Asian Business and Economy

Chinese invaded Zambales, blow up mountains, Killing farmers and seize Nickel into hi-tech weapons to sabotage the Philippine military and economy

Heavy destruction from the invasion of 3 the illegal Chinese Giants in Sta Cruz, Zambales

It's not only Bajo de Masinloc (Panatag/Scarborough Shoal) that the Chinese have occupied. They also have grabbed a slice of mainland Zambales, 108 kilometers east. There Chinese miners rule, stealing nickel ore the same way they poach fish in the shoal. Bribed local officials abet them like modern-day Makapili collaborators.

In the West Philippine Sea-side Sta. Cruz municipality, Zambales, operate three Chinese conglomerates:

Jiangxi Rare Earth & Metals Tungsten Group,
Wei-Wei Group, and
Nihao Mineral Resources Inc.

Through Filipino dummies they have set up five supposed "minahang bayan (small-scale mines)." The five load ore and unload equipment in one common pier, betraying the fact that they actually are one.

Republic Act 6082: "Section 1. There is hereby created in the Department of Justice a board which shall be designated and known as the Anti-Dummy Board and which shall be vested with and shall exercise the powers and duties hereinafter.

Anti dummy law protects the Philippines from unlawful use and exploitation having in its name or under its control, a right, franchise, privilege, property or business, the exercise or enjoyment of which is expressly reserved by the Constitution or the laws to citizens of the Philippines for at least at least 60% of the capital of which is owned by such citizens and maximum of 40% for a foreign investors but the Chinese mining firm paid the local people as dummy to virtually own the 60% while controlling 100% full real ownership. Section 3. - Any corporation or association violating any of the provisions of this Act shall, upon proper court proceedings, be dissolved and offering rewards 25% to the informer in Section 3-A. If dummy will come out they would have a chance to own 25% of these whole Chinese illegal investment and 75% would be turnover to the government.

The five machinate under cover of the People's Small-Scale Mining Act of 1991. Such wee mines are for subsistence quarrymen who use only brawn, mini-crushers, hand picks, and shovels. Anything but puny, the five Chinese fronts use sophisticated excavators, drills, crushers, and explosives. With the heavy ordnance, they level mountains for tens of thousands of tons of nickel ore a day. (A small-scale mine is limited to only 50,000 tons in its lifetime.)

Residents of Sta. Cruz cry that the Chinese mines have denuded the forest watersheds, and poisoned farmlands, rivers, sea, and air. Townsfolk of adjacent Masinloc, Zambales, and Infanta, Pangasinan, also suffer. Muddied coastal waters drive small fishermen farther out to sea. But in the vicinity of Bajo de Masinloc, Chinese warships shell them back to shore.

The Philippines is now China's main source of nickel. The five Chinese mines in Sta. Cruz contribute a sizeable portion. Although no exact figures can be obtained – small-scale mines operate under local government licenses, beyond the scope of the Mines & Geosciences Bureau – locals observe at the common wharf the departure of four ore-laden Chinese bulk carriers per week. China processes the nickel into hi-tech weapons and surveillance systems – to sabotage the Philippine military and economy into submission.

The Sta. Cruz-Masinloc-Infanta highway is called the "dump truck capital of the Philippines." Thousands of trucks' tailpipe emissions and ore-load dust pollute the air to alarming levels. Field monitors of the Department of Environment and Natural Resources reported on Nov. 15, 16, and 27, 2012, suspended particulates of 208, 727, and 824 micrograms per cubic meter, respectively, on the highway. Maximum tolerable is 90.

So in the barrios of Sta. Cruz, residents suffer acute respiratory infections – their top cause of morbidity. From 2001 to 2011, rural health workers noted an increasing incidence of 4,500 to 8,500 new cases per 100,000-population per year. Yet the Chinese mines have not improved local household incomes. (The entire mining industry has the highest poverty incidence.)

Health and environment ruin are accompanied by economic and political decay. By disguising as small-scale mines, the five Chinese thieves are able to skirt the stringent rules on the big ones. Provincial business permits can be obtained within days for as low as ₱10,000, and environmental clearances for ₱15,000, unlike the years-long wait for biggies to be scrutinized. Because virtually unregulated, the five Chinese mines pay no taxes, duties, fees, or royalties – for at least the sickened townsfolk's medical expenses. Provincial officials justify their localized exactions by pointing out that local governments do not get shares of central government revenues from big miners. (In 2011 the DENR reported that three million tons of Philippine mineral ores that were processed in China were unaccounted for by trade and Customs authorities.)

The mayors of Sta. Cruz, Masinloc, and Infanta profess to oppose the Chinese mines. That the latter continue to operate raises suspicion that the provincial capitols of Zambales and Pangasinan go over the mayors' heads and deal directly with pliant barangay officials. Either that or somebody's lying. The mayor of Infanta was murdered last December.

