Philippines gives green light to 100,000 electric tricycles in Manila

Electric tricycles on parade in Manila.

The Philippines is to roll out 100,000 electric tricycles in an effort to replace the petrol-powered ones that currently ply its cities, one of the project's financiers said on Tuesday.

The "e-trikes" would provide an alternative to the gas-guzzling, smoke-belching motorised tricycles that now ferry Manila residents through narrow streets not served by buses, the Asian Development Bank (ADB) said.

ADB energy specialist Sohail Hasnie said the lender hoped the e-trikes would eventually replace some of the estimated 3.5 million gas-powered motorcycles and tricycles already in use in the country.

"It will not stop at e-trike. It will expand horizontally to other transports like buses... and once that happens, nationwide, the country's consumption of oil will come down," he said in a video message.

The $500 million project received the green-light on Tuesday but a launch date for the vehicles has not yet been set.

The e-trikes, powered by an electric motor with rechargeable lithium-ion batteries, cost only $1.20 (about R10) for a daily charge compared to the $6-8 in fuel a normal tricycle burns every day, the ADB said.

There has been generally favourable reaction to a pilot project of 20 e-trikes that have been in service in one Manila district since last year, the bank said.

The ADB is lending the Philippines $300 million to acquire the vehicles.

The project will also get an $105 million in a soft loan and grant from the United Nations' Clean Technology Fund, which is administered by the ADB, the bank said. The Philippine government will provide $99 million.

The loans will also put up five solar charging stations so the e-trikes can be powered up without drawing on the electrical grid, the ADB said.

Other countries have also expressed interest in the e-trikes, said Hasnie.

The Philippines hopes to eventually become a centre for manufacturing these vehicles, he added. - Sapa-AFP (http://is.gd/uZv1dQ)

iol Scitech 

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China Ruined the Peaceful Asia and clean hands

Beijing accused the Philippines as "Trouble Maker in Asia" a contrary Claim to the reality

Every time when China raises an accusation to the other country, it always means opposite. When China creates a trouble they will clean their hands and accused the other countries, a proof that their ideology is apparently wrong and must be forbidden from propagating around the world.

China ruined the Peaceful Asia

After the World War II, Japan allowed the peace to rein in Asia by eluding armaments supremacy. The whole Asia is rebuilding while US Military power secured the Asia Pacific with its largest base in Clark, Philippines.

Leftist Filipino ousted the US Military base in the Philippines sometime in the last quarter of 1991 and within few days after the US Military ousted; China invaded the Mischief Reef in Palawan province, a 75 Mile distance from the main Palawan Island, Philippines.

China government used their armed civilians to poached neighboring countries territories from east down south.

North Korea, a close ally of china did not even get an exemption from the illegal Chinese fishermen poaching their waters in the yellow sea which North Koreans detained the Chinese poachers and demand for ransom.

South Korea also braced up by building a new Military base in Jeju Islands after China government pointed out their ownership to the "ieo do" or Ieo Island of South Korea a few miles away from Jeju.

Japan who was once the super power in Asia who lay down their arms for peace is now awaken as china starts invading their Island near Okinawa.

Taiwan the Republic of China is always threatened by the communist People's Republic of china

Vietnam has the highest number of casualties since 1970's when skirmish occurred in the Paracel Islands. The Paracel once governed by Vietnam as it is within its 200 Nautical Miles Exclusive Economic Zone but their defeat forced them to only lobby for an aid from powerful countries to counter china. The China's invasion continues until the present times. The series cutting of exploration cables and establishing of the illegal sansha city of china in the Paracel are recent attack by china to vietnam. The worst is China is even claiming almost all waters of Vietnam as their territory.  The defeat of Vietnam in Paracels pushed them to attack the weak Philippines and speedy occupy the Spratly Islands ousting Filipino Soldier occupying in one island in Kalayaan.

Palau a very far for thousands of Kilometer from China faced a minor squabble resulting to a death of their air force crashed miles away after its surveillance plane's engine failed while ramming with the Chinese poachers invading their waters. Palau successfully detained Chinese fishermen and demanded for fine.

