Philippines faces bright prospects for 2013- Citi, HSBC raise growth forecasts for 2012

Aside from the PPP infrastructure agenda, the government is embarking on a ₱325-billion multi-year flood works and drainage program, a spending that is larger than the ₱233-billion cost of the PPP projects

The Philippines continued to generate positive economic forecasts from foreign institutions following a surprise third-quarter growth.

For this year, Citigroup raised its gross domestic product (GDP) growth forecast to 6.3 percent from 5 percent and to 6.1 percent from 5.3 percent in 2013, citing accelerated government spending and stable domestic demand.

British bank HSBC also revised its 2012 forecast to 6.2 percent from 5.7 percent although for 2013, the forecast was pared down to 4.9 percent from 5.7 percent given the continuing external headwinds.

Both Citi and HSBC expected the Bangko Sentral ng Pilipinas to keep its key interest rates on hold at 3.5 percent for the next policy rate-setting.

Minda Olonan, head of Philippine equity research at Citi, said the Philippines would benefit from more pronounced growth drivers such as excise tax reforms, accelerated bidding of key public-private partnership (PPP) projects and a credit-rating upgrade. She said public infrastructure could be the medium-term "game changer."

"Better fiscal health is enabling the government to be more proactive in stimulating the economy. Aside from the PPP infrastructure agenda, the government is embarking on a ₱325-billion multi-year flood works and drainage program, a spending that is larger than the ₱233-billion cost of the PPP projects. We believe this may lift the country's investment/GDP ratio that will eventually accelerate economic growth," she said in a Dec. 7 research.

Citi believes that banks, property, consumer, utilities and conglomerates will benefit from the investment spending dividend. The bank's top picks on a 12-month view are Ayala Land, SM Investments, Philippine Long Distance Telephone Co., Ayala Corp. and Puregold Price Club Inc.

HSBC economist Trinh Nguyen said a major force behind this year's growth has been the country's strong institutions, specially the BSP.

"Monetary officials have alleviated price pressures by successfully sterilizing capital inflows to contain money supply growth. Closely monitoring rice supply as well as bolstering food sufficiency policy has also helped," she said.

"A slowdown of inflation to 2.8 percent year on year in November in spite of accelerating growth reflects the institution's sound management of the economy," Nguyen said, adding that benign inflation has given monetary officials the space to cut rates by 100 basis points in 2012.

But Nguyen said the BSP was not the only champion behind the country's strong performance. "President Aquino's efforts to increase efficiency of fiscal spending and revenue collection gave the government the room necessary to counter-balance the global slump with increased expenditure. A look at the breakdown of growth shows that private consumption, government spending and investment have contributed to growth thus far in 2012," she said.

While external headwinds persist and likely drag down the Philippines' electronics exports, HSBC expects growth to remain robust in 2013 on the back of strong fiscal spending, low interest rates and resilient remittances.

She said monetary officials would likely hold rates at the next meeting to assess the impact of the recent acceleration in growth as well as the 100-basis-point cut so far this year. "Inflation will likely be benign in first half of 2013, thanks to contained food and oil prices, allowing the BSP to support growth," she said. "Though external conditions remain weak, strong domestic demand will keep the BSP vigilant and hold rates." (http://is.gd/B5MCqA)

Inquirer Business

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Philippines Coast Guard detains 2 Chinese Taiwanese fishing boats Poaching Philippine Territory

Manila, Dec. 11 (CNA) Philippines coast guard officers have detained two Taiwanese fishing boats for allegedly entering the territorial waters of the Philippines, Taiwan's representative office in that country confirmed Tuesday.

As of the press time, the two ships were being towed toward Mati, capital of Davao Oriental province, the office said.

The boats, registered in Tungkang, Pingtung County, both have Taiwanese skippers.

The Philippines coast guard said it intercepted and boarded the fishing boats Monday and found a large "illegal fishing catch."

Taiwan's representative office in the Philippines confirmed the statement, and said it is making every effort to negotiate with the Philippine government to secure the release of the boats and their crews.

Under Philippines law, the penalty for fishing in the country's waters is a fine of US$100,000 and seizure of the catch, fishing gear and boats.

In addition, the Philippines fishery bureau may impose an administrative fine of between US$50,000 and US$200,000. Failure to pay the fine could result in imprisonment of six to 10 years. (http://is.gd/VQbdlH)

Focus Taiwan 

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UBS-Switzerland revised projected Philippine Economy Growth to hiked up↑ 6.3 percent in 2012

Switzerland-based UBS revised upwards its growth projection for the Philippine economy this year to 6.3 percent from 5.8 percent previously on account of the government's upward revision on the second quarter growth.

"This is noteworthy, the Philippine real GDP growth has only surpassed six percent five times since 1980, in 1988, 2004, 2007 and 2010," UBS said in its Asian Economic Report where it dubbed Philippines by the Numbers dated yesterday.

UBS eyes a 4.5 percent growth for the country in 2013 and 4.9 percent in 2014.

The domestic economy grew by 7.1 percent in the third quarter, the highest in ASEAN and second in Asia after China's 7.4 percent growth.

Although growth in the first half this year was upwardly revised to six percent, the higher end of the government's five to six percent growth 2012 target, the UBS report projects domestic growth to register a slower growth in the second half due to weak exports "before recovering modestly in 2013."

"Moreover, although we expect an improvement in trade growth during 2013, lead indicators of trade activity and domestic activity suggest the tail end of the year may be a little below par," it said.

UBS also expects private consumption expenditure to remain strong going to 2013 due in part to moderate inflation but said that risks remain because of negative developments overseas that will impact on Filipino workers overseas and their remittances as well as higher global food prices that can impact on local prices.

