Filipinos in South Korea

WB and ADB sees 6.2% expanded growth for the Philippine economy in 2013, 2014

World Bank and Asian Development Bank's forecast for the Philippine economic growth for 2013 and 2014

The World Bank expects the Philippine economy to expand by 6.2 percent this year and 6.4 percent in 2014, with the growth to be supported by the country's strong economic fundamentals.

The WB estimate is higher than the ADB forecast of 6 percent for this year and 5.9 percent for next year.

In its "East Asia and Pacific Economic Update" report released yesterday, World Bank cited the Philippines as one of the middle-income countries in the East Asia and Pacific region that outperformed expectations last year.

"The Philippines led the ASEAN-4, accelerating from 3.9 percent GDP growth in 2011 to 6.6 percent in 2012, spurred by robust private consumption, a recovery in government spending, strong performance of the construction sector and of exports," World Bank said.

With the country's robust performance last year, World Bank maintained its outlook for the Philippines, unchanged from the forecasts it made in December 2012.

The World Bank's 6.2 percent forecast for this year is within the national government's 6 to 7 percent growth target for this period.

"In the Philippines, the fundamentals remain strong, policy responses have been appropriate so far, and reform efforts by the government appear sustainable," the report said.

The Asian Development Bank earlier revised upwards its forecast for the Philippines to 6 percent for 2013 from its previous outlook of 5 percent.

For 2014, ADB expects the Philippine economy to expand at a slower pace of 5.9 percent.

ADB said that strong consumption and rising investments are expected to boost the Philippine economic performance this year.

It added that the upbeat business and consumer sentiment will support growth. Fiscal spending will remain robust, along with construction activity, driven by the strong demand for housing and office space.

Both the World Bank and ADB also cited the first investment grade credit rating recently given by Fitch Ratings for the Philippines, which is expected to improve the investment climate.

However, World Bank said that to sustain and increase inclusive growth in the developing East Asia and Pacific region over the medium-term, investments in both infrastructure and in skills must be increased.

The agency said that raising the levels of investment would raise growth prospects in the region.

"In the Philippines, lagging infrastructure development is a long-standing impediment to private investment," the report said.

"Catching up on government infrastructure spending will provide the fiscal spark that is still missing in the country's growth path, although infrastructure spending is gearing up recently. In 2012 it was equivalent to 2.4 percent of GDP, up from 1.6 percent of GDP in 2011," World Bank said.

Presidential Spokesman Edwin Lacierda yesterday said while the World Bank's growth forecast of 6.2 percent for the Philippines is at the lower end of the country's own growth forecast of six to seven percent, it still recognizes that correct measures are being done by the Aquino government to continue to improve and grow the economy.

Lacierda said Malacanang still welcomes the growth forecast of the World Bank but the Aquino government will continue to hope and strive to reach its target of six to seven percent growth this year.

"Certainly, we welcome that. I think that's a lowside of our forecast. Our forecast is around six to seven percent. But, certainly, it's a welcome recognition on the part of World Bank that the Philippines has been taking the correct steps in improving the economy and also in having equitable progress for the—for our countrymen," he said.

The World Bank has maintained its GDP forecasts of 6.2 percent for the Philippines citing that the country continues to show signs of sustained growth.

It also forecasted growth of 6.4 percent and 6.3 percent for the Philippines in 2014 and 2015 respectively.

World Bank also projected that regional growth would rise moderately to 7.8 percent in 2013 and ease to 7.6 percent in 2014.

With report from Malaya Business Insight

BBC: "Apocalypse Now" Vietnam Village is faked: It was in Baler Philippines

Released in 1979, starring Martin Sheen, Marlon Brando and Robert Duvall (pictured), Francis Ford Coppola's Vietnam war film follows Captain Willard (Sheen) deep into the Vietnamese jungle in search of the renegade Colonel Kurtz (Brando). Now acclaimed as a classic, the film's production was famously beset by a number of disasters, including a tropical storm which destroyed the original set. "We had access to too much money, too much equipment, and little by little we went insane," reflected Coppola in Hearts of Darkness, the acclaimed documentary about the film.

How Apocalypse Now inspired Filipino surfers

When a scene from Apocalypse Now was shot on an obscure beach in the Philippines in the late 70s, little did the film-makers know they were giving birth to the country's surfing culture

"Charlie don't surf," says the reckless and irrepressible Colonel Kilgore, in one of the most memorable lines of the Vietnam War film Apocalypse Now.

Charlie is the American soldiers' derogatory nickname for their enemy, the Vietcong, and the surf-mad colonel is trying to persuade his troops to ride the waves, despite the bombs falling all around them.

Apocalypse Now, released in 1979, depicts the madness and mayhem of conflict, and is widely regarded as one of the most powerful war films ever made.

But it also has another legacy - something that the director, Francis Ford Coppola, could not possibly have intended.

Apocalypse Now was not actually filmed in Vietnam, but in the little fishing town of Baler in the northern Philippines.

As the cameras rolled, local Filipinos like Edwin Nomoro watched from the sidelines.

Nomoro was 10 at the time, and he came down to the beach every day to see it transformed into a battle scene, complete with an entirely fake Vietnamese village and helicopters swooping overhead.

