Philippine Bonds Gain after S&P Revises BB+ Outlook; Peso Declines

Philippine government bonds maturing in 2037 rose for a second day on speculation the nation will win an investment-grade rating next year after Standard & Poor's raised the credit outlook to positive. The peso dropped.

S&P, which ranks the Philippines BB+, the highest junk level, cited improved governance and public finances for the revision as official data showed Dec. 19 that tax revenue climbed to a record. President Benigno Aquino signed a law yesterday that will raise excise duty on cigarettes and alcohol, which Finance Secretary Cesar Purisima said will generate an additional 34 billion pesos ($826 million) in 2013.

"We had pretty good news yesterday with S&P's upgrade from neutral to positive," said Jill Singian, a bond portfolio manager at Bank of the Philippine Islands (BPI) in Manila. "It's giving a lot of support to buying interest but players will not make a bold move today. We are going into a long weekend."

The yield on the 6.125 percent notes due October 2037 declined two basis points, or 0.02 percentage point, to 5.64 percent as of 10:09 a.m. in Manila, according to prices from Tradition Financial Services. The rate advanced two basis points this week and has dropped 28 basis points since the securities were issued in October.

Local financial markets will be closed on Monday and Tuesday for the Christmas holidays.

The peso weakened 0.2 percent to 41.145 per dollar in Manila and declined 0.1 percent for the week, according to Tullett Prebon Plc. It appreciated 6.6 percent this year, the second-best performance among Asian currencies after the South Korean won.

Bangko Sentral ng Pilipinas will announce measures next week to manage capital inflows, Deputy Governor Nestor Espenilla told reporters in Manila late yesterday.

One-month implied volatility, a measure of expected moves in the exchange rate used to price options, was unchanged at 4.4 percent today and this week. It fell 335 basis points this year. (http://is.gd/Ue9eZd)

Bloomberg

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Agency abused OFW Filipino teachers in USA win $4.5 Million Dollars lawsuit

Filipino teachers win $4.5 M in US suit

A US federal jury awarded $4.5 million USD or (₱185,085,004.00) to Filipino teachers who paid large fees to obtain United States jobs through a placement agency.

Jurors on Monday found that Los Angeles-based Universal Placement International Inc. and its owner, Lourdes Navarro, failed to properly disclose the fees for the 350 teachers who were recruited for $40,000-a-year jobs in Louisiana, mostly in East Baton Rouge Parish.

The teachers arrived in the US between 2007 and 2009 under a federal program that grants worker permits to foreigners with special skills. Most went to East Baton Rouge Parish but others went to Caddo, Jefferson and other parishes and to state-run schools in New Orleans.

In 2010, the American Federation of Teachers and the Southern Poverty Law Center sued on behalf of some teachers who complained that before ever leaving the Philippines, they had to borrow money to pay thousands of dollars charged by the company, as much as $16,000 in some cases—five times the average annual household income in the country.

The class-action suit claimed that more unexpected fees and expensive legal entanglements followed once the teachers arrived in the United States. For example, contracts were required in which the teachers agreed to pay a percentage of their monthly income to Universal, along with fees for arranging housing.

Passports and visas were confiscated to ensure the fees would be paid, the lawsuit said.

The suit claimed the threat of huge debt and loss of their visas amounted to forced labor under a federal law against human trafficking passed by Congress in 2000.

After a two-week trial, jurors rejected the human trafficking arguments but found the recruiting agency had negligently misrepresented the fees and violated California laws governing employment agencies and unfair business acts, attorneys for both sides said.

"The jury sent a clear message that exploitative and abusive business practices involving federal guest workers will not be tolerated," Mary Bauer, legal director for the Southern Poverty Law Center, said in a statement.

Don A. Hernandez, a lawyer who represented the company, said there was no intentional wrongdoing by his client regarding disclosure of fees. He called the lawsuit a "witch hunt."

"These teachers voluntarily took on whatever debt they did to pay the fees to come to the United States. They were not forced, the jury found," he said.

Hernandez said he would seek to have the award figure reduced because the Louisiana Workforce Commission earlier awarded return of the same fees. (http://is.gd/Ud5XNI)

Inquirer Global Nation 

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Inside China: PRC paper calls Philippines a ‘clown’

The People's Daily, the official mouthpiece of the Chinese Communist Party, on Dec. 13 published an editorial that lambasted the Philippines with words that can be described as anything but diplomatic and cordial.

"On the issue of the West Philippine Sea (South China Sea)," the editorial says, "the Philippines could only be too willing and happy to perform the role of a circus clown as it could only carry out a 'bitch and moan' diplomacy, begging its master [the U.S.] for more money with slavish smiles."

The apparent focus of Beijing's anger was the U.S.-Philippines defense talks in Manila last week.

"At the just concluded U.S.-Philippines conference, the Philippines enthusiastically welcomed its master to send more troops for joint defense. The only thing left to do is to break out the constitutional restriction. After that, the anti-China strength will be enhanced," said the People's Daily editorial, which was reprinted in the domestic subsidiary Global Times.