Meanwhile, exports are expected t recover in 2013 while imports are projected to grow stronger "due to favorable domestic demand conditions."

UBS projects inflation to average at 3.2 percent this year and increase to 4.1 percent next year given the higher food prices on account of among others weather-related factors and higher global commodity prices.

As of November, rate of price increase slowed to 2.8 percent from month-ago's 3.1 percent bringing the average in the first 11 months this year to 3.2 percent.

The government' inflation target for this year until 2014 is three to five percent. (http://is.gd/b3NVvy)

Visayan Daily Star

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Philippine Exports up↑ 6.1% to $4.4 Billion USD in October 2012

Philippine Export rise to 6.1% led by Tuna and Banana as top gainers 

Top gainers included tuna (294.4%), bananas (101.9%), petroleum products (43.5%), metal components (40.7%), and coconut oil (5.6%).

PHILIPPINES EXPORTS continue climb in October despite electronics' subdued growth, buoyed by gains in other commodities, data from the National Statistics Office (NSO) showed.

Outbound shipments stood at $4.41 billion, up 6.1% from the $4.16 billion recorded a year earlier. Month-on-month, however, exports contracted by 7.9% from $4.78 billion in September.

The October result brought aggregate merchandise exports for the year to $44.47 billion, up by 7.1% from last year's $41.53 billion but still short of the government's revised 8% full-year target.

Electronics, the country's top export with a 43.1% share of total revenues, eked out muted gains. Export sales totaled $1.90 billion, up by 0.3% and trimming its total year-to-date loss to 6.56%, NSO data showed.

Faster upticks were seen in woodcraft and furniture, which grew by 14.3% to $237.25 million; and cathodes and sections of cathodes, which grew by 44.8% to $149.63 million.

Top gainers included tuna (294.4%), bananas (101.9%), petroleum products (43.5%), metal components (40.7%), and coconut oil (5.6%).

Japan emerged as the country's top export destination in October with revenues reaching $730.71 million, followed by Hong Kong with $646.93 million. East Asia was the biggest bloc for Philippine exports, accounting for 55.3% of total exports at $2.44 billion in October. (http://is.gd/buvdgb)

Business World Online

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Typhoon Won’t Deter Philippine Economic Growth

Bidding of  ₱30 Billion LRT extension begin to stop losing $3.27Billion USD due Traffic mess is still on progress?

Last week's deadly typhoon in the impoverished southern portion of the Philippines obscured what has been a year of remarkable achievement for the island nation. Pushed by a surge in consumption, the Philippine economy expanded at a 7.1% year-over-year pace in the third quarter, second only to the 7.4% growth of Asia's perennial leader, China.

The storm delivered a devastating human tragedy, with more than 500 deaths reported by Friday, but it won't have more than a small temporary economic effect because it was mostly confined to rural areas. Manila should quickly regain its recent stride under President Benigno Aquino III. The country's central bank has been able to cut its benchmark interest rate four times in the past 12 months to a record-low 3.5% since inflation is running below 3%. Budget deficits have been reined in. And the Aquino administration is now readying a boost in infrastructure spending, a program likely to get added backing following the storm. The government already has ambitious plans to improve air, rail, and road "connectivity," says Hak-Bin Chua, an economist for Bank of America Merrill Lynch in Singapore. "The Philippines is the turnaround story in Asia," he says.

Investors have taken note. The Philippines' main stock-market index is up 32% this year. "It has been a great year," says Alfred Dy, head of research for CLSA in Manila. Mostly off the radar of foreign investors, the volatile index is up nearly sixfold over the past decade. Only the Indonesian market's tenfold gain in that time has done better in Asia.

Can the gains continue? Yes. With its young, growing population, the Philippines should enjoy a demographic dividend that aging Asian societies like Japan, Korea, and Taiwan won't. The nation will have the region's fastest-growing labor force over the next decade, with more than a 30% rise in its work force. "That's very positive for sectors like consumer, banking, and infrastructure," says Alex Pomento, head of research at Macquarie Securities in Manila. Dy estimates remittances back home from the many Filipinos working abroad will rise about 5% next year.

The archipelago has other advantages. Corporate debt-to-equity ratios have dropped from 1.5 times 12 years ago to 0.6 times, giving the private sector more flexibility and resilience. Projected loan growth of 15% next year and further monetary easing will push growth. The country's booming business process outsourcing is expected to generate $17.5 billion next year, a rise of 25%.

Caution is urged on certain stocks. Blue chips like beer-to-utilities conglomerate San Miguel Corp. and banking- and property-based Ayala Land Inc., favorites of overseas investors, look fully valued at over 20 times this year's earnings. That's a big premium over the Philippine market.

More reasonable, says Dy, are conglomerates Metro Pacific Investments Corp., and JG Summit. Metro Pacific focuses on property and infrastructure and trades at 13.6 times next year's earnings. Dy has a 5.7-peso (14 US cents) price target, or 26% upside. JG Summit has broad exposure to the consumer sector through property, hotels, packaged food, and telecom as well as a low-cost airline. Dy has a 41-peso price target on JG Summit, which trades at 13 times next year's earnings.

Arguably the best play for US investors is the $150 million in assets iShares MSCI Philippines Investable Market Index Fund (EPHE), which has risen 47.7% this year. It could just be getting started.

(Assif  Shameen covers Asian markets from Singapore This articles was carried by Dow Jones) (http://is.gd/E2kxOr)

Manila Bulletin / Dow Jones

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Influential World economist to tout Philippines gains at investment summit in January

 World-renowned economist Nouriel Roubini

MANILA, Philippines - World-renowned economist Dr. Nouriel Roubini will tout the gains of the Philippine economy at the Philippine Investment Summit in January.