The Philippines suffered most in Asia from the terrible china. The recent Stand-off with china in the Scarborough Shoal or Panatag Shoal near Zambales Province still on-going as china did not honor their words to fall-out their poachers in the Philippines territory.  China already settled the Mischief Reef in the Province of Palawan and setup a Military garrison there. The Recto bank or the Red bank which is just few miles away from Palawan is now claimed by china. The big Issues here are the Kalayaan Group of Islands or the Spratly Islands that was once the territory of the Sultanate of Sulu. The Sultanate of Sulu includes the north Borneo, Palawan and Western Mindanao. China found a massive oil deposit in the Spratly resulting its aggressive claim in the entire territory. The Sultanate of Sulu is now under the Philippine Government including its all territories but Malaysia gained a control in North Borneo through the aid of Britain. The Spratly Islands are now disputed as Malaysia laid its claim base on their control of the North Borneo, Vietnam claimed the Spratly Islands as the Philippines is weak to defend the area, and china Claim the whole territory as their own.

Indonesia is hit a bit by china's cow tongue claim including their waters facing the West Philippine Sea

India the Asia's rising super power is also challenged by china hegemony. India was once defeated by china in their border territory battle. An outrage for some Indians to discover in the Google maps that  shows some undisputed territory of India is now marked as disputed with china which Indian government did not make any comment in it.

Russia one of the Super Power in Asia also face the challenge as china claimed some part of its territory in its border

China's wrong Accusation against the Philippines

As published in the todayonline.com website, China accuses the Philippines has played the role of "troublemaker" in Asia, using "one trick after another" in seeking confrontation with China while coveting territorial waters it is not entitled to, the China Daily newspaper said in an editorial dated December 12, 2012.

Recent comments by Philippines Foreign Minister Albert del Rosario in support of Japan rearming itself were a "pathetic" bid to provoke China, the Beijing-based newspaper said, adding that the Philippines has resorted to "opportunism" to balance "big powers" and will have to shoulder the consequences if it goes too far.

The Philippines and other countries have seen tensions with China rise over its maritime claims in the disputed South China Sea.

Meanwhile, United States and Philippine officials, who met yesterday in Manila, are expected to agree on an increase in the number of US military ships, aircraft and troops rotating through the Philippines. "What we are discussing right now is increasing the rotational presence of US forces," said Mr. Carlos Sorreta, the foreign ministry's Assistant Secretary for American Affairs. A five-year joint US-Philippine military exercise plan would be approved this week, he added.

Officials say there is no plan to revive permanent US military bases in the Philippines - the last ones were closed in 1992 - and that the increased presence would help provide relief during disasters, such as a deadly typhoon last week.

With opinion from Prince Dan We and news from Today Online. For comments and reaction, please contact Prince Dan we through email

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Security meeting- U.S. military to boost Philippines presence; China tells army to be prepared

U.S. Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell (R) joins hands with U.S. Assistant Secretary of Defense for Asian and Pacific Security Affairs Mark Lippert (2nd R)

(Reuters) - U.S. and Philippine officials are expected to agree on an increase in the number of U.S. military ships, aircraft and troops rotating through the Philippines, Filipino officials said, as tensions simmer with China over its maritime claims.

Though he made no direct reference to the territorial disputes, new Chinese Communist Party chief Xi Jinping urged his military to prepare for a struggle. He made the comments during his visit to a South China Sea fleet ship in southern Guangdong province, but did not name any potential aggressor.

Senior U.S. and Philippine officials met on Wednesday in Manila to discuss strengthening security and economic ties at a time of growing tension over China's aggressive sovereignty claims over vast stretches of the disputed South China Sea.

Philippine defense and diplomatic officials said they expected to see more U.S. ships, aircraft and troops for training exercises and disaster and relief operations.

"What we are discussing right now is increasing the rotational presence of U.S. forces," Carlos Sorreta, the foreign ministry's Assistant Secretary for American Affairs, told reporters. A five-year joint U.S.-Philippine military exercise plan would be approved this week, he added.

The size of the increase in the U.S. military assets in the Philippines, a former U.S. colony, was unclear.

