Top Story: Top CEOs bullish on Philippines
Get PPP going this year, philSTAR, Jan 04
Cosette Canilao, executive director of the PPP Center, is one patient, hardworking and competent bureaucrat. I admire her dedication to the mission given to her. But PPP will move only if the Cabinet Secretaries on top of the proposed projects move. That has been the stumbling block so far. When Cosette made a presentation of what her unit is working on before a group of economists, she didn't betray any feeling of frustration which should be normal for someone in her position. There is no doubt the background work is going on smoothly. Cosette's group even wrote manuals on how to do PPP projects. At least Cosette now has an ally in NEDA director general Arsenio Balisacan. When he attended his last meeting with the Foundation for Economic Freedom (FEF) before he assumed his NEDA post, Arsi promised to push harder to get those projects going. But even Arsi had to admit late last year that the roll out of the PPP projects will take more time than they thought. Nevertheless, Arsi said the government is "not giving up on PPPs. We will push harder [even if] we had some hiccups in implementation and unexpected problems. We've learned a lot from the last 12 months [so we will be] able to move faster next year," he reassured. Of course we are skeptical of government's so called flagship economic thrust called the Public Private Partnership for needed infrastructure. By the time Cosette made her presentation before the FEF, government had missed all of its set targets for getting PPP projects going. P-Noy's economic managers did him a disservice by making him prematurely launch PPP without much due diligence. Of the original projects, only one was actually awarded... the short Daang Hari expressway connection to the SLEX. But even that project is now delayed and the winning bidder, Ayala, could very well give it up. DPWH didn't study the project well enough, changed some bidding parameters after the fact and didn't make proper coordination with the SLEX concessionaire.
DB M shortens period for budget utilization, philstar, Jan 04
The Department of Budget and Management (DBM) has shortened the period for agencies and departments to utilize their budget allocations to one year from the previous two-year lapse period. Previously, departments and agencies enjoyed a two-year lapse period for their budget allocations. This allowed them to carry over their unused appropriations to the following year. However, Budget Secretary Florencio Abad said this would drastically change starting this year to force state agencies to improve their absorptive capacities. "One of the major reform measures we aim to enforce in 2013 is the one-year lapse period for all budget allocations. I you don't use or obligate the budget allotted to you within the year, you lose it," Abad said. However, he clarified that the two-year lapse period would still be maintained for Maintenance and Other Operating Expenditures (MOOE) and Capital Outlay as these projects take time. Abad expressed optimism that the reform would result in faster implementation of projects across the country and would also prompt agencies to achieve their tragets by yearend. "This reform ought to induce better planning of programs and projects across the bureaucracy," Abad said. With all departments making the most of their yearly allocations, Abad said state spending is expected to exceed 2012 levels and support economic growth to hit the official target range of six percent to seven percent this year. The shortened lapse period for budget allocations is a preparatory move for the "GAA-as-Release-Document" regime, which the Administration aims to roll out by 2014, Abad said. Under this proposed reform measure, the General Appropriations Act (GAA) will automatically serve as a budget release document.
2012 inflation at 3.2%, a 5-yr low, Rappler, Jan 04
The country's inflation rate was 2.9% in December 2012, bringing the full year average to 3.2%, according to data released by the National Statistics Office (NSO) on Friday, January 4. The 2012 average fell near the low end of the government's 3% to 5% target, and was the slowest since the 2.9% in 2007, the year before the global financial crisis began. "This supports our outlook that inflation is manageable," Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. told reporters in a text message. "The risks to inflation over the policy horizon remain fairly balanced. This, together with the expectation that real GDP (gross domestic product) growth would continue to be strong, suggests our current policy settings are appropriate," he added. The December figure inched up from the 2.8% recorded in November 2012, but was lower than the 4.2% recorded in December 2011. The slight increase in inflation last month was due to the faster rise in heavily weighted food and beverage prices. The food and beverage index posted an inflation rate of 2.3%, against 2.2% in November. Lower fuel and electricity prices kept inflation in check. The NSO said the annual hike in the housing, water, electricity, gas, and other fuels index slowed to 3.6% in December from 3.7% the month before. "Consumer prices moved by -0.1% in December from 0.1% growth in November. This was due to the decreases in the prices of food items such as vegetables, cooking oil and sugar. Lower charges in electricity rates and price roll backs in LPG and kerosene in selected regions were also noted during the month," the NSO said. Inflation in the National Capital Region (NCR) accelerated to 2.8% from 2.6% due to higher prices of food and non-alcoholic beverages; alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; health; communication; and recreation and culture. Outside NCR, annual inflation was steady at 2.9% in December.
UN extends $10-M for Typhoon Pablo victims, Rappler, Jan 03
The United Nations has extended US$10 million in assistance to families devastated by Typhoon Pablo. In a statement, the UN Central Emergency Response Fund (CERF) said it has allocated the amount, equivalent to around P408.6 million, to 7 key sectors identified by the government as priorities.
These 7 sectors are:
- Emergency shelter
- Debris clearing
- Water
- Sanitation
- Nutrition
- Protection
- Health
Philippines Sin Tax Guidelines Published, Tax News, Jan 03
The Philippines' Bureau of Internal Revenue has published guidelines on the country's new 'Sin Tax' law, which applies progressive increases to the taxation of alcohol and tobacco starting from January 1, 2013. The legislation imposes new flat taxes on distilled spirits and cigars, as well as new VAT rates for these and for other products. The guidelines explain that alcohol and tobacco products currently in the market will be initially classified according to a 2010 price survey conducted by the Bureau of Internal Revenue (BIR), with items introduced since then classified using the suggested retail price as given in a sworn statement by the manufacturer or importer. These prices will be subject to validation by the BIR, followed by revalidation nine months later. An understatement of 15% or more will make the manufacturer or importer liable for additional excise tax equivalent to the tax due and the difference between the understated suggested net retail price and the actual net retail price. Importers and manufacturers also have to provide other information, including expenses, details of packaging and the names of the regions where a brand is to be marketed. The sworn statement is to be resubmitted before the end of June and December each year, although an importer or manufacturer can submit a revised statement five days or more ahead of any change. The proper tax classification will be determined every two years, and the guidelines further state that items will be taxed according to brand name, label design, and packaging. Variations, including suffixes or prefixes in brand name or differently coloured labels, will be subject to a separate tax assessment. Further, the downward reclassification of alcoholic drinks is not allowed. The guidelines further clarify that imported alcohol and tobacco products are subject to excise tax, even when destined for duty-free areas or special economic or freeport zones. Tobacco products produced for export will not be allowed to leave their place of manufacture without the posting of an export bond, and a bond is also required for tobacco products imported in order to be re-exported.
Top CEOs bullish on Philippines, Inquirer Business, Dec 30
The Aquino government
has described 2012 as one of the best years ever for the Philippines with economic growth expected to surpass the targeted 5 to 6 percent and the stock marketending the year on a 38th record high, making it the second best performing market in Asia behind Thailand. But 2013 promises to be even better, according to the CEOs of some of the country's largest corporations who are already looking forward to even faster economic growth and the Philippines finally getting investment-grade status, which is expected to pave the way for more foreign investments to pour into the country. "This year's good economic fundamentals-benign inflation, high foreign exchange reserves and low interest rates-provide a good springboard for a rosy 2013 outlook. Hopefully, this translates into another credit rating improvement that would put the country to investment grade, something we haven't seen in at least the last three decades. Having this upgrade could help change people's perception outside the country on the Philippines as a place to put in their investments, which is the only economic indicator that we are not doing as well," said Holcim Philippines CEO Ed Sahagun.Benign growth fairies
An equally optimistic Antonio Moncupa Jr., president and chief executive officer
of EastWest Bank, noted that the "growth fairies seem to be favoring the country." "We made our plans for 2013 on the premise that the Philippine economy will do well. And we believe we stand on good foundation. We hear, feel and see our loans-and-deposits customers on how well their businesses are doing. We expect the macro numbers-gross domestic product growth, loans-to-GDP ratio, the fiscal deficit, government revenue collections-to continue showing good numbers," Moncupa said. "Overall, we expect the momentum of domestic demand and the country's good macroeconomic numbers to outweigh the uncertainties in Western economies. Given our positive economic outlook, we will proceed with our expansion programs," he said.2013 election boost
According to Moncupa, the 2013 midterm elections should give the economy-which the government expects to grow by between 6 and 7 percent-an added boost as it will provide another opportunity to pump-prime the economy with increased expenditures. Jose Concepcion III, CEO of food and beverage giant RFM Corp., and Partho Chakrabarti, president of Pepsi-Cola Products Philippines made the same prediction. Concepcion said 2013 would be a "super year" for the Philippines, partly because elections will help boost consumption. As a result, the stock market should hit even more records in 2013, he said. Chakrabarti said the overall optimism of the population would result in increased investment and spending, by both companies and individuals. "Confidence will continue to increase in 2013 and should be higher than 2012. The increased activities around the elections will further stimulate the economy in the first half," said Chakrabarti, who also predicted that the beverage industry will grow at a faster rate in 2013 than has been seen over the past two years. Riza Mantaring, CEO of Sun Life Financial
Phil., gave a similarly rosy projection for the Philippines in 2013, saying that the economy would continue to "grow strongly" because of strong domestic consumption. "It is already the third largest of the $1 trillion-plus Asean consumer market, and we expect to continue to move up as we have a young and still growing population with growing purchasing power," she said. San Miguel Corp. president Ramon Ang said the economy will continue to become strong mainly because "investors believe in our President and his good image."NYT 2012 Overview of Philippines, NYT, Jan 02
The Philippines is a country in Southeast Asia with more than 90 million people. Benigno S. Aquino III has been president since 2010. He is the son of Corazon C. Aquino, the country's former pro-democracy leader, and Benigno S. Aquino Jr., a politician who was assassinated in 1983. More than parties or ideology, family rivalries have always defined Philippine politics. And no feud has shaped the modern Philippines more than the epic battle between the Aquinos and Marcoses. Benigno S. Aquino Jr., who was the opposition leader, was an outspoken critic of Ferdinand E. Marcos, the American-backed dictator who ruled the Philippines for 20 years until he was ousted in 1986. The assassination of Mr. Aquino was a pivotal event in Mr. Marcos's downfall. Mrs. Aquino, who became president in 1986, died in 2009. Her death led to emotional calls for her son, Benigno Aquino III, to run for the presidency. His campaign promised to break with the Philippines' corrupt political culture. In particular, he capitalized on widespread disillusionment with the deeply unpopular president, Gloria Macapagal Arroyo, who was prevented from running again by term limits.
Government May Curb Pursuit of Marcos Wealth
Ferdinand E. Marcos led the Philippines from 1965 to 1986, when he was overthrown by the bloodless popular revolt known as "People Power." He declared martial law for part of his time in office and empowered his flamboyant wife, Imelda R. Marcos, to help rule the country. Investigators have accused the Marcos family and their associates of plundering an estimated $10 billion from the Philippines while millions of Filipinos suffered in grinding poverty. In particular, Mrs. Marcos was noted for extravagant displays of wealth that included lavish shopping trips to New York City with a huge entourage, spending millions on jewelry and art. In early January 2013, the chairman of a commission that has been pursuing the Marcos wealthrecommended that it be abolished, despite the fact that much of the family's allegedly ill-gotten wealth has not been recovered, the chairman said. In recent years, members of the Marcos family, including Mrs. Marcos, have taken prominent political posts, complicating the commission's efforts. Mrs. Marcos, 83, is now a member of the House of Representatives, while her son, Ferdinand Marcos Jr., is a senator. Her daughter, Imee Marcos, is the governor of a northern province where the family is still well regarded. The commission was created after Corazon C. Aquino came to power in 1986, and it was charged with the worldwide pursuit of the ill-gotten assets of the Marcos family and their associates. The head of the commission, noted that the agency had recovered 164 billion pesos (about $4 billion) since its creation, including a 150-carat ruby and a diamond tiara, hundreds of millions of dollars hidden in Swiss bank accounts and prime real estate in New York City. It worked recently with New York authorities to indict Vilma Bautista, Mrs. Marcos's former social secretary, and to recover several valuable paintings, including one from the water lily series by Claude Monet. No member of the Marcos family, who all deny wrongdoing, has been convicted in connection with plundered wealth, nor have any of their associates.
Typhoon Hits the Southern Philippines
In December 2012, a powerful out-of-season typhoon tore through the southern Philippines, leaving more than 270 people dead and hundreds more missing, officials said. Typhoon Bopha packed winds of up to 100 miles per hour when it struck, bringing torrential rains and flattening entire villages. With many roads and bridges washed away, rescue teams struggled to reach isolated areas. The deaths were concentrated in the Compostela Valley, a mountainous gold mining area, and the neighboring province of Davao Oriental, on the eastern coast of the southern Philippine island of Mindanao.
