Japan-Asean Anti-terrorism meet in Cebu; Military Clash with Abu Sayyaf al Qaeda linked kills 11 in Basilan

A platoon of the Philippine Marines marches in this file Photo.  —File Photo by Reuters

Philippine forces clashed with Muslim extremists on a southern island Thursday (July 26, 2012), leaving seven soldiers and four militants dead, the military said.

Elite rangers battled members of the al Qaeda-linked Abu Sayyaf group on the troubled southern island of Basilan, with three soldiers and two insurgents also wounded in the clash.

“Firefight is ongoing as of this report,” the military statement said.

It was the latest in a series of deadly clashes in the heavily-forested island of Basilan, a stronghold of the Abu Sayyaf.

The group was founded in the 1990s with seed money from al Qaeda leader Osama bin Laden.

Cebu meet tackles Japan-Asean cooperation to fight terrorism

A $4.1 billion fund is being proposed for anti-terrorism cooperation between Japan and Southeast Asian nations.

“There should be mutual cooperation in the area of combating terrorism.” said Tomatsu Shinotsuka of the Japanese Foreign Ministry during the 7th Asean-Japan counter-terrorism dialogue at the Marco Polo Plaza Hotel yesterday.

The dialogue will give the members of the Association of Southeast Asian Nations (Asean) and Japan, a major economic player in the region a chance to discuss the substantive progress, achievement and implementation of useful projects in fighting counter-terrorism.

“Terrorism is a common threat not only in Asia but also to the world as a whole.” said Shinotsuka.

“There should be speed of cooperation and mutual trust. We will take up various aspects of cooperation between Japan and the Asean,” Shinotsuka added.

Undersectary Nabil Tan said the anti-terrorism cooperation between the Association of Southeast Asian Nations (Asean) and Japan will be boosted by the $4.1 billion Japan-Asean Integration Fund (JAIF).

Tan said the counter-terrorism dialogue is a global undertaking aimed at fostering closer collaboration and exchange of information among the ten ASEAN member states – Brunei, Cambodia, Indonesia, Lao, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Executive Secretary Pacquito Ochoa, Jr. who also chairs the Philippine Anti-Terrorism Council, said border security is necessary to ensure safety in the country. Ochoa said this is on top of the country’s anti-terrorism policy.

“Effective law enforcement, strong institutional mechanisms and addressing social problems like poverty and education form the core of the country’s three-point agenda to fight counter-terrorism,” Ochoa said.

For the institutional mechanisms, Ochoa said the amendments of the Anti-Money Laundering Act (AMLA) and the Human Security Act is important for it to prevent and suppress terrorist financing and to put in check terrorism activities in the country.

Abu Sayyaf in Southern Philippines, and Qaeda link groups Jemaah Islamiyah of Indonesia operating in Malaysia and Southern Thailand remains a threat in the troubled area of the ASEAN region.

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Vietnam, Philippines slam China Military garrison plan in Philippine & Vietnam Territories

Vietnam and the Philippines have lashed out at China's moves to establish a military garrison in the West Philippines Sea (South China Sea), amid escalating tensions in the disputed waters.

Hanoi filed a formal protest with Beijing against the plan outlined by China this week to station troops in Sansha in the disputed Paracel Islands, saying it "violates international law".

The Paracel Islands are one of two archipelagos in the South China Sea that are claimed by both China and Vietnam.

Manila, which is involved in a dispute over another archipelago, the Spratly Islands, also weighed into the row, summoning the Chinese ambassador to lodge a complaint against the garrison announcement.

An intensifying spat over the South China Sea - the site of key shipping routes and thought to have vast oil and gas reserves - has seen a barrage of diplomatic moves between the countries with competing territorial claims.

Call for 'strong resolve'

Philippine president Benigno Aquino has called on the nation to show strong resolve against China's strident rhetoric.

In a nationwide address, President Aquino said his government had shown 'forbearance and goodwill' in the long-running dispute with China over Scarborough Shoal.

Walden Bello of the Akbayan Party, part of the Aquino administration's coalition, told Radio Australia's Asia Pacific that the Philippine people are united behind President Aquino against Beijing, but would prefer to settle the issue without conflict.

"I don't think that the response that people want is to respond with force to China's move," he said.

"The focus of the President has been to stress a diplomatic solution to the issue, to discuss it bilaterally with China, as well as to bring it to multilateral fora, like the Association of South-east Asian Nations.

"But at the same time, there is a chance that for defensive purposes, the country must be able to have a good defence capability, without being provocative," said Mr Bello

"I don't think that there is any intention on the part of the government to challenge China militarily," he said.

McCain enters fray

Meanwhile, US Senator John McCain says that China is "unnecessarily provocative" in saying it will establish a military garrison on disputed South China Sea islands.

He has called for a multilateral solution to the dispute.

"The decision by China's Central Military Commission to deploy troops to islands in the South China Sea, which are also claimed by Vietnam, is unnecessarily provocative," Mr. McCain said in a statement.