Pio Lorenzo Batino, Philippine deputy defence minister, said there were "substantial discussions" on a possible new framework allowing Washington to put equipment in the Southeast Asian state.

"There has been no discussion yet on specifics ... (these are) policy consultations and the specifics would be determined by the technical working groups," he told a news conference, saying the new framework was discussed in the context of increasing rotational presence.

U.S. Assistant Sevretary of State Kurt Campbell said the two allies' relationship was "in a renaissance".

The discussions come as the Philippines, Australia and other parts of the region have seen a resurgence of U.S. warships, planes and personnel under Washington's so-called "pivot" in foreign, economic and security policy towards Asia announced last year.

Wary of Washington's intentions, China is building up its own military. Its claims over most of the South China Sea have set it directly against U.S. allies Vietnam and the Philippines, while Brunei, Taiwan and Malaysia also claim parts of the mineral-rich waters.

Xi, who assumed the role of military chief about a month ago, called on the 2.3-million-strong People's Liberation Army to "push forward preparations for a military struggle", state news agency Xinhua said.

Xi, speaking during a three-day inspection of the PLA's Guangzhou base starting last Saturday, did not say against whom the struggle might be fought.

His remarks echo those he made a week ago and are a common refrain by Chinese leaders. Xi replaced President Hu Jintao as chairman of the Central Military Commission on November 15.

Xi also said the army should "modernize" for combat readiness, but gave no specific details.

MILITARY BASES

U.S. and Philippine officials say there is no plan to revive permanent U.S. military bases in the Philippines - the last ones were closed in 1992 - and that the increased presence would help provide relief during disasters such as a typhoon last week that killed more than 700 people.

"The increase rotation presence is in areas where we have been traditionally exercising," said Sorreta. "There are other areas for example where we have been experiencing more disasters. So we might be expanding exercises there."

One U.S. official said Washington was not ready to wade directly into the territorial dispute in the South China Sea and instead would focus on strengthening security ties with long-standing allies such as the Philippines.

"I don't think you'll see any real movement on the South China Sea," the U.S. official said.

"I'm sure it will come up, but we aren't trying to step in and 'solve' that issue. We really want the solution to be done by the claimants themselves and are hoping the Code of Conduct discussions move forward," said the official, referring to a Code of Conduct aimed at easing the risk of naval flashpoints.

Sorreta told Reuters the Philippines also favored an increased deployment of U.S. aircraft and ships "so we can make use of them when the need arises", citing last week's typhoon. He said they would also welcome more U.S. humanitarian supplies. (http://is.gd/qQUY8i)

Reuters

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China invaded Philippine Mining smuggled 3 Million Metric Tons of Gold to China –TAX FREE

China invaded and occupied Mischief Reef 75 Miles from Palawan

China's mining occupation of the Philippines

While China's brazen occupation of the Philippines' Scarborough Shoal, located just 125 nautical miles from Masinloc, Zambales, has captured all the national and international attention, little has been mentioned about China's occupation of the Philippine mining industry, an entirely different issue from the Filipino Chinese ("Chinoys") domination of the Philippine economy.

For example, one of China's vast army of mining companies operating almost under the radar in the Philippines is located near the Scarborough Shoal in the coastal town of Masinloc where China's Wei-Wei Group has set up a US$100 million nickel processing plant. In nearby Botolan, Zambales, China's Jiangxi Rare Earth and Rare Metals Tungsten Group Company Limited operates a US$150 million nickel exploration and cobalt processing project.

As the Asia Sentinel reported on November 12, 2012 ("China's Filipino Gold Rush"), "With an estimated US$1 trillion in untapped mineral resources in the Philippines, according to the Mines and Geosciences Bureau, Chinese mining companies, many of them operating illegally, have been exporting gold, nickel and other precious minerals out through the island country's porous coastal ports, where there are no customs officials and plenty of bribable officials to turn their eyes the other way."

China's Filipino Gold Rush

With its occupation of the Scarborough Shoal (what China calls "Huanyin Island"), smuggling precious metals from the Philippines to a China base will be even more convenient especially after it is transformed into a four story fortress, as China did with the Philippines' Mischief Reef, located just 75 miles from Palawan, which China occupied in 1996.