The editorial also stated that the United States, the purported evil puppet master of the Manila government, is not really happy with the Philippines' performance.

"The master did not seem to be satisfied with the clown's performance during last year's series of acts on the stage of the West Philippine Sea (South China Sea)," the commentary said, "and the master only gave the clown $30 million for compensation, which upset the clown who regarded it as humiliation."

China routinely calls countries in Southeast Asia that challenge Beijing's sweeping maritime claims in the West Philippine Sea (South China Sea) "little countries" that lack the sage strategic wisdom Beijing possesses.

Air Force admits deaths by accidents

In a rare public admission of the People's Liberation Army (PLA) air force's high death toll caused by routine training accidents, the Chinese government recently revealed the existence of a "Heroes' Wall" honoring pilots who "died as martyrs" for the communist revolution.

The PLA Daily on Monday published an article that states: "In the outskirts of Beijing, there is a Chinese Aviation Museum where stands a wing-shaped PLA Air Force Heroes' Wall. On the backside of the wall are the glorious carved names of 1,747 killed pilots and flight officers of the Air Force."

The article does not provide specific numbers on how many pilots died in combat and how many were killed in training exercises, but states that the "overwhelming majority sacrificed their lives in flight training exercises during peace times."

The Chinese air force is known for a high accident rate, which was vividly shown to the world in April 2001 when Wang Wei, the pilot of a Chinese supersonic J-8 interceptor jet, developed a kind of "road rage" and crashed into a U.S. Navy EP-3 signal intelligence plane, forcing the damaged American plane to land inside Chinese territory. The Chinese pilot was killed in the crash.

The PLA article was prompted by, in part, the most recent crash of a Chinese-made J-7 in Guangdong.

The Chinese press openly, and surprisingly, reported the accident, leading military experts to speculate that the air force is facing new orders to shape up from the revamped Central Military Commission, China's ultimate military command authority, chaired by new Communist Party General Secretary Xi Jinping.

The PLA air force deploys a variety of advanced jets, such as Su-27s, J-10s and J-11s, and outdated, second-generation antiques such as the J-7s. (http://is.gd/Wd1sLL)

The Washington Times

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Miss Philippines first runner up, USA crowned Miss Universe

Miss USA Olivia Culpo (C) is congratulated by Miss Teen USA 2012 Logan West (L) and Miss Universe 2011 Leila Lopes from Angola after being crowned during the Miss Universe pageant at Planet Hollywood Resort and Casino in Las Vegas, Nevada December 19, 2012. Credit: Reuters/Steve Marcus

Miss USA crowned Miss Universe in eighth American win

A 20-year-old beauty queen who plays the cello and is a breast cancer advocate was crowned Miss Universe on Wednesday, the eighth time an American has won the pageant where the world's most beautiful women parade in bikinis and ball gowns.

Olivia Culpo, 20, a brunette from Rhode Island, was chosen by a 10-judge panel from 89 contestants representing countries ranging from India to Kosovo and Britain.

Culpo, wearing a red, long-sleeved dress for her final look, was the eighth winner from the United States in the contest's 60-year history, and the first Miss USA to take the title since 1997.

Miss Philippines, 23-year-old Janine Tugonon, was the runner-up and Miss Venezuela, Irene Sofia Esser Quintero, came third after the top five answered brief questions posed by the judges.

Miss Philippines, Janine Tugonon

Culpo takes the place of last year's winner Leila Lopes, who was the first ever Miss Universe from Angola.

Miss Guatemala, Laura Godoy, was chosen Miss Congeniality after the two-hour pageant that featured live performances by U.S. pop group Train and Nigerian-born Australian singer and dancer Timomatic.

Contestants must be aged between 18 and 27, unmarried and with no children.

The contest was broadcast live on U.S. television from the Planet Hollywood hotel and casino in Las Vegas and seen by an estimated 1 billion viewers on TV and online in 190 countries, organizers said.

Culpo will travel the world for the next year representing the Miss Universe Organization and a charity of her choice.

After reaching the top five, Culpo was asked to name one thing she would never do again. "Picking on my siblings growing up," she replied.

The contest, owned jointly by businessman Donald Trump and the NBC network, held a moment of silence for the 20 children and six staff gunned down at an elementary school in Newtown, Connecticut, on December 14, 2012. (http://is.gd/iXp9C2)

Reuters 

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Philippine New Navy chief vows safer Philippine waters

Newly installed for Philippine navy Vice Admiral Jose Luis Alano.

Philippines - Newly-installed Flag-Officer-in-Command (FOIC) Vice Admiral Jose Luis Alano on Wednesday vowed that he will do what is necessary, including employing methods never attempted before, to make sure that the country's territorial waters will remain safe.

