Philippine Largest Bank BDO UNIBANK sets ₱60 Billion Php ($1.2 Bln USD) Capital Build up

BDO sets P60B capital build-up

THE COUNTRY'S leading lender BDO Unibank is raising ₱60 Billion Pesos ($1.2 Billion USD) in fresh capital to support growth objectives in the following years and brace for higher capital requirements.

BDO's board approved the increase in additional capital through the sale of new shares to existing investors, the bank disclosed to the Philippine Stock Exchange on Monday.

"The fresh capital will support the bank's medium-term growth objectives amid the country's favorable macroeconomic prospects, and provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the domestic systemically important bank (DSIB) surcharge," the bank said

The Bangko Sentral ng Pilipinas (BSP) has classified banks depending on the extent of their systemic importance using pre-defined indicators for size, interconnectedness, substitutability and market reliance as a financial market infrastructure as well as complexity. The DSIB framework is in line with the initiatives pursued under the globally-accepted Basel 3 reform agenda.

As of end-June, BDO said its consolidated CET1 ratio and capital adequacy ratio (CAR) of 11.3 percent and 13.1 percent, respectively, were above the current regulatory minimum levels, even with the gradual implementation of the DSIB surcharge.

The bank said the additional capital will allow it to sustain its momentum and take advantage of the country's growth opportunities. Over the past five years, BDO's customer loan portfolio grew at a 19 percent compounded annual growth rate (CAGR), outpacing the industry's 17 percent CAGR.

"Going forward, the bank hopes to further expand its presence in emerging growth areas particularly the consumer, provincial middle market and SMEs (small and medium enterprises) and the underserved segments, as well as in infrastructure-related lending/project finance in line with the government's thrust to promote countryside development and ramp up infrastructure spending," BDO said.

Sy family-led SM Investments Corp. (SMIC), the controlling and majority shareholder of BDO, has expressed its full support for the bank's expansion plans and the rights offer.

"SMIC commits to subscribe to its proportionate share and is willing to underwrite any shares not taken up by minority shareholders," the disclosure said. – Inquirer

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Globe tests TV white space frequency

Carlson TV white space technology

Globe Telecom recently completed a trial phase for the use of so-called TV white space frequency to efficiently provide broadband access to remote rural areas.

Emmanuel Estrada, senior vice president for network technologies strategy, said the frequency allowed the company to provide broadband access to certain areas where it was not commercially viable to deploy traditional broadband infrastructure.

“Once in place, the technology is expected to provide an alternative wireless network that will provide data connectivity in far flung areas in Visayas and Mindanao,” Globe said.

Estrada said the trials were in support of Globe’s bid “to maximize available spectrum” given rapid  rise in data consumption.

TV White Space refers to the unused television channels between the active ones in the VHF and UHF spectrum. These are referred to as the “buffer” channels and would be placed between active TV channels to protect broadcasting interference.

“It has since been researched and proven that this unused spectrum can be used to provide broadband internet access while operating with surrounding TV channels,” Globe said.

Globe said the trials were undertaken in partnership with the Information and Communications Technology Office of the Department of Science and Technology over the last eight months in several areas in the country. These included Cebu and Bohol.

The trial run was undertaken by Globe in partnership with Canada-based NuRAN Wireless Inc., supplier of mobile and broadband wireless solutions. NuRAN’s equipment generated up to 10 Mbps over distance of seven and 12 kilometers. – Inquirer

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Philippines' Double Dragon Aims to Build new Shopping Mall Empire outside Manila

Double Dragon CEO Edgar "Injap" Sia

Philippines' Double Dragon aims to build new mall empire outside Manila

CLIFF VENZON, Nikkei staff writer

With the Philippines' consumption-driven economic boom showing no signs of abating, modern retail enterprises are sprouting up outside the capital. Some of the seeds are being planted by new companies eager to make a mark alongside the country's established conglomerates.

Double Dragon Properties is one of the up-and-comers. Back in April 2014, when its valuation was less than $100 million, the company listed on the Philippine Stock Exchange. In its maiden round of trading, the stock shot up by 50%, hitting the bourse's ceiling. Since then, it has continued to be a strong performer.

On Friday, the shares settled unchanged at 59 pesos, up 29-fold from the initial public offering price of 2 pesos. So far this year, Double Dragon's stock has surged 140%, making it the best-performing real estate company in the PSE's property subindex. The price has climbed in conjunction with the rise of Rodrigo Duterte, the country's first president from the southern island of Mindanao who came into power in June. He has promised to boost economic activity in rural areas.

Double Dragon's priority is the construction of 100 shopping centers, each measuring 5,000 to 10,000 sq. meters, by 2020. As of June, the company had secured 53 sites for these CityMalls, as it calls them, but built only eight.

Yet, even if some of the projects are behind schedule, its market capitalization of 131.5 billion pesos ($2.75 billion) has eclipsed that of Robinsons Land -- a unit of conglomerate JG Summit Holdings that has built 44 large shopping complexes and dozens of residential and office developments nationwide.

Double Dragon is led by CEO Edgar "Injap" Sia, a 39-year-old businessman from Visayas in the central Philippines. The self-made entrepreneur is best known as the founder of Mang Inasal, a fast-food company that specializes in grilled chicken.

When Sia started his entrepreneurial journey about a decade ago, success was anything but a foregone conclusion. Born to a Chinese-Filipino-Japanese parents that own a grocery store in Roxas City in Visayas central Philippine region, Sia dropped out of college to focus on building his own businesses. In 2003, he opened a grilled chicken eatery in the parking lot of a mall in Iloilo City, also in Visayas. Its specialty, paired with unlimited rice, became a phenomenon, shaking up a fast-food market dominated by Western-style fried chicken.