Bribery stories taint the Chinese mines. How they get away with their destructive ways is a mystery. The Wei-Wei Group entered Botolan, Zambales, in 2005 via a rushed approval during the Arroyo tenure. It came right after then-President Gloria Arroyo allowed China illegally to explore Philippine waters, under a secret, treasonous Joint Seismic Marine Understanding. Wei-Wei later barged into Sta. Cruz-Masinloc-Infanta.

The Jiangxi Group joined in partnership with a Nihao Minerals subsidiary. Officers of Nihao and affiliate Geograce Resources Inc. were involved in the illegal grant to ZTE International Corp. in 2005 of mining rights in the gold rush area of Mount Diwalwal, Compostela Valley in Mindanao Island.

With report Jarius Bondoc Opinion published from philSTAR

Holy Land: No Visa required for Both-Israel Seeks Direct Flights to the Philippines

4:18 AM By Makisig Bayani 0 Comment

The Israel governments seeking to establish direct flights to Manila in an effort to increase exchanges between the two countries particularly in trade and tourism.

According to Israeli diplomats, aviation officials from both countries are at an advanced stage of negotiations in their efforts to make revisions to an outdated sixty year old air services agreement. The plan is to establish direct flights between the two countries.

Israeli Ambassador Menashe Bar-On said that once all of the small details have been ironed out, the delegations from each country will meet to a sign a new up-to-date air services agreement. "We are updating the current agreement which is 60 years old," said Bar-On. "We're updating the requirements for aviation and international regulations. Once it is finished, it will pave the way for airlines to make new business."

A direct link would enhance the level of exchange between the two countries particularly in the area of tourism as citizens of Israel and the Philippines are able to enter each country without a visa. According to Chaim Choshen, the top Israeli diplomat for Southeast Asia, the potential for exchange between the two countries is huge. "I think there is huge potential because Israel is the Holy Land, and most of the population of the Philippines are Christians and Catholics," said Choshen. "I think the Holy Land means something to most Filipinos. I think almost every Filipino has a dream to visit the Holy Land."

However, Filipinos aren't the only citizens expected to book flights. The Philippines could prove to be an attractive destination for Israeli tourists. Thailand has seen much success receiving nearly 200,000 Israeli tourists annually aboard twice-daily direct flights between the two countries. But Israeli tourists wishing to head to the Philippines must currently connect in Hong Kong or Bangkok.

"I think the Philippines can be very attractive to young Israelis. A lot of Israelis are touring Asia and are looking for cheaper destinations," said Choshen. "It's a beautiful country with beaches. You have a lot to offer and Manila has many restaurants."

If young Israeli's are indeed looking for cheaper destinations, then Cebu Pacific would be an ideal carrier to launch the route. But Israel is interested in inviting Philippine Airlines to fly directly to its cities following the European Union's decision to permit the airline once again into European air space. "I think these are very meaningful developments that we recognize are very promising," Choshen said.

Current statistics indicate that more Filipinos are travelling to Israel than Israelis coming to the Philippines. Last year, 13,450 Filipinos visited the Holy Land while only 5,895 Israelis came to the Philippines. But improved flight connections and increased tourism promotion in the Israeli market could be lucrative as the Philippines seeks to steal the 200,000 Israeli tourists currently headed to Thailand.

"The direct route will also help boost trade ties between the two countries, currently at a level that lags behind other Asian countries," said Choshen. Trade between the two countries currently sits at around $200 million. That is compared to $1.1 billion with Vietnam and $5 billion with India. Israel currently exports information technology, electrical and medical products to the Philippines.

Philippine Flight Network

Czech Inekon Railway Blacklisted by DOTC ex-chief MAR ROXAS – for refusing to pay $30 Million USD (₱1.3 Billion Pesos) Red-tape

11:43 PM By Makisig Bayani 0 Comment

Manuel "Mar" Araneta Roxas II (MAR ROXAS), a Former Department of Transportation and Communications (DOTC) Chief; whom during his term, DOTC Execs ask $30 Million USD from a Czech Railway firm to win a supply contract for the DOTC's MRT3 expansion project. Photo from Wikipedia

DOTC execs tagged in $30 Million US Dollars (₱1.3 Billion Peso) shakedown with the European Czechs' Inekon fuming scandal for under the table (Red-tape) that involves former DOTC chief (MAR ROXAS) Manuel Roxas II.

DOTC Executives involve in the Czechs' Inekon - Philippine DOTC $30 Million Scandal remained in their DOTC position and even promoted, the following:

Jose Perpetuo "Juju" Lotilla,
Rene "Timmy" Limcaoco,
Catherine Gonzales
Jaime "Jim" Feliciano.

All of them are still at the DOTC. Catherine Gonzales, who came in as an assistant secretary, has since been promoted to undersecretary.

Inekon, a Czech company a top 100 corporations in the Czech Republic and is involved in railway projects in several European countries and the United States speak-up for former DOTC Chief MAR ROXAS's involvement for demanding $30 Million US Dollars (₱1.3 Billion Peso) to win a supply contract for the DOTC's MRT3 expansion project.

