an adjustment of 4% every two years thereafter.

"We also wish to introduce amendments to the excise tax provisions governing distilled spirits so that our laws would conform to our WTO (World Trade Organization) obligations. Under our version, we propose a mixed rate of P30 plus 30% of the net retail price (NRP)," Mr. Drilon said.

For distilled spirits, the House version proposed three tiers with specific rates while the substitute bill is a combination of specific and ad valorem rates. The Recto version maintained four tiers, with a two-step increase in rates based on proof per liter on March 1, 2013 and on Feb. 28, 2015.

"With respect to fermented liquor or beer, we shall be introducing a two-tier system with the products whose NRP do not exceed 22 taxed at 20. For those whose NRP exceed 22, the same shall be taxed at 25," Mr. Drilon said.

The House version proposed the same number of tiers but the NRP was set at 50.60 and below and 50.60 and above. Mr. Recto proposed two tiers during the transition period beginning March 2013, with an 8% increase every two years from 2015 to 2019 and 4% beginning March 1, 2020.

President Benigno S. C. Aquino III was amenable to lowering the take to P40 billion from the original Palace proposal of P60 billion.

"At 40 (billion), we're happy. At 60 (billion), we'll be happier. For 40 (billion) is already, I think, sufficient to meet the objectives both in terms of gaining more resources, managing the deficit but most importantly addressing the health issues," he said at the sidelines of the Asia-Europe meeting in Laos.

Philstar, BusinessWorld Online

Philippine Air-force approved! $1.8 billion USD Air Assets for delivery 2013

T-50-KAI

Philippines Protecting West Philippines (South China) Sea Interests

As published by Aviation week (http://is.gd/gdyjvL), China's increased assertiveness over territorial claims to the South China Sea is leading the Philippines to embark on the biggest military procurement program it has ever undertaken.

Both houses of the Philippine congress have approved the budget and acquisition process for the acquisition of

  • 12 -Jet trainer/surface-attack aircraft;
  • 6 -Close-air support aircraft;
  • 2 -Long-range maritime patrol aircraft;
  • 2 -Light-lift and three medium-lift fixed-wing military transports;
  • 3 -Ground-based radars
  • 10 - Attack helicopters.

All will be assigned to the Philippine air force, says one of its officials.

The country's assistant secretary of defense in charge of acquisitions, installations and logistics, Patrick Velez, says all these procurements are high-priority and that the defense department hopes to begin taking deliveries next year (2013). Congress has approved these specific acquisitions under the first five years (2012-17) of a 15-year military modernization bill. The budget allocated for 2012-17 is at least 75 billion pesos ($1.8 billion).

The Korea Aerospace Industries T-50 is the front-runner to meet the requirement for the jet trainer/surface attack aircraft, Velez says. No contract has been signed yet because the T-50 acquisition must be approved by the Philippine government procurement policy board. He also says the T-50 has yet to achieve certification for medium-range operations—since it was initially developed as a jet trainer—and if it fails to achieve that, then "we may need to look at another platform."

Velez says that for the close-air-support requirement, "at this stage, the Number One in the rankings is the Embraer EMB-314 Super Tucano." Second is the Hawker Beechcraft T-6 Texan II, he says, followed by the Korea Aerospace Industries KT-1 and Aero Vodochody L-159.

In terms of maritime patrol, Philippine air force officials say the Indonesian Aerospace CN235 is a strong contender. It uses the Airbus Military Fully Integrated Tactical System, a series of displays and computers for processing the data and information from the aircraft's sensors. The main issue with this competition is the sensor suite, according to Velez. Besides the CN235, it is understood the other main contender is Raytheon, but it is unclear which platform it is proposing.

Indonesian Aerospace is the most likely candidate to meet the light, fixed-wing military transport aircraft requirement with its C212, Velez says. As for the medium-lift requirement, "it is a close competition between the Alenia C-27J and C295, although we already have approval from the president for the C-27J," he says. Both congress and the president must approve military procurements.