A Booming Economy
As of 2012, the country had the 44th largest economy in the world, according to HSBC estimates. But if current trends hold, it can leap to the No. 16 spot by 2050. The gross domestic product of the Philippines grew 6.4 percent in the first quarter of 2012, according to the country's central bank, outperforming all other growth rates in the region except China's. Times are pretty good in the Philippines if you are young, skilled and live in the city. Young urban workers are helping to give the country its brightest prospects in decades, economists say. A high population growth rate, long considered a hindrance to prosperity, is now often seen as a driving force for economic growth. About 61 percent of the population in the Philippines is of working age, between 15 and 64. That figure is expected to continue increasing, which is not the case for many of its Asian neighbors, whose populations are aging. Many of those workers are feeding the country's robust outsourcing industry. The Philippines, where English is widely spoken, surpassed India in 2011 as the world's leading provider of voice-based outsourcing services like customer service call centers. The Philippines' growing prosperity has also been driven by the 9.5 million Filipinos - almost 10 percent of the population - who work outside the country and who sent home about $20 billion in 2011. That is up from $7.5 billion in 2003. Trinh D. Nguyen, an economist with HSBC in Hong Kong, said the Philippines had benefited from an increase in government efficiency and revenue collection, as well as aggressive actions to address corruption, like the impeachment of the chief justice of the Supreme Court and the arrest of former President Gloria Macapagal Arroyo on suspicion of accepting kickbacks and of misusing government lottery money. But there are also real weaknesses in the country. Floods which by some estimates submerged 50 percent of Manila in August 2012, illustrated the shortage of modern infrastructure that makes the Philippines highly vulnerable to disasters. But government officials have said that the summer floods might actually help economic growth, because reconstruction will require an increase in public spending and the country will have to put into place programs to make it more resistant to the effects of natural disasters. Another hurdle is the fact that the Philippines has traditionally underexploited its natural resources. The government estimates that there are 21.5 billion tons of metal deposits in the country, including large deposits of nickel, iron, copper and gold. In the shorter term, there are concerns that the country's newfound prosperity has not sufficiently eradicated poverty.
The Bangsamoro roadshow, The Economist, Dec 17
THE best news to come out of the Philippines in 2012-perhaps even better than the economic headlines-was probably the "framework agreement" between the government and the Moro Islamic Liberation Front (MILF), the main Muslim separatist group fighting in the southern region of Mindanao. Signed on October 15th, the peace deal, it is hoped, will put an end to decades of armed struggle by the Muslim minority against the government in Manila. The has conflict claimed the lives of about 120,000 people and displaced a further 2m more. Broadly, the agreement represents a compromise. On the one hand, the MILF has given up its dream of a separate Muslim state in exchange for a semi-autonomous region, to be known as Bangsamoro. The government, for its part, surrenders a lot of control over the internal affairs of Bangsamoro while retaining overall sovereignty. The exact demarcations, in terms of wealth, territory and political control, have been left hazy, and are currently being thrashed out in further rounds of talks between the two sides' negotiators. They will probably be at it for some time. The hope is to have everything settled by 2015. In the meantime lingering doubts over whether the agreement will actually stick don't seem to be bothering the MILF. Helped by Bangsamoro's main international backer, Muslim-majority Malaysia, the head of the MILF, Al Haj Murad, has been on a roadshow drumming up support and investment for the new, non-sovereign entity. The week before last he was an honoured guest at the eighth World Islamic Economic Forum in Johor Bahru, where his hosts, led by Malaysia's prime minister, Najib Razak, treated him on a par with heads of state and national representatives. Very nice for the MILF, but also good politics for Malaysia. With a general election coming up, the Malaysian government wants to claim as much credit as it can for the peace agreement, which it helped to broker. Mr Murad is keen to play up the economic potential of Bangsamoro and to minimise the risks of ongoing negotiations in the Philippines going awry. Previous agreements, after all, have failed to evolve into a final and conclusive peace. The last deal was struck down at the last minute by the country's Supreme Court. A real obstacle this time, for example, is that other, smaller Islamic militant groups in Mindanao do not back the peace plan-which could make it impossible to implement. The Moro National Liberation Front, for example, the MILF's main rival, has just filed a petition with the Supreme Court questioning the constitutionality of the agreement. Mr Murad acknowledges the problem, but argues that the MILF has "opened its doors to dialogue with the other groups and they have been very receptive." In the end, he says, they all have a common objective: "The framework agreement is not just for the MILF, but for the Bangsamoro people."
The Philippines the big surprise, EAF, Jan 03
The Philippine GDP growth rate for 2012 is now estimated to be 6 per cent, which exceeds many earlier consensus forecasts of around 5 per cent. Factors contributing to the higher than expected GDP figures include sustained consumption; increased growth of the private sector in real estate development and construction supported by low interest rates; a better business outlook for infrastructure investment and additional electric generating capacities; and increased government repair, maintenance and improvements to existing roadways and bridges. The Philippines has become an alternative site for foreign investment, especially among Japanese companies. The availability of English-speaking workers, the relatively good experience of previous investments, the prospects for the ASEAN Free Trade arrangements by 2015, and ASEAN linkages with major markets in Asia are all positive factors for attracting foreign investment. Some of these projects are quite substantial and will challenge the coordination and capacity of government at the national and local level. With reference to portfolio investments, the Philippine Stock Exchange index had an increase of 24 per cent since the beginning of 2012. The influx of portfolio investments has resulted in the appreciation of the peso, and monetary authorities are concerned about the competitiveness of exports of goods and services and the effect on overseas remittances for family expenditures. The Central Bank (BSP) had been taking measures to avoid the fast appreciation of the peso by sterilising funds in a special deposit account - but this is a costly exercise. The BSP is now considering some form of capital control such as imposing a deposit requirement for 90 days before sale proceeds can be remitted abroad. The budget outlays for public construction have been utilised below the target deficit of 3 per cent of GDP. For the first 10 months the budget gap had only reached 2.3 per cent of GDP. The BSP has encouraged the government to prepay debt, borrow domestically in foreign exchange and in pesos, and spend more to create demand for capital equipment imports and other materials for investment projects so as to prevent the rapid appreciation of the peso. The BSP is also closely monitoring real estate financing by banks. But the majority of the Philippines trade is with economies that have slowed and will probably not recover in 2013, most notably the US, Europe and Japan. And despite estimates that the Chinese economy will grow at around 8 per cent, the Philippines-China bilateral relationship is not stable. Disputes in the South China/ West Philippine seas have resulted in China banning some Philippine exports and restrictions on Chinese tourists visiting the Philippines. Proposals have been made to resolve this issue within the framework of the United Nations Convention on the Law of the Sea but China has not accepted this and continues to press for bilateral negotiation only.
Philippines May Curb the Pursuit of Marcos's Wealth, NYT, Jan 02
A commission that has been pursuing the wealth of the former dictator Ferdinand E. Marcos should be abolished, despite the fact that much of his allegedly ill-gotten wealth has not been recovered, its chairman said on Wednesday. Andres Bautista, the chairman of the Presidential Commission on Good Government, told reporters on Wednesday that he had recommended to President Benigno S. Aquino III that the special commission be phased out. "Our recommendation was to wind down work," said Mr. Bautista, noting that it is more efficient, and less costly for the government, if the Department of Justice handles the hunt for assets and any future cases against Marcos associates. In an earlier interview with Agence France-Presse, Mr. Bautista said, "It has become a law of diminishing returns at this point." Mr. Marcos led the Philippines from 1965 to until 1986, when he was overthrown by the bloodless popular revolt known as People Power. He declared martial law for part of his time in office and empowered his flamboyant wife, Imelda R. Marcos, to help lead the country. Investigators have accused the Marcos family and its associates of plundering an estimated $10 billion from the Philippines while millions of Filipinos suffered in grinding poverty. In particular, Mr. Marcos's wife was noted for extravagant displays of wealth that included lavish shopping trips to New York City with a huge entourage, spending millions on jewelry and art. But in recent years, members of the Marcos family, including Mrs. Marcos, have taken prominent political posts, complicating the commission's efforts. The commission was created after the pro-democracy leader Corazon C. Aquino, the current president's mother, came to power in 1986, and it was charged with the worldwide pursuit of the assets of the Marcos family and its associates.
Senate, House okay bicam report on sin tax, Business Insight, Dec 11
THE Senate last night, voting 10-9 with no abstention, ratified the excise sin tax reform measure or Senate Bill No. 3299 with a revenue target of P33.96 billion in the first year of its implementation. The House of Representatives, voting viva voce, also ratified the bicameral committee report on the proposed sin tax bill. Of the P33.96 billion, P23.4 billion will come from increased taxes on tobacco, while P10.56 billion will be generated from taxes on fermented liquor and distilled spirits or a burden sharing of 69-31 between tobacco and alcohol products. Those in favor were Franklin Drilon, Edgardo Angara, Pia Cayetano, Miriam Defensor-Santiago, Panfilo Lacson, Lito Lapid, Sergio Osme?a III, Francis Pangilinan, Aquilino Pimentel III and Antonio Trillanes IV. Those against were Senate President Juan Ponce Enrile, Ralph Recto, Joker Arroyo, Jinggoy Estrada, Francis Escudero, Gregorio Honasan, Ferdinand Marcos Jr., Ramon Revilla Jr., and Vicente Sotto III. "It was a give and take situation and we came up with a compromise of approximately of 69-31 percent instead of 60-40 in the Senate and 87-13 on the part of the House," said Drilon. Recto refused to sign the bicameral conference committee report because according to him, the sin tax revenue allocation to fund the various health programs of the government remains "unclear." He noted that the reason Congress came up with the measure - imposing higher taxes on sin products - is for government to collect more revenues to fund the health care-related projects for the benefit of the public. However, he said, under the bicam report, the specific earmarking for the universal health care, improvement of health facilities and health information campaign were removed and replaced by mere percentages. "I do not think that we should give them (the Department of Health) a blank check with that," he said. "I cannot support a measure that promotes foreign interests where tax rates on imported products will go down, be it distilled spirits or cigarettes, while increasing the taxes significantly on locally-made products," Recto said in explaining his vote.
Financial Services
DBP, Landbank tie up for remittance service, philSTAR, Jan 04
Two government-run financial institutions have joined hands to improve their services to overseas Filipino workers (OFWs). The Development Bank of the Philippines (DBP) and the Land Bank of the Philippines said they recently entered into an agreement for a joint branch servicing scheme. "DBP recently signed a memorandum of agreement (MOA) with Landbank for a depository bank tie-up to enable it to better serve the remittance requirements of overseas Filipino workers and their dependents," DBP said in a statement. Under the MOA, Landbank will serve as DBP's depository bank for peso and US dollar deposits/ accounts for branch cash servicing. Both banks have been working closely in the area of remittance services since 2007, with DBP utilizing the delivery network of Landbank to serve the inward remittances of overseas Filipinos. At present, DBP offers its Electronic Cash Remittance (EC Remit) program which provides OFWs with a secure, safe, fast, easy, efficient and reliable means to remit their hard-earned money to their designated beneficiaries in the Philippines through a combination of electronic-based and traditional remittance services. These include virtual payments, credit and debit card facilities, fund transfers and payments through ATMs/banks, non-bank service providers and door-to-door delivery facilities. Landbank, on the other hand, offers a similar facility, OFC Cash Card, which is an electronic debit card that facilitates cash transactions like balance inquiry and withdrawals via automated teller machines (ATMs). This facility could be used by OFWs as funds remittance mode using their Smart mobile phones.
Now near 6,000 mark, PSEi hits another high, Rappler, Jan 04
Local stocks rose to a new all-time high for the third straight day on Friday, January 4. The key Philippine Stock Exchange index edged closer to the 6,000 level, settling at 5,971.45, up 37.4 points or 0.63% from Thursday's close of 5,934.05. The broader all-share index went up 15.55 points or 0.41% to 3,778.43. Except for the industrial index, all sectoral indices ended in green. The services sector posted the highest jump of 0.79%. Gainers outpaced losers, 98 to 67, while 49 stocks did not move. A total of 1.62 billion shares worth P7.59 billion changed hands. Heavily weighted telecommunications firm Philippine Long Distance Telephone Co. was the most actively traded stock. It climbed 1.45% to P2,650 per share. Property giant Megaworld Corp. was next, soaring 6.25% to P3.06. Top lender BDO Unibank Inc. was the third most active stock. It rose 1.36% to P74.50.
Need a permit for receipts? Go online, Business World, Jan 03
FIRMS OR INDIVIDUALS engaged in business that print their own invoices and receipts will soon have to course applications for the authority to do so online, the tax bureau said. Revenue Regulations (RR) 18-2012, dated October 22, 2012 and published only yesterday, provides guidelines for the processing of applications for authority to print (ATP) official receipts, sales invoices, and other commercial invoices via an online system. The Bureau of Internal Revenue (BIR) is moving to an electronic ATP system, which will be part of its E-Reg Taxpayer Registration Information Updates program. The new regulations are set to take effect on Jan. 18 but as the online system is still being set up, only provisions that can be implemented immediately will take effect. An ATP is required before persons engaged in business can print principal and supplementary official receipts or invoices. At present, applications are done manually at BIR offices. "[I]n case of systems downtime, taxpayer shall apply for ATP and submit the required documents at the RDO (Revenue District Office) or concerned LT (Large Taxpayers) Office having jurisdiction over the taxpayer's head office (HO)," the directive states. For businesses with more than one branch, an application should be submitted per establishment. "Each application shall be issued a separate ATP. The principal and supplementary receipts/invoices of the HO and each of the branches must have their own independent series of serial number," the rules state. An approved ATP will be valid for five years or upon the full usage of the inclusive serial numbers. All unused/unissued principal and supplementary receipts/invoices prior to the RR's effectivity date, meanwhile, will only be valid until June 30. Taxpayers with expiring ATPs are required to apply for a new permit not later than 60 days before the actual expiry date.