One of their companies, Inekon, has been blacklisted by the Department of Transportation and Communications (DOTC), barred from bidding to supply trains for the Metro Rail Transit 3 (MRT 3).

The blacklist followed a meeting at the DOTC in July last 2012, during which, one of those present alleged, department officials asked the Inekon Group executives for $30 million US Dollars if they wanted the supply contract.

Czech Ambassador to the Philippines Josef Rychtar, who accompanied the Inekon delegation to the DOTC, reportedly advised his compatriots not to engage in corruption.

The amount was allegedly whittled down to $2.5 million. When the Czechs still didn't give in, their project proposal, first endorsed to the DOTC three years ago by the Czech government, was scuttled and the company blacklisted.

The DOTC was headed at the time by (MAR ROXAS) Manuel Roxas II, and the department officials who met with the Czechs were his recruits. They included Jose Perpetuo "Juju" Lotilla, Rene "Timmy" Limcaoco, Catherine Gonzales and Jaime "Jim" Feliciano. All of them are still at the DOTC. Gonzales, who came in as an assistant secretary, has since been promoted to undersecretary.

When Jesse Robredo died in a plane crash and Roxas left the DOTC to take over the Department of the Interior and Local Government, his recruits were left behind, and Inekon remained barred from the MRT-3 project.

Last April, Czech Ambassador to the Philippines Josef Rychtar met with new DOTC Secretary Joseph Emilio Abaya and related details of the July meeting. There was no action from the DOTC.

Late last month, news reports emerged, citing unnamed sources, that President Aquino's eldest sister Ballsy, her husband Eldon Cruz, former DOTC head Pete Prado and Steve Psinakis, a son-in-law of the late Eugenio Lopez Sr. and consultant and adviser of First Philippine Holdings Corp. and Benpres Holdings Corp., had asked Inekon for $30 million to facilitate the contract.

Czech's Rychtar criticized Aquino's Straight Path for "Slow Action" But vowed to prove that President Aquino's eldest sister Ballsy, her husband Eldon Cruz are innocent

An exasperated Rychtar then sent a letter to President Aquino, dated June 29, 2013 and received by Malacañang nearly two weeks ago, clearing the Cruz couple and Prado, and raising the same issues he had discussed with Abaya.

Rychtar followed this up with another meeting last Wednesday with Abaya.

I am so mad," Rychtar told The STAR the other night. "In other countries, an investigation would have been conducted at once."

He wondered why an administration that purports to focus on the fight against corruption and on taking the straight path or daang matuwid has been slow to act on the issue.

Worse, Rychtar said, "the innocent are the ones getting hurt" – referring in particular to Ballsy and Eldon Cruz.

The ambassador knows the Cruz couple personally and said the stories against them are "completely false."

Rychtar said he was ready to talk and face probers if needed.

No commissions

In his letter to the President, a copy of which was obtained by The STAR, Rychtar wrote: "The Czech proposal for the MRT3 capacity expansion and modernization is a government-to-government deal which cannot contain any provisions for commissions."

Over the past three years, according to the letter, the Czech Ministry of Trade and Foreign Affairs had transmitted more than 10 official letters to the Philippine government and submitted to the DOTC "booklets of extensive technical plans and financial proposals in order to comply with Philippine Procurement Procedures."

"We continue to wait patiently for a response from the DOTC," the letter stated.

The one-page letter opened with a clarification to Aquino about the "inaccurate and nasty press reports pertaining to the MRT3 capacity expansion."

"I wish to state that the allegations that members of your family were involved with discussions with Inekon on any projects in the Philippines are simply untrue and malicious," Rychtar wrote the President. "Neither Secretary Prado nor any member of your family has offered their assistance in any of the projects that my country is pursuing in the Philippines. Your family is well known not to involve themselves on governmental affairs, most especially in the area of procurement."

Rychtar wrote that he held Eldon and Ballsy Cruz as well as Prado "in the highest esteem."

The ambassador said he was writing the letter "on both a personal and official capacity" and was prepared to issue a public statement clearing Ballsy and Eldon Cruz, and to declare the Czech government's "continued interest" in participating in the DOTC program.

"In early April 2013, I was able to secure a meeting with Secretary Emilio Abaya to report an incident between some officials of his department and myself, together with the top management of Inekon," Rychtar wrote. "While I still have yet to discern who are behind these terrible press releases, I had hoped that Secretary Abaya would have dealt with this issue in a swift and judicious manner before it reached this embarrassing and untenable state of affairs."

Inekon is one of the top 100 corporations in the Czech Republic and is involved in railway projects in several European countries and the United States.

MRT3 has a fleet of 73 Czech-made modern and air-conditioned rail cars, which were built by another Czech company – CKD Doprovni System of Prague. The rail vehicles are articulated, eight-axle , three-section cars, designed for single-ended operations.