But what excited him most was the sight of the actors surfing - something he'd never seen before.

Watch some video of "Apocalypse Now" movie here..

"When the filming finished, some of the crew left their surfboards behind, and my friend and I picked up the boards and taught ourselves how to surf," he says. "We've been surfing ever since."

At first, Nomoro and his friends found it difficult because there was no-one around to teach them.

Edwin Nomoro saw the film being made: "We've been surfing ever since"

"But we studied it, and learned, and now - no-one can explain what it feels like. Only a surfer knows the feeling," he says, smiling.

Once they got the hang of it, the boys started teaching others, and as word spread, tourists began coming to the little town to learn to ride the waves at Charlie's Point, as it became known.

Nomoro was able to turn his passion into a way of making a living, and more than 30 years on, he still earns money from the industry he helped to create.

"I have several rooms to rent. I also have some surfboards for hire," he says. "It's really improved my life. It helps me feed my family."

Baler is now very different from the sleepy fishing town where Martin Sheen, Robert Duvall and Marlon Brando stayed decades ago.

Several big hotels line the seafront, and more are being constructed. According to the local tourism office, at least 50,000 people came here in 2012.

Most visitors are Filipinos - Manila residents who just want a weekend of surfing - but an increasing number are foreigners.

One of the earliest arrivals was Donny Cope, who turned up in Baler in 1997 with "a surfboard, a backpack and a sense of adventure".

He has stayed at the beach on and off ever since, and now runs a small guesthouse.

"Last year we had surfers from the Czech Republic, Switzerland and a bunch from France," he says.

Baler's success as a surfing centre has rippled out to other parts of the Philippines, such as Surigao, La Union and Pagudpud.

"Baler is the birthplace of Philippine surfing," says Mac Ritual, a local tour guide.

"Other places saw a lot of good things here in Baler, and they also wanted to be popular because of surfing."

Ritual often takes his tour groups to see the main sites featured in Apocalypse Now.

The most famous is a headland where a major attack on the Vietcong was staged. It was nicknamed Charlie's Point in the film, and now even local Filipinos use this name.

Going there now, it's quite difficult to recognise anything from the film.

The fake Vietnamese village was blown up at the time, and the trees which were burnt down as part of a simulated napalm attack have all regrown.

But there's no chance of the beach nearby going back to the way it once was.

All the way along it, people are surfing - beginners screaming excitedly as the waves crash over them, and seasoned professionals perfecting their technique on the breakers.

This town has come a long way since the days of Apocalypse Now.

Perhaps the best way to sum up its changing fortunes is a little shop on the seafront.

Its name? Charlie Does.

BBC news

Best Investments 2013: Buy the Philippines Top-Performing Emerging Market of Q1

While the Standard & Poor's 500 Index 10% first-quarter gain was great, it wasn't the world's best.

One of the standout performances in 2013's first quarter was in a market that's off many investors' radar screens: the Philippines.

The Philippine stock market, valued at about $236 billion, rose by 17.8% in the first quarter.

Money Morning's Global Investing Strategist Martin Hutchinson told us to invest in the Philippines back in November. Hutchinson said the BRICs - Brazil, Russia, India and China - are no longer the best investments for overseas growth. Instead, it's time to focus on the true rising stars in the emerging world, like the Philippines.

As Hutchinson says, "With the right emerging markets, real growth is easier than you think."

Here's why the Philippines is expected to continue this growth in Q2.

The Best Emerging Market of Q1

The Philippines has been on the rise ever since the election of Benigno Aquino as President in 2010. Aquino's policies - to boost spending while cutting the fiscal deficit and attacking corruption - have led to a boom in both consumption and investment in the Philippines.

Last year alone, the Philippine economy grew at a robust 6.6%, up from just 3.9% in 2011. Among its Asian peers, this puts it behind only China and Thailand.

The World Bank forecasts the Philippine economy to stay strong. It predicts growth of 6.2% this year and 6.4% in 2014.

In March, the country won its first ever investment grade rating from Fitch. The ratings agency raised the rating on Philippine government debt from BB+ to BBB-. It cited the country's resilient growth, strong fiscal management by the government ("governance reforms") and solid policies by its central bank to control inflation.

And according to the Financial Times, Fitch also said that the country's external balance sheet was similar to countries with an A rating rather than those with BB or BBB ratings. No surprise then that the Philippine peso is Asia's best performing currency over the past year, rising 5% versus the U.S. dollar.

The Philippines may receive another ratings upgrade sometime in the first half of this year from Standard & Poor's. In December, S&P raised its outlook of Philippine government debt from stable to positive. It cited the stability of the Aquino administration and the country's economic growth.

Currently, S&P has the country rated one notch below investment grade.

When the upgrade happens, it will allow fund managers that can only buy investment grade bonds to buy Philippine government debt. In anticipation of this event, traders have already pushed the country's benchmark 10-year government bond yield down from 4.7% last October to 3.5% now.

Best Investments to Play Philippine Growth

Asian fund managers remain positive on the market. The head of equity capital markets at Religare Capital Markets, John Sturmey, told Bloomberg News, "We are very bullish on the Philippines for this year and the following years."

Sturmey forecasts gains of 20%-30% for 2013.