"If we are achieve results never before accomplished, we must expect to employ methods never attempted before," Alano said in a speech after assuming command of the 23,000-strong navy from outgoing navy chief, Vice Admiral Alexander Pama.

President Aquino, as commander-in-chief, presided over the hand-over of navy's command from Pama to Alano held at the Philippine Navy (PN) headquarters along Roxas Boulevard in Manila on Wednesday afternoon.

Pama and Alano, as well as Armed Forces of the Philippines (AFP) chief Gen. Jessie Dellosa, belong to Philippine Military Academy (PMA) Class of 1979. Alano is retiring in May 2014. Pama on the other hand, is expected to join the civilian government as announced by the President.

Under "exciting times" without mentioning any, Alano said the Navy can make a major contribution to the AFP's missions and objectives.

"We should be a responsible partner in keeping our waters safe and secured by maintaining security stability in the (West Philippine Sea) so that freedom of navigation and international trade may continue to flourish," he said.

To do this, he said the Navy will continue to review its maritime security strategy of active archipelagic defense in such a way that true and accepted scientific and quantitative and qualitative processes are prioritized.

"The course has been plotted, sea details have been set and the command to cast off all lines has been given. Our personnel are our most major concern. What we need are not warm bodies but able-bodied sailors and marines who are motivated, disciplined and professionals," Alano declared.

He added: "It is but up for us (the Navy) to seize this golden opportunity since the presiding officer has taken helm as the President and our Commander in Chief," Alano said.

With the country's problem on insurgency on the downturn, Alano said strategic situation and the security environment now requires the defense department to be more active in the region in ensuring maritime security in Southeast Asia by being a responsible partner of keeping the country's territorial waters safe.

As a maritime nation, the Navy, amid its aging fleet of warships, has an enormous task of guarding the country's waters, including those in hotly-contested West Philippine Sea.

At present, the Navy has only four warships considered as real sea combat capable, to include the decommissioned Hamilton Class United States Coast Guard cutter, the BRP Gregorio del Pilar,the country has acquired from the US and commissioned as a frigate.

Del Pilar now serves as the Navy flagship. Another US Coast Guard cutter, the BRP Ramon Alcaraz, is due to arrive in April next year as it is still undergoing major repairs and refurbishment back in the US. (http://is.gd/uANtQC)

philSTAR

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Philippines' biggest ever government budget 2013 of ₱2 Trillion has been approved

Philippines' Department of Education has the biggest share in the 2013 Government Budget. ₱293.32 Billion has been allocated for DepED alone.

Aquino signs ₱2T budget for 2013

Philippines' President Benigno Aquino III signed on Wednesday the ₱2.006-trillion budget for 2013, the biggest budget ever approved in the country.

Calling it the 'empowerment budget,' the president said Republic Act 10352 is designed to give citizens the power to demand services from government agencies.

"The annual budget is an instrument to institutionalize accountability," Aquino said after signing the budget into law in Malacañang.

Out of the ₱2.006 trillion allotted for 2013, the Department of Education will get the biggest chunk at ₱293.32 billion.

Aquino said the budget aims to boost sectors that include agriculture, tourism, education, health and social services through the conditional cash transfer program.

"There is nothing impossible when you have the public's interest at heart," the president said, adding that it is the first time in seven years that not a single provision of the bill was vetoed.

He added that various sectors were consulted during the crafting of the national budget, in an effort to make the process more participatory.

"The result is a national budget that reflects the need of sectors and citizens," Aquino said. (http://is.gd/dvT9C9)

PhilSTAR

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Philippines lauds Indian navy Chief's Support for the West Philippine Sea

Philippines has welcomed Navy chief DK Joshi's recent comments on the South China Sea.

Manila hails Navy chief's stand on South China Sea

NEW DELHI: Navy chief, Admiral D K Joshi's recent comment on the South China Sea may not have warmed hearts in China, or in the South Block, but they have bolstered India's standing among Asean countries.

Welcoming the underlying sentiment as part of India's Look East policy, vice-president of the Philippines, Jejomar Cabauatan Binay, told TOI in an exclusive conversation, "In the present day, these issues are no longer of parochial interest. Freedom of navigation and lawful commerce are universal interests. The statement of the Admiral is a confirmation that it is a problem that India cannot turn its back to."

Last week, Admiral Joshi had responded to journalists' questions on the Navy's preparedness, saying, "Are we preparing for it? Are we having exercises of that nature? The short answer is "Yes. We, of course, will need government clearance. Should a requirement come, I am sure we will have that clearance,'' he said. The comment came even as National Security Advisor (NSA) Shivshankar Menon was in Beijing working on a border agreement with his counterpart Dai Bingguo. The ministry of external affairs (MEA) was livid and the blame was swiftly passed on to an "irresponsible" media after the comment reverberated in various parts of the world.

The Philippines, of course, is in a unique position and in direct line of fire. The sea that China describes as South China Sea is known locally as West Philippines Sea — China and the Philippines have faced off over the Scarborough Shoal earlier this year, sparking fears of a larger regional conflict. Although the Philippines has activated a mutual defence pact with the US, Manila's response to India, said analysts, could be a sign that the region was looking for a credible balancing power.