Each train can seat 80 passengers and can carry, under crush loading conditions, 394 commuters at any one time. The MRT3 trains carry 23,000 passengers per hour per direction daily.

With report from ABS-CBN News

INSEAD- Philippines ranks low in innovation: study at par with Africa's Uganda,, Botswana

4:36 PM By Makisig Bayani 0 Comment

Innovation in the Philippines is only at par with Uganda and Botswana, according to a global study released Wednesday.

The Philippines has a rating of 31.2, which is good for 90th place in the 2013 Global Innovation Index published by Cornell University, INSEAD business school, and the World Intellectual Property Organization (WIPO).

African countries Uganda (31.2) and Botswana (31.1) are in 89th and 91st places, respectively.

The top 10 most innovative nations and territories are:

1 Switzerland 66.6

2 Sweden 61.4

3 United Kingdom 61.2

4 Netherlands 61.1

5 United States of America 60.3

6 Finland 59.5

7 Hong Kong (China) 59.4

8 Singapore 59.4

9 Denmark 58.3

10 Ireland 57.9

In Southeast Asia and Oceania, the 10 highest-ranked are:

7 Hong Kong (China) 59.4

8 Singapore 59.4

17 New Zealand 54.5

18 Korea, Republic of 53.3

19 Australia 53.1

22 Japan 52.2

32 Malaysia 46.9

35 China 44.7

57 Thailand 37.6

72 Mongolia 35.8

The GII 2013 looked at 142 economies around the world, using 84 indicators including the quality of top universities, availability of microfinance, venture capital deals -- calculating innovation capabilities, as well as and research, infrastructure, knowledge, and technology capabilities.

The index is used by businessmen, policy makers, and researchers looking into the state of innovation worldwide.

"Dynamic innovation hubs are multiplying around the world despite the difficult state of the global economy. These hubs leverage local advantages with a global outlook on markets and talent," WIPO Director General Francis Gurry said in a statement.

"For national-level policy makers seeking to support innovation, realizing the full potential of innovation in their own backyards is often a more promising approach than trying to emulate successful innovation models elsewhere."

The 2013 index was formally unveiled to the public Wednesday at the Huawei Technologies facilities in Shenzhen, China, according international current affairs magazine The Diplomat.

"While high income economies dominate the list, several new players have increased their innovation capabilities and outputs. On average, high-income countries outpace developing countries by a wide margin across the board in terms of scores; a persistent innovation divide exists," said Soumitra Dutta, co-editor of the report.

According to Barry Jaruzelski, senior partner and leader of the Global Engineered Products and Services Practice at Booz & Company, underperforming economies can boost their innovation capabilities by developing hubs wherein large companies can play a catalyst role.

"Enterprise champions, including state-owned enterprises, family-owned conglomerates, and multinational corporations, can be the critical drivers of innovation hub activities. These enterprise champions can facilitate the building of hub capabilities and their talent pools by stimulating innovation and by helping to bridge the gap between research and commercial success," he added.

ABS-CBN News

The Teen Future Philippine Azkals dominates Australia’s Kanga Cup (Kangaroo Cup)

11:38 PM By Makisig Bayani 0 Comment

High hopes for future Azkals

SYDNEY – Former Philippine national football team standout and now Philippine Football Federation (PFF) consultant in Australia Mike Moran said the other day the outlook is bright for the promotion of football relations between the Philippines and Australia with the recent victory of the Philippine U-18 squad at the Kanga Cup in Canberra a portent of things to come.

Moran, 58, is based in Sydney and begins work with Osaka-based Japanese multinational finance company Invast Securities next month. He has been involved in foreign exchange trading for over 35 years with expat postings in Singapore, Tokyo and Hong Kong. Before starting his Invast engagement, Moran is busy paving the way for an active two-way football program.

Last week, Moran was in Canberra to witness the Philippines, playing as the Carranz Football Club, post a 6-0 record in capturing the U-18 championship of the Kanga Cup which assembled 256 teams of over 4,000 players to compete in three-tier age groups from 8 to 18 for boys and girls. The Philippines sent an 18-man lineup composed of 14 homegrown locals and only four based overseas. Head coach was Marlon Maro with Alvin Carranza and Jefferson Cheng as managers. The 18 players came from a 38-man pool being trained as "Teen Azkals."

The Philippines will tap the nucleus of the Kanga Cup title squad for the Asean Football Federation (AFF) U-19 Championships in Surabaya on Sept. 9-22. The "Teen Azkals" are bracketed in Group A with Laos, Singapore, Australia, Cambodia and Timor Leste. Group B is made up of Brunei, Indonesia, Vietnam, Myanmar, Thailand and Malaysia. The Philippines opens its campaign against Laos on Sept. 9.