Paul Joseph Garcia, fund manager at BPI Asset Management - the Philippines second-biggest fund manager - is also bullish. He sees the economy expanding at near a 7% rate in 2013.

Garcia also believes the index may gain 29% this year to the 7,500 level. If so, the value of the stock market, for the first time ever, will exceed the size of the economy.

U.S. investors can easily track the performance of the Philippine stock market through an exchange-traded fund, the iShares MSCI Philippines Investable Market Index ETF (NYSEArca: EPHE). It's up about 18% so far this year.

One cautionary note: it is an expensive market, trading at about 18 times projected 12-month earnings. But the profit potential of EPHE is huge.

In his 2013 Emerging Markets Forecast, Martin Hutchinson delivered two other economies he ranks among the best investments to play emerging market growth. You can get those economies' names here. Forget About the BRICs Buy These Rising Stars Instead

Money Morning

The Philippines as a BRIC Economies Successor

Recently, the BRICS nations met in South Africa. Due to severe debt crises in the advanced nations, the growth prospects in these economies are no longer immune to the turmoil in the West.

Among the emerging economies, the Philippines is best-placed for an upgrade. It is favorably positioned to sustain growth in an exceptionally grim international landscape. It could even become a BRIC nation – with continued reforms.

In the sweet spot    

During the past decade, I have used much time exploring and consulting on the transformation of the major advanced and large emerging economies worldwide. What most nations find particularly intriguing are the growth lessons of the BRICs.

When Goldman Sachs identified the emerging group of potential successors to the BRICs a few years ago, the Philippines also made it into the list, in the footprints of two other major Southeast Asian nations. However, Indonesia and Vietnam have attracted much more FDI, so far.

In the aftermath of the Ramos era, the role of the Philippines as a BRIC successor was based mainly on its economic potential rather than a sustained growth record. In 2002, the Philippines gross domestic product still amounted to $81 billion, in current prices. Today, it has tripled to $241 billion.

In the aftermath of the global crisis, the Philippines is one of the few nations in which forecasts are revised up by financial analysts. In January, it reported 6.8 percent year-to-year growth, which made it the growth leader in Southeast Asia.

Almost half of the recent growth can be attributed to private consumption, which has been coupled by investment, especially in construction. Due to the impending mid-term elections in May, government spending will accelerate through the spring.

The acceleration of domestic demand since the first quarter of 2012 reflects the country's solid macroeconomic fundamentals, stronger government finances, and confidence in the Aquino government's commitment to reform.

Along with current account surpluses and foreign exchange reserves, the growth record has given rise to a more diversified export basket, while shielding the economy from very challenging international headwinds.

Complacency is not an option

The beauty of the BRIC projections is that they allow policy architects to reflect on (very) long time perspectives. The trap of the same projections is that, when they create a sense of inevitability, they can lull even the most promising growth stories into complacency.

In the Philippines, delivering the growth promise is predicated on accelerated structural progress.

According to various competitiveness indicators, the country has made dramatic strides in improving competitiveness, though often from a very low base. The perception is that corruption and red tape are finally addressed decisively. With the strong macroeconomic performance, the financial sector has become supportive of business activity.

Despite these positive trends, weaknesses remain to be addressed, including the poor infrastructure, various market inefficiencies and labor market rigidities.

As the Aquino administration knows only too well, the economy needs to shift from consumption towards investment, both public and private. Sectorally, this requires rising productivity in agriculture, less dependence on low-wage and low-skill services and more on labor-intensive manufacturing and high value services.

In BRIC economies, such changes have typically preceded periods of sustained growth. However, in order to raise the incentives for job creation and entrepreneurship, they require difficult policy reforms in agriculture, manufacturing, business and labor regulations, and social protection.

In turn, these reforms make possible greater public investment in health, education, and infrastructure.

BRIC future requires more inclusive growth              

In the absence of adverse developments, the Philippines is at the verge of receiving an investment-grade rating, by the major rating agencies.

Nonetheless, significant challenges of poverty remain. Growth is not yet inclusive.

Except for Brazil, inequities have typically increased in all emerging economies during their high-growth phases, while job-creation has been strong and unemployment low. In the Philippines, the story is different.

Even in 2011-2012, unemployment rate stayed at 7%, while underemployment rate rose to 22.7% since the number of full-time jobs declined by half a million in the same period.

In the next half a decade, GDP growth rate in the Philippines could climb close to that of China. But in order to be sustained, this growth must become more inclusive.

In the Philippines, the BRIC future has potential for a large consumer economy, with some 150-170 million people by 2050. That objective is predicated on huge expansion of consumption – but it is only viable through more inclusive growth.

Due to the historical legacies of the Philippine political and economic institutions, there remain strong vested interests in the current status quo. That, in turn, makes vital reforms challenging to implement.

The Aquino administration has proven able and willing to make difficult decisions. In all BRIC nations, sustained growth has been neither inevitable nor automatic. It does not just happen. It must be made to happen. And sometimes that requires painful decisions in the short-term because they make possible sustained growth in the long-term.