BSP sees no danger in forex buildup, Inquirer, Jan 03
The Bangko Sentral ng Pilipinas sees no danger in allowing the country to further build up its foreign exchange reserves, now at a record $84 billion. For the BSP, the accumulation of gross international reserves (GIR) is simply
a consequence of its effort to stabilize the country's financial system. Should destabilizing factors become significant, the monetary authority said it would engage in heavier dollar-buying right away. "We [the BSP] need to maintain stability in the system, and so we need to absorb some [foreign exchange] inflows. We think we have enough reserves, but the maintenance of monetary stability is an important objective for us, and so we will continue to pursue that objective," BSP Governor Amando Tetangco Jr. told members of the Rotary Club of Manila on Thursday. The central bank earlier reported that the country's GIR already reached $84.1 billion in November, the highest on record. The amount would be enough to cover the country's import requirements for over a year. It is also nearly seven times the combined short-term debt, denominated in foreign currencies, of private and government entities in the Philippines. Based on old standards, GIR worth about four months of a country's import requirements was considered comfortable. A significantly higher amount could be costly. But Tetangco said that the old standards were relevant before the Asian financial crisis. Since then, he said, economies in Southeast Asia have decided it would be more prudent to accumulate substantial amounts of foreign currencies to serve as buffer in the event of a crisis. Tetangco explained that determining the ideal amount of reserves would depend on the crisis that happens to threaten an economy. Last year, the BSP engaged in heavy dollar buying to help temper the appreciation of the peso. Monetary officials admitted that, if not for the central bank's intervention, the local currency would have appreciated by a much faster pace. The peso closed at 41.05 against the US dollar on the last trading day of 2012. It rose by 6.8 percent against the greenback in 2012, becoming the second-fastest appreciating currency in Asia, and the fourth-fastest among all actively traded currencies in the world.Banks' 3Q Assets Grow 7.45%, Manila Bulletin, Dec 09
The total assets of the 37 big banks increased to P6.765 trillion as of third quarter this year, up 7.45 percent from P6.296 trillion in the same period last year as banks' assets quality continues to improve and soured loans at record lows, the Bangko Sentral ng Pilipinas (BSP) said. Compared to the previous quarter, the BSP said, big banks' assets base went up by 2.5 percent from P6.59 trillion. Based on BSP data, of the P6.765 trillion total assets half or P3.4 trillion represents the 37 banks' total loan portfolio. This is up 12.9 percent from 2011's P3 trillion. Non-performing loans or loans classified as past due loans from this total amounted to P69.94 billion as of end-September, 5.9 percent lower year-on-year and 0.69 percent lower from August. As for loans considered past due within a 90-day period, this amounted to P113.19 billion, down 1.67 percent year-on-year. The central bank noted that the allowance for credit losses as of end-September totaled P95.12 billion or 3.45 percent higher compared to 2011 loan loss provisions. It was also 0.95 percent higher than the previous quarter's P94.22 billion. In asset size, BSP data using second quarter reports from banks showed that the Henry Sy-controlled BDO Unibank Inc. remains the country's biggest banks with assets of P1.15 trillion. It is also the largest in terms of total deposits and capital base with its issuance of P42 billion stock rights offer last July. The second biggest in asset size is Metropolitan Bank and Trust Co. of the Ty family with P742.76 billion. The Ayala Group's Bank of the Philippine Islands is third largest with P720.66 billion. Land Bank of the Philippines and Development Bank of the Philippines, the state-owned banks, rank fourth and fifth biggest, respectively. The rest of the top 15 banks in asset size include Philippine National Bank of the Lucio Tan Group, Rizal Commercial Banking Corp. of Yuchengco Group, China Banking Corp. also of the SM Group, the foreign-owned Citibank and Union Bank of the Philippines of the Aboitiz Group. Security Bank Corp. is 11th largest followed by United Coconut Planters Bank and Allied Banking Corp. which will be merged with PNB. The Philippine Trust Corp., Bank of Commerce and another foreign bank, HSBC (Hongkong and Shanghai Banking Corp.) complete the top 15. The BSP said the 37 banks reported an increase in profits of 15 percent year-on-year in the third quarter to P80.113 billion. In the same period, the big banks' return on equity rate however dropped to 12.33 percent from the same time in 2011 of 12.44 percent. Return on assets, in the meantime, rose to 1.58 percent from 1.52 percent. BSP data also showed that the banks' cost to income ratio was higher at 63.74 percent from 62.7 percent last year.
FDI Inflows Increase 40% In Third Quarter To Over $1B, Manila Bulletin, Dec 10
The country's foreign direct investments (FDI) inflows increased 40 percent year-on-year to $1.09 billion as of the end of the third quarter, the Bangko Sentral ng Pilipinas (BSP) reported yesterday, The BSP cites strong economic fundamentals and the administration's efforts to improve public and corporate governance as factors for continued FDI growth. The economy as measured by gross domestic product grew 6.5 percent in the first three quarters, exceeding the full-year projections of five percent to six percent. The FDI registration for the month of September alone is however lower by 60 percent or $55 million compared to the same period last year of $138 million. FDI, which covers equity capital, reinvested earnings and other capital such as intercompany loans, is expected to reach $1.5 billion this year, a revised projection from an earlier forecast of $1.2 billion. The FDI outlook was updated recently along with the BSP's expectations of balance of payments surplus which officials raised to $6.8 billion from a June forecast of $2.7 billion. Based on the BSP's latest data, equity capital flows amounted to $1.2 billion which is 700 percent higher than end-September 2011's $150 million. Gross equity capital placements totaled $1.4 billion. These FDI inflows were invested in five main sectors, namely manufacturing, real estate, wholesale and retail, financial and insurance, mining and quarrying, transportation and storage sectors. Investors located in the US, Australia, the Netherlands, the British Virgin Islands and Japan tops the source of these funds. As of end-September, reinvested earnings totaled $121 million which is 56.3 percent lower year-on-year. The other capital account, in the meantime, amounted to a net outflow of $228 million, reversing the $355 million inflows recorded the same period last year. The outflow resulted from the lower intercompany loan availments and settlement of trade credits by foreign parent firms to their local subsidiaries. For data on September alone, net equity capital infusion reached $57 million which was lower compared to last year's $121 million while reinvested earnings totaled $20 million from $65 million in 2011. The other capital account reported outflows of $22 million, lower than the $48 million withdrawals same time last year.
MSME Portal Opens Access To Financing, Manila Bulletin, Dec 10
Micro, small and medium enterprises (MSMEs) can now access their financing requirements directly from banks electronically, a system that seeks to eliminate brokers and loan sharks that only make financing more expensive. Through the SMEPlus Loan Portal of the FINEX Foundation for Entrepreneurship, Inc. (FFEI), both MSMEs and financial insitutions like banks can interact to serve the needs of MSMEs. MSMEs can register for free while financial institutions have to pay P100,000 to register. The website is being hosted by Eastern Communications. FFEI President Roberto T. Borromeo said as much as 18,000 MSMEs have already registered and 13 financial institutions, mostlty banks. "This is the first portal that we know of that is dedicated to MSMEs," Borromeo said. This electronic system, he said, would eliminate loan sharks, brokers that package loans and middlemen, which sometimes are being tolerated by banks because it helps them screen loan applicants but which also entails additional cost to borrowers. Banks have not been aggressively lending to MSMEs because of the high risk associated to this sector. Even the Magna Carta for Small Business, which requires banks to allocate 10 percent of its total loan portfolio for SME lending, has not been strictly enforced. Banks would rather pay for the penalty of P2 million a year for non-compliant than lending to MSMEs. Based on a survey by the International Finance Corp., banks are able to fund between 25 to 60 percent of the MSME sector's financial requirements This means that as much as 70 percent of this sector's demand have not been addressed by banks. This also placed the Philippines below its ASEAN counterparts in funding this sector, which means that MSMEs in other ASEAN countries are better served than its Philippine counterparts. Most of the MSME financing are being used for working capital, inventory, equipment and building. The IFC study also revealed that only around 36 percent of MSMEs are using formal financial institutions like banks, financing companies and microfinance institutons as funding soruce. Majority are still using their own capital, loans from family or friends and other informal non-banking challenels. (BCM)
Defense & Security
Philippines: Rebels Threaten to End Ceasefire, Eurasia Review, Dec 29
The Communist Party of the Philippines (CPP) today threatened to cut short a ceasefire with the government after Manila failed to reciprocate an order issued by the rebel group to its fighters to extend the truce to January 15. The CPP demanded that the Aquino government also order an extension of its earlier ceasefire declaration to reciprocate the one issued by the rebel group last week. Government and rebel peace negotiators agreed during a meeting on December 18 to declare a temporary truce from December 20 to January 15 to create favorable conditions for the resumption of formal peace negotiations next month. The CPP issued a ceasefire order on December 20. "More than a week has passed and [the government] has yet to issue a reciprocal ceasefire order that would extend [President Benigno Aquino]'s earlier declaration covering the period from December 16 to January 2," a rebel statement said. The group said Aquino's failure to promptly issue a unilateral ceasefire order in accordance with the agreement "raises serious questions about his government's sincerity in pursuing peace negotiations." "If he does not issue a corresponding ceasefire declaration soon, the CPP... would have to consider the option of cutting short the duration of its unilateral ceasefire order," the statement said. Lt Col Eugenio Julio Osias, spokesperson of the Army's 4th Infantry Division in Mindanao, said he has yet to receive directives from higher authorities on the extension of the suspension of military operations.
China assures Philippines: Ship checks limited to caost, China Daily, Jan 03
Allaying international concerns over China's new maritime policing policy in the disputed West Philippine Sea (South China Sea), the Chinese Foreign Ministry has clarified that interdiction powers or the possible boarding of ships by Chinese authorities would be limited to "a narrow coast zone". Chinese Foreign Ministry spokesperson Hua Chunying said in a recent press briefing that the new rules implemented by Hainan province on Tuesday would be limited to waters extending only 12 nautical miles (22.2 km) from its coast, according to a Reuters report. In a cautious response, the Philippines' Department of Foreign Affairs (DFA) said it was seeking further clarification of the new policing law as Hainan, the Chinese province closest to the disputed Spratlys island chain, has claimed jurisdiction over contested territories and waters. "Was [China's foreign minister] referring to the coast of Hainan island or some other coasts over which Hainan province considers it has jurisdiction?," DFA spokesperson Raul Hernandez said, in apparent reference to the contested territories over which China had earlier declared jurisdiction. In China's press briefing, Hua said: "What I want to stress is that these local rules were formulated by the Hainan provincial government to strengthen border controls over the coast and maritime management," Hua said the policing law, announced by Chinese state media in November, was geared strictly toward maintaining peace and order along its coastal waters, an important international trading route.
Naval Helicopters to be delivered by 2014, Defense Studies, Jan 03
With the signing of the contract of agreement for the Philippines' three naval helicopters a done deal, the Dept. of National Defense expects the aircraft to be delivered and commissioned by 2014. This is expected to gain impetus with the submission of the letter of credit to the manufacturer, AugustaWestland S.P.A., within the first quarter of 2013. Upon receipt of this document, the helicopter builder and supplier has 365 working days to deliver the aircraft to the Philippines. DND observers said they see no problem with the submission of the needed documents, adding that the waiting period for this will be quite short. Earlier, the DND announced that the contract of agreement for the three naval helicopters were finally signed last Dec. 20. The three rotary wing aircraft has a net price of P1,337,176,584. The contract was signed by the Armed Forces of the Philippines and supplier AugustaWestland S.P.A. The acquisition project was done under negotiated procurement through Section 53.2 (Emergency Procurement) of the Implementing Rules and Regulations of Republic Act 9184. "The acquisition of these naval helicopters is one concrete step towards the fulfillment of our goal to modernize the Philippine Navy, and our Armed Forces in general," DND Secretary Voltaire Gazmin said. On Nov. 28, AugustaWestland was declared by the Naval Helicopter Acquisition Project Negotiating Committee as the single calculated and responsive proponent after going through the process of a negotiated procurement. The Italian Ministerio Della Difesa conducted a review of AugustaWestland's proposal for the procurement of AW 109 Power Helicopter, including related logistic support and found out that the price per helicopter "seems to have been progressively reduced", meaning they were sold cheaper. The AW-109 a twin-engine, eight-seat multipurpose chopper. First flown as the Agusta A109 in 1971, the craft has proven itself in light transport, medevac, search-and-rescue, and military roles. It has a crew of one or two pilots and is capable of carrying seven to eight passengers and length of 42 feet 9 inches (13.04 meters). The AW-109 has a rotor diameter 36 feet 2 inches (11.00 meters). It has height of 11 feet 6 inches (3.50 meters). The AW-109's powerplant consist of two Pratt & Whitney Canada 206C or Turbomeca Arrius 2K1 turboshafts, 567 hp or 571 hp (423 kW or 426 kW) each. It has a maximum speed: 177 miles per hour (154 knots, 285 kilometers/hour). It has ferry range: 599 miles (521 nautical miles, 964 kilometers) and a service ceiling: 19,600 feet (6,000 meters). The AW-109 also has a rate of climb: 1,930 feet per minute (9.8 meter per second). Upon the recommendation of the DND Bids and Awards Committee, the Secretary of National Defense issued a notice of award last Dec. 4. "With the other projects in the pipeline and our planned acquisition, we are now louder and clearer in our intent to upgrade the capability of our AFP to address its constitutional duty to 'secure the sovereignty of the state and the integrity of the national territory'," Gazmin concluded. (PNA)
2 US warships to dock in PH, Inquirer, Dec 28
Two US warships will dock in Philippine waters on Saturday for a routine port call, the United States Embassy said on Friday. The USS Gridley (DDG-101), an Arleigh-Burke Class Destroyer which forms part of the US Pacific Fleet, will dock in Cebu. The ship, named for Captain Charles Gridley, Commander of the USS Olympia who was famously told by Admiral George Dewey to "fire when you are ready, Gridley" in the Battle of Manila Bay during Spanish-American War, is homeported in San Diego, California. The USS Gridley also docked in Manila Bay last month. Meanwhile, USS Bremerton (SSN 698), a submarine of Los Angeles class design, will also make a port call in Subic. She was named in honor of the city of Bremerton in Washington, home to Puget Sound Naval Shipyard and a city with a long association with the US Navy. She is the tenth ship of the Los Angeles class design, and her keel was laid in Connecticut in May 1976. Both port calls emphasize the "strong historic, community, and military connections between the United States and the Republic of the Philippines." It will allow the ships to replenish supplies as well as give the crew an opportunity for rest and relaxation, the US Embassy added in a statement. Earlier this year, the US signified its intention to boost its presence in the Pacific by deploying a majority of its naval assets by 2020. Amid rising tensions between China and other Asian countries including the Philippines over the disputed Spratly Islands, the US said the deployment of their assets was not meant to challenge China.