He said other action by China including its appointment of legislators to govern such disputes "only reinforces why many Asian countries are increasingly concerned about China's expansive territorial claims, which have no basis in international law, and the possibility that China will attempt to impose those claims through intimidation and coercion."

The actions by Beijing "are disappointing and not befitting a responsible great power," he said.

Words of caution

Mr. Bello says that although there are those in the Philippines government who favor seeking help from the United States, this is not a majority view.

"There are those of us within the government that are basically saying that we have to rely first of all, on ourselves, secondly on our neighbors, and be very, very careful about the way that the United States steps into the situation," he said.

Mr. Bello says it is important to look at the actual situation rather than getting agitated over China's rhetoric.

"We must distinguish between Chinese rhetoric and what it actually does," he said.

"Especially at this point, there is a leadership transition in China and everybody within every faction within the Chinese Communist Party is trying to impart, to some extent, this kind of militant discourse and rhetoric.

"Once the leadership transition is over, then you might find more flexibility on the part of the Chinese," said Mr. Bello.

"Secondly, the actual Chinese deployments that accompany its rhetoric, these are not major warship deployments," he said.

Australia News Network 

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Gloria Arroyo posts bail on fraud charges, Freed from Military hospital

Former Philippines president Gloria Macapagal Arroyo, a key target in the government's anti-corruption fight, was granted bail on election fraud charges on Wednesday and walked out of an army hospital where she had been detained since December 2011.

But Arroyo could soon be back in detention with government lawyers seeking another arrest warrant from the anti-graft court, Sandiganbayan, over charges of plunder Over alleged misuse of state lottery funds, a non-bailable criminal offence.

Arroyo is also facing a graft charge over an aborted $329 million national broadband deal with China's ZTE Corp. in 2007. She denies all the charges.

Arroyo's corruption trial is central to President Benigno Aquino's pledge to tackle endemic graft that threatens to take the shine away from an economic revival and investment rebound in the Philippines.

"The fight against corruption continues," Aquino's spokesman Edwin Lacierda told reporters after Arroyo was granted a 1 million pesos ($23,800) bail. "This will not dampen our resolve to file and continue to institute corruption cases against responsible officials."

The Philippine's anti-graft court on Tuesday issued a travel ban, the third such order that will prevent Arroyo leaving the country for treatment for a spinal problem.

The 65-year-old Arroyo, president from 2001 to 2010, walked out the hospital wearing a neck brace and gray dress, and was driven home in a white van.

Television footage briefly showed her smiling and waving to supporters as her convoy made its way to her house.

A regional trial court granted her bail on the electoral fraud case because it found the evidence against her to be weak, based only on the testimony of a single witness. But the bail petition of other accused -- Andal Ampatuan, former governor of the southern province of Maguindanao, and election official Lintang Bedol -- were denied.

Ampatuan is facing 57 murder charges for his role in what was the country's worst politically-motivated killings in 2009, when relatives of his political rival, civilians, and about 30 journalists were brutally killed.

Arroyo has already posted bail on three counts of graft charges over allegations she and her husband got $30 million in kickbacks from the ZTE broadband deal.

"We thank God and all the people who are praying for her," the former leader's daughter, Luli Arroyo-Bernas said in a television interview, her voice cracking with emotion.

She insisted her mother was innocent and that the bail decision showed "there's still hope that justice can prevail in the country".

Arroyo's family and lawyers said the former leader would seek further treatment for her ailment, and may consider going overseas. She underwent a spine surgery last year.

"We will bring her to an alternative treatment facility," said Arroyo-Bernas. "We'll do everything possible to make her well again."

Many fear she might escape prosecution once she leaves detention. In November 2011, she attempted to leave for Hong Kong for treatment but was stopped at the airport by government agents. Days later, she was arrested on election fraud charges.

Arroyo, a sitting member of the lower house of Congress, will have to get permission from three separate courts before travelling abroad.

Reuters 

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Thailand, Philippines May Resist Rate Cut as Growth Holds Up

Thailand and the Philippines will probably refrain from cutting interest rates this week as the Southeast Asian economies withstand a global growth slowdown that spurred policy easing from Brazil to China.

The Bank of Thailand will keep its benchmark unchanged at 3 percent for a fourth straight meeting tomorrow, according to all 13 economists in a Bloomberg News survey. Eleven of the 14 analysts in a separate survey forecast the Philippines will hold rates at 4 percent the next day, even as more predicted a reduction this month than for the June meeting.

Both countries forecast growth as fast as 6 percent in 2012, aided by government spending in the Philippines and post- flood reconstruction in Thailand, which this month marks 15 years since its baht devaluation sparked the Asian financial crisis. Inflation risks may also re-emerge and crimp scope for easing as a U.S. drought pushes corn and soybean to records and India's monsoon shortfall threatens rice output in the No. 2 producer.

"Monetary policies in Southeast Asia are fairly accommodative and that's enough to support growth for now," said Aninda Mitra, Singapore-based head of Southeast Asian economics at Australia & New Zealand Banking Group Ltd. (ANZ) "The scope to cut rates is tempting but it will be too premature at this point, as inflation risks could be exacerbated."