Moran said the Filipinos impressed Australian scouts with their ability and quickness in Canberra. "We went up against bigger boys and we were clearly at a disadvantage physically but we weren't outplayed," he said. "One of our players Arnel Amita of FEU was spotted by Argentinian coach Gabriel Wilk of the Cooma club of Canberra, the No. 1 club in the Australian Capital Territory. Wilk is inviting Arnel to his camp. Arnel is like a little Maradona. On the field, he amazed the fans with his ball tricks, speed and intelligence."

The Philippines got off to a strong start with a 1-0 win over the Capital Football Senior NTC then crushed Gosford City, 5-2, Taylor Lakers, 20-0, Woden Valley, 2-0 and John Paul College, 6-0 before repeating over the Capitals, 1-0, in the Kanga Cup finals. "We got better with every game," said Moran. "Against Gosford, we were down 0-2 but never gave up and eventually won, 5-2. That showed the team's character."

Dean's Corner ( Article MRec ), pagematch: 1, sectionmatch: 1

Writer Jaime Pimentel of Ang Kalatas Australia paid tribute to Amita. "He menaced forwards in the backfield, opened opportunities in the midfield and taunted defenders in attack," wrote Pimentel. "In a show of defiance of Capital's superior ball skills and robust defensive tactics, the pint-sized dynamo ruled the midfield as he hustled to terrorize anyone and his shadow who dared cross his territory." Amita, 17, stands only 5-5.

The others in the champion team were keeper Enzo Cheng, keeper Raphael de Guzman and David Diamante of La Salle, Mark Besana, Daniel Gadia and Raphael Resuma of UP, Mikko Benedicto of San Beda, Junell Bautista, Jan Clarino, Harold Alcares, Doug Carranza, Yoshiharu Luciano Koizumi, Val Calvo, Nicholas Bollier, Rey Diaz and Amani Aguinaldo of FEU and Kevin Hartmann.

Moran said since his appointment by the PFF, he has explored football tie-ups with former Australian national player Gus Cerro and Fil-Aussie coach Leigh Gunn. "Gus is training a Fil-Aussie Kenneth Dizon who's 16," said Moran. "He thinks Kenneth has the potential to become a major player with the Azkals in the future. Gus is now creating a broad data base of Filipinos playing in Australia. He's married to a Filipina so that explains his closeness with the Filipino community. Both Gus and Leigh are excited about the possibilities of working with the PFF."

PFF secretary-general Edwin Gastanes said the U-18 team's participation in the Kanga Cup was the country's first-ever training mission in Australia. "This was unchartered waters," Gastanes told Moran. During the trip, Carranza was introduced to Fil-Aussie player John Chris Canayama who is 18. Moran said slowly, the doors are opening to discover more Fil-Aussie players. "The Kanga Cup is more of a grassroots level of competition," he said. "I drove to Canberra which is a 3 1/2 hour drive away from Sydney to meet the team which I thought was important as it was a first for the Philippines. I've been contacted by scouts from out of the blue since word got around of my PFF appointment so we're moving forward with plans to develop a two-way relationship."

Moran played 10 years with the Philippine national team from 1972 to 1982. "I spoke with the boys during the Kanga Cup and told them to represent our country with honor, to wear our flag on their jersey proudly," he said. "It's a different feeling when you're playing for your country out there. I think the boys showed a lot of heart in winning the championship."

philSTAR

United Nations tribunal starts arbitration process on Philippines -China sea dispute

9:21 PM By Makisig Bayani 0 Comment

A United Nations tribunal has been convened in the Netherlands to look into a complaint filed by the Philippines questioning the legality of China's massive territorial claim in the resource-rich South China Sea.

"The Philippine government is pleased that the Arbitral Tribunal is now formally constituted, and that the arbitration process has begun," Foreign Affairs spokesman Raul Hernandez told a press briefing Tuesday.

The progress in the Philippines's legal challenge against China comes amid increasing animosity between the two Asian neighbors due to their long-standing territorial conflict.

Manila and Beijing recently traded diplomatic barbs over the Philippines's decision to seek international arbitration - the latest manifestation of a longstanding territorial feud between the two countries over South China Sea territories.

Recently, the conflict was reignited with tense confrontations between Chinese and Philippine vessels in two disputed shoals – Scarborough and Ayungin – off Manila's western coasts.

At their first meeting on July 11, the President and Members of the Tribunal designated The Hague in the Netherlands as the seat of the arbitration and the Permanent Court of Arbitration as the Registry for the proceedings, the Department of Foreign Affairs (DFA) said.

Part of the process is to determine if the tribunal has jurisdiction over Manila's complaint. The case will only proceed once the tribunal decides that the complaint filed by the Philippines has legal merit and falls under its jurisdiction.

"Whether they have decided jurisdiction, they will publicly announce this," Hernandez said.

Manila pledged its "fullest cooperation" with the tribunal "in order to assure a fair, impartial and efficient process that produces a final and binding judgment in conformity with international law."

Set of rules

At the July 11 meeting, the tribunal approved a draft set of Rules of Procedure to govern the proceedings, which were sent to the Philippines and China for comment.