USS Bremerton Arrives in Subic Bay, Republic of the Philippines, Navy, Jan 02
Sailors and civilian mariners from submarine tender USS Emory S. Land (AS 39) conducted a coordinated tended mooring to bring Los Angeles-class fast attack submarine USS Bremerton (SSN 698) into Subic Bay, Republic of the Philippines Dec. 29. The visit to Subic Bay marks Bremerton's first routine port visit while on a scheduled Western Pacific deployment. "My crew has worked hard and I am honored to allow them the opportunity to explore all that the Republic of the Philippines has to offer during this holiday season," said Cmdr. Caleb A. Kerr, Bremerton's commanding officer. "The Sailors of the USS Bremerton look forward to engaging the community and strengthening the historic ties and friendship that our countries share." For some of Bremerton's crew, the port of call in the Republic of the Philippines is considered a milestone. "Having served in the Navy for a few years, I've always heard great stories about my fellow submariners travels to the Philippines," said Sonar Technician (Submarine) 3rd Class Rigo Baca, assigned to Bremerton. "Now, I can finally say that I've made it here. I look forward to unwinding with my shipmates and creating lasting memories." During Bremerton's visit, Sailors from both Bremerton and Land will participate in various local events. "The Sailors onboard Land and our extended Bremerton family will be involved in a city parade this holiday" said Lt. Aaron Roberton, Land's command chaplain. " We are also involved in a few ongoing projects to help out the city of Olongapo and neighboring communities". Bremerton, homeported in Pearl Harbor, is on a Western Pacific deployment while Land, homeported in Diego Garcia is undergoing a voyage repair period in Subic Bay, Republic of the Philippines. Land, is a forward deployed expeditionary submarine tender on an extended deployment conducting coordinated tending moorings and afloat maintenance in the U.S. 7th Fleet Area of Operations.
AFP Adds Military Trucks from KIA, Defense Studies, Dec 29
The Philippine's defense chief says the government has signed separate contracts worth 163 billion pesos (about $39 million) with Italian and South Korean companies to supply helicopters and trucks as part of efforts to modernize its poorly equipped military. Defense Secretary Voltaire Gazmin said Thursday the Philippines will purchase three multi-purpose AW 109 helicopters for its navy from AugustaWestland SPA of Italy amounting to 1.33 billion pesos ($32 million). He says Kia Motors Corp. will supply 60 field ambulances and 12 trucks all worth 300.78 million ($7.33 million) pesos. Gazmin says the purchases show the country's "louder and clearer" intent to modernize its military. The Philippine military is fighting a decades-long communist insurgency and battling Islamic militants while facing increasing tension over territorial disputes with China in the South China Sea.
PAF to Have New Radars, Defense Studies, Dec 31
As the military builds up its air defense capabilities, the Philippine Air Force (PAF) is acquiring three radars with a project cost of about P2.3 billion, said PAF vice commander Major General Raul Dimatatac. Interviewed at the Villamor Airbase in Pasay City, Dimatatac told reporters, "We are looking at installing three radars for our three major sites." The radars, he said, are among those listed in the PAF's wish list in the P75-billion military modernization budget in the next five years. "Although we were given by the government P75 billion for the next five years . . . we have a lot of concerns insofar as security is concerned so we really have to prioritize," said Dimatatac. He added that for the Air Force, among the items lined up for acquisition aside from the radar system are surface attack aircraft (SAA), light lift and long range patrol aircraft, and additional UH1H helicopters. The PAF vice commander has earlier expressed pleasure over the activation of the third three C-130 Lockheed Hercules cargo plane in the PAF inventory. The military recommissioned on Friday some of its air and ground assets that underwent major refurbishment, with all the work done locally. Among the recommissioned assets aside from the C-130 were a Cessna 210, the PAF's platform for rainmaking, one UH1H combat utility helicopter, and 12 M-35 trucks. "This is definitely a big improvement to the PAF's airlift capability, considering that for the past years, we only one C130 aircraft in service," said Dimatatac. He added the three C-130 cargo planes will allow the Armed Forces of the Philippines (AFP) to support the government in its various development and relief missions. Aside from improving the PAF's cargo lift capability, Dimatatac said that the three aircraft has definitely boosted the morale of their aircrew as they now know that they have a sufficient number of planes to perform their missions.
Establishing a Philippine cyber command: points to consider, EAF, Dec 14
In the wake of recent cyber attacks launched against the Republic of the Philippines, and in response to the formalisation of cyber-crime legislation, the Armed Forces of the Philippines (AFP) have recently announced plans to establish an operations centre to address the rising incidence of cyber attacks. Categorised as a Command, Control, Communications, Computers, Intelligence, Surveillance, Target Acquisition and Reconnaissance (C4ISTAR) operation, the proposed unit is tasked with ensuring the protection of 'highly secured data and information against cyber attack'.
While timely, this move presents an enormous challenge to the AFP, as cyber space remains an ever-changing environment that is, as of yet, not fully understood by most policy makers and military leaders. Two points that require immediate clarification are the scope and potential for retaliation that the proposed cyber command would have. A failure to consider these boundaries could render any command at best inefficient, or at worst a possible source of destabilisation. The year 2012 has seen numerous cyber attacks against Phillippine government websites. Most notable was the series of attacks and counter-attacks that defaced government websites of both the Republic of the Phillippines and the People's Republic of China (PRC) at the height of the recent territorial disputes in the South China Sea. While the nature of cyber attacks makes it impossible to attribute an attack to an individual, group or nation-state with any certainty, postmortem analysis suggests that the PRC is the source of these attacks. At this point, deciding whether to classify cyber attacks as criminal acts or acts of war becomes relevant. While academics, policy makers and legislators across the globe attempt to establish parameters to distinguish between the two, incidents attributed to the PRC have complicated the situation. The PRC is suspected of utilising elements of its populace involved in cyber crime to launch attacks beyond its borders, often to conduct forms of cyber espionage. The use of civilians to launch cyber attacks while continuously refusing to acknowledge state sponsorship of such actions makes any effective response - be it a legal approach if cyber attacks are viewed as crimes or a military response if viewed as acts of war - difficult. In the Philippines, the Cybercrime Prevention Act 2012provides guidelines as to what constitutes cyber crime. It includes illegal access and interception, and data and system interference. It fails, however, to distinguish between criminal activities and acts of war in cyber space. Such ambiguity is detrimental to democracy, as the armed forces in most democratic states are prevented from conducting police action. As such, simply stating that a proposed unit's objective is to protect critical information and data is unhelpful given the lack of distinction between crimes and acts of war. Assuming that the nature of cyber attacks is resolved, the second point to be addressed is that of escalation. To what extent should such a unit be able to react in defence of national security? The AFP has stated that the rationale behind this new unit is 'to streamline and secure our communications systems in order to efficiently and effectively perform our mandate in protecting our people'. Broad statements such as this suggest the possibility of retaliatory action. While unofficial, such a scenario has already taken place, with nationalistic Filipino hackers defacing Chinese websites in response to similar attacks presumably launched by the PRC. This later prompted President Benigno 'Noynoy' Aquino to issue statements disavowing such actions and calling for a cessation of cyber hostilities. Cyber attacks may appear to be an ideal weapon for nation-states that have weak conventional forces, due to the low cost of entry and inherent anonymity provided by cyber space. These advantages, however, tend to bely the risk of rapid escalation that has the potential to transition into the physical domain. In the case of the attacks launched by Filipino hackers, no obvious escalation was noted. This may be due in part to the fact that the level of aggression exhibited may not have merited a response in the physical or cyber realms. In the event of escalation from asymmetric to symmetric engagement, advantages perceived and gained by the weaker party during the initial stages of the conflict are bound to be lost. While the development of capabilities to address emerging threats is crucial for any nation-state, careful consideration is required in cases where the nature of the threat is not clearly understood. The distinction between criminal acts and acts of war, as well as the appropriate scope for retaliation, must be well defined. For the Republic of the Philippines, its experience with cyber attacks in recent years has shown the need to develop capabilities to deter and possibly counter such threats. At the same time, careful consideration is needed regarding the dynamics of such conflicts. Concepts such as deterrence and escalation, while well understood in the conventional sense, remain troublesome when used to analyse cyber attacks. Nation-states that hope to establish cyber commands without first considering these factors may find themselves embroiled in unnecessary conflict.
Marines return from humanitarian assistance, disaster relief operations in Philippines, dvids, Dec 18
As the propellers of two KC-130J Hercules aircraft started up, Philippine service members and U.S. Marines exchanged words of thanks and goodbyes Dec. 17 at Villamor Air Base, Manila, Republic of the Philippines. Marines with various III Marine Expeditionary Force units supported Philippine-led disaster relief operations Dec. 9-16, working side by side with Armed Forces of the Philippines service members to provide assistance at the request of the Philippine Government following Typhoon Bopha, which made landfall in the Philippines Dec. 4. "At that time, we were in the middle of finishing up our Exercise Balikatan final planning conference and we watched the typhoon come in," said Col. Mark J. Menotti, the assistant chief of staff, G-4, supply and logistics, 3rd Marine Expeditionary Brigade, III MEF, who served as the officer in charge of the III MEF Forward Command Element in the Philippines. Menotti and other members of the 3rd MEB staff established the III MEF FCE and bilateral coordination center, which coordinated efforts with the Philippine government and AFP, U.S. Embassy in Manila and U.S. Agency for International Development Office of U.S. Foreign Disaster Assistance and provided command and control for U.S. Marine Corps support to Philippine-led relief operations. "We immediately started working with our AFP counterparts to see what assistance they might need and through that, we were able to at least put the MEF in Okinawa on standby so they could begin to formulate their plan," said Menotti. "Within seven hours of being directed by U.S. Pacific Command to provide support, we had two KC-130J Hercules aircraft from Marine Aerial Refueler Transport Squadron 152 on the ground in Manila, and they began transporting relief supplies the next day." VMGR-152's aircraft and personnel transported relief supplies daily from Villamor Air Base in Manila to Davao International Airport in Mindanao, one the most heavily-affected areas in the southern Philippines. Upon landing at Davao, Philippine service members worked hard alongside U.S. Marines, U.S. military personnel assigned to Joint Special Operations Task Force-Philippines and USAID representatives to unload supplies as quickly as possible onto awaiting trucks. The supplies were then distributed by Philippine government and nongovernmental organizations to displaced families affected by the typhoon. Along with deploying the aircraft, III MEF also sent a team of logistics Marines to streamline relief operations by working with Philippine service members to efficiently palletize and load relief supplies onto the KC-130Js at Villamor Air Base. "Our team consisted of four landing support specialists and two embarkation specialists," said Cpl. David J. Mugg, a landing support specialist with Combat Logistics Regiment 37, 3rd Marine Logistics Group, III MEF. "With our logistics background and experience from a recent deployment to Afghanistan, we understand the importance of getting supplies out where they need to go as quickly as possible, which is critical during a humanitarian mission."
U.S. Increasing Military Presence in the Philippines, The Diplomat, Dec 18
In a move that prompted a swift and angry response from China, the U.S. has reportedly agreed to substantially increase its military presence in the Philippines, increasing the number of troops, aircraft and ships which routinely rotate through the country. Details surrounding the scale of the increase were not made public but Pio Lorenzo Batino, the Philippines deputy defense minister said policy consultations were also held on a framework that would allow Washington to bolster military equipment in-country as well. He warned that, "There has been no discussion yet on specifics [of in-country military equipment] ... (these are) policy consultations and the specifics would be determined by the technical working groups," Batino went on to say they expected to sign a five-year joint U.S.-Philippine military exercise plan during their meetings recently. The announcement came during the 3rd Philippines-United States Bilateral Strategic Dialogue in Manila last week. The 2nd bilateral dialogue was held in January of this year, and "Two-Plus-Two" Ministerial Consultations between their foreign and defense secretaries took place in April in Washington, D.C. The U.S. side of the strategic dialogue was headed by U.S. Assistant Secretary of State Kurt Campbell who told reporters afterwards that the long-standing U.S.-Philippines relationship was enjoying a "renaissance" as part of the larger U.S. pivot to Southeast Asia. Meanwhile, tensions over conflicting territorial claims in the South China Sea continues to dominate relations between China and members of the Associations of South East Asian Nations (ASEAN).
Philippines to boost naval power, China.org. cn, Dec 30
(See link for video)
The Philippines has signed contracts with Italian and South Korean companies to supply helicopters and trucks. The Defense Department said the 39 million US dollar purchase, is part of its efforts to modernize its naval capability. It includes three multi-purpose helicopters from Italy's AugustaWestland SPA, and 60 field ambulances and 12 trucks from Korea's Kia Motors Corp. The Philippines' deals come amid increasing tension over territorial disputes with China over the Huangyan Islands in the South China Sea, where China's been speeding up building infrastructure and recently launched its first large-scale surveillance ship there. The Philippines has protested against these moves, while China reiterates the islands are part of Chinese territory since ancient times.