The MSCI Asia-Pacific Index (MXAP) of regional shares has fallen about 17 percent in the past year as the deepening European sovereign-debt crisis spurred outflows from emerging markets.

Global Growth

The International Monetary Fund last week cut its global growth forecast for next year to 3.9 percent, and the Asian Development Bank said the region's economies may need to ease monetary and fiscal policies further, after reducing its predictions for expansion for 2012 and 2013.

South Korea, which unexpectedly lowered borrowing costs July 12, may report the slowest growth since 2009 for the second quarter. The country's economy expanded 2.5 percent from a year earlier last quarter, compared with a 2.8 percent pace in the previous three months, according to the median estimate of 15 economists surveyed ahead of a July 26 report.

Weaker demand may cap overseas sales at South Korea's largest companies, with Samsung Electronics Co. posting second- quarter sales that trailed estimates. South Korean manufacturers' confidence fell to the lowest level in four months for July while consumer confidence dropped to a three- month low in June, according to Bank of Korea reports last month.

Slower GDP

Gross domestic product probably grew 0.5 percent from the previous quarter, slowing from a 0.9 percent pace, according to the median estimate of 13 economists. The Bank of Korea lowered its 2012 growth forecast to 3 percent from an earlier estimate of 3.5 percent on July 13, a day after it unexpectedly cut its benchmark rate by a quarter percentage point to 3 percent.

Separately, the Reserve Bank of New Zealand will maintain its official cash rate at a record-low 2.5 percent on July 26, according to all 16 economists in a Bloomberg News survey. Governor Alan Bollard has kept borrowing costs unchanged since March 2011 to boost growth that was hurt by last year's deadly earthquake in the city of Christchurch.

Seven of nine members of a so-called shadow board set up by the New Zealand Institute of Economic Research Inc. said the central bank should hold the benchmark rate again. Two members of the panel comprised of economists, academics and company executives preferred a rate cut.

Inflation Readings

Price gains in the Philippines and Thailand are still lower than in neighbors including Indonesia and Vietnam. Consumer prices in the Philippines rose 2.8 percent in June from a year earlier, after climbing 2.9 percent in May. The central bank predicts inflation will be within its 3 percent to 5 percent target this year and next.

In Thailand, consumer prices increased 2.56 percent from a year earlier in June. Core inflation, which excludes fresh food and fuel costs and is used by the central bank to guide monetary policy, was 1.92 percent last month.

Thai Prime Minister Yingluck Shinawatra has raised minimum wages and will spend as much as 2 trillion baht ($63 billion) over seven years on infrastructure projects to boost growth after last year's floods. The $346 billion economy unexpectedly expanded 0.3 percent from a year earlier in the first quarter, after contracting 8.9 percent in the previous three months.

Fiscal Support

Philippine President Benigno Aquino, who marked his second year in office in June, is increasing state spending to a record this year as he seeks $16 billion of investments in roads and airports. The $225 billion economy expanded 6.4 percent in the first quarter, the fastest pace since 2010.

Bangko Sentral ng Pilipinas has scope to loosen policy, Governor Amando Tetangco said earlier this month, while Bank of Thailand Governor Prasarn Trairatvorakul said in June authorities have room to adjust borrowing costs if needed.

Thailand "will likely maintain the key rate at 3 percent until the end of the year," said Santitarn Sathirathai, a Singapore-based economist at Credit Suisse Group AG. "We don't expect any surprises unless Europe collapses, which of course will prompt a further rate cut. If the economy continues to be strong, we may see a more hawkish statement later this year and probably a rate hike next year."

Bloomberg Businessweek 

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AirAsia Philippines rolls out Piso Fare promo

Hold on tight to that one peso. It will take you far to your desired destination and delight you with memorable experiences as Philippines' AirAsia, the country's newest low cost carrier, rolls out its Piso Fare promo for all local and international destinations including Fly-Thru service from Clark International Airport to Australia.

"This promo is a testament to our commitment to stay competitive and provide the best value for Filipinos to travel at the lowest cost but with the best quality service," AirAsia Inc. CEO Maan Hontiveros said at a press conference on July 23 in Makati City.

With the Piso Fare Promo, travellers who book via airasia.com starting today until July 29 can now fly direct from Clark International Airport in Pampanga to Kuala Lumpur, Hong Kong, Macau and through AirAsia's newest Fly-Thru service from Clark to Sydney and Perth in Australia for only one peso base fare.

The Fly-Thru service offers guests to seamlessly connect on multiple flight legs, on certain flights without needing to pass through immigration, collect bags, re check-in between flights or have a transit visa. Bags will also be automatically checked through to the final destination. It also allows guests to connect from selected destinations in the AirAsia route network which spans across 20 countries and 80 destinations. All connecting destinations will come from AirAsia's transit point in LCCT (Low Cost Carrier Terminal) in Kuala Lumpur.