The tribunal requested both parties to submit their comments by August 5, along with their proposed schedule for the submission of their written pleadings.

With or without China's response, the proceedings will carry on, Hernandez said.

The Philippine government and its counsel, Paul Reichler of Foley and Hoag, are now studying the draft Rules of Procedure, and will submit the required documents requested by the tribunal, Hernandez said.

The DFA, he added, will issue statements from time to time to keep the public informed about the progress of the arbitration.

Information will also be made available to the public on the website of the Permanent Court of Arbitration.

Source of conflict

The Philippines sought arbitration under the UN Convention on the Law of the Sea (UNCLOS) last January to try to declare as "illegal" China's nine-dash claim, which covers almost all of the South China Sea, including sections that have been declared as the West Philippine Sea.

China has resisted Manila's move to let a U.N. body intervene in the disputes, saying the Philippines' case was legally infirm and carried unacceptable allegations.

China prefers to negotiate one on one with other claimants, which would give it advantage because of its sheer size compared to smaller rivals that have less military force.

The South China Sea - a strategic waterway and major trade route – had been a source of conflict among competing claimants the Philippines, Vietnam, Malaysia, Brunei, China and Taiwan.

The vast waters are dotted with islands, reefs, cays, shoals and rock formations. The region is believed to be rich in natural gas and oil deposits, and analysts say the competing claims could spark a military conflict in the region.

Tensions in the area spiked anew last year after the Philippines and Vietnam separately accused China of fresh incursions in areas they say fall within their sovereign waters. - VVP/YA

GMA News

Korea's biggest delegation of 182 Executives to arrive the Philippines for Investment

6:58 AM By Makisig Bayani 0 Comment

The Philippines' Department of Trade and Industry & Korea Importers Association (KOIMA)

K-Biz to visit Philippines in search of trade opportunities

The biggest delegation of South Korean businessmen will arrive this week to look at potential trade, investment and tourism opportunities in the Philippines, according to the Department of Trade and Industry (DTI).

DTI said a 182-strong mission composed of chief executives and senior officers belonging to the Korea Importers Association (KOIMA) will visit the Philippines from July 17-20.

KOIMA groups over 8,000 public and private importers that handle 70 percent of South Korea's major imports such as agricultural produce, consumer goods, food and industrial products.

DTI-Bureau of Export Trade Promotion (BETP) said this is the biggest inbound business mission to come from South Korea.

"We view the delegation's visit as an opportunity to further improve our economic relations with South Korea. We also look at it as support to our efforts in raising awareness about the Philippines' supply capabilities and sustaining the current momentum of tourism interest among Koreans," Trade Undersecretary Ponciano C. Manalo Jr. said in a statement.

"The DTI also sees the opportunity to develop and expand the current inventory of Philippine exports by exposing the group of Korean importers to alternative products and services. Examples of these products are organic chemicals, oleo-chemicals, minerals other than copper, electronics, motorcycle parts," Manalo said.

The visiting South Korean business mission will attend a DTI-led trade and investment seminar as well as a business matching session with Filipinos, and will also join a Department of Tourism-led (DOT) tour at a plantation resort.

DTI quoted KOIMA as saying that the group's Philippine visit is "one of the major activities of the association backed by [the South Korean] government."

"This year, the Philippines was selected over Thailand and Myanmar as the country to be visited by KOIMA's summer buying mission," Manalo said.

DTI-BETP data showed that two-way trade between the Philippines and South Korea last year reached $7.4 billion. Philippine imports outnumbered exports, with the former increasing 1.19 percent to $4.5 billion last year from $4.4 billion in 2011—making South Korea the fifth largest source of imports. But Philippine exports rose at a faster 27.93 percent to $2.9 billion last year from $2.2 billion in 2011, making South Korea the sixth biggest export destination.

The Philippines and South Korea enjoy free trade under the Asean-Korea Free Trade Agreement (AKFTA).

Interaksyon

Anti-Age Discrimination in Employment Act of 2013 - To End Employment Discrimination – Pia Cayetano

9:13 PM By Makisig Bayani 1 Comment

Age doesn't matter, says Cayetano in anti-discrimination in work bill

A bill that will prohibit and penalize employers who will decline any application or forcibly lay off a worker on the basis of age and other forms of discrimination has been filed at the Senate.

Senator Pia Cayetano said she filed Senate Bill No. 29 or the Anti-Age Discrimination in Employment Act of 2013 to put an end to what she considered an emerging type of discrimination in the labor front — discrimination in employment based on a person's age.

The bill, she said, sought to penalize any employer, labor contractor or labor organization that would discriminate against any individual because of age.

Cayetano said the measure was anchored on the constitutional provision that mandates the state to ensure equality of employment opportunities for all.

"The basis for employment should be a person's knowledge, skills and qualifications which are necessary to perform a job. A person's age should not be an issue," she said in a statement on Tuesday.

"Prejudice against age is apparent in job postings which set arbitrary age limits for applicants. We often see these in classified ads, job fairs, billboards and the Internet," she said.