Aviation Week

PNP & New York Police Department (NYPD) Open new office in Camp Crame Manila

NYPD will open a new office in Camp Crame Manila. NPA Said: Philippine police, NYPD sign agreement that will lead to more human rights abuses

The Communist Party of the Philippines (CPP) denounced the memorandum of agreement between the Philippine National Police (PNP) and the New York Police Department (NYPD) signed Oct. 31, as "part of heightening U.S. government intervention in the Philippines."

The Communist Party of the Philippines further said that "the agreement with the U.S. NYPD, one of the most notorious fascist police organizations in the world, can only lead to worse human rights abuses by police operatives under the Aquino regime."

The memorandum of agreement was signed by PNP Chief Nicanor Bartolome and the head of the NYPD's Singapore satellite office, Lieutenant Gustavo Gutierrez. It purportedly serves to advance "cooperation in addressing transnational crimes" and "capacity building and training" between the PNP and the NYPD. According to information earlier released by the PNP, the NYPD will open a satellite office inside the Philippine National Police's general headquarters in Camp Crame.

"The PNP-NYPD memorandum of agreement will only serve as an additional legal cover for the U.S. government's heightening intervention in the Philippines. It will lead to more extensive and intrusive intelligence and other types of operations by U.S. police and military agents in the country," said the Communist Party of the Philippines.

"Even before the memorandum of agreement, U.S. police and federal agents have already been operating in the Philippines clandestinely with the cooperation of the local police." The CPP pointed out that political prisoners detained at the PNP Custodial Center in Camp Crame were able to uncover the presence of agents of the U.S. Federal Bureau of Investigation (FBI) maintaining their own offices within the camp and in a condominium unit nearby.

Several Indonesian nationals accused of being 'terrorists' and arrested by U.S. agents in Indonesia and Malaysia have been renditioned by the U.S. government and given false Filipino identities at the behest of the FBI to justify their detention at Camp Crame. This is in violation of Philippine national sovereignty and the Indonesian detainees' human rights, added the CPP.

"The NYPD is notorious for being a fascist tool of suppression against the American people," said the CPP. "Recently, the NYPD was employed in the suppression of protest actions at Zucotti Park near Wall Street by American workers, students and ordinary people against the pro-big monopoly policies of the American government," said the CPP.

"Following the pattern of its new partner, the PNP is bound to become even more brutal in dealing with protests, urban poor anti-demolition barricades and other mass actions," said the CPP.

Fight Back News

Monday, November 5, 2012

Philippines Inflation Rate Slows down to 3.1% In October 2012

The Philippines' rate of inflation continued to decrease in October from the previous month, indicating that the country's inflationary pressures are well contained, providing room for further monetary easing policy measures required to boost economic growth.

The rate of inflation fell to 3.1 percent in October compared to the same month last year, down from 3.6 percent in September, according to the data released Tuesday by the National Statistics Office. Core inflation, which excludes food and energy items, fell to 3.6 percent in October down from 3.8 percent in September.

The diminishing inflation should be good news because it can help the government invigorate growth without much concern about the rising prices. Inflation may no longer be the main concern of policymakers and the government may have more space to loosen the monetary policies and make supporting economic growth a priority.

This report comes after last month Bangko Sentral ng Pilipinas (BSP) cut its key policy rate by 25 basis points to an all-time low of 3.5 percent, citing benign outlook for inflation and worries over growth prospects. The cut was the fourth since the start of the year and takes total cumulative easing since the start of 2012 to 100bp.

"We believe inflationary pressures will remain weak. A combination of weaker growth in the Philippines and falling global commodity prices mean price pressures are likely to remain subdued in the coming months," Capital Economics said in a note.

The central bank has its next meeting in December, when investors expect the rates will be left unchanged as the BSP takes time to monitor the impact of last month's cut. However, if global growth remains as weak as expected over the next year and the crisis in the euro zone continues to intensify, further loosening is likely in 2013.