An abbreviated version was published by The Philippine Daily Inquirer on April 1, 2013

Economonitor 

NORTH KOREA prepares to test medium-range ballistic missile as it CLOSES BORDER with CHINA; PHILIPPINES prepare for Nuclear Winter in mid-summer

  • US satellites have located North Korea's missiles
  • They have been pictured fueled and ready for launch
  • Fears North Korea will not issue test-fire warning

NORTH Korea has closed its border with China, turning back tourists as nuclear tensions continue to mount.

An official at the Dandong Border Office, who declined to give his name, told media: "Travel agencies are not allowed to take tourist groups to go there, since the North Korean government is now asking foreign people to leave. As far as I know, business people can enter and leave North Korea freely."

The move comes after it was revealed United States spy satellites had found two 'missing' North Korean nuclear-capable missiles.

CNN reported US officials were expecting a launch by North Korea "at any time".

Any such "test" launch would be seen as a further escalation of already high tensions in and around the Korean peninsula.

Things could be made worse if North Korea does not issue a "standard warning" of a missile test firing to commercial aviation and maritime shipping.

"We hope they issue a notification but at this point we don't expect it. We are working on the assumption they won't, "the official said.

US officials have confirmed that satellites have been kept over the suspected launch areas for the past week in order to locate - and monitor - the launch vehicles. Bad weather has made their job harder, they said.

The launchers are said to be about half-way down the North Korean east coast and about 20km inland. Satellite imagery shows the missiles have been fuelled and positioned for launch.

The Pentagon has announced it is ready to respond to any missile aimed at America or its allies.

US and South Korean officials have said that the Pyongyang regime may launch the missile as early as Wednesday.

The commander of US forces in the Pacific sought to reassure Congress that the Pentagon would be able intercept a missile. US satellites and radars in the region will be able to detect and quickly calculate the missiles' trajectory.

This would help determine if the launch was hostile - or a test.

The missiles would be shot down by land or sea based anti-missile weapons if they were to track over South Korea or Japan.

Navy Admiral Samuel J. Locklear said: "We have a credible ability to defend the homeland, to defend Hawaii, to defend Guam, to defend our forward deployed forces, and to defend our allies,'' Locklear told the Senate Armed Services Committee.

The US has never sought to shoot down a North Korean missile, and it's unclear if such a move would escalate the tension that has roiled the region. The Obama administration has moved additional military forces into the Pacific, but has sought to calibrate its response in the matter to avoid fueling the crisis.

A "counter-provocation plan" drawn up by US and South Korean officials calls for their combined military forces to respond proportionally to a North Korean attack, but to avoid any step that could set off an escalation of hostilities.

United Nations Secretary-General Ban Ki-Moon has warned that even a slight miscalculation on the Korean peninsula could spiral into an "uncontrollable situation" as he urged North Korea to tone down its provocative rhetoric and ease the "very dangerous" level of tension.

Earlier, Pyongyang urged all foreign companies and tourists in South Korea to evacuate, saying the two countries are on the verge of nuclear war.

The new threat appeared to be an attempt to keep the region on tenterhooks over its intentions.

Analysts see a direct attack on Seoul as extremely unlikely, and there are no overt signs that North Korea's 1.2 million-man army is readying for war, let alone a nuclear one.

South Korea's military has reported missile movements on North Korea's east coast but nothing pointed toward South Korea.

Still, North Korea's earlier warning that it won't be able to guarantee the safety of foreign diplomats after April 10 has raised fears that it will conduct a missile or nuclear test today, resulting in US retaliation.

The United States and South Korea have raised their defense postures, and so has Japan, which deployed PAC-3 missile interceptors in key locations around Tokyo yesterday as a precaution against possible North Korean ballistic missile tests.

"The situation on the Korean Peninsula is inching close to a thermonuclear war due to the evermore undisguised hostile actions of the United States and the south Korean puppet warmongers and their moves for a war against" the North, said a statement by the North Korean Asia-Pacific Peace Committee, an organization that deals with regional matters.

The statement is similar to past threats that analysts call an attempt to raise anxiety in foreign capitals. Observers say a torrent of North Korean prophecies of doom and efforts to raise war hysteria are partly to boost the image of young and relatively untested leader Kim Jong-un at home, and to show him as a decisive military leader.

Another reason could be to use threats of war to win Pyongyang-friendly policy changes in Seoul and Washington. Last week, North Korea told foreign diplomats in Pyongyang that it will not be able to guarantee their safety as of Wednesday. It is not clear what the significance of that date is.

Tourists continued to arrive in Pyongyang despite the war hysteria.

Australian Mark Fahey of Sydney said he was not concerned about a possible war.

"I knew that when I arrived here it would probably be very different to the way it was being reported in the media," he told The Associated Press at Pyongyang airport. He said his family trusts him to make the right judgment but "my colleagues at work think I am crazy."

Chu Kang Jin, a Pyongyang resident, said everything is calm in the city.

"Everyone, including me, is determined to turn out as one to fight for national reunification ... if the enemies spark a war," he said, in a typically nationalist rhetoric that most North Koreans use while speaking to the media.

In Seoul, South Korean Presidential spokeswoman Kim Haing told reporters that the North Korean warning amounted to "psychological warfare."

"We know that foreigners residing in South Korea as well as our nationals are unfazed," she said.