Roubini, co-founder and chairman of Roubini Global Economics and economics professor at New York University's Stern School of Business, will give the keynote address at the Philippine Investment Summit in Makati City on January 30.

Roberto Juanchito Dispo, president of First Metro Investment Corp., said the summit will be attended by foreign bankers, investors, fund managers and businessmen.

"(Roubini) believes in the growth story of the Philippines and he will be telling the audience, global fund managers and foreign investors that the Philippines may already be ripe for a credit rating upgrade, anchored on robust capital markets, record-setting equity markets, very strong economic fundamentals and robust local markets," he said on Mornings@ANC on Monday.

One of the world's most influential economists, Roubini had promoted the Indonesian economy, saying as early as September 2011 that the country is ripe for investment grade status. Indonesia was upgraded to investment grade early this year.

Dispo said Roubini's statements about the Philippine economy at the summit may help boost its prospects for investment grade status.

Organized by FMIC, the investment summit's theme is "The Philippine Economic Upgrade: A Bright Spot in Asia." The summit is being held amid the backdrop of the Philippine economy's strong performance.

"It really is the economic fundamentals that are lifting the economy at large -- the fairly strong exchange rate, low interest rate, adequate liquidity in the market... The infrastructure program is beginning to kick in, that will translate to a lot of projects being completed in the country. It's a main attraction for foreign investments to come in," Dispo said.

The FMIC president said the Philippine economic growth is being fueled by remittances and the business process outsourcing industry.

He allayed fears of the strong peso's negative effect on OFW remittances and profits of BPO companies.

"The strong peso means lesser pesos for OFW remittances and for BPO call centers... But BPO call centers are now moving out of the metropolis and to the provinces, where there are lower electricity, lower labor costs, which offsets the stronger peso," he said.

"OFWs may complain they can buy less, but you'd be surprised the reason why inflation rate for October dipped to 2.6% is that we have lower cost of food, fuel and transport. Since our country imports much of our food and oil, strong peso means these foreign goods are becoming cheaper and this translates to lower consumption costs for consumers. It somewhat offsets. We've seen this in the inflation numbers. The one that drove inflation lower is the lower cost of food, oil, transport and utilities," Dispo said. (http://is.gd/EYQGqM)    

ABS-CBN News

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Japan PM Shinzo Abe vows to rearmed Japan with Nukes to counter China – Philippines OK

The Philippines, the Past and the Future with Japan

The Philippines one a victim of Japanese Invasion, killing thousands of Filipinos, enslaving them, abused their women, killed their children and other so many horrible form of abused by japans to Filipinos but the China's invasion to the Philippines territory seems to be more scary than what Japanese did to the Philippines resulting to its support to have a super Power Japan to counter China.

The limit of the future power of Japan still unpredictable if it won't also invade the Philippines to dig back their hidden treasures left untouched hidden  in the mountains of Luzon, Visayas and Mindanao.

Philippines backs rearming of Japan

The Philippines would strongly support a rearmed Japan shorn of its pacifist constitution as a counterweight to the growing military assertiveness of China, according to the Philippine ­foreign minister.

"We would welcome that very much," Albert del Rosario told the Financial Times in an interview. "We are looking for balancing factors in the region and Japan could be a significant balancing factor."

The unusual statement, which risks upsetting Beijing, reflects alarm in Manila at what it sees as Chinese provocation over the South China Sea, virtually all of which is claimed by Beijing. It also comes days before an election in Japan that could see the return as prime minister of Shinzo Abe, who is committed to revising Japan's pacifist constitution and to beefing up its military.

A constitutional revision that upgraded Japan's Self-Defense Forces to a fully fledged military would allow it far more freedom to operate and could change the military balance in Asia. In spite of its official pacifism, Japan's armed forces do not lack for hardware. Its navy has about 50 large surface ships, compared with China's 70-odd.

Support from other Asian nations for a rearmed Japan could embolden Mr. Abe to change the constitution.

Beijing has long raised the specter of a return of Japanese militarism. The attitude towards Japanese rearmament in the Philippines, itself colonized by Japan, suggests regional fears of an assertive China may be beginning to trump memories of Japan's aggressive wartime actions.

This month, the Philippines objected strongly to an announcement that maritime police from China's Hainan province would intercept ships entering what it considered its territorial waters.

Beijing has started issuing passports that include a map of its "nine-dash" claim to almost the entire South China Sea, parts of which are also claimed by Vietnam, the Philippines, Brunei, Taiwan and Indonesia. The Philippines has refused to stamp the new passports in protest.

"The Philippines has contended all along that the nine-dash claim is an excessive claim that violates international law," Mr. del Rosario said.

Southeast Asian countries concerned about what they see as an abrupt change in China's "peaceful-rise" diplomacy have welcomed the renewed commitment to the region by the US in the form of its "pivot". Mr. del Rosario said Manila had agreed to more US ship visits and more joint training exercises.

The region is also closely watching Beijing's stand-off with Tokyo over the Japanese-controlled Senkaku islands, known as the Diaoyu in China.

Regional countries have struggled to present a united front against China, which prefers to deal with each capital bilaterally. Last June, the Association of Southeast Asian Nations failed to issue a final communiqué after Cambodia refused to endorse language referring to recent naval stand-offs with China.

In July, Japan and the Philippines signed a five-year agreement to strengthen military co-operation though exchanges of personnel and technology. Japan is providing 12 new patrol ships for the Philippine coast guard, financed with a combination of soft loans and foreign aid grants.( http://is.gd/BjYyVV)

Financial Times 

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China, Taiwan - Glutathione Skin whitening in Philippines high poisonous Mercury content - CANCER

Anti-toxics group warns vs 5 more skin whiteners with poisonous mercury

At least five more skin whiteners have been found with toxic levels of mercury, an ecological group said over the weekend.