Philippines to acquire helicopters, trucks in bid to modernize military, WP, Dec 27
The Philippine's defense chief says the government has signed separate contracts worth 163 billion pesos (about $39 million) with Italian and South Korean companies to supply helicopters and trucks as part of efforts to modernize its poorly equipped military. Defense Secretary Voltaire Gazmin said Thursday the Philippines will purchase three multi-purpose AW 109 helicopters for its navy from AugustaWestland SPA of Italy amounting to 1.33 billion pesos ($32 million). He says Kia Motors Corp. will supply 60 field ambulances and 12 trucks all worth 300.78 million ($7.33 million) pesos. Gazmin says the purchases show the country's "louder and clearer" intent to modernize its military. The Philippine military is fighting a decades-long communist insurgency and battling Islamic militants while facing increasing tension over territorial disputes with China in the South China Sea.
US drastically expanding military presence in the Philippines, RT, Dec 19
The US will significantly increase its military presence in the Philippines - an announcement that has angered China, whose Communist Party chief urged his military to prepare for a struggle and whose state-run media have criticized the agreement. The US announced in 2011 that it would increase joint training exercises and ship visits to the Philippines in order to counter China's growing influence in the region. These visits have been welcomed by Philippine President Benigno S. Aquino III. This month, the US announced that it would increase the number of troops, aircraft and ships that rotate through the Philippines. The announcement was made during the 3rd Phillipines-United States Bilateral Strategic Dialogue in Manila, which was held Dec. 11-12. The two countries are expected to sign a five-year joint US-Philippine military exercise plan in their upcoming meetings, The Diplomat reported.
"There has been no discussion yet on specifics [of in-country military equipment] ... (these are) policy consultations and the specifics would be determined by the technical working groups,"Lorenzo Batino, the Philippines deputy defense minister said at the annual dialogue.
The US presence would likely guard against Chinese influence and try to contain the Communist country's rising military and economic power. China has territorial claims across the South China Sea and dominates relations with members of the Associations of South East Asian Nations (ASEAN), including the Philippines, with which it has overlapping claims of the Spratly islands. For years, the US has helped build the Philippine's military and security forces and offered financial assistance in exchange for greater American presence in the country. The US came under scrutiny in July after Human Rights Watch found that President Aquino's regime was using torture methods, conducting extra-judicial killings and making "leftist activists, journalists and clergy" disappear. The US has given almost $700 million to this regime since President Barack Obama took office. But the US presence in the Philippines is so important to the Obama administration that the Philippines will likely receive even more financial assistance, alongside the increase in military assistance, according to AntiWar reporter John Glaser. The US will not, however, admit that its main intention is to maintain its hegemony in the region. The US announced that its military support would be of assistance to the Philippines after natural disasters, which occur often in the western Pacific country. Trying to address Chinese concerns, the US emphasized the humanitarian nature of its military presence, citing the recent Typhoon Bopha, which killed more than 900 Philippines last week. But the Chinese response has not been positive. After the announcement was made, Chinese media described the Philippines as troublemakers seeking conflict. Using offensive language, the state-run media sources denounced the US-Philippines agreement and referred to the Phillipines Foreign Minister Albert del Rosario as 'pathetic'.
The New Armed Forces of the Philippines Modernization Act Signed, Manila Bulletin, Dec 25
HIS Excellency, President Benigno S. Aquino III signed into law Republic Act (RA) 10349, the New Armed Forces of the Philippines Modernization Act, on December 11, 2012, extending for another 15 years the modernization of the Armed Forces of the Philippines (AFP) and providing P75 billion for the first five years to boost the military's capability program. It amended RA 7898, the original AFP Modernization Act, signed on February 23, 1995. The 130,000-strong AFP is divided into three main services: Philippine Army (PA), Philippine Air Force (PAF), and Philippine Navy (PN), composed of the Philippine Fleet and the Philippine Marine Corps. RA 10349 will help the AFP acquire equipment in its Medium-Term (2013-2017) Acquisition List, including jet fighters and 21 helicopters for the PAF; two missile-firing frigates and two anti-submarine helicopters for the PN; and modern protection equipment for the PA. The AFP identified 39 projects to be covered by the revised modernization plan. Among others, PAF will acquire 21 additional UH-1B multipurpose helicopters to replace its UH-1H (Huey) helicopters and 10 attack helicopters in the next two years. The plan also includes the purchase of three medium-lift aircraft to complement PAF's C-130 Hercules cargo planes. RA 10349 exempts from the requirement of public bidding major defense purchases such as aircraft, vessels, tanks, armored vehicles, communication equipment, and high powered firearms. It grants more funding sources from public-private partnerships entered into by the Department of National Defense (DND). It allows multi-year contracts and exempts from value-added tax and customs duties the sale of weapons, equipment, and ammunition to the AFP. We congratulate the Armed Forces of the Philippines headed by Chief of Staff Gen. Jessie D. Dellosa, Vice Chief of Staff Lt. Gen. Noel A. Coballes, Philippine Army Commanding General Lt. Gen. Emmanuel T. Bautista, Philippine Air Force Commanding General Lt. Gen. Lauro Catalino G. dela Cruz, and Philippine Navy Flag Officer-in-Command Vice Admiral Jose Luis M. Alano, all the best and success in their combined efforts to develop and transform the AFP into a multi mission-oriented organization. CONGRATULATIONS AND MABUHAY!
Philippines Enacts Strong Penalties for Abductions by Security Forces, NYT, Dec 22
The Philippines has enacted a law aimed at stopping the military and police officers from abducting people suspected of antigovernment activity, one of the ugly legacies of the country's years of dictatorship. The law, which President Benigno S. Aquino III signed late Friday, makes the "arrest, detention, abduction or any other form of deprivation of liberty committed by agents of the state" punishable by life in prison. It also holds superior officers liable for abductions committed by those under their command. Congress passed the legislation in October. Human Rights Watch hailed the law, which it called "the first of its kind in Asia and a major milestone in ending this horrific human rights violation." It was the first major human rights legislation signed by Mr. Aquino, who campaigned on promises of a better human rights climate but whose record since his election in 2010 has been seen as mixed by many rights groups. The kidnapping of political opponents by security forces in the Philippines is a legacy of martial law, which was imposed during the 1970s by the dictator Ferdinand E. Marcos. During that period, the military, police officers and their agents abducted, tortured and sometimes murdered political opponents with impunity. Such "disappearances" have continued to the present day, though on a smaller scale, despite the restoration of democracy in 1986, according to rights advocates. An organization, Families of Victims of Involuntary Disappearance, based in Manila, says more than 2,200 people have disappeared since 1985 at the hands of security forces or others linked to the government.
Aquino signs into law AFP Modernization Act, Sun Star, Dec 11
President Benigno Aquino III on Tuesday signed into law the revised Armed Forces of the Philippines (AFP) Modernization Act extending the program for another 15 years. The President said the new law will "boost the AFP's capability upgrade program as it shifts from internal to external defense capability." Republic Act (RA) 10349 amends RA 7898 or the AFP Modernization Act. It has a budget of P75 billion for the first five years of implementation subject to the capacity of the Department of National Defense (DND) to utilize and implement the program in accordance with the Defense System of Management (DSOM). Aquino said the DSOM "negates the possibility of arbitrariness and favoritism in the making decision for the procurement of major defense equipment." The new law exempts certain major defense purchases such as aircraft, vessels, tanks, armored vehicles, communications equipment and high-powered firearms from public bidding. It also exempts from value-added tax (VAT) and customs duties the sale and importation of weapons, equipment and ammunition to the AFP which are directly and exclusively used for its projects, undertakings, activities and programs. RA 10349 also institutionalizes the defense system of management, which incorporates a collegial and collaborative planning and decision-making process by senior defense and military leaders. It also allows additional funding from public-private partnerships entered into by the DND as well as multi-year contracts. President Aquino said modernization in the AFP aims to further boost the morale of the military. "Tiwala po akong sa mga susunod na buwan, magsisimula nang makita ng sambayanan ang mga kongkretong bunga ng ating mga pagsusumikap, gayundin ang pagtaas ng dangal at moral ng ating buong kasundaluhan," he said.
Energy
MGB eyes search for rare earth mineral sites in Q1, Business Mirror, Jan 02
The government aims to identify by the first quarter potential mining tenements for the Philippines's venture into rare earth elements (REE) production, the Mines and Geosciences Bureau (MGB) said on Wednesday. "In fact, we have already found potential areas to explore and these areas are also close to copper-gold mines. Notably, Palawan and Nueva Vizcaya are the best places to start," said MGB Director Leo Jasareno. REE are the raw materials for producing electronics and other modern-day gadgets. The MGB earlier said P20 million has been set aside for the REE venture. The Philippines's bid to develop REE production comes after China capped exports of the commodity more than a year ago. Manila sought help from state-run China Geological Survey for the exploration program, but no such assistance was forthcoming after tensions between the two countries heightened because of competing claims over portions of the West Philippine Sea, believed a treasure trove of oil and gas reserves. "So far, we have received no word from them," Jasareno said. China, which controls about 97 percent of the world's rare elements, has reduced its export quota to gain control over global prices of the commodity. Prices of the metals however have gone down over the past several months, with China's biggest producers cutting production to halt the slide. Also called the "metals of the future," REE are used in the production of weapons guidance systems and other space age technologies.
Trans-Asia Oil pays P350M for Holcim Philippines stake in power firm, GMA News, Jan 03
Trans-Asia Oil and Energy Development Corporation on Thursday said it has disbursed P350 million to buy the 50 percent equity of partner Holcim Philippines Inc. in Trans-Asia Power Generation Corporation. Mariejo Bautista, Trans Asia Oil vice president comptroller, told the Philippine Stock Exchange (PSE) the money was sourced from the P1.627 billion gross proceeds of its stock rights offering last year. Trans-Asia Power, a joint venture of Trans Asia Oil and Holcim Philippines, owns and operates a 52-megawatt power plant in Norzagaray, Bulacan. The transaction "is a power project opportunity" that forms part of Trans Asia Oil's October 30, 2012 prospectus on how and where it intends to spend the proceeds from the stock rights offer. In a separate disclosure to the PSE on Wednesday, Trans-Asia Oil said it signed on Jan. 1 a share purchase agreement buy Holcim's stake in Trans-Asia Power for the full ownership of the power company.
Infrastructure
Airport passenger volume rises to 32.09 million last year, Business World, Jan 03
PASSENGER traffic at the four terminals of Ninoy Aquino International Airport grew by close to a tenth last year, which an official said was a reflection of the country's improving economy. Combined domestic and international passenger at the country's primary aviation gateway increased by 7.97% to 32.09 million in 2012, from 29.79 million last year. DRIVEN BY THE ECONOMY Jose Angel A. Honrado, general manager of the Manila International Airport Authority (MIAA), attributed the increase to the growing national economy. "Many people come here to visit and look for business opportunities because the economy is growing," Mr. Honrado said in a telephone interview with BusinessWorldyesterday. He went on to note that more people are travelling amid the popularity of low-cost carriers offering no-frills service. "Also, many people are travelling because of the low-cost carriers and it is truly more fun in the Philippines," Mr. Honrado added. Passenger traffic at NAIA Terminal 1, which handles only international flights, stood at 8.17 million up by 4.48% from 7.82 million in 2011. At the NAIA-2 (which is exclusive to the domestic and international operations of Philippines Airlines), passenger volume dropped by 0.25% to 7.79 million from 7.81 million. Traffic at the NAIA-3, meanwhile, surged by 16.58% to 13.78 million from 11.82 million in 2012. For its part, the NAIA-4 or the airport's domestic terminal saw 3.08% increase in passenger volume to 2.34 million from 2.27 million in 2011. MIAA is currently undergoing a P1.16 billion structural rehabilitation project at the NAIA Terminal 1, which has been tagged in some reports as one of the world's worst airports. Around P340 million out of that amount will be used to "improve the structural integrity of the NAIA-1 building, so that it will be compliant with the 2010 National Structural Code of the Philippines," the government announced early last year. Around P500 million had been allocated for architectural, engineering and interior design and works to improve the airport's internal facilities, while around P300 million will be used for the construction of a rapid exit taxiway. Another P20 million was allocated for the complete rehabilitation of the 72 toilets in the airport. Structural retrofitting and installation of additional installation of airport systems to make NAIA-3 fully utilized are also underway, Mr. Honrado said last month.
Tourism executive brags: Travelers out of Naia in 25 minutes flat, Inquirer, Jan 03
It has been branded over and over as one of the world's worst airports. But Ninoy Aquino International Airport (Naia) has a little known advantage that even top-rated airports in the West don't offer. And a local tourism official hopes to spread the word around-and abroad. According to Assistant Tourism Secretary Benito Bengzon Jr., it takes only 25 minutes for passengers arriving at Naia to complete the airport process-from disembarkation to clearing immigration and customs to getting a cab or meeting welcomers outside the airport. That advantage, if effectively marketed, could attract more tourists to the Philippines. Preliminary figures show international traffic at Naia reached 14.2 million travelers last year, up 8.78 percent from 13.07 million in 2011. But the Manila International Airport Authority (MIAA), Naia's operator, has yet to analyze the figures to separate tourist arrivals from returning migrant workers and visiting overseas Filipinos. "The advantage of Naia is that in about three to four minutes, from the time the plane touches down, it is already at the bridge or tube ... taxi time is shorter at Naia compared with bigger international airports abroad," Bengzon told reporters before Christmas. "You try to check your watch when you travel to a large airport. Taxiing after landing really takes time and sometimes you have to go through a bus gate so you will still have to be shuttled to the terminal," he said.