In 2005, Sia established Mang Inasal for franchising, creating the nation's quickest-growing fast-food chain at the time.

An encounter with Tony Tan Caktiong -- the founder of Jollibee Foods, the Philippines' largest fast-food group -- proved to be a key turning point for Sia. The men, who share Chinese ethnicity, were both born in the Year of the Dragon in Chinese lunar calendar, albeit 24 years apart. The "two dragons" opened a dialogue about the future of Mang Inasal.

Sia's business was becoming a threat to Jollibee. Tan Caktiong offered to take control of the ascendant chain. In 2010, Sia agreed to sell Jollibee a 70% stake.

 

This past April, Sia unloaded the remaining 30% to Jollibee. Both transactions valued Mang Inasal at 5 billion pesos.

From Sia's perspective, selling to Jollibee made sense on two levels. First, it would put Mang Inasal under the control of an experienced fast-food company that would nurture -- rather than kill -- his brand. Second, despite his proven knack for entrepreneurship, he needed the money to pursue his second dream: building a property and retail empire.

"I really like the [real estate] business, but it needs substantial resources," Sia told the Nikkei Asian Review on Sept. 16.

Powerful backers

In late 2011, after Sia relinquished the management of Mang Inasal to Jollibee Foods, Tan Caktiong approached him again. The Jollibee boss, too, had been eyeing real estate. Sometime in 2012, the pair mapped out a plan to transform Injap Land, an Iloilo-based developer, into Double Dragon, a nationwide player.

"We want to become one of the largest property companies in the Philippines," Sia said.

While clearly ambitious, Sia is also pragmatic. Before the IPO, he accepted an offer from SM Investments -- the Philippines' largest conglomerate, owned by the Sy family -- to acquire a 34% stake in City Mall Commercial Centers, the entity that runs CityMalls under Double Dragon.

This gave Sia two powerful backers: Jollibee, a giant on the Asian fast-food scene; and SM Investments, which owns top Philippine lender BDO Unibank, mall developer SM Prime Holdings and retailer SM Retail.

All sides stand to benefit. Jollibee and SM Group see Double Dragon and CityMalls as vehicles to tap provincial markets. As the principal shareholders of each company, Jollibee and SM will be priority tenants in the CityMalls.

The malls are "barely in Luzon and mostly in Visayas [and] Mindanao, which are exactly the underpenetrated regions where we think we would like to grow," SM Group consultant Tim Daniels was quoted as saying in a local report in 2014.

Sia is avoiding Manila and broader Luzon, where more established players have secured land strategically. Instead, Double Dragon plans to open 70% of its branches in Visayas and Mindanao. To this end, he is taking advantage of know-how gleaned from the expansion of Mang Inasal: The fast-food chain now has about 450 locations, many in the same outlying areas where Sia intends to build CityMalls.

He sees Mang Inasal as a barometer of local readiness for a modern shopping experience. Like the chicken restaurants, CityMalls will be situated in places with large concentrations of people -- near transport terminals and markets, for example.

Right places, right time

Mang Inasal's grilled chicken took the Philippine fast-food market by storm.

In October, a CityMall is set to open in the Mindanao city of Cotabato. The city is located west of Davao -- the hometown of Duterte. Cotabato used to be a hot spot for terrorism and Muslim insurgents. "There are no SM or Robinsons malls there," Sia said, "but there has been Mang Inasal for eight years."

Sia is confident he has chosen the right target markets. "We strongly believe in the great potential of Visayas and Mindanao," he said. "I personally had a very good first-hand business experience ... in [the] Visayas and Mindanao areas during the expansion of Mang Inasal." He added that the chain had "over 150 stores in Visayas and Mindanao in operation for several years."

In 2015, Metro Manila's annual economic growth rate of 6.6% topped Luzon's 5.4%, Visayas' 5.8% and Mindanao's 5.3%. However, the Duterte government's agenda for achieving "inclusive growth" is expected brighten the prospects for rural regions. The president aims to preside over annual growth in the 7-8% range for the next six years, with provinces making a greater contribution than in the past.

Since the Metro Manila market is maturing, established retail players are also eyeing opportunities in the provinces. Their strategies vary. SM Retail is building its owns shops while tapping CityMalls to expand its network. Robinsons Retail Holdings and Puregold Price Club, the second- and third-largest players, are in a race to acquire provincial retailers with a couple of branches. 

Meanwhile, around 70% of the Philippine retail sector remains informal, with myriad mom-and-pop shops. There are also independent provincial shopping center operators running scattered locations in first-tier cities. Of the 145 cities in the Philippines as of June 30, a third were so-called "first class" municipalities, meaning they have annual revenues exceeding 400 million pesos.

When it comes to creating a strategic network of shopping malls in the first-tier cities, Sia is considered to be a step ahead. He envisions CityMalls as one-stop shops for daily errands. He said he does not intend to compete with bigger malls, where customers stay the whole day on weekends, partaking in dining, shopping and entertainment.

"The transition from the traditional unbranded fast food to modern fast food [was] already done in the Philippine provinces a decade ago," Sia said. "The transition from traditional retail to modern retail in the provincial areas has just started, and is expected to be completed in the next few years." Sia wants to spearhead the new phase of retail industry through the expansion of CityMalls in the provinces

He continued: "That is the market where we are currently positioning CityMall, and once the transition cycle is done, CityMalls are poised to be the biggest beneficiary."