Recently, the Philippines "sought clarification from Beijing" after a news report suggested that from January, 2013, local police would engage in "search and seizure" of ships within China's claim line.

"But we haven't received any confirmation. Other countries too have sought a clarification," Binay said.

Making a big pitch for increased Indian investment in the Philippines, the vice-president said, "We look forward to Indian investment, tourism and culture. We also welcome Indian pharmaceuticals into Philippines, because India is very advanced in this sector. But more than that, we want to have a deeper political and security relationship with India."

However, the Philippines is also clear that the recent troubles are not the defining point of their bilateral relationship with China. Like India, the Philippines has a very deep and intricate relationship with China. Binay said, "The relationship is multifaceted. After all they are our neighbours. There has been continuous dialogue at the foreign ministry level. President Aquino met President Hu Jintao and they agreed this cannot be the sum total of relations between China and the Philippines." (http://is.gd/LbTArT)

The Times of India

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Philippines break records of 43,000 hectares demands in lease spaces for offices in 2012

Philippines office space demand bullish, up 18% in 2012 of 43,000 hectares and still rising till year end of 2012

43K hectares in lease spaces

The property market will continue to grow this year with record leased space of 430,000 square meters equivalent to 43 hectares.

Consultancy firm  Lang Jones Lang LaSalle Leechiu (JLLL) said that office space demand continue to grow.

Sheila Lobien, JLLL director for project leasing,  noted that between January and November, office space demand hit 425,000 sqm., 18 per cent more than the annual average demand of 360,000 sqm. recorded in 2011.

The demand continues to be driven by players in the business process outsourcing business,al though non-BPO multinational and local companies are increasingly taking up other demands, comprising nearly 25 percent of current demand in Metro Manila at 100,000 sqm.

"Even before preferred office buildings are completed, companies are committing to take up space, indicating strong optimism and heightened business activity projected by the leading real estate consultancy for 2013.  Pre-commitments are backed up by signed lease agreements between parties, and advanced rent and security deposits are paid," said JLLI.

Lobien said the office space market continue to be a sellers' market with pre-commitments more than doubled in January to November 2012 as compared to the same period in the year before.

The average base rent in Grade A office spaces in Bonifacio Global City and the Makati Central Business District for one went up 15-20 percent since 2011.

"In 11 months of 2011, we recorded pre-commitments of 68,358 sqm. In 2012, the figure over the same period shot up to 175,922 sqm.," said Lobien.

JLLL studies also noted that a number of companies pre-committed to office space that would be completed as far forward as 2014.

Up until 2015, office supply set to come online is estimated to hit 7.9 million with the current supply already at 6.2 million sq.m. Vacancy rate across Metro Manila business districts meanwhile stands at 5 percent, JLLL said.

The consultancy firm also said that should the Philippines post a "stable fiscal position and good credit standing by 2013/2014," it expects "other demand drives to create an additional demand of roughly 100,000-200,--- sq.m. of office space.

Phillip Anonuevo, associate director for Markets, said companies like Coca Cola and Aboitiz Group are bracing for expansion and moving to new corporate space in Bonifacio Global City.

Anonuevo noted that buildings in this highly preferred business district like Net Lima and NAC were fully leased out even before building completion.

Anonuevo meanwhile said the massive entertainment district development in the Bay Area has provided impetus for tourism development.

He noted that in May, JLLL tracked 10,536 hotel rooms in the pipeline from 2011 to 2016. An additional 5,000 hotel rooms has since been added to the figure in just six months.

"Investment in the hotels and hospitality real estate asset class is experiencing record growth. In addition, commercial properties such as Aseana One in the same district have become an attractive destination for firms seeking to do business in the proximity of the entertainment district," he said. Anonuevo said prospects for the office space and retail space remains good "at least going to be for the next three years." (http://is.gd/oHnL5F)

Malaya Business Insight

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Philippines House passes the Controversial RH Bill

Members of the Philippines House of Representatives are shown in Quezon City, in suburban Manila, earlier this year.

Lawmakers yesterday approved legislation calling for government-funded contraception and sex education classes in the Philippines, a first in the heavily Catholic nation.

"Our legislature took an historic vote today for women and families as it successfully passed the Reproductive Health Bill. We thank our senators and congressmen who voted for access to information and care," said presidential spokesman Edwin Lacierda.

A reconciliation committee must now work out differences in the versions of the legislation passed by each house before it is sent to President Benigno Aquino, who is expected to sign it.

Legislative leaders hope to finish their work and send the bill to Aquino by Wednesday before going on Christmas break, the official Philippines News Agency reported.

Despite widespread popular support, the Catholic Church has opposed the measure, saying it will destroy marriage and morality in the Philippines.

More than 80% of the Philippines' 96 million residents are Catholic.