Joint effort
Bengzon attributed the faster process at Naia, which many travelers may have taken for granted, to the improved system at the immigration section. "This is a joint effort of various agencies ... so even if our airport is old and small, there are still advantages ... and I hope you can spread the word around," Bengzon said. But flights arriving or leaving on time are another thing. According to Bengzon, however, travelers can expect more punctual flights at Naia within the year, especially after the installation of night landing equipment in 14 major domestic airports across the country. Last year, the travel guide Frommer's ranked Naia as the second worst airport in the world, behind New York's John F. Kennedy Airport. Naia, particularly its Terminal 1, used to be the world's worst airport. That ranking was based on surveys of travelers, whose complaints included "safety concerns, lack of comfortable seats, rude staff, hostile security, poor facilities, no or few services to pass the time" and "bribery." Last month, the Department of Budget and Management said it released P933.8 million for the acquisition of night landing equipment for the airports of Tuguegarao, San Jose in Mindoro, Busuanga, Naga, Legazpi, Roxas, Tagbilaran, Dumaguete, Dipolog, Pagadian, Ozamis, Cotabato, Butuan and Surigao. The airports will be equipped for air traffic services, airfield lighting, communications and power supply, among other things. The improvements will allow flights to land and depart after sunset and before sunrise, easing the congestion at Naia, Bengzon said. With congestion eased and, it is hoped, eliminated, airlines can mount additional flights to Manila, boosting tourist traffic to the Philippines.
Consolidation amoung low-cost carriers looming, Business World, Jan 03
CONSOLIDATION among low-cost airlines in the Philippines is looming this year as the overcrowded industry has taken its toll on the carriers' profitability, the Center for Asia Pacific Aviation (CAPA) said in a report released yesterday. CAPA, in its analysis titled "Southeast Asia poised for another year of growth in 2013" said the unlikely growth among low-cost carriers (LCC) is expected to trigger consolidation. "In the domestic market, further LCC gains are unlikely given the Philippines already has the world's highest domestic LCC penetration rate," CAPA said. "Instead, consolidation is likely to hit the Philippines in 2013," it added in the report. The Philippine system-wide (domestic and international) LCC penetration rate of 61% is above the 26% global average, and higher than its Southeast Asian neighbors like Indonesia, which has 53% penetration rate, Malaysia (48%), Singapore (30%), Thailand (29%), Vietnam (21%), Myanmar (13%) and Cambodia (12%). There are now five LCCs competing in the domestic market -- Cebu Pacific, Airphil Express, Zest Airways, Southeast Asian Airlines, and AirAsia Philippines -- which CAPA described as "too many." These "too many" LCCs, CAPA said, has resulted in losses on the part of the local carriers except Gokongwei-led Cebu Pacific. "Over-capacity and irrational competition already resulted in losses throughout 2012 at all Philippine carriers except Cebu Pacific," CAPA said. CAPA went on to note that brighter year is ahead if there is consolidation. "The outlook for 2013 would improve significantly for all Philippine carriers if there is consolidation," it said. "Given their positioning, Cebu Pacific and the PAL Group will almost certainly weather the storm and stand to benefit from the inevitable consolidation," it added. Overall, CAPA said the "dynamic year" of 2012 in the Southeast Asian aviation market is not expected to be sustained this year. "The rapid pace of start-up activity will likely not be repeated in 2013 and some of the region's LCC markets are approaching maturity," CAPA said. According to CAPA, low-cost carriers now account for over 50% of total seat capacity within Southeast Asia. The growth opportunities for LCCs to increase their market share are in Myanmar and Vietnam, where the penetration rates remain well below the global average of 26%, CAPA said. "While the LCC penetration rates are unlikely to jump significantly higher during 2013 in these five markets -- Indonesia, Thailand, Malaysia, Singapore and the Philippines-fast economic growth and continued expansion of the middle class should ensure continued growth," CAPA added. Officials from local low-cost airlines were not immediately available for comments yesterday.
Decongest Manila: Cargo Diversion To Subic, Batangas Start 1Q 2013, Manila Bulletin, Dec 09
A new policy on how to decongest traffic to and from the Manila port by diverting container cargoes to the Subic and Batangas seaports will be in place by the first quarter of 2013. This was disclosed by the consultants who made a study on the twin issues of decongesting Metro Manila traffic and making full use of the recently modernized alternate ports during a final consultation held at a hotel in the Ortigas business district in Pasig early this week. The consultants were commissioned by the Department of Transportation and Communications (DOTC) late last year and were funded by the Japanese International Cooperation Agency (JICA). The consultants responded that the decongestion and diversion program will be finished by the end of this year and be ready for executive decisions by January. A representative to the consultation from the Metropolitan Manila Development Authority (MMDA) informed the group that the council of Metro Manila mayors has passed a resolution imposing a new truck band during the holidays. The resolution, if not rescinded on time, will impose a trucking ban from the streets of the metropolis between 4 in the morning to 9 in the evening from December 3 to 26 or the height of preparations for the long Christmas to New Year holiday. The MMDA said the mayors made the decision after the truckers failed to submit a route plan for truckers to decongest city streets of heavy traffic after they were given a six-month notice. Even at this late time, some reservations were still brought out during the consultation as to how practical the consultants' recommendations will be. It was pointed out that as a destination for imports, Metro Manila remains the biggest market compared to any other region in the country. This would mean, most ships for imported goods will still prefer to call at the Manila Port. Secondly, the shipping lines, in order to sail directly to and from Subic and Batangas, must be able to pick up or deliver bigger volumes of cargo to make additional ships call on those ports more than just one or two ships a week. Thirdly, the truckers that bring cargo in and out the ports are mostly based in Metro Manila.
Airlines fight over tight space in Philippines, China Post, Jan 02
Infrastructure bottlenecks continue to choke the aviation sector as more foreign carriers, unable to find slots in most major airports in the Philippines, are deterred from mounting flights to the country. The Civil Aeronautics Board (CAB) said several major foreign airlines have decided not to start or expand operations in the Philippines due to the scarcity of space, particularly at the Ninoy Aquino International Airport (NAIA) in Metro Manila. The latest to skip the Philippines is Mumbai-based Jet Airways, India's second-largest airline that handles over 400 flights a day to 76 destinations around the world. "The only open slots are during dead hours and no one wants those," Arcilla said in a recent interview. "There are a lot of airlines that can't get any slots at all our airports." He said while prospects for the Philippine airline industry remained bright, the sector could still suffer due to the country's infrastructure backlog. "That's the only deterrent to growth," Arcilla said. "We still have a lot of orders for slots, but we can't meet them." Airport slots at NAIA are handled by the Manila International Airport Authority which, like the CAB, is supervised by the Department of Transportation and Communications. By year-end, Arcilla said, the industry is expected to grow between 12 and 13 percent over 2011 in terms of the number of passengers served. This growth, he added, would likely be sustained in 2013 as areas like Cebu and Clark are developed to offset the congestion at NAIA. The government is currently evaluating whether to develop the Clark International Airport in Pampanga as a replacement for NAIA or build a new facility closer to Manila.The International Air Transport Association (IATA) earlier denied claims that it would back plans to develop Clark as a replacement for NAIA.
Food & Agriculture
Cigarette prices up after sin tax law takes effect, Rappler, Jan 03
Days after the historic sin tax reform law was implemented on January 1, retail prices of cigarettes either stayed the same or rose significantly in Metro Manila. Some stores kept prices at pre-sin tax law levels, while others jacked up theirs, a quick survey by Rappler found. In Manila, convenience stores and supermarkets retained prices, but street vendors more than doubled selling prices. Street vendors along Vito Cruz -- a key station of the Light Rail Transit and in close proximity to schools and establishments -- for instance now sell popular Marlboro and Philip Morris brands at P4 to P6 per stick or P80 to P120 per pack. Sari-sari stores in villages meanwhile also raised their prices, but not that much. Philip Morris and Marlboro prices in these stores went up from P35 to P45 per pack; Hope from P25 to P30; Winston from P25 to P30; and Fortune from P15 to P20. This means that Marlboro and Fortune now sell for P2.25 and P1 per stick, respectively, in sari-sari stores, compared to only P1.75 and P0.75, prior to the implementation of new sin tax rates. Expectedly, these products will be more expensive in convenience stores. Some of these stores said they still don't know how much the new prices will be. "We need to wait for new stock before we can increase prices," a clerk from one convenience store near Glorietta mall in Makati City, told Rappler. But some speculated that with the new tax rates, the prices of cigarettes may triple. A Marlboro pack may be priced at P140 to P180 once new stock comes in. Filomeno Sta. Ana, executive director of the Action for Economic Reforms, an organization that helped the Finance department in the number-crunching during last year's sin tax debates, said some stores are selling brands "at a loss." "We noted that some brands are being sold at a loss, or some items are sold at P25, less expensive than before. "There are also some shelves that are empty now. Did the manufacturers pull out stocks that it plans to sell at higher price later? We don't know. We are observing how the manufacturers will behave after the law is implemented. "The assumption during the sin tax bill deliberation was that the cigarette and alcohol producers will pass on the incremental taxes to consumers and retain their base price," he said.
Sugar industry nearing peak of production, agra-net, Jan 03
SRA administrator Regina Bautista-Martin said that the sugar industry will be nearing the peak of production in January, noting that over 30 sugar mills were fully operational in the current 2012/13 crop year as of late December. She added that the industry is now within 30% of the total sugar production target for 2012/13 of 2.3-2.4 mln tonnes, which would be up from 2.243 mln tonnes produced in 2011/12.
Philippines boosts coconut oil exports, Public Ledger, Jan 02
COCONUT oil exports from the Philippines rose by more than half in November 2012 versus the same month of the previous year, according to preliminary data from the United Coconut Association of the Philippines (UCAP). Shipments reached 72,880 tonnes in November 2012, 59% higher than the 45,734 tonnes shipped a year ago, UCAP said.
Philippines anger at logging ban murder, France24, Jan 03
The Philippine government has voiced outrage at "ruthless" illegal loggers intent on defying a nationwide ban on destroying forests, following the New Year's Day murder of an environment officer. Two unidentified men armed with M-16 rifles shot environment department officer Alfredo Almueda in the head as he waited at a forest checkpoint to intercept a truck carrying logs on Tuesday, the government said in a statement. "We condemn in the strongest possible terms the killing of yet another environment officer. We are angered and outraged by the attack," Environment Secretary Ramon Paje said in the statement issued late Wednesday. Paje said Almueda, 59, was the victim of persistent efforts by illegal loggers to silence "environmental defenders". "This attack clearly demonstrates the ruthlessness of those responsible for the rape and destruction of our forests," Paje said. Almueda's killing brings to 21 the number of environment department personnel, deputised workers and volunteers who have been killed since a nationwide logging ban was imposed two years ago, according to government data. The Philippines, a tropical Southeast Asian archipelago, has lost more than half its forest cover over the past century with only about 7.6 million hectares (18.8 million acres) left, Paje told reporters last year. These forests are guarded by underfunded, outnumbered and poorly armed government personnel who often face resistance from illegal loggers often linked to powerful businessmen and corrupt officials. Clemente Bautista, national coordinator for the non-government environmental group Kalikasan (Nature), said illegal loggers felt they could operate with impunity. "Initially, they will be intimidated and if that does not work, (the loggers) file a case against the officials or have them removed from their post. If the officials are hard-headed they will even kill them," he said.
Information/Communication/Technology
SolGen agrees: 'Takedown Clause' in Cybercrime Law is 'unconstitutional', InterAksyon, Jan 04
The Office of the Solicitor General (OSG) agrees with most of the petitioners against the Cybercrime Law that the law's controversial "takedown clause", or Section 19, is unconstitutional. Ahead of the Supreme Court's hearing of oral arguments on January 15, the OSG says in a document circulated among petitioners against the Cybercrime Law that Republic Act 10175, which was met with widespread protests online and on the streets soon after it was enacted late last year, is defensible as constitutional, save for Section 19. Dubbed the "takedown clause" by critics, Section 19 empowers the Department of Justice to block and restrict access to sites it deems in violation of anti-cybercrime provisions. The DOJ would not need any court action of intervention to execute this power. The OSG said such mandate would give the DOJ power to exercise a form of "FINAL Prior Restraint", thus violating freedom of expression. While insisting on the constitutionality of the rest of the law, the OSG added in its comment, however, that Section 12 should also be amended in a way that requires prior judicial authorization of collection of traffic data - a comment that, according to some legal experts, implies that it is unconstitutional as written. The controversial Section 12 empowers law enforcement authorities to collect traffic data in real time with specified communications transmitted through a computer system and requires service providers to assist such collection. Some of the petitioners have said such violates constitutional rights to due process of law, to free expression, against unlawful search and seizure, against warrantless electronic surveillance, and against the privacy of communications.
120-day TRO soon after enactment
The high tribunal had issued a 120-day restraining order that barred implementation of the law amid the flurry of protests, which characterized the measure as a form of "e-Martial Law."