Under the proposed measure, employers from the private sector as well as the national and local government units would be prohibited from:

* Printing, publishing, or causing the printing or publishing of any notice of advertisement relating to employment suggesting preferences, limitations, specifications and discrimination based on age;

* Requiring the declaration of age or birth date during the application process;

* Declining any employment application because of the applicant's age;

* Discriminating against an individual on account of his or her age in terms of compensation, terms and conditions, privileges, promotions and other opportunities; and

* Forcibly laying off an employee because of old age.

"You would think that this is an issue affecting senior citizens, but no, even those in their late 20s are already discriminated against," Cayetano said.

"When I go around the country, people who look to be in their late 20s, 30s or 40s would sometimes approach and ask me, 'Senadora, pwede po ba nating ipagbawal sa batas ang age limit sa job hiring? Kahit may edad na po kami, kaya pa naman namin, pero laging mas bata ang pinipili ng mga employer['Senator, is it possible to prohibit the setting of age limits in job hiring? We are still capable despite our age, but employers tend to prefer younger applicants over us.']"

Once enacted into law, any person who would violate the measure would be fined not less than ₱50,000 but not more than ₱500,000, or imprisoned for not less than three months but not more than two years, or both, at the discretion of the court.

Inquirer

Philippines took over Japan’s Car part dominance in Asean but cried for cheap imported Cars

5:32 PM By Makisig Bayani 0 Comment

According to Raquel Santos, the 127 members of MVPMAP who make 272 different car parts and components, are not exactly happy over the fact that imports of complete cars have over taken locally assembled units. He said the assemblers in the Philippines account for only 39 per cent of total car demand

Japan way behind; PH exports $3.5B car parts to ASEAN

The Philippines has beaten Japan in exporting vehicle transmission assemblies to the ASEAN (Association of South East Asian Nations) region. Every year, according to Ferdinand Raquel Santos, Japanese companies Toyota, Mitsubishi, and Isuzu export $3.5 billion compared to Japan's $1.1 billion.

Raquel Santos, president of the Motor Vehicle Parts Manufacturing Association the Philippines (MVPMAP), told Business Insight cars imported from the region, particularly Thailand, have transmission assemblies made in the Philippines.

The rest of the car parts - wire harness, tires made by Yokohama in Clark, carpets, plastic parts, leatherette seats, seat belts, plastic bumpers, are big in numbers but have smaller values.

He said in value terms the Philippines accounts for about 25 per cent in parts exported to the region. Nearly all of them are accounted for by transmission assemblies. He said a car has 20,000 parts and components. Very few of them, except transmission assemblies come from the Philippines.

He explained that Japan might have discovered that producing the assemblies in the region such as the Philippines has the advantage of Thailand.

The rest is imported. Back in 1996, 90 percent of automobiles sold in the Philippines is locally assembled. Imports account for a negligible 10 per cent.

He explained that the reversal of the ratio negatively affects the business of local parts manufacturers in terms of loss of demand.

He said he hopes local assemblers will regain their dominance but pointed out that the tariff agreements are a high hurdle. Under the Asean Free Trade Association (AFTA) many items or products enter the region without a tariff.

He said the fact that a separate agreement with Japan (Japan Philippines Economic Partnership Agreement (Jepepa)) and the coming similar agreements with South Korea and Australia do not help the Philippine makers of auto parts and components improve their business.

Still, Raquel Santos said, there are two models Mitubishi's L-300-and the Crosswind of Isuzu that use 70 per cent local parts and components

A good number of members of the association export parts and components to Thailand and Indonesia. These parts, he said, are common to units assembled in the Philippines.

He laments the fact that the 70,000 workers employed by the association, have not increased precisely because the market of parts makers have been taken over by imported units. He stressed, though that these units also use Philippine-made components notably the transmission assemblies.

Rising volume of imports deny the parts makers the economies of scale. The high cost of power in the Philippines does not help the members of the association either, according to Raquel Santos.

However, he said, there is a necessity for economic groupings to create big bargaining unit with giants of North America and Europe. He said competition with these highly developed countries will force the emerging markets like the Southeast Asian countries to introduce innovation, improve technology and management to be able to compete globally.

Raquel Santos broadly hinted that while the growth of small car parts manufacturers is stymied by rising imports, there is the fact that the Philippines is becoming the hub of manufacturing transmission assemblies as shown by the fact that three Japanese companies are heavily involved in producing them here.

Slowly, Filipino minds and hands are absorbing the technology in making this major car component. This could well be the start of more major components being produced in the Philippines.

Raquel Santos himself has a company producing minor parts like seats. He continues to trying to improve his technology, knowing he said, that modern technology and management efficiency are the keys to any successful operation, production of car parts or any other manufacturing ventures. His hopes are high in the face of negative developments. So are the rest of the members of the association.