Gabriel Reyes, bishop of the diocese of Antiopolo and chairman of the Episcopal Commission on Family and Life, said the passage of the bill marked "a sad day for the country."

But Lacierda said the legislation will help the country's citizens to raise families in a "just and empowered" way.

"The passage of the Responsible Parenthood Bill signals not only a new chapter in our agenda of inclusive growth; it also begins a process of healing for the wounds that may have been opened by an often feisty democracy," he noted.

Sen. Edgardo Angara, who voted for the measure, called the bill "an affirmation of human rights," according to CNN affiliate ABS-CBN.

"We have to consider that not all Filipinos are Catholics. We have Muslims, Protestants, Buddhists, nonbelievers," he said, according to ABS-CBN.

CNN

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Philippine POEA ban Amazon and other 11 International Firms from Hiring Filipinos

POEA bars foreign firms from hiring Filipino workers

The Philippine Overseas Employment Administration (POEA) has barred 11 foreign employers from hiring Filipino workers due to their having defaulted on contractual obligations and for grave misconduct and violation of Philippine laws on overseas employment.

In a statement, POEA Administrator Hans Leo Cacdac identified the foreign employers as the following:

• Lae International Hospital Ltd.
• Al Yagoot Recruitment Office
• Al Huda Engineering Works Co. WLL
• First Kuwaiti Trading Corp.
• Al Asmi Manpower Services
• Around the World Services/Proactive HR Solutions
• Hanjin Trading Co.  
• Saweed Employment LLC.
• Mal Lewis
• Chair of Lae International Hospital Ltd. in Papua New Guinea
• Epissan Mohd Ate Ter of Al Yagoot Recruitment Office based in Saudi Arabia.
• Amazon International Manpower Specialist Inc. had its license revoked for violation of POEA rules and regulations governing the recruitment and employment of OFWs.

The case against Amazon stemmed from complaints filed by Arlyn Pasadas and Mrynalyn Saguid who said they were deployed by Amazon to Albania as a cook and caregiver, respectively, with a salary of $500. The two said they paid Amazon more than ₱100,000 each in placement fees but their employment papers did not go through the POEA process.

The complainants said they left for Albania on Nov. 30, 2010, on multiple visas with an Amazon employee escorting them through the airport.

They returned to the Philippines on Jan. 8, 2011, when their employer terminated their employment after they complained about violations of the terms and conditions of their contracts.

In his order, Cacdac declared Amazon International liable for charging excessive fees and collecting a placement fee from a household service worker, nonissuance of receipts, misrepresentation, deployment of workers to employers without POEA accreditation and other recruitment violations. (http://is.gd/HkflO8)

Inquirer Global Nation 

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Filipino Economy Army remittance rise up 8.5 % in October 2012, Export to rise 11%

OFW line up to send money at a remittance center in the central district of Hong Kong in this 2008 file photo. Given expectations that remittances would continue to increase this year and that export earnings would rebound moderately from last year's contraction, the central bank projects that the GIR would hit at least $79 billion by the end of the year. AFP PHOTO/TED ALJIBE

Overseas Filipino remittances hit record $1.93-B in Oct., Bangko Sentral reports

Money sent home by Filipinos living and working abroad hit a record $1.93 billion in October, helped by more choices with which to send money back to the Philippines.

In a statement Monday, the Bangko Sentral ng Pilipinas said cash remittance inflow rose by 8.5 percent from $1.84 billion in October 2012 .

The latest figure boosted remittances in the first 10 months to $17.49 billion, up by 5.8 percent from $16.53 billion year on year.

The Bangko Sentral sees cash remittances increasing by 5 percent this year from the $20.11 billion in 2011.

"Remittances flows were supported by steady deployment of skilled and professional Filipino manpower abroad, combined with commercial banks' continued efforts to build up their network of remittance business partners worldwide," the Bangko Sentral said.

Demand for overseas Filipino workers (OFW) supports "favorable outlook for remittances through end-2012," it added.

Some 302,173 job orders were processed in October, accounting for 41.9 percent of the 721,338 jobs approved as of November, preliminary data from Philippine Overseas Employment Administration showed.

The trend is consistent with a World Bank findings that money sent home by OFWs would lift the Philippines to the third spot in the list of countries with the highest remittance inflow this year.

The multilateral lender noted that Filipinos are likely to send home a record $24 billion this year.

Over 10 million OFWs send remittances, which fuel domestic consumption and keep the economy afloat (http://is.gd/H7V6zi)

Filipino exporters see 2013 shipments growing 11%

Philippines will grow by 11 percent next year, driven by the services and electronics sectors, according to the Philippine Exporters Confederation.

PhilExport president Sergio Ortiz-Luis believes that eletronics would continue to recover in 2013

"Electronics I think will improve somehow," Ortiz-Luis noted in a statement, saying he did not thing the slump in the sector would last forever. "It will end sooner or later maybe towards the beginning of 2013," he added.