Still, while the stock market is cheering Sia's strategy of focusing on Visayas and Mindanao, Double Dragon does face its share of challenges.

Skeptical analysts

Some analysts argue the company is overvalued, partly because most of its investors are retail players, who tend to play up stocks. It was only in July last year that Double Dragon managed to attract long-term institutional investors, and it may need to do more to improve its credibility with bigger funds.

"The price is not warranted at this time," said Richard Laneda, an analyst at COL Financial in Manila.

The company's first-half net income rose 16% to 144 million pesos, as revenue jumped 15% to 706 million pesos. It is targeting net income of 4.8 billion pesos by 2020.

Double Dragon's price-earnings multiple is 100, higher than those of SM Prime and Ayala Land, which are both trading at around 30, noted Luis Limlingan, managing director of Reginal Capital Development.

Sia said analysts should look beyond that metric. "Clearly, our investors are not looking at the 'now,' they are looking at the next five-, 10- or maybe 15-year horizon."

Anton Alfonso, an analyst at RCBC Securities, cautioned that Visayas' and Mindanao's underdeveloped infrastructure could hamper Double Dragon's mall network buildup. Convenience store chains looking to expand there have faced similar challenges.

Despite some delays in branch openings, Sia said the company is confident it will meet its targets. "We should be able to announce the next phase of our business in the next few years," he said, adding that Double Dragon is open to overseas opportunities as well.

To be sure, Double Dragon has the Philippines' consumption-driven growth going for it. Consumption generates two-thirds of the country's gross domestic product, and projections indicate the economy should keep expanding by an average of over 6% for the next six years on the back of steady remittances from overseas Filipino workers and growing business process outsourcing industry.

Sia is hardly the only new-generation executive looking to make hay. Steve Benitez, from the central Philippine island of Cebu, aspires to turn his Bo's Coffee chain into the world's next Starbucks; it currently has 60 domestic branches. Ben Chan, another self-made entrepreneur, is building an apparel company, Bench, and is taking it into other Southeast Asian countries and China.

Then there are the heirs who are taking the reins of their family businesses. In 2015, Puregold Price Club appointed the son of founder Lucio Co, Ferdinand Vincent, as CEO. Puregold's parent company, Cosco Capital, plans to compete with Sia in the community mall segment.

Sia believes the completion of the 100 CityMalls is just the beginning of his new empire -- and a rock-solid foundation. "Once we complete that, our presence will be powerful, and the confidence in our company will be higher."

In Southeast Asia huge family businesses, conglomerates and state-owned companies are still widely seen to dominate the economies. While Sia's accomplishment of his ambitions remains to be seen, success of new-generation entrepreneurs will be the key to bring the region to the next stage of growth.

Source: – Nikkei Asian Review

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British HSBC Survey: Philippines is Ideal for Love life' ranks No. 1 Destination

El Nido, Palawan – the world’s best island. Photo: traveltrilogy.com

Expats find Philippines ideal for love life

According to a survey by British banking giant HSBC, the Philippines is among the world’s most attractive destination for expatriates seeking a healthier love life and social life.

It’s the best place to find a match made in heaven, get closer to the one you love or create a cozy love nest.

The Philippines is among the world’s most attractive destination for expatriates seeking a healthier love life and social life even though many other countries offer much more in earning opportunity, career challenges or quality of life.

According to the 2016 Expat Explorer survey commissioned by British banking giant HSBC, which compared 45 destinations around the world, the Philippines ranks No. 1 overall for expats as a destination conducive to feel closer to their partners.

The country ranks fifth in offering social life for expats and eighth in ease of integrating with the locals.

Overall, the Philippines ranked only 37th out of 45 destinations. Singapore topped the list, with expats citing the city-state lucrative in seeking new challenge, improving earnings or achieving better quality of life.

In the case of the Philippines, expats pointed to benefits ranging from easing the problem of finding good accommodation, forming new friendships and embracing diversity. Once in the country, expats don’t feel like strangers, as it is natural for Filipinos to be more than willing and happy to assist them in adjusting to the country’s culture and environment, the survey said

Closer Together

Be it around fostering relationships, providing good and affordable education/child care, creating a good environment for raising children or bringing partners closer together, the survey showed that the Philippines was a good place for expats bringing their families along. The Philippines is the top country in the world cited by expats who said that their relocation had brought them closer to their partners (59 per cent).

The cost of education and child care are typically more expensive abroad but the majority (57 per cent) of expats in the Philippines found the overall cost of raising children less expensive in this country.

An additional benefit of raising a family in the Philippines is how smoothly the family members are able to socially adapt and “feel at home.” For 45 per cent of surveyed expats, the Philippines felt like home in less than six months.

A respondent said: “The Philippines is a family-based culture. As soon as you enter a house the host/hostess will offer you the best chair plus food and drink. People want you to be comfortable and at home.”

Wick Veloso, HSBC Philippines president and chief executive officer, said: “Expats in the Philippines value their social life— how they and their families are able to ‘feel at home.’”

“With good accommodations, access to more affordable education for their children and warm Filipino hospitality, expats in the Philippines are able to further their career progression while boosting network connections and enjoying a culture that make them feel they are family,” he said.

“It is vital that financial services are easily accessible for expats to access personal funds, insurance and investments while living abroad. It is even more crucial that they are able to discuss their needs with financial advisers with ease, confident that the unique needs and requirements of an expat living overseas are fully understood,” he said.