The continuing debt crisis in Europe and the tentative U.S. recovery have hurt the demand for exports, the key driver of the Philippines' economy. Policymakers understand that export- and investment-driven economic model was no longer sustainable for Philippines and reforms are needed to prevent a sudden slump in growth.

Investors expect that instead of fighting inflation, the most urgent priority for the Philippines appears to be the pro-growth policy stance against the current uncertain global situation.

International Business Times (USA)

Keppel wins ₱5.4 Billion 2 Services Contracts in the Philippines, the Netherlands

Keppel Offshore and Marine said Tuesday that its overseas yards in the Philippines and the Netherlands have secured contracts worth $131 million USD (5,405,059,738.00 Billion) in total.

Keppel Subic Shipyard will build a depletion compression platform (DCP) for Shell Philippines Exploration that will recover natural gas from the Malampaya gas field near Palawan Island in the Philippines.

When completed, the DCP will be deployed next to an existing shallow water production platform. The DCP is designed to maintain the current availability and deliverability of natural gas from the Malampaya field through regulating the gas export pressure and flow rates.

Keppel Subic Shipyard will be responsible for the fabrication of the entire DCP, integration of the topside modules as well as the fabrication of the link bridge connecting the DCP to the shallow water platform. The DCP comprises gas compression facilities mounted on a barge deck, supported by four tubular legs on base footings.

The development of the DCP forms Phase 3 of the Malampaya Deep Water Gas-to-Power project, which is jointly undertaken by government agencies in the Philippines and private companies. The Philippine Department of Energy leads in this project, and is supported by a consortium comprising the Malampaya project operator, SPEX, and its joint venture partners, Chevron Malampaya LLC and the Philippine National Oil Company-Exploration Corporation (PNOC-EC).

Separately, Keppel Verolme in the Netherlands will work on the maintenance and repair of a deepwater construction vessel, Balder, for repeat customer Heerema Marine Contractors and deliver Balder in Q1 2013.

The yard's work scope for this project includes the painting of the hull, bracings and cranes. It will also undertake steel renewals, as well as the maintenance and repairs to the tanks, including piping and conservation works.

These two project wins follows closely from Keppel's term sheet agreement inked with Norway's Golar LNG on Nov 5. The agreement – said to be worth $600 million by local media – sees Keppel working on the conversion of up to three liquefied natural gas (LNG) vessels into Floating LNG (FLNG) vessels.

Keppel Offshore & Marine (Keppel O&M) – the offshore and marine division of Keppel Corp. – has to-date won $7.2 billion (SDG 8.8 billion) of new orders this year, taking its book order to $10.7 billion (SDG 13.1 billion), with deliveries stretching up to 2019.

Rigzone 

Banana Industry of the Philippines - growers to set up industry map

1st Mindanao Banana Congress

Mindanao banana growers are crafting an industry roadmap that would direct the development and strategy to fully maximize the economic potential of their sector, which is one of the country's biggest agricultural exports.

At least 500 banana industry stakeholders from all over Mindanao are converging for the first-ever Mindanao Banana Congress on November 7 and 8 spearheaded by the Philippine Exporters Confederation Inc. Davao Chapter at the SMX Convention Center, SM Lanang Premier in Davao City.

The stakeholders are composed of growers, farmers, cooperatives, suppliers of production inputs, traders, exporters, logistics players, industry associations, agrarian reform communities, research institutions, academe, other support groups and participants from government agencies and local government units (LGUs).

During the two-day Mindanao Banana Congress, stakeholders are expected to have come up with major outcomes: formulation of the banana industry roadmap; improved access to government support programs; established supplier-buyer linkages; significant contribution of the banana industry on the hunger and malnutrition mitigation measures of the government; and industry growth and development.

Department of Trade and Industry (DTI) Regional Director Marizon S. Loreto said that as a partner of this endeavor, the agency is giving its full support to the first-ever Mindanao-wide banana conference.