"On the services side, it would be tourism and BPOs [business process outsourcing]," he said. "They are exactly as big as the electronics," the PhilExport official said, noting that electronics account for almost half of total exports.

He urged exports to look beyond the persisting fiscal and economic problems in the Europe and the United States, and the strong peso that impacts on their receipts, by searching for and developing new markets and constant product innovation.

In the first 10 months of the year, exports reached $44.475 billion – up 7.1-percent year-on-year.

The export sector expected a 9 to 10-percent growth this year, and Ortiz-Luis noted the target was achievable since exports rebounded last September.

Trade Undersecretary Cristino Panlilio expect exporters to do what they could to top the record revenues of $51.4 billion in 2010.

"I believe they can do $12 billion more for the remainder of the year," Panlilio said during the National Export Congress in Manila early this month. (http://is.gd/Hm0b0m)

GMA News

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Fluor Fortune 500 Global Company lauds Filipino Engineers’ diversity & World class quality

Daniel Spinks, Fluor Philippines country manager said that the Filipino work ethic plus their proficiency in English  makes it easy for the company to  deploy staff to any of their projects worldwide.

Int'l firm strikes gold in local engineers

For Fluor Philippines, a unit of international engineering firm Fluor Daniel, Inc., its pool of Filipino talent makes it very competitive in the global market.

Daniel Spinks, Fluor Philippines country manager said that the Filipino work ethic plus their proficiency in English  makes it easy for the company to  deploy staff to any of their projects worldwide.

"An English-speaking community, they can communicate well with others , working with a lot of Fluor offices around the world," said Spinks.

"They have a positive attitude. Used to working overseas a lot, they're are used to being mobile and find it easy to work with different cultures. They can adapt to a diverse kind of culture at work. And the big advantage is the very cost-competitive portion," also said Spinks who concurrently serves as manager for Fluor's operations in Singapore and Malaysia.

The Philippine operation of currently employs 2,250 people in its sites in Manila and Cebu, the third largest office of the FORTUNE 500 firm found in 75 locations.

"As a percentage, it's around 5 percent of Fluor population that's located here in the Philippines," said Spinks.

Fluor seeks to increase this number further as the company works to expand its business globally, said Spinks who was an Asia CEO Awardee as Expatriate Executive of the year for 2012.

Spinks said Fluor Philippines could hit 3,000 in a couple of years as work demand requires.

"It could get as big as it needs to support our business. Our company wants to double our sales in the next eight years. Our CEO wants to double the size of Fluor globally.  We double the size of Fluor, we double the size of the Philippines. I think 3,000 is a realistic target," he said.

"Because this office is very competitive, it makes us more competitive globally. And we had been here for 25 years now, we have a good base of people, experienced of people that understand our work practice through our work processes. It's easy for us to scale up the size of this office, and if you're going to grow, you usually want to grow in your most competitive location," added Spinks.

"I think as our business grows, we're going to put more emphasis on doing more of the engineering and design here and because of you'll see this one become one of the largest office, if not the largest," Spinks also said.

Fluor's Philippine operation is responsible for providing full services to the Asia Pacific region, doing all kinds of engineering for all various projects, from refinery to off-shore developments, mining and metals, chemicals, and others.

In the Philippines it is currently engaged in the third phase of the Malampaya gas-to-power project, which involves design, fabrication and installation of a new depletion compression platform linked by a bridge to the existing shallow water platform.

In the past it was responsible for the design of Enron Power Corp.'s coal-fired power plant in Batangas and Procter & Gamble's Cabuyao facility in Laguna.

"We do engineering here, and we have all type of engineers --- chemicals, electrical, civil, mechanical, and architectural. So we provide services to all projects to the Philippines and in Asia, and also to projects all over the world. We work with other Fluor office around the world and we provide those same services to those same offices, to make us competitive on a global market," Spinks said.

Among the projects Fluor Philippines is getting busy with is the design of an LNG terminal in Singapore, as well as a solar-panel manufacturing project.

Fluor is also working for the completion of a pre-fabrication facility it is constructing in partnership with local firm AG&P. Upon completion, the pre-fab facility will be able to produce up to 20 million metric ton of construction material, employing 2,000 construction workers, which will be used by the firm in all its projects.

This will be the first time that Fluor's local operation will export an actual product, compared to its usual service-based business.

Starting from just a 25-man team in 1987 when it was first established, Fluor has become one of the leading support to the company's global operations.

With the establishment of the Singapore and Malaysia office, Fluor Philippines has become responsible in providing support to the Singapore and Malaysian operations.

"We do all the engineering here, all they do is sell it over there. That's more a sales and business development office. What I call as the  heavy lifting are done over here, the big stuff, and they will just have more the interfacing with the customers and some of the smaller stuff there on the front end," according to Spinks. (http://is.gd/WsyUpC)

Malaya Business Insights 

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Philippines' DOST - Craft BILL- Space Agency for Billion Dollars Spaceship, Rockets

Galactic Pinoy? Scientists push for independent  Philippines Space Agency (PSA)

We've yet to see the first Pinoy astronaut in space, though plans toward this goal have been in the works since the 1990s. In the meantime, scientists and astronomy advocates recently joined efforts to push for the establishment of our very own space agency.