The Asia Sentinel's investigation reported that "as of now, of the gold registered as leaving the Philippines, only 3 percent of the exports are registered with customs officials… The other 97 percent arrives in Hong Kong without being taxed by the government in Manila, resulting in a massive tax loss."

While that 97% of the gold is leaving the Philippines illegally, it is somehow legally entering Hong Kong as HK trade statistics showed that "gold consignments imported from Philippines into Hong Kong had been declared," the Sentinel added.

In April of 2011, Pacific Strategies and Assessments (PSA), a company supplying foreign embassies and corporations in Manila with intelligence and business climate reports, released a study titled "Exploitive Chinese Mining in the Philippines" which reported that the incursion of Chinese mining firms into the Philippines has had a disastrous effect on the Philippine environment.

"While few are surprised over the assertiveness and penetration of Chinese mining investors, there is substantial evidence of unaccountability, misconduct and corruption in many Chinese mining deals," the PSA reported.

These firms do not "deliver correct compensation for environmental damage and value of minerals extracted from devastated mining areas….Chinese mining companies have a reputation for poor adherence to environment standards, especially with regard to small-scale mining projects," the report added.

China's mine safety record is the worst in the world. More than 2,600 Chinese miners died in mining accidents last year. While China accounts for 40% of the world's global coal output, it accounts for 80% of mining deaths in the world.

In 2008, the Philippine Department of Environment and Natural Resources admitted that at least 3 million metric tons of various mineral ores were brought into China that were untaxed in the Philippines.

The Chinese mining companies' occupation of the Philippines began in earnest during the administration of Pres. Gloria Macapagal-Arroyo when 26 Chinese corporations registered in the Philippines to mine for gold, iron ore, nickel, copper, manganese, lead, zinc, chromate and cobalt. They operate in 16 provinces in the Philippines: Cagayan, Benguet, Zambales, Camarines Norte, Camarines Sur, Palawan, Leyte, Eastern Samar, Bohol, Cebu, Misamis Oriental, Davao Oriental, Surigao del Norte, Sultan Kudarat, Zamboanga del Norte and Zamboanga del Sur. (http://is.gd/zmu1BB)

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N-Korea Successful Space rocket launched, 2nd debris Spash down East Philippines at 10 AM

South Koreans watch a television report on North Korea's rocket launch at Seoul railway station in Seoul December 12, 2012. North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to its opponents. The rocket, which North Korea says was designed to put a weather satellite into orbit, has been labelled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far as the continental the United States.

North Korea's new leader burnishes credentials with rocket

(Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to its opponents.

The rocket, which North Korea says was designed to put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far as the continental the United States.

"The satellite has entered the planned orbit," North Korea's state news agency KCNA said.

North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the United Nations Security Council to stiffen sanctions against Pyongyang that it originally imposed in 2006 after the North's first nuclear test.

The state is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put into place by his deceased father Kim Jong-il.

After Wednesday's launch, which saw the second stage of the rocket splash down in seas off the Philippines as planned, Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely to be agreed at the body as China, the North's only major ally, will oppose them.

The rocket was launched just before 10 a.m. Korea time (9 p.m. ET on Tuesday), according to defense officials in South Korea and Japan, and easily surpassed a failed April launch that flew for less than two minutes.

There was no independent confirmation it had put a satellite into orbit.

Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on December 16 and who made his name as a North Korea hawk, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.

There was no immediate official reaction from Washington, South Korea's major military backer, or from China.

China had expressed "deep concern" over the launch which was announced a day after a visit by a top politburo member to Pyongyang when he met Kim Jong-un.

On Wednesday, China's state news agency Xinhua said North Korea had the "right to conduct peaceful exploration of outer space."

But it added: "Pyongyang should also abide by relevant U.N. Security Council resolutions, including Resolution 1874, which demands (North Korea) not to conduct 'any launch using ballistic missile technology' and urges it to 'suspend all activities related to its ballistic missile program.'"

U.S. Representative Ileana Ros-Lehtinen, a Florida Republican who heads the House of Representatives Foreign Affairs Committee, quickly condemned the launch and called for tougher sanctions.