South Korean President Park Geun-hye, who has sought to re-engage North Korea with dialogue and aid since taking office in February, expressed exasperation with what she called the "endless vicious cycle" of Seoul answering Pyongyang's hostile behavior with compromise, only to get more hostility.

Yesterday North Korea said it was suspending work at the Kaesong industrial park near its border, which is combines South Korean technology and know-how with North Korea's cheap labor. North Korea pulled out more than 50,000 workers from the complex, the only remaining product of economic cooperation between the two countries that started about a decade ago when relations were much warmer.

Other projects from previous eras of cooperation such as reunions of families separated by war and tours to a scenic North Korean mountain stopped in recent years.

Miriam warns Philippines: Prepare for 'nuclear winter

Senator Miriam Defensor Santiago, an expert in international law, warned the country of a "nuclear winter" should the ongoing tensions in the Korean peninsula escalate further.

Santiago said the so-called "nuclear winter" creates "dust clouds absorbing the sunlight, dropping temperatures, and damaging agriculture in wide areas of our country."

Initially, a nuclear weapons blast – with the Philippines a possible victim – will release a "fireball of extremely high temperature, Philippine environment could be degraded for generations." Residual effects include severe damage to health, such as leukemia, congenital defects and mental retardation, she said.

But with nuclear taboos compromised due to countries already thinking of striking back, the Philippines should be ready instead with analysis of laws that it could bring to international courts should it become a victim to the standoff.

"Should armed conflict arise, the Philippines should be ready with analyses of certain laws applicable in armed conflict, notably human rights conventions, the Genocide Convention, international humanitarian law, the principle of neutrality, and environmental law," Santiago said.

She said the shift is now towards risk management.

Philippines a Neutral state

Santiago said countries have to respect the integrity of neutral states like the Philippines.

"North Korea would fall under the duty to justify the use of particularly destructive weapons, if they seriously affect neutral countries like the Philippines. The consequences entailed by unjustified use will be governed by the law of state responsibility," she said.

She also noted the country is protected by the principles of environmental law, such as the 1978 ENMOD Convention or the Convention on the prohibition of military or any other hostile use of environmental modification techniques.

"This convention prohibits the use of weapons which have 'widespread, long-lasting, or severe effects' on the environment."

Combat

She also noted there is no treaty that would provide rules in the use of nuclear weapons in combat. "Present treaties deal only with manufacturing, testing, possession, proliferation, deployment, limitation, and reduction of nuclear arms," she said.

While the UN General Assembly has condemned nuclear arms, there are no resolutions adopted by all members, she stressed.

Nonetheless, she said that a nuclear strike hitting the Philippines constitutes a grave breach of humanitarian law.

"Hence, under international law, North Korea would assume the duty to pay reparations, which can amount to extreme proportions. In addition, use of the atomic bomb may qualify as war crimes and as crimes against humanity, under the Rome Statute of the International Criminal Court," she said.

With reports from ABS-CBN News and News.co.au

Philippine led ASEAN with 74% Investor's confidence -Frontrunner Foreign Investments

The Philippines seen as ASEAN economic frontrunner by Standard Chartered bank. (Credit: Standard Chartered Bank)

With the improvement of economies affected by the global recession in recent years, world renowned debt watcher Standard & Poor's (S&P's) and British banking giant Standard Chartered Bank recently said in separate reports that the Philippine economy is seen to continue on its upward trend and become the standout economy in Southeast Asia in 2013.

The Asia-Pacific region, which has endured half a decade of economic challenge, is expected to make progress in 2013. External factors affecting the region's economy with the European recession easing. The United States of America is also expected to grow faster. China has avoided an economic slowdown.

According to S&P's, Philippine growth is expected to reach 5.9 percent this year as the recession in Europe and America eases. More investments in tourism and the business process outsourcing industries have spurred economic growth to become more broad-based. These, combined with increased fiscal space, are putting the Philippine economy on a higher growth trajectory. The country holds a BB+ credit rating with S&P, a notch investment grade. It also obtained a positive outlook in 2012, indicating that an upgrade could be announced over the next 12 to 18 months.

According to the Standard Chartered Bank, a recent survey of more than 900 investors in the Association of Southeast Asian Nations (ASEAN) saw the Philippines emerge as the frontrunner in the region. The survey showed that 74 percent of investor-respondents in Manila expect to see better business prospects in 2013 compared to the year before, dwarfing scores in Jakarta (46%), Bangkok (44%), Singapore (44%), and Kuala Lumpur (41%).

We congratulate the government of the Republic of the Philippines headed by H.E. President Benigno S. Aquino III and Vice President Jejomar C. Binay, in their unrelenting efforts in boosting the Philippines' economic growth.

Further Positive Outlook for Foreign Investments

Ellspermann's sentiments are ones that are shared by an overwhelming number of foreign businesses.

The projections of Standard Chartered Bank for the Association of Southeast Asian Nations (ASEAN), drawing from a sample of over 900 investors, indicate the Philippines is in the lead for areas of development—edging out even Singapore and Malaysia, a fact illustrated in the adjacent chart:

"The Philippines was the standout country in terms of the strength of on-the-ground sentiment," Standard Chartered noted. "We expect the Philippines to see stronger investment growth this year, sustaining the strong momentum from 2012."