Views, Experiences

The 2016 Expat Explorer survey covered 27,000 expats from 190 countries and territories who shared their views and experiences. Other key findings of the survey are as follows:

More than three in five expats in Singapore said it’s a good place to progress their career, with the same proportion seeing their earnings rise after moving to the country.

Nearly a quarter (22 per cent) of expats aged 18-34 — the so-called millennials — moved abroad to find more purpose in their career.

Around two in five expats said that moving abroad had accelerated their progress toward saving for retirement (40 per cent) or toward buying a property (41 per cent), compared to around one in five (20 per cent and 19 per cent, respectively) whose move abroad had slowed their progress toward these financial goals.

For the second year in a row, Switzerland topped the roster as far as offering financial well-being and a strong economy for expats are concerned.

New Zealand leads the way for an “unrivaled” expat experience, with a vast majority (83 per cent) of expats praising the country’s environment (air pollution, water quality) as better than in their home countries and nearly three-quarters (73 per cent) said their quality of life had improved.

Sweden was deemed offering an excellent environment for expat families, with around 75 per cent of expat parents rating their children’s quality of life as better than back home. – The Daily Star

Copyright: Philippine Daily Inquirer/ Asia News Network

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Indonesia to open 5,000 Alfamart Stores in the Philippines

Alfamart targets 400 stores in Philippines next year

Mini market chain Alfamart aims to increase the number of its outlets in the Philippines from the current 185 to 400 next year and add one distribution point to complement the existing one in Greater Manila.

The company expanded into the Philippines in 2014, teaming up with local company SM Investments Corporation.

"We expect to reach break-even point by the middle of 2017, after three and half years of investment," Alfa Group chairman Djoko Santoso said after an AlfaLand press conference at the Shangri-La Hotel Jakarta on Friday.

He said the business climate in the Philippines was good and processing licenses and arranging land acquisition were easy there. After 2017, the company will be more aggressive by doubling the number of its stores every year.

"After five years of investment, we want to have at least 5,000 stores in the Philippines," he said. (evi) – The Jakarta Post

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Libya Alert Level 2: Benghazi Mayor calls on Philippines to reopen consulate

Benghazi’s Ahmed Al-Oraibi with Philippines diplomat Camaloden Guro and Doris Battard of the local Philippines community (Photo: LANA)

Benghazi acting mayor calls on Philippines to reopen consulate.

Ahmed Al-Oraibi, appointed last month by Major-General Abdul Razzaq Al-Nazhuri as acting mayor of Benghazi, has called on the Philippines to reopen its consulate in the city. It was closed more than two years ago.

Oraibi made the call during a meeting at the municipal offices on Saturday evening with a member of the Philippines embassy, Camaloden Guro, who is visiting Benghazi to consult with members of the community and carry out a number of consular activities. Also attending was Doris Battard, the Filipina nurse and community leader who has worked in Benghazi for 23 years.

Thanking Filipinos for remaining at work in the city despite the situation, Oraibi was nonetheless told of the many difficulties faced by them not least the lack of funds.

Oraibi’s call call comes a week after the Philippines foreign ministry lifted it mandatory order to all Filipinos to leave Libya. The Philippines’ Crisis Alert Level for Libya has been downgraded from 4 (mandatory repatriation/evacuation) to 2 (restriction phase), enabling those who left but with existing work contracts to return. However, it remains illegal for Filipinos to accept new work contracts in Libya and travel there.

The decision to downgrade the crisis alert follows a visit to Tripoli by an assessment team from Manila last month. Under Level 2,

Filipinos are called on to restrict non-essential movements, avoid public places, and be prepared to leave in necessary. – Libya Herald

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S&P's Philippines 2016 "BBB" Credit Rating above Investment Grade- Strong, Per Capita up $3K USD

PH’s credit rating intact amid strong fundamentals, sound economic management —S&P

Standard & Poor’s has maintained the Philippines’ investment grade of “BBB” with a “stable” outlook, citing fundamentals and prudent management of the economy that point to sustainability of the country’s economic gains.

The long-term rating of “BBB” is a notch above the minimum investment grade, while a “stable” outlook indicates balanced risks or absence of factors that can lead to a change in the rating over the short term.

Ratings within the investment-grade scale, which help boost investor confidence, is a seal of good housekeeping that indicates ability of a sovereign to meet its financial obligations given a host of factors, including favorable economic conditions.

“High household consumption, investment, and exports (mainly of electronics, commodities, and services) continue to support economic activity. These strengths will likely be underpinned by strong household and company balance sheets, sound growth in jobs and income, inward remittance flows, and an adequately performing financial system,” S&P said.

S&P estimated that per-capita income in the Philippines would grow by 4.4 percent to $3,000 this year, and further accelerate to 4.6 percent from 2017-2019.

This is on the back of the robust growth outlook on the Philippines, which in turn is supported partly by its’ “young,” “educated,” and “flexible” workforce that is complemented by rising investments and a financial system that is able to fund consumption and business activities.

S&P likewise projected the country’s current account to remain in surplus, averaging 2 percent of GDP annually up to 2019. This is on account of continued rise in remittances, electronics exports, and revenues from business process outsourcing (BPO).

The country’s current account has been in surplus for 13 consecutive years since 2003, helping boost the country’s reserves of foreign currencies.

The gross international reserves (GIR) stood at $85.8 billion as of end-August, enough to cover over 10 months’ worth of the country’s payments for imported goods and services. International standards suggest that GIR enough to cover four months’ worth of imports is considered comfortable.