 The EcoWaste Coalition said this is despite the Food and Drug Administration's recent expansion of its black list of cosmetics products to 71.

 "We have promptly alerted the FDA about our findings urging the agency to take immediate action to warn consumers and decisively halt the illegal sale of these cosmetics to protect the public health and the environment," said campaigner Aileen Lucero.

Ecowaste Coalition

The group said it found five products to have "outrageous" amounts of mercury, with one having up to 26,700 parts per million (ppm) - way above the government's limit of 1 ppm.

 Earlier, the FDA placed up to 71 cosmetic products on its black list after finding them to have highly toxic levels of mercury.

See the FDA Lists of Products with high contents of poisonous mercury http://www.fda.gov.ph/Advisory/DOH-FDA2012-018.pdf

 According to the group, it bought the new samples with prices ranging from P70 to P250 last Dec. 8 from Chinese medicine stores, health and beauty shops in Baclaran, Cubao and Guadalupe.

 It said the tainted products included:

 - "Natural Orange Whitening and Anti-Aging Package" claiming "all-natural botanical formula" tested with the highest level of mercury at 22,300 ppm for the day cream, and 26,700 ppm for the night cream. The label purportedly shows GLDJB (Harbin) Cosmetics Co., Ltd. as the manufacturer, but failed to mention the country of manufacture.

 - "Spring Return Ginseng and Pearl Natural Pure Plants Whitening Cream," allegedly from New York, USA, had 10,900 ppm of mercury in its night cream. The packaging provided no details about the manufacturer.

 - "TVC Spot Remover," reportedly from Mexico but "made in PRC" had 10,100 ppm of mercury. No information about the manufacturer is given on the label.

 - "Yudantang Green Olive and Papaya Natural Essence 6 Days Specific Eliminating Freckle Whitening Sun Block Cream," supposedly from Taiwan, had 8,391 ppm of mercury in the night cream.

 - "Fruit & Lovely Quickacting Whitener & Speckle Remover Package," which has zero information about its manufacturer, had 192 ppm for the day cream and 628 ppm for the night cream.  

EcoWaste Coalition warned consumers against being directly exposed to cosmetic products containing more than 1 ppm of mercury run the risk of possible toxicity.

 It cited the FDA's health advisory indicating "there have been cases of adverse health effects brought about by highly toxic mercury in cosmetic products, such as kidney damage, skin rashes, skin discoloration and scarring." (http://is.gd/02TTDz)

GMA News 

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Philippines improves 24 points standing in corruption perception index 2012

The Philippines improved its standing in Transparency International's Corruption Perception Index this year by moving up 24 points, from 129th place in 2011 to 105th.

Results released yesterday showed that with a score of 34, the Philippines is tied with Algeria, Armenia, Bolivia, Gambia, Kosovo, Mali, and Mexico. Transparency International said it has updated the methodology for the CPI, which is now presented on a scale from zero for highly corrupt to 100 that means very clean.

Records showed that the Philippines also jumped five notches in 2011 at 129th place from 134th in 2010, the year when President Aquino was elected into office.

The 2012 CPI said Denmark, Finland, and New Zealand were tied at the top with a score of 90, followed by Sweden with 88, Singapore with 87, Switzerland with 86, Australia with 85, and Norway also with 85.The United States ranked 19th with 73 points while China ranked 82nd with a score of 39 among 176 countries and territories covered by the corruption perception survey, now on its 18th year.

Tied at the bottom three of this year's list, posting similar scores of only eight CPI points, were Afghanistan, North Korea, and Somalia. Transparency International said the survey is anchored on perceived levels of public sector corruption, with the index drawing on 13 surveys covering expert assessments and surveys of business people.

The CPI is the leading indicator of public sector corruption, offering a yearly snapshot of the relative degree of the corruption problem by ranking countries worldwide.

In the 2012 CPI, the group said Denmark, Finland and New Zealand tie for first because of strong access to information systems and rules governing the behaviour of those in public positions.

Transparency International said Afghanistan, North Korea and Somalia once again are in the bottom of the index because of the countries' lack of accountable leadership and effective public institutions that underscore the need to take a much stronger stance against corruption.

Underperformers in the CPI 2012 also include the Eurozone countries most affected by the financial and economic crisis.

Transparency International said it has consistently warned Europe to address corruption risks in the public sector to tackle the financial crisis, calling for strengthened efforts to corruption-proof public institutions.

"Corruption is the world's most talked about problem," stated Cobus de Swardt, managing director of Transparency International.

"The world's leading economies should lead by example, making sure that their institutions are fully transparent and their leaders are held accountable," he added. "This is crucial since their institutions play a significant role in preventing corruption from flourishing globally," De Swardt said. (http://is.gd/GK5BDD)

The Philippine Star

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US- United Nations Representative: USA must defend the Philippines to save Guam

US- United Nations Representative- USA must defend the Philippines to save Guam - First Island second Island Chain - China Claim. Photo : japanfocus.org

Retired Admiral James A. Lyons was commander in chief of the U.S. Pacific Fleet and senior U.S. military representative to the United Nations push for USA to defend the Philippines.

LYONS: Chinese aggression ratcheting up

U.S. must defend allies in Western Pacific

With most of the world's attention focused on the realignment of the "Arab Spring," Islamists and the latest Hamas-Israeli conflict, China continues its aggressive island imperialism in both the South China and East China seas with its illegal territorial claims. The confrontational incidents forced by China's bullying tactics on our regional allies — most recently, Japan over the Senkaku Islands and the Philippines over Scarborough Shoal — are clearly unacceptable.