The Piso Fare Promo is also offered for travellers bound from Clark to AirAsia's domestic destinations such as Davao, Kalibo, and Puerto Princesa.

With AirAsia's Piso Fare Promo, travellers will only pay one peso for the base fare excluding fuel surcharge, processing fee, aviation security fee and VAT.

"Our guests, who choose our lowest-cost flights, deserve to know what they are paying for. Having well-informed travellers is a key element of AirAsia's business," Hontiveros explained.

AirAsia was the first domestic low-cost carrier to promote the "All-in-fare" concept in February this year when it launched its first ever promo seats.

Hontiveros stressed that AirAsia, unlike some competitors, does not intend to surprise clients with small prints of add-on costs, only to find they have to pay for so many other rate components.

"In the same month that we secured our AOC in February, AirAsia sparked a revolution in air travel when we launched an all-in fare by being transparent in our promo fares. We advertise promo fares which include the base fare, fuel surcharge, processing fee and government mandated fees such as aviation security fee and VAT. No hidden charges, no misleading promotions," she said.

AirAsia continues to change the landscape of low-cost travel according to Hontiveros. With Piso Fare Promo, "planning is easiest with rates all clearly laid out to our guests so that people will know which has the best value."

"With this new promo we aim to expand the market based on informed choices and continuous exciting deals. These are part of distinguishing marks of our brand of low cost travel," Hontiveros added.

1,000 seats are up for grabs with the Piso Fare Promo. (www.airasia.com)

Rappler

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PNOY states 40 Military Aircraft to be deliver next 2 years to deter china

President Benigno Aquino III said Monday that the Philippines won't back down in a South China Sea dispute with China and that his country's military will soon get dozens of new aircraft and ships for maritime defense.

Aquino announced in his annual state of the nation address that more than 40 military aircraft – including attack helicopters and two newly refurbished C-130 cargo planes – and other weapons would be delivered in the next two years to bolster Philippine military muscle amid renewed territorial tensions in the South China Sea.

A second former U.S. Coast Guard cutter is to arrive soon from the United States, following a refurbished cutter that was relaunched by the Philippine navy last year as its largest and most modern warship.

Washington has also provided $30 million to strengthen the Philippine military in addition to helping establish a national coast watch center to help protect the country's 36,000-kilometer (22,370-mile) coastline, Aquino said.

But he stressed that the Philippines hopes to forge a peaceful solution that will be acceptable to China.

A standoff erupted in April between Chinese and Philippine ships at Scarborough Shoal, which both countries claim. The territory is called Huangyan Island in China and Bajo de Masinloc in the Philippines. Aquino withdrew his country's ships from the area last month as tensions with Beijing escalated, but Chinese government ships have stayed.

Some Philippine lawmakers have suggested that the Aquino administration tone down its rhetoric and quietly negotiate a compromise with China. A senator has described the lopsided feud as a clash between a mosquito and a dragon.

"There are those who say that we should let Bajo de Masinloc go. We should avoid the trouble," Aquino said in his nationally televised speech before Congress. "But if someone entered your yard and told you he owned it, would you agree? Would it be right to give away that which is rightfully ours?"

"I do not think it excessive to ask that our rights be respected, just as we respect their rights as a fellow nation in a world we need to share," Aquino said, referring to China.

Taiwan, Malaysia, Vietnam and Brunei also have conflicting claims in the South China Sea. Many fear the resource-rich and busy waters could spark Asia's next major armed conflict.

China, meanwhile, on Monday named the mayor and other officials of a new city it established last month under its southernmost Hainan province to administer all the disputed territories it claims in the South China Sea, the official Xinhua News Agency reported.

Xiao Jie was named mayor of Sansha city, which will have a military presence, Xinhua said.

Vietnam and the Philippines have protested the city's establishment.

About 6,000 police officers were deployed to secure the House of Representatives, where Aquino spoke, and nearby roads. Several people were injured when riot police clashed with thousands of left-wing and trade union protesters who were seeking higher wages, land reform and a halt to alleged human rights violations.

AP

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Philippine Military On-Guard at Kalayaan Spratly – China will build Air Strip in territory

A file photograph from 2008 shows the beach on Philippine-occupied Pag-Asa island, the largest of the disputed Spratly Islands in the South China Sea. Photographer: Joel Guinto/Bloomberg

The military on Tuesday kept mum on China's plan to build a garrison on a group of disputed islands in the West Philippine Sea.

Armed Forces of the Philippines (AFP) spokesman Col. Arnulfo Burgos Jr., however, said they would continue to conduct surveillance reports in the area.

"That (report about the plan to build garrison) has to be validated. [As for the] response, we will ask the Department of Foreign Affairs," Burgos said.

"We will do our job. We will just implement and execute any directive handed down by higher authorities," he added.

Burgos said they would continue to coordinate with state agencies in monitoring the situation in the area.

"We will not waiver in our commitment to uphold the integrity and sovereignty of our national territory," he said.