S&P also cited its outlook of a sustained decline in the general government’s debt as a proportion of GDP, from 28 percent in 2010 to 18 percent in 2019, on account of prudent fiscal management.

Meantime, BSP Governor Amando M. Tetangco, Jr. gave a statement on the latest rating decision by S&P.

“The Philippines’ ability to keep its credit rating well within the investment grade scale, which has transcended change in political leadership, is a testament that the country’s economic gains have been built from deeply rooted structural and sound policy reforms over the years,” Tetangco said.

“Through continued conduct of sound monetary policy and prudent bank supervision, as well as efficient management of the country’s external accounts, the BSP will help make sure these economic gains are further enhanced moving forward,” the BSP Governor added. – Asian Journal

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Philippine's Duterte's Answer to Australian Bishop for South China Sea Ruling - Not Patrolling the Sea

“President Duterte told military officers in Manila on Tuesday that he would not allow government forces to conduct joint patrols of disputed waters near the South China Sea with foreign powers.”

In behalf of President Duterte, The Philippines could answer the question of Australian Prime Minister Julie Bishop by how the colorful words uttered regarding the U.N. Hague ruling for South China Sea as follow:

1.    We have the U.N. that judged the disputes then it must have the U.N. Police to implement the law.

2.    It is not right for the U.N. to have the ruling then watch the feuding parties to fight ‘til who would win because they don’t have their police.

3.    It is not right for the U.N. to rely on who wants to “Police” to implement their law. Washington, Australia, Japan, Philippines and other countries have their own national interests in the area so what does it mean? The powerful would always win if anyone is allowed to police to implement the U.N. ruling.

4.    The ruling of U.N. is just a word without teeth and the Philippines doesn’t want to bite that dust and watch the handful soldiers fight and die.

5.    Why should the Philippines joined in patrolling the South China Sea if it is not capable to fight against the worlds’ top most powerful?

6.    The Philippines is more concerned on internal issues on the war on drugs and the ISIS linked terrorists Abu Sayyaf, how could the country solve the external issues without addressing first the internal issues?

Julie Bishop issues 'please explain' to Philippines' Duterte

Foreign Secretary Julie Bishop has questioned Philippines' President Rodrigo Duterte after he said he won't join US patrols through contested areas of the South China Sea.- WPA Pool

Foreign Minister Julie Bishop has questioned Philippines' President Rodrigo Duterte after he said his navy would not be joining further US patrols through contested areas of the South China Sea, despite the fact the nation initiated the push back on China's power in the region.

Mr. Duterte, who in recent days has called for US troops to move out of the Southern Philippines and hinted at buying Russian and Chinese weapons, said he did not want his country involved in US freedom of navigation patrols in the South China Sea.

"We will not join any expedition or [be] patrolling the sea. I will not allow it because I do not want my country to be in involved in a hostile act," Mr. Duterte said on Tuesday.

In July, the Permanent Court of Arbitration in The Hague ruled China's claim historic rights within the areas falling within the "nine-dash line" had no legal basis.

Australia has attracted the wrath of Beijing for calling for China to abide by the recent Hague ruling after supporting the Philippines' right to take the case to the Permanent Court of Arbitration in the first place. Ms. Bishop said Mr. Duterte should be questioned over why he does not want to enforce the ruling of the court considering his country brought the case to the court.

"I have been informed that the President of the Philippines has announced that the Philippines, as a claimant state and as the state that instigated the arbitration, has announced that the Philippines will not be sending their ships into contested areas.

"So the question should be directed to the Philippines as to what they are doing to reinforce the arbitration findings," she told reporters on Wednesday.

MS Bishop said she was surprised by Mr. Duterte's latest position.

"Well aren't you surprised that the Philippines is now not going to traverse the territory that the arbitration has just found is in the Philippines EEZ [exclusive economic zone]? And that the arbitration found that China was in breach of the Philippines sovereignty?

"And now the Philippines have said they withdraw from those contested areas the arbitration has found were within the Philippines EEZ?" she said.

Asked whether she was suggesting the Philippines should be being more active in the South China Sea, she said, "Well, the Philippines is a claimant state"

After MS Bishop warned Beijing their international reputation was at stake if they did not abide by the Hague ruling, China said MS Bishop's comment's were "wrong" and "shocking". –with source form  Fairfax Media

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LAOS: Duterte and Obama finally met and were the last persons to leave the holding room

US President Barack Obama waves to the media as he arrives for the gala dinner of ASEAN leaders and its Dialogue Partners in the ongoing 28th and 29th ASEAN Summits and other related summits at the National Convention Center Wednesday, Sept. 7, 2016 in Vientiane, Laos. (AP Photo/Bullit Marquez) (Bullit Marquez)

By The Associated Press | Wire reports
on September 07, 2016 at 1:15 PM, updated September 07, 2016 at 1:16 PM

Obama, Duterte meet despite Philippine president's crude language

VIENTIANE, Laos (AP) — President Barack Obama and Philippine President Rodrigo Duterte met informally on Wednesday in a holding room before attending a gala dinner at a regional summit, Philippine officials said.

The brief meeting took a little sting out of the soured relations caused by Duterte's intemperate language in referring to Obama earlier this week. That had caused Obama to cancel a formal meeting scheduled for Tuesday.

There was no immediate confirmation from the White House.

Philippine Foreign Secretary Pefecto Yasay told The Associated Press that the leaders had met.

"They met at the holding room and they were the last persons to leave the holding room. I can't say how long they met. It all springs from the fact the relationship between the Philippines and the United States is firm, very strong. The basis for this relationship is historical and both leaders realize this. And I'm very happy that it happened."