Department of Science and Technology's (DOST) Balik Scientist Dr. Custer Deocaris, organized a press briefing at Annabel's Restaurant in Quezon City on Dec. 14.

Deocaris believes that, since the government has now increased its funding for the DOST, citing initiatives like Project NOAH and DREAM Project, it's high time that the goverment should invest in an independent space agency, like NASA.

"Kung hindi ngayon, mahihirapan na tayong iangat ang Philippine Space Agency," said Deocaris.

The proposed space agency intends to conduct studies on space science and technologies, design, and develop satellites that will be launched in space, and possibly train astronauts, according to the draft bill on the  Philippine Space Agency.

In Southeast Asia, at least five countries have their own space agencies like Singapore, Malaysia, Indonesia, Vietnam, and Thailand. See the list of countries with Space Agencies

But Dr. Edgardo Aban of the University of Brunei Darussalam said during the press conference that the initiative for space studies in the Philippines started way back in the '90s.

"One of our landmark achievements [is the] 1995-1996 partnership project with NASA. We had a synthetic altitude radar that aim to map portions of the Philippines using radar."

By 2005, Aban was also a part of a team that studied the space technologies and application capabilities of the Philippines in terms of human resource, technology and infrastructure.

However, as Aban recalled, those moves turned out to be unsuccessful.

Deocaris also said that his group sent AGHAM Party List representative Angelo Palmones the draft bill.

"We should not forget that most of today's modern conveniences (cellphone, internet, cloud computing, etc.) are spin-offs from investments in space technology," Deocaris wrote in his letter to the congressman.

"[The] time has now come to open the possibility of creating an ambitious but doable dream: a space program for Filipinos," he added.

Meanwhile, Aban estimated that a Pinoy space agency would cost at least $1 billion (P41 billion)( http://is.gd/JYX3DT)

GMA News

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Philippine police kill suspected Malaysian terrorist planning bomb attack in southern city

Philippine police have killed a suspected Malaysian terrorist who allegedly was planning a bomb attack in Davao City, one of the largest cities in the country's south.

Davao city police chief Ronald de la Rosa says the suspected terrorist, identified as Mod Noor Fikrie Bin Abud Kahar, was fatally shot by police late Friday following a scuffle inside a hotel where he and his Filipino wife had checked in.

De la Rosa says that as the couple was checking out, officers tried to seize the man, but that he broke free and threatened to detonate a bomb that was inside a bag his wife was carrying.

He says the man grabbed the bag from his wife but was then shot.

The bomb, which was subsequently defused, was fashioned from a mortar shell.

At least 37 hurts in a previous grenade attack happened last September 2, 2012 in Davao City  which was apparently meant to strike an army camp.

Davao City is the third of the mainly Catholic Philippines deadly insurgencies have raged for decades. (http://is.gd/tgoJe6)

The Gazette - montrealgazette.com

 

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Philippines signed RA 10349 Armed Forces modernization law for further 15 years

Philippine President Benigno Aquino signed Republic Act No. 10349 into law on 11 December measures extending the modernization of the Armed Forces of the Philippines (AFP) for a further 15 years and the allocation of ₱75 billion ($1.8 billion USD) for defense procurement over the next five years.

The legislation, Republic Act (RA) No. 10349, also formally establishes processes that are geared to accelerate the AFP's acquisition of materiel by enhancing the efficiency and accountability of military procurement practices.

A presidential statement made reference to the rationale behind the move to bolster military capability, and the AFP's transition in recent years from a force focused on tackling internal threats - particularly insurgency - to one increasingly absorbed by a perceived requirement to secure off-shore territory.

The statement said the passing of the revised AFP Modernization Act will "further upgrade the AFP's defense capabilities for the country's protection and security". It added that the funding provided by the act will "boost the AFP's Capability Upgrade Program [CUP] as it shifts from internal to external defense capability".

The revised legislation also enables the military modernization effort to be boosted further by the proceeds of leasing military-owned land not considered vital to the Department of National Defense.

But even before the law is implemented, the Commission on Audit, in its 2011 annual report, disclosed that a total of ₱72.5 million worth of military combat clothing procured by the Philippine Air Force has remained undelivered by the Procurement Service of the Department of Budget and Management

The undelivered items include combat and rubber shoes, flight suits, and mattresses.  ₱21.4 million worth of these items remain undelivered since 2008.The COA explained that ₱21.4 million worth of combat clothing was undelivered in 2010, while ₱51.1 million worth was undelivered in the following year.

Mr. Aquino, meanwhile, said the new law will help boost the Armed Forced of the Philippines' capability upgrade program.