Burgos said they are continuously upgrading their capabilities to enable them to defend the country's territory.

"We need to protect our natural resources. We will lose a lot of resources if we fail to guard them," he said.

Earlier, China's defense ministry bared plans to establish a military garrison on a group of disputed islands in the West Philippine Sea.

The troops will operate from Sansha in the Paracel Islands, which is being claimed by both China and Vietnam.

China is also reportedly eyeing the construction of an airstrip adjacent to the Pag-asa Island, a Philippine-held territory in the Spratlys Island.

China is said to be eyeing the back of a four-story building in Subi Reef as location for the new airstrip.

The Philippines is claiming several islets, shoals, reefs and sandbars in the Spratly Group of Islands, which is being claimed in whole by China.

Vietnam, Malaysia, Brunei and Taiwan also claim part of the islands, which are said to be rich in oil and natural resources.

The garrison for the Illegally created new Sancha City Of china in the water without land count 1,100 Chinese residents from more than 700 Kilometers of Hainan Island elected a legislature to oversee the area as reported by China News paper. Sansha is on the Paracel Islands, which are also claimed by Vietnam that would also affect the Philippines administered Macclesfield Bank.

The move adds to recent efforts by China, the Philippines, Vietnam, Taiwan and Brunei to affirm command over disputed islands in the waters. While it may rile other claimants in the South China Sea, China sets up military garrisons in all its administrative districts, according to Arthur Ding, a research fellow at the Institute of International Relations in Taiwan.

"In order to show its seriousness, just like any other administrative area, China set up a military unit there," Ding said in a phone interview. "It has nothing to do with combat preparation."

About 150 Vietnamese protesters marched through Hanoi to decry China's claims over the Spratly and Paracel islands while Philippines lodged its new Diplomatic Protest against China. The demonstrators in Vietnam, including parents with toddlers and seniors, defied police requests to disperse and circumvented barricades aimed at preventing access to a square where the Chinese embassy is located.

Prefectural City

China welcomed a statement by the Association of Southeast Asians (ASEAN) calling for self-restraint in resolving disputes in the waters. The 10-member bloc had failed to issue a communique after a meeting of foreign ministers this month for the first time in its 45-year history because members differed over wording that may have criticized China's actions.

Asean's eventual statement was "in line" with China's policies, the official Xinhua News Agency said in a commentary published July 21.

In June, China's State Council approved the establishment of the prefecture-level city to administer the Paracel and Spratly Islands. Vietnam, the Philippines and Malaysia have "de facto military occupation and administration" over most of the disputed islands in the South China Sea, parts of which are also claimed by Taiwan and Brunei, according to the International Crisis Group.

Sansha will be based on Yongxing, the largest island in the Paracels with an area of 2.1 square kilometers (0.8 square miles). The chain is several hundred kilometers southeast of Hainan. China ousted Vietnam from the 30 islets and reefs that comprise the Paracels in a 1974 battle in which 71 soldiers were killed.

Earlier this month, China rebuffed U.S. calls to quickly complete a code of conduct for the seas as Secretary of State Hillary Clinton warned more clashes are likely without a region- wide deal. Asean failed to reach consensus on handling disputes in the South China Sea.

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Australia – Philippines Visiting Forces Agreement (SOFVA) Approved! DFA, AFP Cheers!

Department of Foreign Affairs and the military on Tuesday welcomed the Senate's concurrence with the Philippines-Australia Status of Visiting Forces Agreement (SOVFA) with Australia.

The Senate has passed on third reading the resolution seeking to ratify the visiting forces agreement between the two countries.

"The Armed Forces of the Philippines welcomes the ratification of the SOVFA by the Senate. Australia is a key ally in this part of the region. SOVFA is mutually beneficial to both countries armed forces," Colonel Arnulfo Marcelo Burgos Jr, military spokesman said.

"It will further strengthen bilateral ties as we upgrade our soldiers' knowledge and skils particularly in the conduct of HADR (humanitarian assistance and disaster response)."

Burgos added this would strengthen "bilateral relationship" with Australia in view of "mutually contributing in the maintenance of peace and stability in the region" as the Philippines gears towards a minimum credible defense capability and reliable disaster response capacity.

The DFA described the agreement as "another milestone in the Philippine-Australian relations," saying it will lead to enhanced cooperation in capacity-building and training of armed forces between the two countries.

"While the 1995 Memorandum of Understanding [MOU] on Cooperative Defense Activities serves as the framework for bilateral defense and military cooperation, the SOVFA paves the way for enhanced cooperation in capacity-building and training of armed forces, interoperability to undertake humanitarian assistance and disaster response operations, counter-terrorism, border security, and maritime security," the statement said.

The statement said Australia had been assisting the Philippines in strengthening its maritime security capability with initiatives such as the Coast Watch South project and the joint Maritime Training Activity LUMBAS.

"These initiatives are expected to be further expanded and strengthened under the SOVFA," the statement added.