"This is an event that shows how important convergence is between the government and private sector especially in achieving industry growth and development," she said.

The two-day forum will likewise tackle the various issues and concerns confronting the banana industry namely: plant diseases, phytosanitary standards protocol, good agricultural practices and product traceability.

Other topics include integrated management and control of major banana diseases. Discussion on the proposed Banana Research Center shall also be included. Side events include the Banana Business Café (Business Matching), the Banana Special Setting and the Banana Food Showcase, an exhibition of various banana recipes for commercialization.

Manila Bulletin

Philippines gets Norway, Switzerland & European Commission support on West Philippine Sea issue

The European countries of Norway, Switzerland, European Council and European Commission on Monday expressed support for Philippine President Benigno Aquino III's stand to resolve the longstanding territorial issues in the West Philippine Sea diplomatically and peacefully.

Presidential spokesperson Herminio Coloma Jr., who was with the President in Laos for the two-day 9th Asia-Europe Meeting, said that during the President's bilateral meetings with Norwegian Prime Minister Jens Stoltenberg, Swiss Confederation President Eveline Widmer-Schlumpf, European Council Herman Van Rompuy and European Commission President Jose Manuel Varroso, the four leaders supported the Philippines' position to resolve issues in the disputed area peacefully and in accordance with international laws.

"We noted the increased importance of maritime security in the West Philippine Sea and there was an agreement that it was a matter of international interest as a significant amount of trade passes by the West Philippine Sea," Coloma said.

"In particular, Switzerland and the EU and in part Norway indicated their firm support to our position that conflicts or disputes in that area are to be resolved peacefully and following international law and in particular there is firm support for an Asean-centric approach, which has always been the position of President Aquino considering four out of the 10 members states of Asean have specific stakes in the West Philippine Sea," he added.

"Therefore, the only logical approach to any conflict resolution will have to be multilateral and involving all stakeholders therein," he noted.

Coloma said Aquino underscored the importance of bilateral meetings as an opportunity for the Philippines to further enhance friendship and partnership with other countries.

"The President is in a very upbeat and optimistic mood. He is satisfied with the outcome of the bilateral meetings and he feels that this is an important opportunity for the country to enhance its friendship and partnership with the countries of both Europe and Asia," he said.

In the President's meeting with Stoltenberg, Coloma said the discussion centered on improving the working conditions of migrant Filipino workers, particularly in the healthcare sector.

"Norway confirmed its assurance for support in our efforts to land better jobs for Filipino migrant workers particularly in the healthcare sector in Norway and the easing or procedural improvements to create better opportunities for qualified Filipino workers," he said.

He added that Norway the European Commission and the European Council had pledged their support for the country's bid to retain our standing in the International Maritime Organization white list.

"This means that we will be complying with all the requirements of the standards for training and certification watch-keeping of seafarers (STCW 198 Convention)," he said.

The President also met with Swiss Confederation President Eveline Widmer-Schlumpf where he extended the Philippines thanks for its assistance in "heightening" and further developing our expertise in disaster risk reduction and management.

Aquino's last meeting, a trilateral meeting with European Council President Herman Von Rompuy and European Commission President Jose Manuel Barroso at 11 a.m., centered on improving maritime security within the West Philippine Sea to ensure the safety of goods and people traversing the highly travelled body of water.

Coloma said all meetings the President had "went very well" with all discussions on "increased opportunities and intensified cooperation."

He said the three nations were "enthusiastic" in congratulating the Philippines for finally achieving peace in Mindanao with the signing of the Bangsamoro Framework Agreement.

"We see this as a genuine opportunity for reaping peace dividends including increased investments into the Philippines and Mindanao in particular," Coloma said.

He added that in return, the Philippines expressed its support for the requests of Norway and Switzerland in its bid to become members of ASEM.

"And in reciprocity, we supported the requests of the various delegation with which we met, for Norway and Switzerland as they are joining the ASEM meetings and would like to become involved in the dialogues with Asean as future dialogue partners," Coloma said.