There are multiple territorial claims throughout the East China and South China seas. This is a strategic maritime area transited by more than half of the world's total shipping trade. While there is a growing competition for the natural resources near the contested islands, these confrontations must be viewed in a broader context involving China's ultimate objective: As part of its anti-access and area-denial strategy, China wants to replace the United States as the dominant power in the Western Pacific.

China wants hegemony over the first island chain, which includes Taiwan and Okinawa, and eventually the second island chain, which includes Guam. As part of a phased plan, China is trying first to legitimize its sovereignty claims based on questionable ventures by Chinese explorers almost 2,000 years ago. In the case of the Senkaku Islands, under the 1951 San Francisco Peace Treaty, Japan was granted both jurisdiction and administration rights over those islands.

Scarborough Shoal, a rock formation just 140 nautical miles from the Philippines' main island of Luzon, is well within the Philippines' exclusive economic zone as recognized by international law. It should be noted that the shoal is 750 nautical miles from mainland China. In another embarrassing incident, the Chinese frigate Dongguan ran aground in the disputed Half Moon Shoal, which sits astride a key strategic maritime trench about 70 nautical miles from the Philippines' Palawan province. The Dongguan previously had fired on Philippine fishing boats in the area.

China also has built facilities in the Philippines' Mischief Reef in violation of international norms. The Philippines has tried to confront China's illegal actions, but with basically no naval or air force capability, its attempts to force China out or negotiate with Beijing have been futile. China ignored Taiwan's call in September for a code of conduct to manage island disputes, as for a decade it has rebuffed efforts by Southeast Asian states to arrange such a code to prevent island conflicts in that region.

The United States has stated on numerous occasions its long-held position that it "doesn't take sides in territorial disputes" but that it has an interest in maintaining "freedom of navigation" in critical shipping lanes in both the East China and South China seas. The United States has stated in various regional forums that China should have its contested claims adjudicated in an international tribunal versus bilateral negotiations. China has rejected this approach. At the Southeast Asian Nations conference in Cambodia in November, President Obama again stated support for a proposed multilateral approach to resolve these disputes. China was not impressed.

If China tries to use its newly expanded military force capability to impose its claims over disputed territories, that clearly should be resisted. The United States and its allies need to face the fact that China is not going away. We should anticipate more forced confrontational incidents by China. The Asian giant has just announced that as of Jan. 1, it intends to stop and board vessels "illegally" in the South China Sea without their permission. Obviously, this declaration is unacceptable and must be resisted strongly, as it violates freedom of navigation, a core principle of international law.

Japan will eventually have little choice but to employ both its naval and air force resources to protect its sovereign claim to the Senkakus. It should reposition those forces in coordination with the United States so that it can respond immediately to future Chinese threats.

Since the Philippines also is an ally, the United States should provide it with recognized war-fighting capability able to deter China's aggressive tactics in the near term. Accordingly, we should immediately make a no-cost lease of an FFG-7 frigate with modern weapons, as well as a squadron of F-16 fighters so the Philippines will have some capability to stand up to China's bullying tactics. The United States needs to make more deployments into these disputed territorial areas in support of our allies by exercising our freedom of transit rights.

Furthermore, the United States needs to make it very clear to China that if it provokes hostilities with Japan or the Philippines with their aggressive bullying tactics, then our respective mutual defense treaties will be activated. A shot must be fired across China's bow. (http://is.gd/yHomrl)

The Washington Times

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Government ordered UAE to follow Philippine Law or no more Maids

Part of government plan to phase-out DH, DOLE, POLO and POEA – restricting the deployment to set to "0" by 2016

Philippines sets tough terms for sending maids to UAE: Minimum salary at $400

The Philippines has set tough terms for sending domestic workers to the UAE as is the case in Saudi Arabia, stipulating its maids must be paid not less than $400 a month and must have at least eight hours break every day.

The Philippine embassy in Abu Dhabi conveyed its government's terms to private labor recruitment agents in the UAE during a recent meeting in the capital, warning that any agent violating those terms would be put on the blacklist.

Reacting to such a decision, UAE authorities said they would not accept such terms and stressed that domestic workers from any country must be recruited in accordance with the official work contract enforced by the UAE government.

Quoted participants in that meeting, the Arabic language daily Emirat Alyoum said the Philippine embassy told them they must abide by the new regulations or they would be boycotted and banned from handling domestic workers from the Philippines.

"The embassy set the minimum wage for a Philippine maid at $400 (Dh1,470) a month and told labor recruitment agents in the UAE that any office which does not comply with these rules would be completely boycotted," the paper said.

It said the embassy asked those agents to notify it once a Philippine maid arrives in the UAE to take up a job so it will hand her the necessary documents.

"The embassy also stressed that employers must provide a separate room for the maid and that she must have a daily break of at least eight hours.

"It also stressed that the maid should not be assigned any work outside her employer's residence which is listed in the job contract and that the employer must allow her to contact the embassy or her family at home at any time," the paper said.

Other conditions include that employers are not allowed to renew the maid's contract or transfer her sponsorship to any other employer without a prior consent by the embassy.

"Sponsors violating those terms will be subject to penalties defined in the laws governing the hiring of Philippine domestic workers," it said. "In case they refuse to pay her the salary set in the new contract, the maid will be deported to her country."

According to Emirat Alyoum, the maid must be aged between 18 and 23 years and any company violating that limit would be blacklisted.

"Any agreement signed by a foreign embassy in the UAE is not legal," the paper said, quoting Major General Nassir al Minhali, UAE interior ministry assistant undersecretary for naturalization and residence affairs.