At least 15 petitioning groups and individuals questioned the law in the SC, and most of them zeroed in on Section 19 as the most dangerous. According to court sources, all the parties in the case have been invited to a meeting at the SC on Friday (January 4) afternoon, in an apparent bid by the court to prepare for an orderly session on January 15, considering the big number of petitioners and the many issues involved. Expected to be tackled in the January 15 oral arguments are both procedural - whether petitioners have standing to sue and whether issues raised are ripe for adjudication - and substantive issues. Among the petitioners are the National Union of Journalists of the Philippines (NUJP), the Philippine Internet Freedom Association (PIFA), and Ateneo University lawyer Mel Sta. Maria, who is also the resident legal analyst of News5.
Many substantive issues
The Court is expected to hear arguments on whether or not certain provisions of the law violate existing rights as guaranteed by the Constitution and statutes, and public policy.
The submitted discussion points drafted by the petitioners questioning provisions of the Cybercrime Prevention Act are:
- Section 4(a)(1) which punishes access to the whole or part of a computer system by one who has no right.Does it violate the right to strict scrutiny standards?
- Section 4(a)(3), which punishes intentional or reckless alteration, damaging, deletion, or deterioration of computer data, electronic document, or electronic data message by one who has no right (including transmission of viruses).Does it violate the constitutional right to freedom of expression?
- Section 4(a)(6), which punishes cybersquatting (acquiring a domain name over the Internet in bad faith to profit, mislead, destroy reputation, and deprive others from registering such domain name).Does it violate the constitutional right to equal protection of the law?
- Section 4(b)(3), which punishes the intentional acquisition, use, misuse, transfer, possession, alteration, or deletion of identifying information belonging to another by one without right.Does it violate the constitutional rights: (a) to due process; (b) to privacy of communication; (c) to free expression?
- Section 4(c)(1), which punishes cybersex (the willful engagement, maintenance, control, or operation, directly or indirectly, of any lascivious exhibition of sexual organs or sexual activity, with the aid of a computer system, for favor or consideration).Does it violate the constitutional right to free expression?
- Section 4(c)(3), which punishes the transmission under certain conditions of commercial electronic communication with the use of computer system, seeking to advertise, sell, or offer for sale products of services without prior affirmative consent from the recipient, violates the constitutional rights:(a) to due process of the law; and (b) to equal protection of the law.
- Section 4(c)(4), which punishes the crime of libel when committed using a computer system.Does it violate the accused's rights: (a) to due process of law; (b) to equal protection of the law; (c) to free expression; and (d) against double jeopardy?
- Section 5(a) and (b), which punish Internet users for aiding or abetting a cybercrime offense or attempting its commission.Do these violate the constitutional rights: (a) to due process of law; (b) to equal protection of the law; (c) to freedom of expression; and (d) against double jeopardy"
- Section 6, which punishes by one degree higher those crimes covered by the Revised Penal Code or special laws if committed with the use of information and communications technologies.Does it violate the constitutional rights: (a) to due process of law; (b) to equal protection of the law, (c) to free expression; and (d) against double jeopardy?
- Section 7, which provides that a prosecution under the Act shall be without prejudice to any liability under the Revised Penal Code or special laws.Does it violate the constitutional rights: (a) to due process of law; (b) to equal protection of the law; (c) to free expression; and (d) against double jeopardy?
- Section 13, which requires Internet service providers to preserve for a certain period traffic data, content data, and subscriber information.Does it violate the constitutional rights: (a) to due process of law; and (b) to the privacy of communications?
- Section 14, which empowers law enforcers, upon securing a search warrant, to issue an order requiring any person or service provider to disclose or submit traffic data within his or its control.Does it constitute an undue delegation of legislative power?
- Section 15, which defines the powers and duties of law enforcers in implementing the search and seizure warrant.Is it unconstitutional, as it constitutes a (a) delegation of legislative power; (b) violation of the right against unlawful search and seizure?
- Section 17, which authorizes service providers and law enforcers upon expiration of the periods under sections 13 and 15 to immediately destroy the computer data subject of preservation and examination.Does it violate the constitutional right to due process?
- Section 19, which empowers the DOJ to restrict or block access to computer data found to be in violation of the law, violates the constitutional rights:(a) to due process of law; (b) against unlawful search and seizure; (c) to privacy of communication; (d) to free expression; and (e) against double jeopardy?
- Section 20, which punishes as a violation of Presidential Decree 1829 (obstruction of justice) those who fail to comply with the orders of law enforcement authorities.Is this unconstitutional: (a) for violating the right to privacy of communication; (b) for violating the freedom of expression; and (c) for being a bill of attainder?
- Section 24 and 26(a), which empower the Cybercrime Investigation and Coordination Center to formulate a national cyber security plan.Do these constitute an undue delegation of legislative power?
Tesda sets training for 'garbage experts' in sanitary landfills, Business Mirror, Jan 03
With increasing business interests in solid-waste management, the Technical Education and Skills Development Authority (Tesda) is developing training rules for skilled workers to become certified foreman and spotter who will sort hazardous waste in landfills. Labor Secretary Rosalinda Baldoz said Tesda has approved three qualification titles for training in the solid-waste industry for site foreman, spotter or tumbalero and palero. She added Tesda partnered with industry experts from the Solid Waste Management Association of the Philippines and Solid Waste Contractors Association of the Philippines to define qualifications based on the needs of industry and application of the workers' expertise in terms of investment opportunities. "Tesda's partner-industry bodies and associations in the solid-waste industry identified and recommended these three qualification titles as priority," Baldoz said in a statement on Thursday. She said qualifying for these jobs require long period of education or training as well as competency as some task may endanger worker's lives and limbs. Some of the challenges of the work include handling complex equipment, tools and supplies.
Senate approved FOI bill on 2nd reading, Inquirer News, Dec 11
The Senate on Tuesday night approved on second reading a bill that would give every Filipino access to all government information. Only Senate Pro Tempore Jose "Jinggoy" Estrada, who was presiding over the session, and Senators Gregorio "Gringo" Honasan, Ramon "Bong" Revilla Jr. and Edgardo Angara were present on the floor when Senate Bill 3208, or "An Act Fortifying the People's Right of Ownership over Information Held by the People's Government," was passed by the chamber Tuesday night. Honasan, chairman of the Senate committee on public information, said he moved for the approval of the measure, more popularly known as the the FOI [Freedom of Information] bill, and that no one objected. The bill, he said, might be approved on third and final reading on Monday or Tuesday next week. "I hope that the lower house will also pass its own version of the bill," Honasan said over the phone.
Preaching the benefits of information technology, Business Mirror, Dec 09
RICHARD TEO, president of Dell International Services (DIS) Philippines, says he has an exciting journey in his career in the information communications technology business. He says he has been fortunate to be part of the technology evolution that has made a difference in the lives of many people through the use of technology solutions. He says Dell founder Michael Dell's maxim "technology is about enabling human potential" gives him the motivation to evangelize the benefits of technology to people. Throughout his career, Teo had the opportunity to join some of the greatest technology leaders in the world such as Dell, contributing to the growth and expansion of the industry, and working on different exciting roles such as design and development, sales and marketing, and support and deployment. "These different roles have also enabled me to work with some of the brightest and passionate leaders in so many different countries and cultures, and I am constantly inspired by leaders I work for," he said in a recent interview with the BusinessMirror. Furthermore, he says the multinational environment of Dell provides excellent opportunities to promote its technology and solutions to 180 countries. Teo says the multinational environment of Dell offers great opportunities to take its technology and solutions to 180 countries. He adds the staff is given the chance to work across different cultures and languages, meet with customers of different sectors to discuss their needs, and collaborate across functions and borders to design, develop and deliver solutions. "At Dell, we're committed to building a diverse environment that is reflective of a diverse global marketplace and an inclusive culture in which everyone is engaged. One of our leadership competencies is to ensure that each team member is heard and valued, and that personal strengths and perspectives are assets to the company, rather than being left at the door," says Teo.
Customs
Senate Oks bill removing foreign carriers tax, Rappler, Dec 19
The Senate approved on third and final reading Wednesday, December 19, the bill that seeks to remove taxes imposed on foreign carriers to help attract more tourists into the country. Voting 16-0, the Senate approved Senate Bill 3343, which seeks to exempt international carriers and shippers from paying the 3% common carriers tax and the 2.5% gross Philippine billings tax on condition of reciprocity. This means the taxes will only be waived when home countries of foreign carriers also give the same tax exemption to Philippine carriers. Senator Franklin Drilon, acting ways and means committee chairman and sponsor of the Senate version of the bill, said the measure was approved after President Benigno Aquino III certified it urgent. The certification allowed Congress to do away with the 3-day rule between the second and third readings of the bill. The approval of the Senate version came 7 months after the House of Representatives passed its counterpart version on third reading. A bicameral committee will meet next year to reconcile the two versions. Removing the carriers tax will help the Philippines achieve its target of attracting 10 million tourists by 2016, said Drilon, as the country remains the only one that imposes such taxes on foreign carriers. "There is an urgent need to address this very serious matter to avert undue escalation. We should dissuade the few remaining foreign carriers operating locally from transferring to other countries," he said. In April this year, the Philippines lost its last direct flight to Europe after foreign airline Air France-KLM stopped its Manila-Amsterdam operations. The airline said it was "absolutely not happy" with the regulatory environment in the Philippines, citing in particular the high taxes and excessive fees levied on it locally. The Department of Tourism expressed concern over the move and urged Congress to address the issue. It said the tax problem has endangered the billions of pesos of income and million of jobs that the tourism sector is expected to generate in the coming years.
Handicrafts sector aims for 5-10% export growth in 2013, Business World, Jan 03
THE HANDICRAFTS sector expects 2013 to be a banner year and will be targeting a 5% to 10% growth even amid the current global economic uncertainties. "We will be maintaining our 5% growth target and placing a 10% aggressive target for 2013," said Dennis A. Orlina, president of the Philippine Chamber of Handicrafts Industries, Inc. (PCHI) in a telephone interview with BusinessWorld. He added that: "The main driver is the consumer demand in the United States and Europe because there are still the same buying patterns, they're still buying." PCHI estimates that it ended 2012 with $130 million in exports, surpassing the $90 million it posted in 2011. The group is still finalizing its numbers. "The United States is constantly looking for new items giving the Philippines a lot of edge now. Many of the China-made items are not moving so there is that edge. They are also looking for environment-friendly products," said Mr. Orlina. Merchandise exports are expected hit around 13% to 14% in 2013 according to the Philippine Exporters' Confederation, Inc. (PhilExport) and the Exports Development Council. The Development Budget Coordination Committee (DBCC) set exports target on Dec. 13 of 10% for 2012 and 10% for 2013. Mr. Orlina said the handicrafts sector however still feels worried over the strong peso. "Our first reaction is that we are worried but we appreciated that some costs should go down like gas. However, we don't really feel that costs have actually lowered," he said. Merchandise exports for 2012 are expected to just hit 9% to 10% growth due to the downturn in electronics that began in April. The electronics sector through the Semiconductor and Electronics Industries of the Philippines, Inc. (SEIPI) said on Dec. 11 it will see a flat end to 2012. Exports in October expanded by 6.1% to $4.41 billion from $4.15 billion in the same period in 2011. Electronic exports, which comprise bulk of the country's outward shipments, grew 0.3% to $1.9 billion from $1.89 billion. Aggregate merchandise exports from January to October grew 7% to $44.47 billion from $41.53 billion.
Seized counterfeit goods drop by 41%, Business World, Jan 03
SEIZED counterfeit goods in 2012 amounted to almost P5 billion, lower than the previous year's haul, data from the Intellectual Property Office of the Philippines (IPOPHL) said. The agency however attributed the lower value to a reduction in visible pirated goods. Seized goods last year amounted to P4.98 billion "resulting from a total of 3,041 reported enforcement operations conducted in 1,680 areas around the country." "Although the total haul for 2012 is a 41% decrease from the previous year when it recorded its highest confiscations amounting 8.38 billion, the National Committee on the Protection of Intellectual Rights (NCIPR) member agencies remain unfazed and continue to work towards promoting and strengthening respect for intellectual property throughout the country," said IPOPHL in its annual report posted in its Web site. It added that: "focused enforcement operations have resulted in visible reduction of pirated and counterfeited goods in known notorious areas." Of the 3,401 raids, 21 raids were conducted in Binondo, nine in Quiapo, one in Divisoria, four in Greenhills, five in Ortigas and 16 in Makati Cinema Square. The NCIPR is composed of the Trade department, IPOPHL, the Philippine National Police, the Justice department, the Optical Media Board, the National Bureau of Investigation, the Customs Bureau, the Office of the Special Envoy on Transnational Crimes, the Interior department, the National Telecommunications Commission and the National Book Development Board. IPOPHL also said that it has been able to register 13,862 trademarks in 2012 compared to 13,626 in the year previous. Around 6,000 of the registrants are trademarks for brands that did not originate from the Philippines. Of these, the United States filed the most applications for trademark. The Philippines also welcomed registration of trademarks under the Madrid Protocol in 2012. The Philippines acceded to the Madrid Protocol on May 28 but only started receiving applications on July 25 last year. The Madrid Protocol allows registration of trademarks in several different countries with one single registration in a brand's originating nation. It is administered and monitored by the World Intellectual Property Organization (WIPO). The protocol, in its current form, has been in operation since 2004. There are currently 85 signatories in the agreement.