Obama and Duterte are in the Laotian capital along with other regional leaders for the summit. All of them made their way through the holding room before heading to the banquet hall.

On Monday, hours before arriving in Laos, Duterte told Philippine reporters he wouldn't accept questions from Obama about extrajudicial killings that have occurred during his crackdown on suspected drug dealers and users. More than 2,000 people have been killed in the crackdown since he took office on June 30.

"I do not have any master except the Filipino people, nobody but nobody. You must be respectful. Do not just throw questions. Putang ina, I will swear at you in that forum," Duterte said, using the Tagalog phrase for "son of a bitch."

On Tuesday, Duterte expressed regret over the remarks, but the damage was done.

A Philippine Department of Foreign Affairs spokesman, Charles Joe, also said Obama and Duterte met in the holding room. He said it was a mutually agreed meeting, but that he had no details of what was discussed.

Obama and Duterte entered the dinner venue separately, and were seated far apart and did not interact with each other during the dinner that lasted an hour and 20 minutes. - MLive

By The Associated Press | Wire reports
on September 07, 2016 at 1:15 PM, updated September 07, 2016 at 1:16 PM

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Duterte's Policy Gained Global Weights for Confronting Washington, UN's Inaction of Syria's Bombing and Killings of Children

In Duterte, superpowers confront a new kind of leader

Philippine President Rodrigo Duterte is thriving on controversy at the moment because those with whom he picks his fights are more controversial than he is. His chief recent targets have been the United States, whose century of colonial rule over the Philippines was marked by blood and violence, and the United Nations, where the US and other superpowers hold sway. Duterte, democratically elected on June 30, has lashed out at them both, and his people love it.

His threat to withdraw the country from the UN and perhaps spearhead the formation of a new global organization has sent other top Philippines officials scrambling to deny there is any such intention. His verbal attack on an American ambassador might be seen as hitting below the belt, but it drew an intense international spotlight that will likely be the first of many.

At home, Duterte’s anti-corruption drive promises to result in multiple high-profile sackings and his anti-crime campaign many more dead bodies. But it’s his tough stand against Western interference that’s drawing the most attention, and a key question that’s arisen is whether the likes of Duterte will soon be the rule rather than the exception among national leaders around the world.

He has scored points in assailing America, for example, because of the very evident fact that it is in no position to be preaching about principles to any other nation. Duterte is certainly not the only leader of a smaller country to feel that way, but he is currently atop the crest of defiance. Whether Washington realizes that a trend has begun or not is another question.

Independence struggles against US adventurism overseas and against shackles imposed by the US congress and American financiers have left countless dead and have crippled economies. Quite justifiably, Duterte doesn’t want the US preaching to his country.

On the United Nations, again he might have overreacted. But again his words only reflect this bitterness over the UN turning a blind eye to the superpowers’ deplorable actions overseas. In Duterte’s perspective, drug-related crime has ravaged his homeland and his duly elected government should be allowed to handle the problem as it sees fit. Importantly, he surely believes, the Philippines is dealing with its own issues and is not causing trouble for anyone else. It’s not as though it’s invading foreign lands with armed troops or government-sanctioned computer hackers.

At the heart of this tumult is Duterte’s war on drugs, in which security forces have summarily executed 600 alleged traffickers since early last month. The government’s justifications – that death is the best deterrent and that Duterte was elected, after all, with this policy in his campaign platform – have horrified right activists and is now coming up against local dissent as well. It was a formal statement by the UN condemning the policy that triggered his furious reaction this week.

If the UN had been in any way effective in curbing the rights abuses of its superpower members, perhaps its criticism of the Philippines would carry weight. Instead it plays the role of a mother crab telling its offspring to walk straight. For all the controversy he courts, Duterte is speaking on the behalf of many other leaders of smaller nations.

Filipinos will decide whether they want to abide by Duterte and his policies. They are not unfamiliar with colorful political language and are aware that it takes more than linguistic bluntness to rule the country. The targets of Duterte’s outbursts, on the other hand, must ponder the reasons why their show of concern has met with such a contemptuous response.  - Inquirer

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34Kg World Biggest Pearl Found in the Philippines - The True Pearl of the Orient

34Kg World Biggest Pearl Found in the Philippines. Photo: AILEEN CYNTHIA AMURAO/SWNS.COM

34kg pearl found in Philippines 'is world's biggest'

Philippine officials believe they may have recovered the biggest natural giant clam pearl in the world - weighing a whopping 34kg (5.2 stone).

The pearl was found 10 years ago by a fisherman who was unaware of its value and kept it as a good luck charm, Palawan official Aileen Amurao said.

"We were amazed when he brought it to us," she told local media.

Officials are awaiting confirmation from gemologists that the find is indeed the world's largest pearl.

The pearl is 61cm (2ft) wide and 30cm long and, if confirmed, will easily beat the current record holder, the Pearl of Lao Tzu, which weighs 6.4kg. – BBC News

Giant clams can weigh up to 400kg. Image: GETTY IMAGES

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Investors in the Philippines Triple its Expansion- High Trust on Duterte Leadership and Economic Policy

A view of residential condominium buildings at a residential neighbourhood in Mandaluyong, Manila, Philippines. Photo: Reuters

Beyond war on drugs, Philippines' Duterte seen setting up economic boom

Beneath Duterte's acidic remarks, an active communist insurgency and separatist rebellions, a new economic success story is being told

Less than two months in office, Philippines President Rodrigo Duterte is getting high marks from the business community for policies that could engineer an economic surge and companies say they are making new investments as a result.