"The ministry of interior has a unified job contract for domestic workers coming to the UAE with well defined terms and duties. It guarantees the rights of the employers and the employees…we have not set any wage for domestic workers and any otherwise agreement will not be binding for any one."

The Philippines, one of the largest domestic workers suppliers to the oil-rich Gulf, has been locked in negotiations with Saudi Arabia to enforce similar terms for its maids working in the Gulf Kingdom. The negotiations followed a decision by Manila to halt the travel of its domestic workers to Saudi Arabia two years ago. (http://is.gd/x08tV2)

Emirates 247

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Hundreds of ABUSED Pinay Maids in UAE sought help from Amnesty

Amnesty seekers get directions from an official at the Philippine consulate in Dubai on Tuesday. — KT photos by Juidin Bernarrd

Filipino, Ethiopian illegals heave sigh of relief

Hundreds of amnesty seekers have poured into the Philippine consulate and the Consulate-General of Ethiopia on the first day of the two-month amnesty program for illegal residents.

Filipino Cherry R. said she resigned from her job upon the demands of her company when she ran into trouble with several banks for delinquent accounts. "I wanted to leave the UAE but I was informed by a friend, who went to check with the police and the immigration on my behalf, that two banks had imposed a travel ban. Even at the time my father died, I could not go home. This amnesty is a great opportunity for me to go home or to legitimise my status," she said.

Cherry and her friend Hijasmine were among the hundreds of Filipino amnesty seekers, who reached the Philippine Overseas Labor Office (POLO) of the consulate to signify intention to avail themselves of the fourth cycle of amnesty.

"I ran away from my employer five years ago due to maltreatment, lack of rest and insufficient food. I wanted to go home but my employers filed absconding case against me. So, I will take advantage of this amnesty program," Hijasmine said.

Susan E. has also been seeking for amnesty. "I have long wanted to go home and see my family. But, since the day I ran away after my employers failed to give me my salary, I had been trying to fend myself by doing part-time jobs for almost four years. I could not leave the UAE as the employers reported me to the police."

More than 200 amnesty seekers reached POLO to inquire about the process and seek assistance.

Consul-General Frank R. Cimafranca made an appeal to all Filipino organizations in Dubai to assist the needy in getting air tickets during the amnesty period. "Let us all join hands and give our "kababayans" an advance Christmas gift by extending them assistance in securing air tickets to be home for Christmas."

The Consul-General said a request can be put forward to the Department of Foreign Affairs (DFA) for funds to acquire air tickets but it might take time. On absconding cases, he said that the consulate needs more information from amnesty seekers as absconding involves breach of contract. Philippine Ambassador Grace R. Princesa said the embassy will seek clarification from the Ministry of Interior on various issues in the amnesty package to better serve the needy.

"We still have to verify what we read in the papers about the 'no ban' issue," the ambassador said.

At the Ethiopian Consulate-General, Fananesh A. said she has been illegally staying in the UAE for five years, and though she wanted to go home, she could not go back due to travel ban from banks. "With this amnesty, I am looking forward to seeing my family again."

Her friend Abenet S. was absconding from her employer, which stopped her from leaving the country.  "My father died and that day I cried for days because I could not go home. I felt I was put in a cage. Now is my time to go. Thanks to the UAE government."

Many Ethiopians have also come forward but no official figures have been released as yet. (http://is.gd/7eJrkR)

Khaleej  Times

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Manila agencies stop hiring Pinay Maids for Kuwait

Manila recruitment agencies stop hiring Filipino domestic helpers – Disagreements over salary

KUWAIT: Some recruitment agencies from Manila have reportedly stopped processing visa for domestic helpers (article 20) amidst disagreements between the Philippines and Kuwait regarding housemaids' salary.

The Philippine government wants to strictly implement its unilateral policy of $400 (KD112.56) monthly salary while the Kuwaiti government asked it to wait till a new domestic labor law pending for two years before the Kuwaiti parliament is approved. Authorities in Kuwait have also informed housemaids' agencies in Kuwait to avoid promising an increase in salaries or recruitment fees of domestic workers unless they receive an order from the Ministry of Interior.

Recruitment offices around the country received a statement from the domestic workers' division in the [Interior Ministry's] Migration General Department, asking them to ignore instructions received from any party other than official state departments regarding the fees for recruiting labor forces or their salaries.

The Philippines government has implemented its unilateral $400 monthly salary for their domestic helpers since 2009 although Kuwait has approved KD60 ($213.23) only and upgraded the amount to KD70 ($248.77) just recently. "As legitimate recruitment agencies, we are caught in the middle of disagreements between two governments and are suffering," disclosed an owner of the Philippine recruitment agency who wanted to remain anonymous. "Since Dec 1, 2012, we stopped processing DH visa.

We want the $400 to be implemented but Kuwait is not ready to implement the amount," the female recruitment agency owner told the Kuwait Times. "When we, employers and domestic helpers encounter any problem, we are there to respond quickly. We mediate and fix their problems. If the employer violates Philippine government's regulations, we handle it ourselves and sometimes we also suffer fines. We can also get suspended if the problem with the employers is not resolved.

The money we earn from recruitment job is just enough to pay penalties and cost for domestic helpers' repatriation. Our demand is clear: we want the two governments to settle their differences in this regard because we are caught in the middle of disagreements. We have been stuck in this impasse since two years and there has been no resolution as yet," she said.