"The case for investment grade is supported by a number of factors, including a resilient economy, a current account surplus, stable fiscal policy, and the narrowing of the budget deficit," the bank explains, solidifying its outlook.

The study also cited improvements in infrastructure, the peace process with the rebellious Moro Islamic Liberation Front, the increasingly strong peso, and the progressing decreases in the national deficit (aided by the new "Sin Tax") as additional reasons for their report.

"We are optimistic that the Philippines will outperform the region and enjoy another year of strong growth momentum in 2013," Standard Chartered said, adding that they expected that the Philippines will reach investment grade by the end of fiscal year 2014.

Furthermore, the continued strengthening of the stock market has increased confidence in companies seeking to invest in the Philippines. The expansion of BPO offices is ongoing as well, despite the waning of this type of business in other nations in Asia. For the Philippines, the indications are clear.

The international economy continues to recover from far-ranging economic crises, and more and more businesses are veering away from established practices and looking towards a sustainable future.

As an investor favorite, the Philippines is at the forefront of development, ready to lead a region on the cusp of becoming a global economic giant.

With reports from Tempo and the Washington Times

Philippine Gov't DOST developing Filipino 'road train' - September 2013

loQal - The Department of Science and Technology (DoST) announced it will develop a monorail train system that will run on electricity. A 500-meter track will be built at the UP Diliman campus to test this monorail system. (Computer-generated design courtesy of DoST)

Philippines --- A "Road Train" that can transport more commuters than the Metro Rail Transit (MRT) is being developed by the Department of Science and Technology (DOST), with a prototype expected in September, 2013.

The DOST conceived of the Road Train as it continued to test the Automated Guideway System (AGT) on an elevated rail line at the campus of the University of the Philippines (UP) in Diliman, Quezon City.

Another train in an elevated track is also being pushed by the DOST, starting in front of the DOST head office all the way to Laguna.

Without giving much details, DOST Secretary Mario Montejo revealed the plans for the Road Train at the opening day on Friday of the "Innovation Congress" or ICON at Bonifacio Global City.

DOST and Association of Vehicle Importers and Distributors (AVID), headed by president Fe Agudo, co-organized ICON until April 7.

Montejo said it is the task of the DOST to leverage science and technology (S&T) to create new and better products, processes, services, and systems" to improve the lives of Filipinos.

Montejo said the planned Road Train will have a dedicated track, but can also travel using vehicles' ordinary wheels in Metro Manila roads.

It will have an average speed of 30 kilometers per hour, and trains coming after each other at every 1.5 minutes, he said.

"There will be four couches in every Road Train, each couch capable of having 120 passengers for a total of 480 people," said Montejo.

"While MRT accommodates about 500,000 passengers a day, the Road Train will have some 652,800 commuters and run 17 hours a day," he said.

Filipinos are behind the making of the Road Train, he added.

He said innovation without action is empty and not capable of addressing the countless challenges that Filipinos face.

Yahoo News!

PF: All Oil and Gas in Paracels and Spratlys West Philippine Sea are LIES

All those oil and gas deposits everyone wants in the South China Sea may not even be there

As it stands, six countries claim conflicting territorial rights in the long-simmering South China Sea dispute. As anyone will tell you, one of the main drivers of this conflict is the "sizable deposits of oil and gas" believed to reside in the area. But what if that's actually a lie? A new report by the U.S. Energy and Information Administration finds that the contested areas of the South China Sea do not have large conventional oil and natural gas resources:

"The Spratly Islands and Paracel Islands are two of the most contested areas (see dark blue islands on map above). However, unlike other parts of the South China Sea, these areas have not been assessed to hold large (conventional) resources of oil and natural gas....

EIA's analysis shows that most fields containing discovered oil and natural gas are clustered in uncontested parts of the South China Sea, close to shorelines of the coastal countries, and not near the contested islands. Industry sources suggest almost no oil and less than 100 billion cubic feet of natural gas in proved and probable reserves exist in fields near the Spratly Islands. The Paracel Island territory has even less natural gas and no oil".

Below is an EIA map of proved and probable oil and gas reserves in the area:

So maybe going to war over the disputed islands isn't such a great idea? Worth considering.

Foreign Policy

Japan Terra Motors launches electric tuk-tuk for the Philippines 100,000 units in 2016

Terra Motors' e-tricycle can carry six and travel 31 miles per charge. (Credit: Terra Motors)

"E-trikes" are part of a movement to cut CO2 emissions and fuel costs in Asian cities. Manila wants 100,000 by 2016.

Tuk-tuks are a common way to get around in many Asian cities, but they contribute to urban pollution and high fuel costs.

Tokyo-based startup Terra Motors wants to put more non-polluting vehicles on the streets with an electric tuk-tuk unveiled this week for the Philippines.

The blue and white "e-tricycle" is powered by a lithium-ion battery and can carry six people including the driver. It's just under 11 feet long and is steered with handlebars.

It can travel some 31 miles per 2-hour charge, according to the firm, which is hoping to become the world's top electric tuk-tuk maker.

"There is no single company in Asia that mass-produces electric bikes or tricycles," president Toru Tokushige was quoted as saying by AFP.

"I think it could have a big impact if a Japanese company is the pioneer in the market with products of such a futuristic design."