While Duterte may be getting headlines for a bloody war against drug dealers and users, less attention has been paid to one of Asia’s few economic success stories.

The groundwork was laid by Duterte's predecessor, President Benigno Aquino, who took growth above 6 percent over his six-year term , but executives are also cheering the new administration’s focus on building new infrastructure and say it could spell the start of a long-term boom. Some even see Duterte's violent and highly controversial anti-drugs campaign as potentially positive.

"We are in a very good spot," said Antonio Moncupa Jr., president and CEO of East-West Banking Corp, one of the top 10 lenders in the country. "The pronouncement of government prioritizing infrastructure spending, accelerating it and cutting red tape, solving peace and order, I think all point to very good prospects ahead."

Last week, the government announced that the Philippines’ economy grew at 7 percent in the second quarter from a year earlier, its highest level in three years. It makes the Philippines the fastest growing among all countries that have reported so far for the second quarter.

When Duterte won the May presidential election, there were questions marks over how he would handle the economy – Duterte, who is nicknamed "the Punisher", has been unapologetic over unleashing the police on drug users and dealers.  Philippine National Police Chief Ronald Dela Rosa said on Monday that there have been 1,800 drug-related deaths since Duterte took over as president, with 712 of those at the hands of the police.

The new president has launched a crackdown on online gambling, vowed to destroy oligarchs, warned that the country could live without a mining industry if environmental standards were not met and called the U.S. ambassador a "gay son of a whore".

But Duterte has a 91 percent approval rating in the latest public survey and businesses are lining up to announce expansion plans. The mainstays of the economy - remittances and the outsourcing sector - are flourishing and boosting domestic consumption.

Domestic expansion

Jollibee Foods Corp, the biggest fastfood chain in the country, plans to open 200 more domestic stores this year. So does Robinsons Retail, taking its total to over 1,500. BDO Unibank Inc, the country's biggest lender, plans to open 50-100 new branches this year.

"We are supportive and encouraged by the new administration's socio-economic agenda, which has a holistic approach for the benefit of all, including JFC," said Jollibee investor relations officer Cossette Palomar.

However, the Philippines has a worrying precedent of a strongman leader.

In the 1960s, when the country had one of the highest per capita incomes in Asia, Ferdinand Marcos took over as president. Two decades of dictatorship, corruption and plunder by Marcos left the Philippines in a shambles.

"Business will be good under this administration," BDO Unibank executive vice-president Luis Reyes said of Duterte. "Concerns center more on the extra-judicial killings."

Supporters of Duterte say even as the long-term mayor of the southern city of Davao, where he earned his reputation for busting crime, he created the conditions for business to flourish.

Government data show that the Davao region's economy grew by 6.6 percent on average in 2010-14 compared with 6.3 percent for the whole country. According to one estimate, there were more than 20,000 people in outsourcing jobs in the city in 2013, and this sector was growing at more than 20 percent a year.

Duterte's reputation of carrying out his promises has given businesses plenty to look forward to - for instance his vow to make spending on infrastructure a priority.

"I believe infrastructure is going to grow very fast and it will have a double or triple effect," said Henry Schumacher of the European Chamber of Commerce in the Philippines. "Money will be available. An iron fist is going to be behind it."

Speed up, or else

In May, Duterte told the country's main telecom providers to speed up the internet, or he would junk laws that prohibit foreign competition.

Duterte's economic plan also includes lowering corporate and income taxes and a commitment to invest in education, to reap the demographic dividend of the country's young population.

About two-thirds of the Philippines' 100 million people are of working age, between 15 and 64, rising from about 56 percent of the population in 1990. In 2030, about 70 percent of the 125 million people will be of working age, the government has projected.

"This is another advantage given other neighbors in the region, most of Northeast Asia and some in Southeast Asia, have populations that are aging and are therefore facing labor supply constraints," said Euben Paracuelles, an economist at Nomura.

Still, Joanne Burgonio, a 27-year-old software analyst in Manila, said it was too early to say what a Duterte presidency would bring.

"My concern is transportation," she said, adding that she waited two hours for a bus home the previous evening.

"His focus now is (on) drug pushers, hopefully the focus will be on infrastructure. I am optimistic because whatever he promised before he was elected, he is doing." – Gulf News

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2016 OLYMPICS - Pinoy archer Moreno wins Philippines first ever Olympic gold

STANDING TALL. Gabriel Moreno stands next to teammate Li Jiaman of China as they receive their gold medals. Photo from press release

NANJING, China – Young Filipino archer Gabriel Moreno made history on Sunday as he won a gold medal in the mixed team event of archery in the Nanjing Youth Olympic Games

Gabriel Moreno made history on Sunday, August 24, as he won a gold medal in the mixed team event of archery in the Nanjing Youth Olympic Games (YOG).

The 16-year-old teamed up with Chinese archer Li Jiaman and beat Cynthia Freywald (Germany) and Mohamad Zolkepeli (Malaysia) with a total score of 113-105.

This is the first time the Philippines won a gold medal in an Olympic event. The last time the Philippines placed a medal in the Olympics was in the 1996 Atlanta Olympics, where Mansueto “Onyok” Velasco won a silver medal.

Moreno earlier said that he was hopeful for a gold medal given the effort he has put in in his training.

“I want to make my country proud. I want to give the Philippine my very best,” Moreno said.

Fellow archer Bianca Gotuaco was eliminated in the elimination round of the women’s individual event on Saturday, August 23. She competed in the mixed team event with Prennoy Murong (Bangladesh) but got eliminated Friday, August 22.