With report from Malaya Business Insights

₱2.3 Trillion ($53 Billion USD) budget for 2014 in the Philippines approved by President Benigno Aquino

9:30 AM By Makisig Bayani 0 Comment

Women work at a sweatshop sewing clothes under contract with local clothing manufacturers in Manila on July 12, 2013. Visiting World Bank vice president for East Asia and the Pacific Axel van Trotsenburg said the Philippine government needs to convert its recent high economic growth into more jobs for ordinary Filipinos so as to succeed in reducing widespread povert. Image Credity: AFP

Philippines government to dole out billions in programs for the poor

President Benigno Aquino has approved a proposed P2.3 trillion ($53 Billion USD) budget for 2014, including higher amounts of grants for the poor.

The grants are being funded by the World Bank, to bridge the gap between the rich and the poor, prompting analysts to call for a long-term industrialization plan for real development and poverty reduction.

The government's proposed budget has a high component of poverty reduction, apart from development, Budget Secretary Florencio Abad said.

Last year, Congress approved the allotment of ₱44.25 billion ($1.02 USD) conditional cash transfer (CCT) program of the government for 3.5 million households in the 2013 budget.

The program allows the social welfare department to disburse less than ₱1,000 a month per household, money for poor children enrolled in primary and secondary public schools and to health centers.

It also includes a health awareness drive for low-income communities. It encourages them to send their children to school, to prepare them for jobs and to make their lives better.

"The program has a long-term benefit," said Abad, who did not say the amount allocated for CCT and the number of poor people to be covered in the proposed 2014 budget.

It has been criticized as a source of corruption in local government units because village level authorities handle the money's disbursement in slum areas.

Critics say it encourages dependency among poor people, who are given money as incentive to send their children public health centers and public schools which already give free services. It promotes patronage politics and emboldens politicians to coddle slum dwellers for votes, critics said.

The government's continuation of the CCT program, which was begun by former President Gloria Arroyo, is further justified by a poverty incidence of 27.9 per cent in the first semester of 2012, compared to 28.6 per cent in 2009.

The Philippines is also in a rush. It has committed to lower poverty incidence to 16.6 per cent by 2015, in compliance with the United Nation's Millennium Development Goals (MDG).

A report of the National Statistical Coordinating Board (NSCB) showed that in 2011, the rich (who represents 15 per cent of the country's population of 100 million) generated 10.4 per cent income growth; the middle class, 4.3 per cent; and the lower class, 8.2 per cent.

A family of five with a monthly salary of ₱7,821 ($180.2 USD ) is right on the poverty line. A family that earns higher than twice to 10 times this amount belongs to the middle class, NSCB said.

The expanding inequity between the rich and poor contrasted with the country's 6.8 per cent overall GDP growth in 2012; and 7.8 per cent in the first quarter of 2013.

Vowing to work harder for better economic indicators, President Aquino promised, "We must make certain that this growth becomes even more inclusive — that the economic benefits do not merely trickle down to our people, but that every Philippine national is able to ride the rising tide of progress (in the Philippines)."

Presidential spokesman Edwin Lacierda pointed out the additional impact of NSCB's sectoral income growth report: "There has been growth in the lowest levels."

There is an ongoing focus on job-generating in sectors like agriculture, infrastructure, manufacturing, and tourism, said Ramon Carandang, chief secretary of the Presidential Communications Development and Strategic Planning Office, in response to criticism that heads of poor households still need jobs even if their children are socially protected and subsidized by the government's CCT program,.

But reporting on the distribution of the labor force last April, the Labor Force Survey said only eight per cent of Filipinos are in the manufacturing sector; 16 per cent in industry, 31 per cent in agriculture and 53 per cent in services (which is considered the least productive).

These is evidence that the country's employment and job generating model is hard to realize in the industrial and manufacturing sector.

Secretary Arsenio Balisacan, head of the National Economic Development Authority (NEDA) said that industrialization and manufacturing are the real answers to development and poverty reduction.

Subsidies for the poor and aiming for high annual national budgets will generally follow if the government starts building up on industrialization and manufacturing, Balisacan argued.

"The Philippines had a 39 per cent manufacturing-GDP ratio in the 1980s; and 33 per cent manufacturing-GDP ratio from 2010 to 2012. In comparison, Thailand has 44 per cent manufacturing-GDP ratio from 2010 to 2012, from a low of 30 per cent in the 1980s," said Balisacan, who pointed out the real reason why other Asian countries have overtaken the Philippines.

Meanwhile, some 10 million overseas Filipino workers (OFWs), who represent 10 per cent of the country's population, have been buoying the Philippine economy, rising to become on of the biggest sources of government revenue.

OFWs sent $ 21 billion USD to their relatives in the Philippines in 2012, fuelling a consumer-led economy.

Analysts from international funding agencies have said the OFWs must be empowered by helping them channel their money to investments in the manufacturing and industry sectors.

The Philippine government has responded with lectures on the importance of investment and entrepreneurship.

with report from the Gulf News