The tuk-tuks will go on sale in fall 2013 for about $6,300 apiece.

Terra Motors is gunning for a Philippine government plan, funded by a $300 million Asian Development Bank loan, to replace 100,000 gas-powered tricycle taxis with "e-trikes" by 2016.

The average tuk-tuk driver in the Philippines earns less than $10 a day, but e-trikes will save him $5 a day in fuel costs, according to the bank. The trikes will be introduced to Manila and other cities under a lease-to-own system.

"Replacing 100,000 gasoline-powered trikes will enable the Philippine government to save more than $100 million a year in avoided fuel imports, while decreasing annual CO2 emissions by about 260,000 tons," the bank said in a release. http://cnet.co/172FfHx

C|Net

USA, Japan preferred the Philippines for Investment, BRICSS summit faces challenges over growth

As USA and Japan preferred the Philippines for Investment, BRICSS summit faces challenges over growthBRICS leaders (from left) India Prime Minister Manmohan Singh, Chinese President Xi Jinping, South African President Jacob Zuma, Brazil's President Dilma Rousseff and Russian President Vladimir Putin pose in Durban on March 27, 2013. ALEXANDER JOE AFP/Getty Image

Leaders of the BRICSS countries gather in South Africa on Tuesday for their annual summit, knowing that some of the shine has come off their economies.

While they are still surging by the developed world's flagging standards, they rarely generate the same excitement as before among investors. The heady days before the 2008 global crisis, when the BRICSS movement was launched amid an emerging markets boom, are a distant memory. So even is the mood of 2011, when Brazil, Russia, India and China asked South Africa to join the club at a time when China was helping to pull the world out of recession.

The BRICSs growth rates have fallen, with Brazil leading the way down. And this year's recovery looks fragile. The International Monetary Fund forecasts gross domestic product growth of 5.5 per cent in the emerging markets in 2013, barely higher than 2012's estimated 5.1 per cent.

Investors, who ploughed money into BRICSs equities last year on hopes of a faster recovery, have more recently bet on the US and Japan and on smaller developing economies, notably the Philippines.

The BRICSs' economic slowdown is mainly due to the stagnation in the developed world, with the eurozone, in particular, holding back recovery. On average, emerging markets are growing about 4 percentage points faster than the developed world – just as they did pre-crisis.

The BRICSs still dominate the emerging markets, with China alone accounting for more than 40 per cent of the collective GDP. But some growth momentum is passing elsewhere. As China gets richer and its population ages, growth is slowing. Meanwhile, India, which could be picking up the baton as a far poorer country, faces structural challenges to fulfill its potential. Brazil and Russia have failed to generate the investment levels needed for sustained accelerated growth and South Africa struggles with deep-rooted social and economic difficulties.

So investors are looking to regions where GDP growth rates are higher than before 2008: south east Asia, for example, and parts of Africa, headed by Nigeria. For the moment, these economies are too small to dent the collective dominance of the BRICSs. But the emerging markets are clearly becoming more diverse.

China

Among the BRICSs countries China is the heavyweight, with an economy nearly a quarter larger than the other four combined. Three decades with average annual growth of about 10 per cent has lifted China into the lower ranks of the middle-income countries and drastically improved the living standards of almost one-fifth of humanity.

But partly because of its sheer size and partly as a result of a growth model that is reaching the limits of its effectiveness, China appears to be heading for a period of weaker growth after notching up an expansion of 7.8 per cent in 2012, the slowest pace in 13 years.

In order to stop the growth rate heading even lower, China's leaders, who completed their ascension to their posts last week, are expected to introduce reforms aimed at further reducing the country's reliance on environmentally destructive investment-driven, export-led growth.

"China certainly has a lot of challenges but at least the political elites appear to understand the problems and are working to fix them," says Eswar Prasad, a professor at Cornell University and a former head of the IMF's China division. "If they can successfully implement reforms then growth will settle in a 7 to 8 per cent range in the next few years. That is a comfortable rate that still solves a lot of problems."

If Beijing's new mandarins can maintain this lower but still impressive growth rate, then the Chinese economy is predicted to overtake that of the US after accounting for price differences to become the world's biggest by as early 2016, according to the OECD.

India

Hardly a day passes in India without the chief executive of a big Indian company – or the local boss of a foreign multinational – grumbling in private about the difficulties of doing business in what was until two years ago a high-growth economy.

True, there is almost unanimous praise in the business world for the reforms undertaken by Palaniappan Chidambaram, finance minister, since he reclaimed the post eight months ago. His changes include reduced subsidies for diesel, faster privatization, efforts to curb the budget and current account deficits, and an easing of restrictions on foreign investment in retail and airlines.

Yet such changes take time to bear fruit and Indian economic expansion remains sluggish. GDP growth is expected to slow to 5 per cent in the fiscal year to the end of this month, its lowest pace for a decade.

Entrepreneurs say a longstanding reluctance by the government to make sweeping reforms to labor and land laws has left them reluctant to invest and even when they do want to invest their projects lie idle because bureaucrats are reluctant to grant the necessary approvals. Nor is the likely shift towards populist policies before the general election due by May 2014 likely to do much long-term good for the economy.