Sunstar

Philippines admits Norway, Switzerland Bangladesh to Join ASEM

Asians to help Europe rise again economically

Southeast and other Asian countries are expected to raise political issues, while European countries will drum up their need for economic development and investments in the debt-ridden region, as Asian and European leaders converge during at the Asian-European meeting (Asem) in Laos starting on Monday, sources and analysts told Gulf News.

"All these [efforts] seek to achieve one aim — to stir Asia and Europe towards a direction where we will progress and lead in the world economy," President Benigno Aquino said, as he also talked of seeking investments from European countries, protection of overseas Filipino workers (OFWs) in debt-ridden European countries, and political support from Europe over political woes due to overlapping claims in the South China Sea.

"It is but natural for countries to prioritise the plight of their people in the midst of an economic crisis. We should stand for the protection of the rights of thousands of OFWs in Europe. Our regions benefited from the diligence of our migrant workers," Aquino explained as he campaigned for the welfare of OFWs in many European countries.

There are more than 746,000 Filipinos in European countries. Twenty-five per cent of Filipino seafarers are in European-flagged vessels.

$2.1 billion out of $ 20.1 billion remittances came from OFWs in Europe last year, Central Bank said, adding that monies of the OFWs have been boosting domestic consumption in the Philippines.

Airing of Asia's political woes

At the same time, Aquino symbolically represented other Asian and Southeast Asian leaders who would want to raise their respective political issues at Asem, hoping for Europe's support, when he said, "The Asemwill gather views to craft a peaceful and fair agreement on the West Philippine Sea." He referred to overlapping disputes in the South China Sea.

China, Taiwan, and Vietnam claim the whole of the South China Sea based on historical rights. Brunei, Malaysia, and Philippines claim parts of the Spratly Archipelago in the South China Sea based on the provision of the United Nations Convention on the law of the Sea that countries have 200 nautical miles exclusive economic zones starting from their shores.

Japan and China, Asia's two economic drivers, have been recently engaged in the same overlapping claims in the South China Sea.

China's fate

Although China is seen as Asia and Asean's alleged antagonist because of its flexing of maritime muscle over overlapping claims in the South China Sea, many European countries see China as Asia's economic super star — which can extend investments and bail-out funds for Europe.

However, China's own economy has slowed down, maybe also due to EU's economic woes, observers said.

The hard reality is China must stimulate its own domestic growth, preventing it from touching its $3 trillion (Dh11.01 trillion) foreign exchange reserves for bailout funds for the EU.

Japan's economy, although still one of the world's strongest, has not been growing for the past ten years.

It is not known how many rich Asian countries will invest in Europe, or extend bail-out funds for Europe. For sure, it will be a big market for European products and a ripe region for bigger European investments on energy and natural resources.

New ASEM Member countries

More European countries join Asem Meanwhile, the Philippines will support the admission of Norway, Switzerland and Bangladesh into the Asem meeting, said a Philippine official.

This will increase Asem's membership to 51. It was established in 1996.

More European countries want accession to Asem, a sign of EU's need for Asia as a market and partner, said the same official who requested for anonymity.

Asem used to include 27 member states of the European Union (EU), the European Commission, nine other Asian countries, 10 member countries of the Association of Southeast Asian Nations (Asean), and the Asean Secretariat.

Moreover, Europe's star studded leaders such as Presidents Herman Van Rompuy of the European Council, Jose Manuel Barroso of the European Commission, Eveline Widmer-Schlumpf of Switzerland, and Francois Hollande of France; Prime Ministers Mario Monti of Italy, Jen Stoltenberg of Norway and Donald Tusk of Poland are expected to show a united front, that European countries are not bolting out of EU; that the euro will remain EU's monetary system.

Many Asians believe it is "pay-back time" for Europe which used to be critical of Asean's acceptance of Myanmar into the regional bloc because of an alleged bad human rights record of military generals who were responsible for the lengthy detention of democracy icon and Nobel laureate Aung San Suu Kyi and other political prisoners there.