She noted the fact that recruitment for domestic helpers was being stopped not just in case of Kuwait but for the rest of GCC countries also. "Our action is not influenced by any government. We are suffering. Our business is suffering, and we need to take action. This is not just a question of one agency but many agencies from Manila are impacted and we have agreed to stop processing visa for domestic helpers unless there is a clear resolution of this issue or if there are employers willing to pay the Manila demand for $400," she said. The fee for hiring domestic helpers in Kuwait ranges between KD500 and KD800, amount that many consider 'outrageous and ridiculous'. (http://is.gd/87yBFp)

Kuwait Times 

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Pres Aquino urges Filipinos to continue working harder to build greater economic progress for the country

Despite the rosy output and sterling performance shown by the Philippine economy this year marked by "record highs, increase in equities, and outstanding GDP (gross domestic product) growth," President Benigno S. Aquino III called on the Filipino people not to rest on one's laurels and bask in the glory of this global achievement but continue working even harder in order to "build even greater things on top of the foundations we have already laid down."

Speaking at the 20th anniversary of the Philippine Stock Exchange, Incorporated (PSEi) held at the Makati Shangri-la on Monday, the President said that the Philippines has come a long way since he assumed the reins of government two and half years ago.

He said that as of July 2012, the PSEi has recorded 56 record highs (closing at an all-time high of 5,672.70, up by 32.25 points or 0.57%, largely led by property and banking issues) with the average daily turnover pegged at P7.61-billion. This, the President said, coupled with the 7.1 percent GDP growth for the third quarter of 2012, has "surpassed all expectations" and showed that the Philippines has come a long way since then.

"While we certainly have much to be thankful for, I have always believed that every achievement must not only be cause for celebration, but must also motivate us to work even harder. After all, the record highs, increase in equities, and outstanding GDP growth are symbols of the potential we have to create a broader and more dynamic Philippine economy," the President stressed.

He noted that other countries have started to take notice at the remarkable performance of what has been dubbed, the "sick man of Asia" and has begun to show interest at investing here.

"The entire world has begun to train their spotlight on us. Let us prove to them: we are not yet done, we have more to show, and we will build even greater things on top of the foundations we have already laid down. It is up to all of us to harness our potential and steer the economy towards inclusive growth that satisfies the pursuit of profit, promotes equal opportunity, and elevates the standard of living of every Filipino," the President said.

The President lauded the Philippine Stock Exchange for partnering with the government in coming up and implementing various anti-corruption programs "to show prospective and active investors alike that the Philippines is open for business under new management ---management that is putting an end to backroom deals and suspect transactions, so that business, trade, and investment can flourish in an honest and level playing field."

He pointed out that the PSEi has taken the initiative to reciprocate government programs to end graft and corruption such as the Investor Protection and Surveillance Department of the Securities and Exchange Commission to guard against insider trading and other illegal investment schemes and a Capital Market Development Blueprint to improve and expand the Philippine capital market, including proposals to strengthen investor education, through an integration of various programs already offered by the SEC, PSEi and other similar entities, and to improve the equity market by promoting online trading, among others.

These PSEi initiatives include extending trading hours significantly to expand opportunities for the Philippine market and launching the PSEi trade which will open up direct access to our stock exchange; thus speeding up the execution of trades.

The Capital Markets Integrity Corporation, or CMIC, which was incorporated as a wholly owned subsidiary and tasked with monitoring the activities of trading participants; and the PSEi Bell Awards for Corporate Governance, which contributes to the promotion of integrity by recognizing outstanding listed companies and trading participants are two other PSEi-led initiatives "to uphold the integrity of operations in your sector."

"Measures like these are important because investors need to know we are serious about protecting their interests, especially now that confidence in the Philippines is growing by leaps and bounds," the President said.

"In a sense, your efforts mirror the reforms we are undertaking in government. You are demonstrating that good governance is a winning strategy, and that by fostering it in your industry, we are able to level the playing field; we are able to establish an atmosphere where outcomes are predictable, where uncertainty is minimized, and where stability allows business to function smoothly," he added.

"This makes our country a more attractive destination for investments, which creates jobs, empowers consumers, and sustains the virtuous cycle that we are determined to institute—a virtuous cycle whose results we have seen in your achievements," the President said.

Joining the President during the event were Vice President Jejomar Binay, Trade Secretary Gregory Domingo and Finance Secretary Cesar Purisima. (www.pcoo.gov.ph)

Asian Journal 

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China cut exploration cable of PetroVeitnam ANEW! - Vietnam, India will send warships

For the second time, China cut the exploration cable of PetroVietnam with Joint Exploration of Vietnam and India in Vietnam's 200 Nautical Miles Excusive Economic Zone. Last cutting of cable happened last year

Dispute Flares Over Energy in Vietnam's East Sea Exclusive Economic Zone

BEIJING — China and two of its neighbors, Vietnam and India, were locked in a new dispute on Tuesday over energy exploration in the West Philippine Sea (South China Sea), a signal that Beijing plans to continue its hard line in the increasingly contentious waterway.

Vietnam accused a Chinese fishing boat of cutting a seismic cable attached to one of its vessels exploring for oil and gas near the Gulf of Tonkin, an act apparently intended to inhibit Vietnam from pursuing energy deposits.

In retaliation, Vietnam said Tuesday that it would send out new patrols, which would include the marine police, to guard against increasing encroachment by Chinese fishing boats in the West Philippine Sea (South China Sea). India, which operates several joint ventures with Vietnam's national energy company, Petro Vietnam, said it would consider sending navy vessels to protect its interests in the West Philippine Sea (South China Sea).

The latest episode follows an announcement by Hainan Province in southern China last week that Chinese vessels would board and search ships in contested areas of the waterway, which includes vital shipping lanes through which more than a third of global trade moves.

The new tensions among China, Vietnam and India illustrate in stark terms the competition in the West Philippine Sea (South China Sea) for what are believed to be sizable deposits of oil and gas.

Some energy experts in China see the sea as an important new energy frontier close to home that could make China less dependent on its huge oil imports from the Middle East.