Senators voted 17-1 to ratify the SOVFA between the Philippines and Australia on third and final reading on Tuesday (July 24, 2012)

Inquirer.net 

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NEDA Approves ₱48 Billion Infra Projects in Luzon

The National Economic and Development Authority (NEDA)-Investment Coordination Committee (ICC) has approved two major infrastructure projects with a combined project cost of approximately P48.12 billion.

The ICC, which is among the seven inter-agency committees of the NEDA Board, evaluates the fiscal, monetary and balance-of-payments implications of major national projects.

In a statement, the ICC said it approved the 47.018-kilometer, Cavite-Laguna Expressway (CALAX) project and the Bicol International Airport Project.

The CALAX project, with an estimated project cost of ₱43.319 billion, involves the financing, design and construction of a new four-lane expressway that stretches from the end of Cavite Expressway in Kawit, Cavite to Mamplasan Interchange of the South Luzon Expressway in Biñan, Laguna.

Socioeconomic Planning Secretary Arsenio M. Balisacan said the project would partly be financed through Public-Private Partnership (PPP), and partly through official development assistance (ODA) from the Japan International Cooperation Agency (JICA). The Department of Public Works and Highways is the project's proponent.

"The project is consistent with the Philippine Development Plan 2011-2016's transport sector objective of providing dependable access to production areas such as Cavite and Laguna, being rapidly growing industrial and commercial centers south of Metro Manila," Balicasan added.

Meanwhile, the Bicol International Airport Project, with a project cost of ₱4.799 billion, involves the construction of a new domestic – principal Class 1 airport of international standards in Daraga, Albay. It will replace the existing Legazpi Airport due to the latter's limitations and safety concerns.

Balisacan said the project would improve safety and efficiency of aircraft operations. The construction of a new airport in Albay would meet international standards and practices, as well as enhance the accessibility of tourism destinations in the Bicol region.

The project also involves the construction of landside and airside facilities, passenger and cargo terminal buildings and related facilities/equipment, security and navigational aids equipment, detailed engineering design and land acquisition for the airport compound.

The project would source its funding from the Department of Transportation and Communication (DOTC) budget.

PhilSTAR

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DPWH spends ₱3.7 Billion for infra projects in Cebu by 2013

Department of Public Works and Highways (DPWH) said it has spent ₱3.7 billion for various infrastructure projects in Cebu for this year.

The DPWH-Central Visayas said it has already completed 45 infrastructure projects worth  ₱ 1.9 billion, has 18 ongoing projects and 13 projects that have not yet been started.

Most of the completed projects were road asphalting and concreting.

Another ₱1.8 billion is being allocated for the construction of at least five more flyovers in Cebu City.

The amount includes the road widening component of each flyover project.

The flyover projects were, however, put on hold after some sectors voiced their opposition on the ground that these were to be constructed without first conducting a traffic master plan in the city.

Projects completed under the Cebu City District Engineering Office are located at the following:

• M. Cuenco Avenue
• Mabini-Lopez Jaena Street
• Carlock Street
• Tupas Street
• 8th Street
• N. Bacalso Avenue (Cebu South),
• Gov. Cuenco Avenue
• C. Padilla Street
• Cebu Circumferential Road (F. Llamas Street).

Those projects completed under Cebu First Engineering District were the two road projects in Toledo-Tabuelan-San Remigio Road, two Cebu North Hagnaya Wharf road projects, three Antonio Y de Pio road projects, Daanbantayan Port, and Olive Bridge construction.

Completed road projects under Cebu 2nd District Engineering District are the two in Cebu South Coastal Road and the two concrete road pavements of Sibonga-Dumanjug Road and two in N. Bacalso Ave. (Cebu South Road).

Those completed under the Cebu 3rd Engineering District are Pinamungahan Cadre Road, Toledo-Pinamungahan-Aloguinsan-Mantalongon Road, Cebu-Toledo Wharf Road, Carcar-Barili Road and Toledo-Tabuelan-San Remegio road.

In addition, the DPWH-Central Visayas has proposed some ₱6.024-billion worth of infrastructure projects for Cebu City and Cebu province in 2013, mostly listed under the names of the different congressmen.

District Engineer Susan Ornopia of the DPWH Cebu 4th Engineering District said Representative Benhur Salimbangon (Cebu, 4th district) has infrastructure projects worth ₱581.3 million for his district.

In the list presented by DPWH-Central Visayas, a total of ₱859.741-million worth of infrastructure projects was attributed to Representative Tomas Osmena (Cebu City, south district).

This includes ₱839.741 million for national roads and bridges, ₱15 million for drainage and ₱5 million for national building.

Projects under Representative Rachel del Mar (Cebu City, north district) include P615 million for national roads and bridges and ₱72 million for flood control/drainage, for a total of ₱700.412 million.