Even Suu Kyi who has been released from prison has called on the West to lift economic sanctions on Myanmar.

The Asem meeting, held every two years, will symbolically serve as a platform for Asian and European leaders to face each other in a new world order — in which Asia, the new kid on the world's economic block, is a young and vibrant region with dynamic economic potential, analysts said.

Gulf News

Sunday, November 4, 2012

European leaders seek Asian support on debt crisis - ASEM 2012

Dozens of European and Asian leaders gathered in impoverished Laos on Monday for a major summit dominated by the eurozone debt crisis and growing territorial tensions in the region.

Top European officials including French President Francois Hollande and Italian Prime Minister Mario Monti were due to spearhead efforts to reassure Asia that the long-running eurozone crisis is finally coming under control.

The diplomatic offensive is seen as a sign of the growing importance that debt-laden Europe places on Asia's fast-growing economies, and its desire to counter increased US engagement in the region.

"There is a doubt in Asia about Europe's capacity to be a zone of stability and growth," Hollande told reporters aboard his flight to Laos.

He said the main aim of his first trip to Asia since taking office in May was to convince Asian leaders that "Europe is still an economic power".

European Union president Herman Van Rompuy is also among those converging on Laos, a landlocked country of just six million people on the verge of joining the World Trade Organization as it opens up its fast-growing economy.

But German Chancellor Angela Merkel -- who warned over the weekend that it would take more than five years to overcome the euro debt crisis -- will not attend, sending her foreign minister instead.

The Asia-Europe Meeting, held every two years, provides an opportunity to boost trade links between two regions that together account for about half of the global GDP.

Europe "should be looking to Asia for greater economic activity", Philippine Foreign Secretary Albert del Rosario told AFP in the Laos capital Vientiane ahead of the two days of talks.

"We are able to offer many areas of investment and trade for them. I think the opportunity is there for both sides," he added.

Europe's leaders may also lobby Chinese Premier Wen Jiabao to deploy some of Beijing's trove of about $3 trillion in foreign exchange reserves -- the largest in the world -- to invest in EU bailout funds.

Asian officials for their part are expected to press Europe to take swift action to calm a crisis that has battered the world economy and set back efforts to reduce global poverty.

Some Asian participants, including the Philippines, also want to put Asia's maritime sovereignty disputes on the table, but China is likely to resist.

China claims sovereignty over nearly all of the South China Sea, home to vital shipping lanes and believed to be rich in oil and gas deposits. The Philippines, Brunei, Malaysia, Vietnam and Taiwan also claim parts of the sea.

Separately, China, Japan and South Korea are embroiled in various territorial disputes that have stoked tensions in the region.

About 50 leaders or their representatives -- including Myanmar President Thein Sein -- are due to attend the gathering.

Outrage in the West over the former junta's human rights abuses -- including the longtime detention of Nobel laureate Aung San Suu Kyi and other political prisoners -- soured the atmosphere of past ASEM meetings.

But since a new reformist government took power last year, overseeing the release of political detainees and Suu Kyi's election to parliament, the West has begun rolling back sanctions and foreign firms are lining up to invest.

In recent months, deadly Buddhist-Muslim clashes in western Rakhine state have cast a shadow over the reform process.

The violence is also "an issue of concern" for Southeast Asia, Indonesian Foreign Minister Marty Natalegawa told AFP.

"But the fact that we can meet here in the heart of Southeast Asia almost without having Myanmar as an issue centre-stage as it has been in the past is a reflection of how far Myanmar has travelled in terms of its democratic transition," he added.

The Association of Southeast Asian Nations has been accused by the West in the past of turning a blind eye to human rights abuses by the generals who ran Myanmar for decades.

Security concerns including Iran, North Korea and Syria are also on the summit agenda, along with global terrorism, climate change and piracy.

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