GOLDEN BOY. Archer Gabriel Moreno won the Philippines' first ever Olympic gold medal. Photo from Moreno

Moreno started archery when he was 6 years old. At the age of 12, he competed in his first international archery event in Kuala Lumpur, Malaysia. His medals have been piling up since then.

In 2013, Moreno bested other Filipino archers in the Philippine National Games and Palarong Pambansa (National Youth Olympic Event). In the same year, he and fellow YOG delegate Bianca Gotuaco qualified in the Nanjing YOG after winning in the Taipei qualifiers.

Moreno was also the country’s flag-bearer during the Games’ opening ceremonies on August 16.

The Nanjing YOG will run until Thursday, August 28. – Rappler.com

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Philippine Economy Grow 7% in Q2 2016

Philippine Economy Grow 7% in Q2 2016. Illustration: Rappler.com

Philippines GDP grows 7% in Q2 2016

'Among the major Asian emerging economies, the Philippines likely remains the fastest or second fastest-growing economy in Q2 2016 followed by China,' says Socioeconomic Planning Secretary Ernesto Pernia

Boosted by a strong start to 2016, the Philippine economy grew 7% in the second quarter of the year.

The latest gross domestic product (GDP) figure announced by Socioeconomic Planning Secretary Ernesto Pernia on Thursday, August 18, builds on the 6.8% growth recorded in the first 3 months of the year, which made the Philippines the fastest growing economy in the region.

The government earlier recorded the first quarter economic growth at 6.9%, but the Philippine Statistics Authority later revised it to 6.8%.

Philippine Economy Grow 6.8% in Q1 2016. Illustration: Rappler.com

Thursday's announcement of the 7% growth fell within market expectation of growth between 6.5% and 7%.

"Among the major Asian emerging economies, the Philippines likely remains the fastest or second fastest-growing economy in the second quarter of 2016, followed by China, which grew by 6.7%, Vietnam by 5.6%, Indonesia by 5.2%, Malaysia by 4.0%, and Thailand by 3.5%," Pernia said.

Data for India, he added, is not yet available but some forecasts put it above 7%.

Pernia also said the latest figures give government confidence that it would be able to hit the official government target of 7-8% for the entire year of 2016.

Services and industry

The high growth recorded for the second quarter of 2016 was driven mainly by the industry and services sectors.

The services sector hit 8.4% growth, on the back of faster growth in trade, transport, communication, public administration, and real estate, renting and business activities.

The industry sector, meanwhile, recorded a growth of 6.9% compared to the 6.1% growth in the previous year, supported by manufacturing, construction, and utilities.

Foreign direct investment has also been good this year, already standing at almost $4 billion as of May, which is more than double the level seen in 2015 from the same time last year.

Dismal agriculture performance

The Director General of the National Economic and Development Authority (NEDA) however lamented the continued dismal performance of the agriculture sector, which was at -2.1% in the second quarter due to El Niño.

The government is "concerned" about the decline of agriculture in the last 5 straight quarters and the threat of La Niña, which is likely to intensify between August and November of this year.

Domestic demand up

Public spending remained strong in the second quarter driven by the boom in public construction and government consumption, which grew by 27.8% and 13.5%, respectively.

Private consumption also grew stronger in comparison to the previous quarter, benefiting from election spending which intensified in the final months to the elections in May.

Remittances from overseas Filipino workers, which helps fuel the consumption, also remained strong despite worries at the start of the year.

Year-to-date remittances hit P13.19 billion as of June 2016, a 3.2% increase from the P12.782 billion booked in the same period last year, according to the Bangko Sentral ng Pilipinas (BSP).

The BSP also kept its key interest rates steady in its latest monetary board meeting last week amid manageable inflation.

Overall, domestic demand growth accelerated to 12.3% from 12.0% in the first quarter of 2016.

External demand down

By contrast, Philippine exports suffered due to sluggish global demand, having seen 15 straight months of declining value. NEDA data showed that overall exports of goods and services continued to slow down to 6.6%, despite the 15.3% growth of services exports.

Imports of goods, on the other hand, rose to 22.9% largely due to increased purchases of capital goods and durables, which NEDA said indicates an increase of investments from firms.

Services imports remained strong at 13.3%, higher than the 10.3% in the previous quarter.

Economy on track

The April-to-June period covered the final months of former President Benigno Aquino III's administration, capping 6 years of stellar growth that helped boost the Philippines' credit ratings and end its reputation as one of the region's economic laggards.

The tail-end of the second quarter also saw President Rodrigo Duterte assume the presidency, with his economic team promising to retain the previous administration's macroeconomic policies.

The Duterte administration has promised to boost infrastructure spending and indicated that it would raise the debt ceiling to do so.

The country's new economic managers, however, have lowered full-year GDP expectations for this year to 6%-7%, from the original 6.8%-7.8% due to the effects of the tapering off of election spending, slow agricultural output due to El Niño, weak infrastructure due to seasonality, and weak external trade.

With the first semester GDP growth of 6.8%, the economy will need to grow by at least 5.1% in the second half of the year to attain at least the low-end of the growth target, Pernia pointed out.

"While it is normal to see a slowdown in the second semester during election years, and it could possibly be 1.5 to 2.0 percentage points lower than in the first half, the smooth transition of power and assurance of macroeconomic policy consistency and continuity by the new administration will likely keep business and consumer confidence strong to meet the full-year target," he said. – With a report from Agence France-Presse / Rappler.com

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