Other proposed projects for 2013 are: Under Representative Pablo Garcia (Cebu, 2nd district), ₱1.522 billion, including ₱1.406 billion for national roads and bridges, ₱109 million for flood control/drainage; Representative Eduardo Gullas (Cebu, 1st district), ₱523.7 million; Representative Pablo John Garcia (Cebu, 3rd district), ₱651.3 million; Representative Ramon Durano VI (Cebu, 5th district), ₱651.3 million; Representative Arturo Radaza (Lapu-Lapu City, lone district), ₱360 million; and Representative Gabriel Luis Quisumbing (Cebu, 6th district), ₱387.2 million. 

Sunstar

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Cebu Park District rising for more 10,000 new workforces

Ayala Land president Tony Aquino, also Cebu Holdings chairman, said a "live-work-play" positioning is the game-changing key to the primacy of Cebu IT Park and Cebu Business Park rolled into one mixed-used hub.

"Given that both commercial squares are geographically aligned and strategically located at the heart of the city, addressing them as a single destination will solidify and strengthen their potential as business centers," he said. "Mirroring the synergy of both parks will practically provide a larger environment for BPOs and even for other businesses that will spur growth in the region."

With an expected 20 percent increase in the 50,000 workforce, the business parks, among the most sought-after addresses in the region, are being amalgamated to be addressed as the Cebu Park District with ALI and Cebu Holdings at the forefront of a ₱10-billion development project.

With the rising number of commercial conglomerates, Cebu Park District is further bolstering its urban convenience, thus, more CBD developments and amenities must be endowed, according to Aquino.

"There is already an existing lifestyle destination in the area—Ayala Center Cebu," he said. "This defining lifestyle centerpiece is set to expand in the coming years, not only in terms of shopping, dining and entertainment, but even with residential towers and hotel that will be integrated in its overall masterplan."

Aquino living space makes the Cebu Park District worth calling it home for good.

"Only Ayala Land Premier managed to integrate its residential tower, 1016 Residences, in City Sports Club Cebu while Alveo Land's Solinea complements Cebu's resort vibe by having stylish living spaces and well-appointed amenities," he said. "Avida, on the other hand, furthers the living options through a multi-tower residential complex that are in close proximity to the business and lifestyle centers in the district."

Cebu Park District is also bringing open and lush breathing spaces to provide places to relax and to highlight the development's family-friendly impressions amid the usually busy setting of a cityscape.

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Charter Change (Cha-Cha) Philippines is pushed!

In justifying his reluctance to amend the economic provisions of the Constitution, President Aquino reportedly asked, "we grew 6.4% in the first quarter, why is there a need to change the Constitution?"

The reason, Mr. President, is staring at you in the face over Scarborough Shoal: China. I was hoping that the warships of China would do for the Philippine government what Commodore Perry's American steel gunboats, the "black ships", did to Japan in 1853. The realization that they were behind the West prompted Japan's modernizing elite to overthrow their feudal system during the Meiji restoration and modernize the country's economy and institutions. Not to mention, the presence of an external threat also prompted South Korea and Taiwan to curb the abuses and rent-seeking of their respective elites in order to force-march their industrialization.

China has been growing at double digit rates (and not just 6.4% in one quarter) for nearly 30 years on the back of huge foreign investments. It has grown mighty sinews and has caused the sense of triumphalism and regional hegemonism today that threaten the Philippines and neighboring countries.

And the 6.4% one quarter growth that President Aquino is bragging about? For one thing, there's a base effect because last year's first quarter was anemic from the slowdown in government spending. For another, but the more important thing, it's almost all consumption-driven growth, as it has been the past several years. Therefore, the government had nothing to do with that growth, no matter how much politicians would want to take credit for it.

Our consumption-driven growth is being fueled by the remittances of our army of Overseas Filipino Workers, who had to find jobs abroad because there are not enough jobs here. It's therefore a sign of economic weakness, and not strength. Certainly, it's not a reason to be complacent and adopt a business as usual attitude.

We need investment-driven growth because only an investment-driven growth will enable us to grow productive capacity, improve competitiveness, and reach a level of growth high enough to grow jobs, reduce poverty, and build sinews into the economy. Our investment to gross domestic product (GDP) ratio is about 15% today. According to the Philippine Institute of Development Studies, "the investment-to-GDP ratio should surpass 25% for an extended period of time for it to achieve sustained economic growth."

The first thing we have to do is to let foreign investors know that they are welcome. However, our Constitution says they aren't. We are the only country in Asia where our basic law expressly states that foreign investors aren't welcome in mass media and advertising, public utilities, educational institutions, land ownership, and exploitation of natural resources.

Well, there are those who say that there are ways around these Constitutional prohibitions, such as a 75-year lease on lands, the use of dummies, and multiple layering of holding companies. That's true but it results in adverse selection, attracting the wrong kind of foreign investors who are willing to make a mockery of our laws. Moreover, even if there are foreign companies who are able to do business here, there are high transaction costs, and they may depart for emerging countries like Myanmar, Vietnam, and Sri Lanka.