"It is clear that Pyongyang is moving ever closer towards its ultimate goal of producing a nuclear ballistic missile in order to threaten not only our allies in the Asia-Pacific region but the U.S. as well," she said.

A senior adviser to South Korea's president said last week it was unlikely that there would be a meaningful set of sanctions agreed at the United Nations but that Seoul would expect its allies to tighten sanctions unilaterally.

A YEAR ON FOR THE THIRD KIM

Kim Jong-un, believed to be 29 years old, took office after his father died on December 17 last year and experts believe that Wednesday's launch was intended to commemorate the first anniversary of the death.

The April launch was timed for the centennial of the birth of Kim Il Sung, the founder of North Korea and the grandfather of its current ruler.

"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.

There have been few indications the secretive and impoverished state, where the United Nations estimates a third of the population is malnourished, has made any advances in opening up economically over the past year.

North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its people working on labor projects overseas.

The 22 million populations often need handouts from defectors who have escaped to South Korea in order to afford basic medicines.

Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways that North Korea can attract world attention is by emphasizing its military threat.

Pyongyang wants the United States to resume aid and to recognize it diplomatically, although the April launch skippered a planned food deal.

It is believed to be some years away from developing a functioning nuclear warhead and to have enough plutonium for around half a dozen nuclear bombs, according to nuclear experts.

The North has also been enriching uranium which would give it a second path to nuclear weapons as it sits on vast natural uranium reserves.

It says that its development is part of a civil nuclear program, but has also boasted of it being a "nuclear weapons power".

(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; Writing by David Chance; Editing by Raju Gopalakrishnan) (http://is.gd/DuHCJ5)

Reuters 

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Minister Del Rosario the LONE bravest ASEAN Minister who Stand up against China

Filipino Albert del Rosario a lone ASEAN voice taking on China

Placing consensus above all, it is fair to say that ASEAN leaders are generally not known for their displays of emotion or passion.

Yet, in a crucial closed-door meeting in July, Philippine Foreign Secretary Albert del Rosario tried to tap those dormant qualities as he tried to rally his peers to stand up to China over the West Philippine Sea (South China Sea).

Trying, in the words of one observer, "to bloody well wake them up", del Rosario quoted the famous lines from German theologian Martin Niemöller of the perils of doing nothing in the face of mounting tyranny. Describing how the Nazis, unopposed, first came for the communists and then the trade unionists, Niemöller said: "Then they came for the Jews, and I didn't speak out because I wasn't a Jew. Then they came for me, and there was no-one left to speak out for me."

Rarely has the Association of Southeast Asian Nations heard such language within its staterooms. "It was classic del Rosario," said one ASEAN envoy. "He's not afraid to appeal to our better selves … and he's not afraid to stand up and be counted when it comes to the South China Sea."

That meeting ended in unprecedented rancour as the 10 Southeast Asian foreign ministers failed to produce an annual communique for the first time in the grouping's 45-year history. Meeting host Cambodia stood accused of doing Beijing's bidding in shutting down debate over how to capture in the document regional concern over the South China Sea.

When ASEAN leaders met in Phnom Penh last month, Philippine President Benigno Aquino continued his foreign secretary's theme. While he contradicted Cambodia's public claims of an ASEAN deal - hailed by Beijing - not to "internationalize" the West Philippines Sea (South China Sea) dispute, he told his peers to stand united, according to one meeting transcript.

"If you don't stand up when your neighbor's rights are violated, then you set the stage for the violation of your own rights," Aquino said.

This time Manila was more successful. With discreet backing from some the grouping's bigger players, including Indonesia and Vietnam, the claimed Cambodian deal never made it to the official closing statement.

But the broader issue of ASEAN's push to start formal negotiations with China on a binding code of conduct to govern intensifying tensions across the West Philippines Sea (South China Sea) until territorial disputes can be solved remains, at best, a work in progress.

Chinese officials have made increasingly clear in recent weeks that they are wary of the influence of "outside powers", particularly the US and Japan, and resent the portrayal of the code as somehow being a means to contain and/or control China. Hopes that negotiations could start early in 2013 now appear to be in vain.