Philippines lifts ban on Dutch poultry, Business Mirror, Dec 27
THE Philippines has lifted the temporary ban it imposed on poultry meat, eggs and day-old chicks from the Netherlands after determining that Amsterdam was able to contain the outbreak of low pathogenic avian influenza (LPAI) in Utrecht. The Department of Agriculture (DA) issued Memorandum Order 37, series of 2012, authorizing the lifting of the ban. Agriculture Secretary Proceso J. Alcala said the government decided to again allow the entry of Dutch poultry meat and other poultry products after the Bureau of Animal Industry (BAI) declared that the risk of importing these products from the Netherlands is "negligible." Alcala said the BAI, an attached agency of the DA, may start processing import permits for Dutch poultry meat, day-old chicks and eggs. The Netherlands, however, is not a major source of poultry meat for the Philippines. Manila usually imports chicken leg quarters and other poultry products from the United States and Canada. The Philippine government imposed the temporary ban in August after LPAI serotype H7N7 was detected in free-range laying hens in a farm in Utrecht. Alcala said the ban was slapped on Dutch poultry meat as a "precautionary measure" to ensure that the local poultry population will not be infected with the dreaded avian influenza virus. So far, the Philippines remains free from avian influenza.
Philippine port operators pull out of Syria, AND, Jan 02
A Philippine container port operator has decided to pull out of Syria and withdrew all its Filipino workers from a key port due to increasing dangers from the country's civil war, company officials said Wednesday. The withdrawal of Manila-based International Container Terminal Services Inc., through its Syrian subsidiary Tartus International Container Terminal, or TICT, could effectively derail cargo services at the northwest port city of Tartus. The Philippine company was the sole container operator in Tartus through a concession granted by Syria's Ministry of Transport, according to ICTSI Senior Vice President Hans-Ole Madsen. Tens of thousands of people are believed to have been killed since the uprising against President Bashar Assad began in March 2011. An analysis released Wednesday by the United Nations says at least 60,000 people have died, with scores of armed groups across the country fighting regime forces. The Syrian civil war "has exposed everyone, combatants and civilians alike, to increasing threat of death and destruction on a daily basis," the company said in a report to the Philippine Securities and Exchange Commission. In a separate statement it said that "to continue operations in Syria under those circumstances was clearly unsustainable and dangerous to TICT personnel." Since 2011, ICTSI said it had been operating under extremely difficult conditions in Syria as a result of trade sanctions by the European Union and the United States and the closing to trade of the Syria-Iraqi border. Tartus should have been the staging point for transshipment trade to and from Iraq, the company said. The crisis has set back trade growth and forecasts, the company added. When ICTSI made its bid to operate the Tartus port in 2005, "Syria's container market was growing and on track as projected. However, volumes started to plummet by 4 percent in 2010 and 14 percent by end 2011. The drop has set the Syrian container market back five to six years at 2006-2007 levels," it said. ICTSI said its subsidiary TICT, which signed a 10-year investment agreement with Tartus Port General Co. in 2007 to operate and develop the container port terminal, had paid more than $13 million in port fees and rentals to the Syrian company. But it said when TICT sought help amid the unrest, its Syrian partner refused to extend any assistance, which the Philippine company said was provided for under the agreement. ICTSI, which was established in 1987 in the Philippines, said its container port operations in other countries, including the United States, China, Japan, Poland, Croatia and Brazil, would not be affected by the shutdown of its business in Syria.
Healthcare & Life Sciences
Palace welcomes anti-RH suit, Inquirer, Jan 04
Malaca?ang on Thursday welcomed the suit filed in the Supreme Court against the new responsible health (RH) law, but belittled the arguments raised by the petitioners. Secretary Edwin Lacierda, presidential spokesperson, said it was "good" that lawyer-couple James and Lovely Ann Imbong filed a case because "now the government
through the Office of Solicitor General will be prepared to defend the RH law." In a press briefing Thursday, Lacierda said the petitioners did not raise any new issues that had not been brought up and answered during the congressional debates. "The contention that was raised by Mr. James Imbong is not something new, it had already been raised during the debates," he said. Budget Secretary Florencio Abad said it was the right of the Imbongs to question Republic Act No. 10354-the Responsible Parenthood and Reproductive Health Law-but "whether they would succeed was another matter." "They have to overcome the strong constitutional (as already cogently argued by eminent constitutionalist Fr. Joaquin Bernas), jurisprudential, equity and practical (both local and international experience) foundations upon which the much delayed responsible parenthood policy stands," said Abad in a text message. The RH law mandates the state to provide reproductive health services, including access to contraceptives and information on family planning, to couples that ask for it, and age-appropriate sex education to schoolchildren. Arguing that this was unconstitutional, the Imbongs petitioned the high court to stop the government from enforcing the law. Negating PH aspirations
In their petition for certiorari and prohibition, the Imbongs said the law introduced policies that "negate and frustrate the foundational ideals and aspirations of the sovereign Filipino." The law is to take effect on Jan. 17, or 15 days after its publication in a periodical of general circulation. It was quietly signed into law by President Aquino on Dec. 21, apparently to avoid stoking the passions that had surrounded it since its inception, especially on the part of the local Catholic Church. The Catholic Bishops Conference of the Philippines (CBCP) said Thursday it supported the Imbongs' petition although it did not have a direct hand in its filing.
Petition was lay initiative
Fr. Melvin Castro, executive secretary of the CBCP-Episcopal Commission
On Family and Life, said the petition was a lay initiative and was not orchestrated by the bishops who had been blocking passage of an RH law for 14 years. He said the fact that James Imbong was the son of CBCP legal counsel Jo Imbong was "only incidental." Jo Imbong is a "collaborating counsel" in the case. "We are glad the ordinary Catholic faithful are taking the initiative to further the discussion on the RH bill. Its enactment into law would not end our opposition to it," Castro said. The law's principal author in the House of Representatives yesterday rushed to its defense. Albay Rep. Edcel Lagman belittled the petition filed by the Imbongs, saying it was "premature because it seeks to prevent the implementation of a law which is not yet in effect." "(It) is completely constitutional and will surmount any attack or test on its constitutionality," Lagman said in a statement. Philippines eyes stricter firecracker regulation, Digital Journal, Dec 30
Piqued by reports in the rise of firecrackers-related injuries last Christmas, President Benigno S. Aquino III has ordered state agencies concerned to strictly enforce the regulation, sale, manufacture, and distribution of fireworks. Firecrackers and pyrotechnic devices in the Philippines is regulated and controlled under Republic Act 7183 "consistent with, and in furtherance of, public safety, order and national security, as well as the enhancement of cultural traditions." Ordered to implement the law were the Departments of Health (DOH) and the Interior and Local Government (DILG) and two of its functionaries, the Bureau of Fire Protection (BFP) and the Philippine National Police (PNP). The news that smuggled, mislabeled or renamed fireworks have proliferated may have added urgency to the Order, which was officially announced by Cabinet Secretary Jose Rene Almendras, who clarified that the "total ban" mentioned in the instruction referred only to large-sized firecrackers known for their destructive results. Almendras said the total ban "was really [meant for] the prohibited ones. We must put a stop to the manufacture, transport and sale of the prohibited ones," adding that the President's order was directed in finding "future actions and what steps to be taken for it" to contain the concerns related to the use of firecrackers. Among the prohibited, renamed, and smuggled firecrackers are 'Goodbye Philippines' (now 'Goodbye Bading'), Piccolo (now 'Pacquiao'), 'Bin Laden,' and 'Pla-pla,' and the contraband 'Made in Bulacan.' The Cabinet secretary stressed that the President wanted "to make sure [the number of injuries and casualties is] going to be lower in the future years," adding that "If the numbers will be better than last year then, good; if it's not, then there's nothing we can do about it." As of December 29, the health department reported that 171 firecracker-related injuries reported, 42 percent of which were incurred by children. This was 99 cases higher than the tally registered from December 21 to 26 although the figure was 33 percent lower than the previous year for the same period. DOH injury statistics for the same period showed that most of the cases came from the National Capital Region (NCR), Western Visayas, Cagayan Valley. Calabarzon, Central Visayas, and Zamboanga Peninsula. Most of the cases (86 percent) were on males, with ages ranging from nine months to 58, while 73 percent of the victims sustained injuries that did not require amputation, four percent required the cutting of limbs, and 20 percent resulted in eye injuries. A sixty-year old woman in Cagayan de Oro City, in Southern Philippines, was the lone victim of bullet-related injury.
Philippines Adopts Contraception Law, WSJ, Dec 29
The Roman Catholic Church lost a skirmish Saturday in its fight to keep the Philippines a bastion of the traditional family when President Benigno Aquino III signed into a law a bill that promotes contraception and sex education in schools. But religious leaders were already looking ahead to battling the measure in the courts while drawing a red line on an even bigger potential battle-divorce. On Saturday, a deputy presidential spokeswoman confirmed in a statement that Mr. Aquino had quietly signed the act into law on Dec. 21, and it will take effect in January, guaranteeing contraceptives will be available to the poorest Filipinos. Mr. Aquino's backers say the bill, which had been stalled in the legislature for 14 years, marks a significant attempt to bring down the country's soaring population growth. The Philippines has the highest birthrate in Southeast Asia, and its population has risen to more than 100 million today from 60.7 million in 1990. Opponents of the family-planning measure-also known as the reproductive-health, or RH, bill-say it will divide the deeply religious country and pave the way for divorce legislation, which is also opposed by the church. "The constitution states that the government should protect the family and marriage. The RH bill is against the goodness of family and the stability of marriage," said Bishop Gabriel Reyes, chairman of the Catholic Bishops Conference of the Philippines' Commission on Family and Life. Even boxer and congressman Manny Pacquiao, fresh from what he described as a near-death-experience in a Las Vegas knockout, spoke against the bill citing ``the sanctity of life.'' Senator Pia Cayetano, the main proponent of the family-planning bill, has called for congress to start debates on divorce law, while another lawmaker, Luz Ilagan, has filed a bill introducing divorce that is now under committee review. Church leaders are already mounting a counterattack, arguing that pushing a divorce law could further divide the country after the bitter debates over the family-planning bill.
Philippines Catholics pledge to defeat backers of RH bill, CNA, Jan 03
Philippines Catholics have strongly criticized President Benigno Aquino III for signing a controversial "reproductive health" bill, vowing to oust supporters of the legislation in the country's 2013 elections. "We will exhaust all legal remedies to fight this unjust, unethical and anti-poor and anti-life law," said Dr. Ricardo Boncan, a spokesman for the Catholic Vote Philippines alliance. He said the president's decision to sign the bill in secret Dec. 21 was "highly dishonorable and unprincipled," citing the president's prior statement indicating he would not sign it before Christmas. "This, to us, has been the hallmark of his presidency, deception and dictatorial," Boncan said, according to the Philippines Inquirer. The legislation requires government-sanctioned sex education for adults, middle school and high school students, as well as a population control program that includes fully subsidized contraceptives under government health insurance. It requires health care workers to refer for the drugs even if they have religious and moral objections. Opponents of the bill warned that it would contribute to a breakdown of the family, strengthen a contraceptive mentality and advance sexual immorality. They also voiced concerns over the health risks posed by artificial birth control and the potential of some contraceptives to cause early abortions. On Dec. 17 the Philippines House of Representatives approved the legislation by a vote of 133-79 with seven abstentions, while the Senate passed it by a 13-8 vote with two abstentions. The debate over the bill included accusations of corruption, bribery and threats to obtain the necessary votes. Juan Carlo Argo, a young pro-life advocate opposed to the bill who observed some of the legislative proceedings, told CBCP News the bill's passage was "a bitter experience." "But the fight ain't over. I can still help save lives in my own little way," he said. Amy Lee, another bill opponent, said she felt a mixture of sadness and "great determination" to fight the bill and evangelize the teachings of Jesus Christ. "I am just unable to be a more obvious presence in the fight but I support a stronger Catholic presence in politics," she told CBCP News.
Big business is threatening the Philippines' progressive breastfeeding culture, SEA Globe, Dec 25
When Time dared to put a photograph of a mother breastfeeding her three-year-old son on its cover in May, international media was thrown into a frenzy over the provocative image. It is not the first time breastfeeding has roused debate and it will not be the last, but in many discussions about whether breast really is best, an important piece of the puzzle is missing: where does the infiltration of misguided information by multinational companies pushing infant formula begin, and the mother's ability to make an impartial decision end? "Infant formula companies have a vested interest in babies not being breastfed and that is financial profit for their shareholders. Their motives are focused on product sales and not on infant health," said Jennifer James, a nursing and midwifery expert at Royal Melbourne Institute of Technology of University. "Breastfed babies need no other food or fluid for at least the first six months of life. Supplementation with infant formula is not necessary at any stage and can create a range of problems for babies and diminish breast milk supply." In 1986 the Philippines took steps to protect mothers from misinformation regarding infant formula in accordance with the World Health Organisation (WHO)'s international guidelines for marketing of breast milk substitutes. The introduction of the Executive Order No. 51 - also known as the Milk Code - marks the Philippines as the only country in the region to implement legislation that substantially includes all provisions of the WHO's international code, developed to ensure that women and childrenhave clear and unbiased information about the benefits of breastfeeding. It does not prevent breast milk substitutes from being sold - on the contrary, baby formula is widely available nationwide - but aims to ensure that milk formula marketing includes appropriate warnings and instructions. "The Milk Code is the backbone of breastfeeding protection, promotion and support efforts in the Philippines," said Mike Brady, Campaigns Coordinator for Baby Milk Action. "It also aims to ensure that health workers, parents and carers receive accurate, independent information about breast milk substitutes if necessary." Under the Milk Code guidelines for breastfeeding, substitutes for children under the age of 36 months cannot be advertised, health workers are prohibited from giving infant formula samples to mothers and family members, and strict labelling rules apply to include the use of both English and the local Tagalog language and a mandatory note that states breast milk is best for babies up until two years of age.