PLANET
DECEMBER 16-31, 2012
28
PHILIPPINES
Vancouver Edition
NEWSROUND-UP
PH EYES GREATER US MILITARY PRESENCE US and Philippine officials will meet to discuss expanding American presence in the Asian nation, a senior diplomat said, amid tensions with China over its claims to vast waters in the region. The meetings in Manila on December 11 and 12, will have a special focus on defence and regional matters, Philippine Assistant Secretary for US affairs Carlos Sorreta told reporters. “Foremost in the agenda is the increased rotational presence” of US forces in the Philippines, he said. This refers to US troops and ships passing through the country for training or exercises, circumventing a constitutional ban on foreign bases in the Philippines. He said the meetings with US assistant secretaries for defence and state was not about the territorial dispute between the Philippines and
SENATOR Franklin Drilon said the bicameral conference committee finally approved all disputed provisions in the Sin Tax bill, including the earmarking of P248-billion projected revenues, with the Philippine Health Insurance Corporation (PhilHealth) getting the biggest share. In a brief press conference, Drilon said: “After four hours of debate, we were able to reconcile all disagreeing provisions on the sin tax bill, which is expected to be signed by all members. . . before submitting to the plenary of both Houses for ratification,” Drilon said. The panel agreed to earmark 15 percent of the P248-billion projected revenues for the livelihood programs of Virginia tobacco and barley leaf farmers, as mandated by Republic Act 7171 and 8240. Of the balance, Drilon said 80 percent will go to the premium payments to PhilHealth for the coverage of 5.2 million poor families in fulfillment of the Millennium Development Goals (MDG) and public information dissemination on health. The panel also allocated 20 percent of the remaining balance for medical assistance and health enhancement facilities, including the funding for modernizing government hospitals, to be determined by the Department of Health (DOH). Drilon said the panel accepted the proposal by Senate President Juan Ponce Enrile to allot P2 billion from
China in the South China Sea. But he said “as public officials answerable to their people and their security, its very difficult not to discuss the West Philippine Sea,” using Manila’s term for the South China Sea. The two countries’ officials will discuss boosting the number of visits of American troops, ships and aircraft while increasing US defence aid to the poorly-equipped Philippine military, Sorreta said. The discussions will also look at more training for Filipino troops and increased help in humanitarian and disaster relief. A rotating force of 600 US Special Forces has been stationed in Mindanao since 2002 to help train local troops in how to combat Islamic militants. The Philippines has sought to boost its ties with the United States
in recent years following increasing aggressiveness by China in claiming virtually the entire South China Sea, even up to the coasts of its neighbours. In October, a Philippine official said a former US naval base in this country, facing the South China Sea could play a key role as a hub for American ships as Washington moves to strengthen its presence in the AsiaPacific. Tensions with China have increased since April following a standoff between Philippine and Chinese ships over South China Sea shoal which both claim as their territory. Sorreta said China should not be alarmed by the effort to improve Philippine-US ties. But, he stressed, “with or without the Americans, we will take our stand”. n
‘SIN TAX’ BILL READY FOR PNOY’S SIGNING
the incremental revenues to curb smuggling, but with a slight modification to apply only to cigarettes and distilled spirits. The panel also allowed a provision that 15 percent of tobacco leaf used as raw material in the local manufacturing of imported cigarettes must be sourced locally, subject to adjustments based on international treaty commitments of the country. Earlier, the panel approved the
following projected revenues: P33.96 billion for 2013 and P42.86 billion for 2014 (with a 69-31 percent burden sharing for tobacco and alcohol products); P50.63 billion (66-34 percent burden sharing) in 2015; P56.86 billion (65-35) in 2016; and P64.1 billion (64-36) in 2017. Drilon expected to enroll the measure next week after ratification by both Houses, and have it signed by President Benigno Aquino III before Christmas. n
PH POPULATION TO RISE BY 85% IN 60 YEARS THE Philippine population will grow by 85 percent in the next six decades, according to a forecast of a United Kingdom-based international accounting and finance firm. The country will experience the largest population increase in the Southeast Asian region in that period, with an additional 82 million people, said the Institute of Chartered Accountants in England and Wales (ICAEW) in a December report, “Eco-
nomic Insight: Southeast Asia.” “This increase should boost growth and safeguard the region’s competitiveness at a time when the working-age population begins to shrink in China and is already doing so in Japan as well as in some European countries,” the ICAEW analysis said. The ICAEW, however, does not see the boom in the Philippine population as a bane for the economy. “The increase will make the coun-
try an attractive base for manufacturers,” it said. But the firm cautioned policymakers that raising output in a country’s overall production couldn’t rely on population growth alone. “Productivity is crucial as well, and one way to raise productivity is by moving up the value chain from laborintensive manufacturing to high value-added goods as well as business and financial services,” it said.