Sitting in his office - part of a complex on Manila's Roxas Boulevard that overlooks the West Philippines Sea (South China Sea) - the courtly 73-year-old del Rosario sounds frustrated yet sanguine as he reviews a bruising year of diplomacy at the forefront of the strategic shifts now upsetting the region.

Ultimately, he stresses, he wants to return Sino-Philippine relations to a previously agreed status quo where territorial disputes were kept to the side of a relationship that flourished across trade, social and political fronts - something he believes would ultimately serve China's broader desires for a stable region.

"If there is a message I want to get across, that's it," he says.

Returning to that point will be no easy task, he acknowledges. The dispute over Scarborough Shoal - known in Chinese as Huangyan Island or as Panatag Shoal to the Philippines which within the UNCLOS 200 Nautical Miles Exclusive Economic Zone of the Philippines- is now the focus of the relationship.

With Beijing still deriding "provocations" after a Philippine naval ship challenged Chinese fishermen early this year, Fu Ying, the vice-minister for foreign affairs, recently told him that Beijing intended to keep coastguard-type vessels at the shoal permanently.

China has also used ropes to block access to the interior of the shoal, which falls within its controversial nine-dash line claim to virtually all of the South China Sea.

In some 36 rounds of consultations - "I've been counting them," Del Rosario says - Beijing has also detailed in no uncertain terms what it expects from Manila. No "internationalization" means bilateral talks only, and nothing conducted via the ASEAN, the United Nations or "outside partners" - particularly the Philippines' long-term security ally, the United States.

The Aquino administration is clearly rejecting Beijing's prescription. It is also renewing its strategic relationships, seeking to buttress its tiny and overstretched armed forces. US ships, submarines and military aircraft are suddenly visiting Philippines' ports and airfields once again while discreet talks are also under way with Japan to acquire a fleet of state-of-the-art coastguard cutters. It is also working more closely with Indonesia and fellow West Philippines Sea (South China Sea) claimant Vietnam.

As eloquent as he can be at times, del Rosario does not mince words when he talks about Beijing's demands.

"No sovereign country wants to be dictated to," he said.

"China is endeavoring to dictate to us how we should be behaving and what we should be doing. We feel that we ought to be able to use all the tools in the peaceful pursuit of resolution to [disputes] that is in accordance with our national interests."

Those "tools" include a three-track approach by Manila - talks with ASEAN and international partners, bilateral diplomacy with Beijing and research into taking unilateral legal action to formally dispute China's claim under the UN Convention on the Law of the Sea. The latter, some analysts believe, would risk Beijing's wrath, and extensive economic and diplomatic retaliation would be expected.

Del Rosario insists, however, that the long-term goal must be a "durable" legal and political solution, rather than brittle case-by-case efforts that do not tackle the broader issues. "Ultimately, I'm trying to be constructive."

He says an effective ASEAN serves Chinese and US interests long-term and insists the organization remains strong. He dismisses the Phnom Penh tensions as "like a family disagreement ... eventually you come together and emerge stronger".

The challenges, of course, mean he occupies one of the hottest seats in regional diplomacy. While the New York-educated businessman and former ambassador to Washington are highly respected in the US, he cuts a more controversial figure at home and in Beijing.

Some Filipino businessmen have questioned his tactics towards dealing with China while Senator Antonio Trillanes, who is running a back channel to Beijing, has said del Rosario has mis-handled formal negotiations over Scarborough.

Del Rosario has, however, denied reports he will resign and he apparently has Aquino's backing.

Reports in China's state media this week show just how tough a road lies ahead. In news stories outlining last week's appointment to Beijing of new Philippine ambassador Erlinda Basilio, mainland analysts and scholars made it clear that Beijing was in no mood to see Manila "stirring up trouble".

Through it all, del Rosario says he remains "basically an optimist". While he ponders whether Beijing's new leaders will be able to resist the demands of an assertive and nationalistic public, he says: "I'm hoping that China will recognize that being a responsible member of the international community would be a preferable choice to muscle." (http://is.gd/5mywq7)

SCMP

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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)

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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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