On Monday, China's National Energy Administration named the West Philippine Sea (South China Sea) as the main offshore site for natural gas production. Within two years, China aims to produce 150 billion cubic meters of natural gas fields in the sea, a significant increase from the 20 billion cubic meters produced so far, the agency said.

Earlier this year, China's third-largest energy company, the state-owned China National Offshore Oil Corporation, began drilling with a rig in deep water in non-disputed waters off the southern coast of China.

The escalation in the West Philippine Sea (South China Sea) comes less than a month after Xi Jinping took office as China's leader. Mr. Xi appears to have taken a particular interest in the West Philippine Sea (South China Sea) and the serious dispute between China and Japan over the islands known as Diaoyu in China and as Senkaku in Japan. Whether any of China's most recent actions in the West Philippine Sea (South China Sea) were associated with Mr. Xi was not clear.

But Mr. Xi does lead a small group of policy makers clustered in the Maritime Rights Office, which serves to coordinate agencies within China, according to Zhu Feng, a professor of international relations at Peking University, and other Chinese experts. The unit is part of the office of the Foreign Affairs Leading Small Group, Mr. Zhu said. The leading small group, now headed by Mr. Xi, is widely believed to be China's central policy-making group.

China's Foreign Ministry reiterated on Tuesday (December 4, 2012) that China opposed oil and gas development by other countries in disputed waters of the sea. China maintains that it has "undisputed" sovereignty over the West Philippine Sea (South China Sea), and that only China is allowed to develop the energy resources.

"We hope that concerned countries respect China's position and rights," said the Foreign Ministry spokesman, Hong Lei.

Vietnam, which has long been wary of China but enjoys a relationship through its governing Communist Party, summoned the Chinese ambassador on Monday to protest the cutting of the seismic cable, the Vietnamese press reported.

A Web site run by Petro Vietnam, the oil company, reported that the company's exploration vessel Binh Minh 02 had its seismic cable severed by a Chinese fishing vessel last Friday. In May 2011, the Vietnamese authorities said a similar cable of the Binh Minh 02 was cut by three Chinese surveillance ships, resulting in weeks of anti-China protests in Hanoi.

In its decree on the new patrols, Vietnam said that civilian ships, supported by marine police and a border force, would be deployed starting next month to stop foreign vessels that violate fishing laws in waters claimed by Vietnam.

A senior official of Petro Vietnam, Pham Viet Dung, was quoted in the Vietnamese news media as saying that large numbers of Chinese fishing boats, many of them substantial vessels, had recently entered waters claimed by Vietnam. The fishing vessels interfered with the operations of the oil company, he said.

India, whose state-run oil company, the Oil and Natural Gas Corporation, has a 45 percent interest in exploration with Petro Vietnam, also reacted strongly.

The head of the Indian Navy, Admiral D.K. Joshi, said that India was prepared to send navy vessels to protect its interests in the sea. "Now, are we preparing for it? Are we having exercises of that nature? The short answer is 'yes,' " Admiral Joshi told reporters in India.

The most recent moves by China in the West Philippine Sea (South China Sea) have not won total support at home. Mr. Zhu, the professor, said he did not believe that China had become more assertive in the West Philippine Sea (South China Sea).

But, he said, "The cable cutting is really unfriendly."

Vietnam Adds Sea Patrols Amid Tensions With China

Vietnam is adding new patrols to protect its fishing grounds in the West Philippine Sea (South China Sea) after the country's state-run energy giant accused Chinese vessels of sabotaging one of its boats in the disputed waters.

State media said Tuesday the "maritime surveillance force" will have the authority to arrest crews and impose fines on foreign vessels within Vietnam's declared exclusive 370-kilometer economic zone. It will be deployed on January 25.

It comes a day after PetroVietnam said several Chinese fishing vessels cut the cables of one of its exploration vessels in the West Philippine Sea (South China Sea) last week. The state-run company said it later repaired the cable, but called the act a "blatant violation of Vietnamese waters."

China and Vietnam are in a long-running dispute over their competing claims in the South China Sea, and small-scale clashes occasionally break out between patrol boats or fishing vessels.

Vietnam, the Philippines and other East Asian nations accuse China of increasing aggressiveness in defending its claims in the South China Sea. China claims nearly all of the 3.5 million square-kilometer area, an important shipping route that also contains potential energy deposits.

Last week, regional tensions were raised after China announced new rules authorizing police in southern Hainan province to board and seize foreign ships it says are illegally entering its territory.

Regional power India also says it is ready to deploy naval vessels to protect its oil-exploration interests the South China Sea. Indian Navy Chief Admiral D.K. Joshi said Monday that his ships have the mandate to defend his country's interests in the area when necessary.

India does not have competing claims with China to the area, but its state-run Oil and Natural Gas Corporation (ONGC) has a stake in a gas field off the coast of Vietnam.

Rory Medcalf of the Lowy Institute for International Policy says Admiral Joshi's remarks should not be seen as an overt challenge to Beijing.

"I think his remarks are primarily aimed at a domestic Indian audience, to assure them of India's naval capability and its willingness to protect its interests," he said. "I don't think, however, that India is picking a fight over this."

Medcalf says he doubts whether India would act unilaterally in the South China Sea, saying it would have difficulty in sustaining any military deployments there.

But Australian National University defense analyst John Blaxland predicts that regional tensions will continue to rise in the West Philippine Sea (South China Sea), and Beijing is not likely to back down.

"The oil and gas resources that are understood to be underneath the South China Sea are potentially massive. And for a resource-starved country like China, they are too important for these little countries in Southeast Asia take from them," said Blaxland.

With reports from The New York Times and Voice of America

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