CHINA: WE ARE NOT YOUR ENEMY
CHINA has assured the Philippines that it would not stoke their territorial dispute in the West Philippine Sea (South China Sea), and that it would only respond to provocations by claimants in the contested waters. Speaking at a meeting with Philippine Daily Inquirer editors and reporters in the newspaper’s office in Makati City, Chinese Ambassador to the Philippines Ma Keqing also revived proposals for joint exploration of mineral, oil and marine resources in the West Philippine Sea, as she “cannot see” a solution to the territorial dispute between the two countries “in the near future.” “One thing I can say here is that China will not, never be provocative to any country. You can [rest assured of that],” Ma said. “China will only be reactive when it’s provoked. China will not initiate any incident. China will not be provocative. That I can say. It’s the commitment of China,” Ma said. “We are not your enemy,” she said as she was posing for a photograph with the editors and reporters after the meeting. Ma gave the assurance when pressed for a clarification on China’s new rules authorizing Chinese border patrol to board, search and expel foreign ships that enter what Beijing considers its territory in the South China Sea, parts of which are officially known in the Philippines as the West Philippine Sea and in Vietnam as the East Sea. Besides the Philippines and Vietnam, Brunei and Malaysia, as well as Taiwan, claim parts of the sea, the main maritime link between the Pacific and Indian oceans, giving it enormous trade and military value. Its shipping lanes connect East Asia with Europe and the Middle East. Major unexploited oil and gas deposits are believed to lie under the seabed. The sea is home to some of the world’s biggest coral reefs and, with marine life being depleted close to the coasts, it is becoming increasingly important as a source of fish to feed growing populations. The announcement of the new rules, coming just days after China issued new passports stamped with a map showing China’s claims in the South China Sea—nearly the entire sea—caused great alarm in Southeast Asia. The Philippines and Vietnam protested the map on the new Chinese passports and demanded a clarification on the interdiction rules. Chinese media reported that the new rules, to come into effect on Jan. 1, would allow border police in the southern province of Hainan to prohibit foreign ships from entering the South China Sea. It was not clear whether the rules were local legislation in Hainan or had the stamp of Beijing. It is known, however, that China administers the South China Sea from Hainan. The United States, whose military is “pivoting” to Asia after the wars in Iraq and Afghanistan, is also seeking clarification of the new rules. “The US government very much wants clarification of what these rules mean, how they will be interpreted by the Hainan government and marine enforcement agencies, and the purpose of these rules,” US Ambassador to China Gary Locke said on Wednesday on the sidelines of an investment forum in Beijing. Ma sidestepped questions about the new rules, saying China had never been one to provoke. “You can see all the incidents, what has happened. China has never been the provocative part but only reactive,” she said. Asked whether China considered any of the Philippines’ actions on the dispute as provocative, Ma said: “I think you can read that in the newspaper, [if you] recall the incidents, you will have your own conclusions.” Ma raised previous proposals to shelve the debate over territorial sovereignty among the claimants and instead make room for joint exploration of resources in the South China Sea. n
The Philippine population as of May 2010 stood at 92.34 million, according to the National Statistics Office. The Philippines and Malaysia are the only countries in Southeast Asia that will see a population boom in the next 60 years, according to the report. Douglas McWilliams, ICAEW economic adviser and chief executive of the Centre for Economics and Business Research (CEBR), noted the
economic and political progress in the Philippines, which he attributed to President Aquino. “The clear election victory of Benigno Aquino promises political stability, which will encourage investment and consumer spending,” he said. He cited the signing in October of the framework peace agreement to end the Muslim insurgency in Mindanao as another boost to the economy this year. n