The Philippines will not buy second hand naval equipment from the USA

Earlier, Foreign Secretary Albert del Rosario said the Philippine government might not buy but lease the equipment from the United States, adding the aim is to become a strong US ally.

The Philippines will not buy second hand naval equipment from its ally, the United States, said a senior official who announced the arrival of long range aircraft that will oversee the country's claim on the contested South China Sea (West Philippine Sea) and the Spratly Archipelago.

The government will soon have very long range patrol aircraft and also watercraft on the West Philippine Sea, facing the eastern seaboard of the country, said Defence Secretary Voltaire Gazmin.

"We have to see if we can afford it," Gazmin also said.

He did not give details about the amount to be spent for the equipment and the manner of payment for the said purchase.

First phase budget this year for upgrading the Philippine Navy was estimated to cost P 11 billion ($ 252 million). Aside from the US long range aircraft, the Philippines already shows interest to acquire 6 Italian or Korean made Warplanes.

Chinese forces opened fire on Filipino fishermen, harassed a Philippine oil exploration and erected structures on six areas on Philippine territory, the Philippines complained earlier.

Philippine President Aquino called for US assistance because of these problems. Then Manila baptized the South China Sea as the West Philippine Sea.

Like Manila, Vietnam also accused China of activities that increased tension in the South China Sea.

Earlier, Foreign Secretary Albert del Rosario said the Philippine government might not buy but lease the equipment from the United States, adding the aim is to become a strong US ally.

The list of the Philippine government was already given to the US Navy, he added. The new equipment will supplant the F5 fighter jets which were retired in 2005. The Philippine Navy is still using World War II vintage Rajah Humabon, a former US Navy frigate.

In reaction, militant groups said that the Philippine government might have allowed the United States to stockpile naval equipment at the South China Sea.

They also blamed President Benigno Aquino for drawing the US into the contested claims on the South China Sea and the Spratly Archipelago.

In 1991, the Philippine Senate rejected the US-proposed extension of the now defunct Military Bases Agreement. Since then, the Philippines stopped hosting of the largest two US overseas war facilities in central Luzon. The former US Naval Airbase in Olongapo, Zambales and the Clark Air Base in Angeles, Pampanga were transformed into commercial use.

But soon after, the US has proposed to members of the Association of Southeast Asian Nations (ASEAN) for the establishment of non-permanent US bases in the Pacific region.

This was not yet acted upon.

China, Taiwan, and Vietnam claim the whole of the South China Sea. The Philippines, Malaysia, and Brunei claim some parts of the Spratly Archipelago.

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Philippines Stocks Rise: Atlas, Philippine National, SM Investments

Shares of the following companies had unusual moves in Philippine trading. Stock symbols are in parentheses and prices are as of the noon close in Manila.

The Philippine Stock Exchange Index increased 1.6 percent to 4,421.56, a record close.

Philippine National Bank (PNB) jumped 6.2 percent to 63.70 pesos, the steepest gain since April 12, after the Philippine Daily Inquirer cited people it didn’t identify as saying Industrial & Commercial Bank of China Ltd. may invest in Allied Banking Corp., a Manila-based lender that will merge with Philippine National this year.

Allied Bank said in a statement that the report has “no substantive basis.” Philippine National President Eugene Acevedo declined to say how the bank will benefit from a possible investment by ICBC into Allied Bank. Wang Zhenning, a Beijing-based press officer for ICBC, declined to comment on market speculation.

SM Investments Corp. (SM) , the holding company of Philippine billionaire Henry Sy, climbed 3.1 percent to 551 pesos, the sharpest gain since April 29. The company approved a $142.2 million investment in Atlas Consolidated Mining & Development (AT) Corp, a stock exchange filing showed. Atlas rose 1.7 percent to 21.60 pesos, the highest close based on prices going back to March 1992.

Vista Land & Lifescapes Inc. (VLL) rose 1 percent to 3.19 pesos, the highest level since June 22, after the homebuilder said it will invest at least 5 billion pesos on office buildings and commercial spaces in a project in Laguna province.

To contact the reporter on this story: Ian C. Sayson in Manila at isayson@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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Asia now leads number of Billionaires than Europe

The number of millionaires in Asia and the Pacific has jumped sharply to overtake Europe, driven by the fast-rising super-rich population of Hong Kong, a study says.

Millionaires in region became worth more collectively than their counterparts in Europe in 2009, but there are also now more of them, at 3.3 million in the region, against 3.1 million in Europe.

The report on high-net worth individuals - defined as anyone with investable assets of at least $950,300 - was issued by Merrill Lynch Global Wealth Management and consultancy firm Capgemini.

"Asia-Pacific's continued strong performance cements the region's strategic importance to every wealth management firm with global aspirations," said Michael Benz, Asia-Pacific head of Merrill Lynch Global Wealth Management.

"Now the world's second-biggest HNWI market in terms of population and wealth, it is more pertinent than ever for the wealth management industry to keep enhancing their service to this diverse region."

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The region is now second to North America, with 3.4 million millionaires.

The growth in Asia was led by the number of millionaires in Hong Kong, which grew 33.3 per cent in 2010 to 101,300 people, compared with 76,000 in 2009 - the second straight year in which the city's super-rich population grew the most.

The rocketing number of millionaires in Hong Kong was due to a healthy economy as well as gains in the equities and real estate markets, the report said.

The report also noted the boom of millionaires in India, which came in 12th - its highest ever placing.

Asia, which has emerged quickly from the global recession, has produced some of the world's richest people including India's business tycoon Mukesh Ambani and Hong Kong's Li Ka-shing, nicknamed "Superman" for his business prowess.

Billionaires in the Philippines + 6 new

Meanwhile, a soaring stock market has expanded the Philippines' billionaires' list to a record 11, with the combined wealth of the 40 richest also hitting an all-time high, Forbes.com said.

Shopping mall king Henry Sy, 86, saw his assets surge 44 per cent to $6.8 billion over the past year and remains the Philippines' richest man, the website said in its annual update of the country's wealthiest.

Lucio Tan, 77, tobacco tycoon and former crony of the late dictator Ferdinand Marcos, kept his spot at number two with $2.65 billion, while budget airline king John Gokongwei, 83, remained third-richest.

Six Filipinos became billionaires for the first time as the paper value of their shares in listed companies soared, boosting their select group's numbers to a record 11.

"The Philippines' economy grew only 4.9 per cent in the first quarter of the year ... off from 8.4 per cent in 2010, but the country's stock market is booming," Forbes said, explaining the surge.

"The stock exchange's composite index is up 27 percent since last year, surpassing its 2007 benchmark."

This also lifted the combined fortunes of the country's 40 richest to an all-time high $32 billion, up from last year's $21.64 billion, the website reported.

Among the six new billionaires are construction magnate David Consunji, 90, and port operator Enrique Razon, at 51 the youngest Filipino with 10-figure assets.

The others are San Miguel Corp. chairman Eduardo Cojuangco, 76, former finance minister Roberto Ongpin, 74, banker George Ty, 78, and hamburger king Tony Tan Caktiong, 58, of the Jollibee restaurant chain.

The youngest on this year's Filipino richest list was Edgar Sia, a 34-year-old university dropout now worth $80 million after selling his chicken-barbecue restaurant chain to Jollibee.

Forbes said the Filipino rich were also among Asia's most magnanimous.

Lucio Tan sent 700,000 bottles of water to tsunami-hit Japan and his charity foundation has been a big backer of teacher training, medical missions and housing for the poor.

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