Technology and globalization have also rendered those Constitutional prohibitions meaningless. In the age of the Internet, satellite television and social media, Filipinos are consuming their media content from sources all over. We can listen to a radio, watch movies, and read newspapers without even going through a "Filipino-controlled" media outfit. Moreover, people can even attend lectures and get a degree from a foreign university online. Therefore, these Constitutional prohibitions are such anachronisms and must be removed.

True, there are other reasons, such as poor infrastructure, corruption, restrictive labor laws, red tape and unstable policies why investors aren't coming here, but that's no excuse not to lift these Constitutional restrictions.

In fact, according to former Socioeconomic Planning Secretary Dr. Gerry Sicat, "The advantages offered by the TPP (Trans Pacific Partnership) within the Asia-Pacific network of economic cooperation in trade could be lost by default without constitutional amendments." Countries like Vietnam, which is a member of the TPP, will have an advantage over us in trade with the US and Canada unless we amend our Constitution and remove the discrimination against foreign investors.

Lifting the economic restrictions on foreign investment in public utilities and mass media will also improve competition and consumer welfare in those areas. According to Alexander Bocchi, a World Bank economist, and the Philippine Institute of Development Studies, a key reason for low investment (and not just foreign investment) in general is the presence of monopolies in key industries. Having an anti-trust law is not enough; we have to encourage the entry of new players, especially foreign players with access to large amounts of capital, to come in and provide competition in strategic areas.

If there are reasons to restrict foreign ownership because of national security or other considerations, then such restrictions should be legislated, rather than embedded in stone in the country's fundamental law. We have an anachronistic Constitution that's so hard to change because of the lack of trust in our political culture, and it's weighing us down in a fast-changing world.

President Aquino should junk the outmoded thinking of protecting the rent-seeking Filipino elite, which has the perverse effect of forcing our compatriots to go abroad to find jobs in foreign companies. If he wants the Philippines to be able to stand up to China, he should strengthen the state, modernize our political and economic institutions, and transform our consumption-driven growth to an investment-driven one. He should support the amendment to the Constitution now.

Business World Online By: alixto V. Chikiamco is a Board Member of the Institute for Development and Econometric Analysis (IDEA).

For comments and inquiries, please e-mail us at idea.introspective@gmail.com. To know more about IDEA, please visit www.idea.org.ph.

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Boracay grabs 3 major Prizes at Travel+Leisure awards in New York

Discovery Shores Boracay was voted Asia's Top Hotel . Spa at the Travel+Leisure Magazine's World's Best . Awards 2012.

1. World's Best Overall Island
2. Asia's Top Island
3. Asia's Top Hotel Spa

The Philippines walked away with three major awards at the Travel+Leisure Magazine's World's Best Awards 2012 held at the newly opened Conrad Flagship Hotel in New York on July 19, 2012.

Chosen by readers of the travel publication, this year's awardees included Boracay Island, which was voted World's Best Overall Island and Asia's Top Island.

One of the top hotels in the island, Discovery Shores, Boracay, meanwhile, was voted Asia's Top Hotel Spa.

The winners were announced earlier by the magazine's editor Nilou Motamed on the US morning TV show, "Today," on July 6, 2012.

Vernie Velarde-Morales, tourism representative of the Department of Tourism (DOT) office in Chicago and concurrent officer-in-charge of the DOT office in New York, and Abigail Yap, the wife of Malay Mayor John Yap received the awards in behalf of Boracay.

Discovery Shores general manager Jose C. Parreño accepted the award for the hotel

The awarding ceremony was also attended by Deputy Consul General Theresa Dizon-de Vega, Filipino Reporter publisher Bert Pelayo, Fairways and Blue Waters Resort, Boracay chairman Wilbur Chan, Discover Suites resident manager David Pardo de Ayala, and Filipino-American entrepreneur and former President of the Aklan Association in the US Northeast Ray Rogan.

Filipino-American special projects editor of Travel+Leisure Irene Edwards was also at the event.

The awards were handed out by Travel+Leisure Magazine editor-in-chief Nancy Novogrod and the magazine's vice president and publisher Jean-Paul Kyrillos

Other major winners included Red Mountain Resort, Ivins, Utah (Top Destination Spa), Singita Grumeti Reserves, Serengeti National Park, Tanzania (Top Hotel), Bangkok (Top City), Singapore Airlines (Top International Airline), and Virgin America (Top Domestic Airline).

The World's Best Awards, now on its 17th year, is an annual tribute to the world destinations, hotels, resorts, tour operators, cruise lines, airlines, and other major tourist services which have been voted by readers of the magazine as being the best in the world.

According to Novogrod, for the 2012 awards, an unprecedented number of the magazine's readers cast their votes for their favorite travel destinations.

She also said the awards for Boracay and Discovery Shores were both well-deserved and speak volumes about the lasting positive impressions made by these Philippine destinations.

Discovery Shores also ranked No. 5 on the list of top 100 hotels in the world and No. 2 among the top resorts in Asia.

"This is an affirmation of our unwavering commitment to giving our guests unmatched service standards complemented by our dedicated staff and our world-class facilities," Parreño said in a statement.

ABS-CBN News

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