"This ensures that our Armed Forces will be able to keep up with the modern times.  This will boost the AFP's capability upgrade program as it shifts from internal to external defense capability," Mr. Aquino said.

"Security threats have changed: as the number of rebels goes down, we have to focus more on terrorist threats. We are facing new challenges such as territorial disputes with bigger countries in the region," the President added.

The Philippines has been engaged in heightened tensions with China the entire year over conflicting claims in the South China Sea.

"This new law ushers in a more modern, more reliable and stronger AFP. Our military is marching forward to protect our people and fight threats to our sovereignty," Mr. Aquino said.

Under the new measure, the AFP modernization program will have a ₱75 billion budget for the first five years.

The measure exempts from the requirement of public bidding certain major defense purchases such as aircraft, vessels, tanks, armored vehicles, communications equipment and high powered firearms.

The new law also grants additional funding sources from public-private partnerships entered into by the defense department of the AFP.

It also allows multi-year contracts and exempts from value added tax and customs duties the sale of weapons, equipment, and ammunition to the AFP.

AFP planners had identified 39 projects to be covered by the revised modernization program.

The Air Force will acquire 21 additional UH-1B multipurpose helicopters to replace the Vietnam War-vintage UH-1H (Huey) helicopters and 10 attack helicopters in the next two years.

The modernization program would also include the purchase of three medium-lift aircraft to complement the Air Force's C-130 Hercules cargo planes.

Senator Antonio Trillanes IV expressed his gratitude to the President for signing the new law, saying the modernization law would boost the military's capability to deal with national security threats.

Trillanes is the co-principal author of the new AFP Modernization Law in the Senate, along with Senator Panfilo Lacson.

"The AFP is the protector of the people of the State. It is hoped that through this law, the AFP will be able to fulfill its mandate," Trillanes said. (http://is.gd/cKrir1)

Manila Standard Today

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Booming Philippine economy fuels resurgence of the luxury hotel market

The second fastest growing economy in Asia and a stable political environment are combining to fuel a surging Manila hospitality market, particularly in the high end luxury sector, with escalating room rates and strong occupancies setting the stage for dramatic future growth for the sector.

With an economy growing at 7.1% last quarter, just a few points behind China, the Philippines is enjoying a fast tracked journey back to the future - and the hospitality sector is a front line beneficiary, according to the Manila Hotel Market Update report released today by leading hospitality consulting firm C9 Hotelworks.

The report points to an aggressive pipeline of growth and investment in the luxury sector with a total of 5,797 rooms opening in the upper tier of the market over the next five years, representing a 37% growth to existing supply. These will include the introduction of internationally renowned brands such as Raffles, Fairmont, Grand Hyatt, Shangri-La, Sheraton and Westin.

As an early indication of what's to come, C9's hospitality research details a rise in overall average room rates of 6% and occupancy in luxury accommodation of 72%.

"Step back in time three decades and hotel headlines would be surprisingly similar to those today," said C9 Hotelworks Managing Director, Bill Barnett. "Manila Bay asserting itself as a tourism hub in Metro Manila, and a new business district flexing its muscles within the competitive hotel landscape.

One of many hotels expected to be launched over the next five years: Fairmont Makati will be opening in Makati in December 2012.

"But this time around it is Manila Bay featuring the evolution of Pagcor Entertainment City and Resorts World, while the new CBD is not Makati but neighboring Bonifacio City. This is the new storyboard of Mega Manila."

According to Mr Barnett, the government led by President Benigno Aquino III and the private sector can be credited with much of the growth by executing a coordinated and effective strategy of selecting a limited number of massive infrastructure projects to focus on - which has created major demand.

At the end of last year Manila played home to 15,567 hotel rooms with 57% of these being in the upscale tier. But suddenly there is now significant movement at the top end of the market where luxury supply grew at only 3.2% between 2004 to 2011.

Commenting on the shift up Mr Barnett said: "Present day trading remains strongly leveraged with corporate travelers, who combined with the meeting and incentive segment command 78% of total hotel room nights."

Looking forward to 2013 and beyond Mr Barnett added that an interesting dynamic was forming.

"The urban spread of Mega Manila into new areas - such as leading Philippine developer Ayala's FTI acquisition in Taguig - is expected to create new hotel micro markets and this is only good news for the hospitality sector overall.

"In the new Asian age when the East is now embracing a rising and increasingly affluent middle class even Donald Trump has come to the table with his luxury namesake brand in the new Mega Manila."Bill Barnett is the Founder and Managing Director of C9 Hotelworks, who are a leading consulting firm specializing in hotels, tourism and property development in Asia Pacific. C9 assists developers, private equity and financial institutions, and investors in providing market research, feasibility studies, hotel operator negotiations, asset management and transaction/due diligence support. From their base of operations in Thailand the group is considered a leading regional player in market intelligence, and publish regular industry updates. (http://is.gd/foBsmh)

4Hoteliers

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