"We need a greater strategic direction in selling the country's strengths," Siddharth Birla, senior vice-president of the Federation of Indian Chambers of Commerce and Industry, said on Friday, calling for a doubling of exports and a rise in the share of manufacturing in GDP from 15 per cent to 25 per cent.

"Exports and business investment must be the dual drivers of future growth necessary to lift the economy from the deep economic crisis and provide job opportunities for our rapidly expanding and young workforce," said Mr.. Birla.

Russia

While Russia remained the fastest growing large economy in Europe last year, it has recently showed signs of slowing. As the title of a research note from Renaissance Capital says: "Russia's economy grinds to a halt in February".

Ministry economy figures are indeed worrying – initial statistics report that February GDP growth was almost flat on a year-on-year basis – a minuscule 0.1 per cent. This was down from the already worrisome 1.6% year on year growth recorded in January. According to Renaissance Capital, the slowdown in the Russian economy has now been going on for five consecutive quarters and the first two months of 2013 have yielded 0.9% growth compared with January and February 2012.

The signs of sputtering growth have put pressure on the central bank to loosen monetary policy and target growth instead of inflation. Dmitry Medvedev, prime minister, said in January he would like to see 5 per cent growth, and this has been echoed in a number of statements by cabinet officials.

Elvira Nabiullina, former economy minister and adviser to Vladimir Putin, president, is set to take over as central bank governor in June, and is thought to be more dovish on inflation than her predecessor Sergei Ignatiev.

Overall there are signs that the liberal consensus in Russian economic policy over the past decade under Mr. Putin has been chipping. Last week came the completion of the $55bn purchase of TNK-BP by the state, the largest nationalization in Russia's history. The government has recently started to ramp up spending on the military: Rbs23tn ($766bn) of additional spending on armaments are planned over the next 10 years.

South Africa

South Africa joined the BRICSs political grouping in 2011 in spite of lagging behind the group's other members, both in terms of economic size and demographics. Although it boasts Africa's largest and most developed economy, South Africa's GDP of about $400bn is dwarfed by China, India, Brazil and Russia, while its population is 50m.

Its economic performance has been sluggish since the 2008 global economic crisis, which cost South Africa about 1m jobs.

Delivering his budget last month, Pravin Gordhan, the finance minister, revised downwards his growth forecast for this financial year to 2.7 per cent, in contrast to the 3 per cent the Treasury estimated in October.

That followed on from 2.5 per cent in 2012, a turbulent year that was marred by political infighting within the governing African National Congress and violent wildcat strikes in the mining sector which claimed about 50 lives and cost the industry billions of rand in lost production. It has also contributed to a widening current account deficient, which hit 6.5 per cent of GDP in the fourth quarter and the sharp slide in the rand, which has depreciated by about 9 per cent against the dollar this year.

With a third of manufactured exports shipped to Europe, South Africa is one of the emerging markets most exposed to the eurozone crisis. Its economic health is also adversely affected by domestic issues, including infrastructure constraints and poor investor sentiment, which has contributed to rating agency downgrades in recent months.

However, South Africa's inclusion in the BRICSs is seen to be less about its own economic prowess and more a reflection of Africa's role as a source of raw materials and high growth rates. The second-largest continent has enjoyed average growth of about 5 per cent, with sub-Saharan Africa forecast to grow at 5.8 per cent this year.

Brazil

Of all the BRICSs, Brazil's economy seems to have been the worst affected by the global slowdown resulting from the eurozone's woes.

But at least some of Brazil's problems are self-inflicted, economists believe. A softening of commodity prices and global risk aversion coincided with a crackdown by Brazil on capital inflows, which it feared contributed to an appreciation of its currency against the dollar and was making local industry uncompetitive.

At the same time, a decade-long boom in consumer credit was losing steam and investors were becoming more cautious about a perceived increase in government intervention in the economy. Industry meanwhile struggled because of high costs, rising wages and weak productivity gains.

The result was a perfect storm in which the economy slowed from an above trend 7.5 per cent in 2010 to 0.9 per cent in 2012. The finance minister forecasts 4 per cent for 2013 but the consensus is for 3 per cent.

President Dilma Rousseff remains popular because unemployment is still at record lows and wages continue to rise.

But she is desperately trying to reignite investment in an effort to revive headline economic growth. The signs in January were positive with GDP starting to grow more quickly but much more will need to be done.

Ilan Goldfajn, chief economist at Itaú-Unibanco, said if the government can push through major airport, port, road, rail and other infrastructure projects, it might be able to kick-start rapid growth again.

"If you get infrastructure projects correct, other investors waiting to see if there will be a recovery will follow this accelerator factor, this will surprise people on the upside for the first time in two to three years and then people will be more confident," he says. ( http://on.ft.com/YlCjT9)

The Financial Times

Investment Recommendation: Bitcoin Investments

Live trading with Bitcoin through SimpleFX Trading platform would allow you to grow your $100 to $1,000 Dollars or more in just a day. Just learn how to trade and enjoy the windfall of profits. Take note, Bitcoin is more expensive than Gold now.


Where to buy Bitcoins?

For Philippine customers: You could buy Bitcoin Online at Coins.ph
For outside the Philippines customers  may buy Bitcoins online at Coinbase.com