Italy will sell some of its Navy Ships to Philippines and some other countries

Italy is suffering severely for the current economic crisis and, despite the measures taken to stem the losses, the forecasts for the future is bleak. The data presented at Eurosatory - arms fair held in Paris - show a country in great difficulties even in the defense sector: the Ministry of the total budget is spent 22.4M-17.6M dollars in four years, with a reduction of 21.4% in 2012 compared to 2008.

The Italian government is trying, like many other European countries, to cut the unnecessary and at the same time find ways to sustain capacity and invest in new technologies. No wonder, then, that Italy is planning to get rid of some of its vehicles in service in favor of potential buyers, to reduce costs and raise cash.

It will be the Navy to be more affected by this process, if ever the government decides to implement it. The Navy has 82 ships in service of various kinds and 6 submarines. The plan is to get rid of 26-28 vessels, according to a statement by Admiral Louis Binelli Mantelli, Chief of Staff of the Navy, during a hearing at the Senate defense committee. In the list of 'offers' there would be 7 frigates, 6/8 corvettes, 4 ships trainer, 4 offshore tugboats, 3 coastal minesweepers and 2 carriers.

Not all ships in the list will bring money into the bank of the Navy Department. Some units have reached the maximum number of years of life and will be withdrawn from service and were not included in the list because now considered unusable. Others, such as deminer Lerici, retired from service last March, is still considered suitable for sale as the Maestrale class frigates, including the most 'old' will still be retired at the end of 2013.

Philippines

At the moment it is not yet clear which (or which) countries the ships will be offered. Whispers in the corridors of the ministry of an interest in the Mistral frigates from the Philippines, but there is nothing concrete. Nor is it clear what ships will be sold and which will be given away for free. The latter possibility, keeping in view of the Admiral. Part of the vessels on the list, in fact, require significant work and upgrades, and the Navy is aware that discarding will have to make them palatable for free. On the other hand, if they were to be scrapped would still represent a cost to the Italian State.

Peru

Binelli Mantelli also supported the need to involve industry in the sale of Italian naval ships. The example to follow is the sale of two Lupo class frigates to Peru in 2005, the ships were withdrawn from service with the Italian Navy, renovated in the shipyards of Fincantieri and later sold to Peru. The agreement has thus resulted in an advantage for our Navy, but also for the Italian shipbuilding industry.

The transaction, however, poses two risks: the first is that the wave of enthusiasm is decided to reduce the excessive number of vessels in service, compromising the functionality of the Navy. The second risk relates to the implicit competition against Italian shipping industry: ship used to market low cost could halt the construction / purchase of new vessels, because potential customers would turn to MMT.

(Meridian)

Former Pentagon Analyst Says China Can Shut Down All The Telecom Gear It Sold To The US

Chinese companies apparently have a covert capability to remotely access communications technology sold to the United States and other Western countries and could "disable a country's telecommunications infrastructure before a military engagement," according to former and current intelligence sources.

The Chinese also have the ability to exploit networks "to enable China to continue to steal technology and trade secrets," according to the open source intelligence company Lignet, which is comprised of former U.S. intelligence analysts.

The issue centers on the Chinese firm Huawei Technologies Co. Ltd., which U.S. intelligence sources say has direct links to the Chinese government and the People's Liberation Army, or PLA. These sources assert that Huawei and other Chinese telecommunications firms such as ZTE Corp. have "electronic backdoors" to telecommunications technology sold to the U.S. and other countries.

Revelation of China's electronic backdoor capability into U.S. and Western telecommunications networks comes on the heels of recent WND/G2Bulletin revelations that China has been manufacturing counterfeit components that have made their way into sensitive U.S. weapons systems.

The problem of fake Chinese electronic components, which were installed by defense contractors without prior testing and are operating in U.S. military systems, is far more widespread than originally thought.

These parts don't just come directly from China but also from suppliers in Britain and Canada who redirect Chinese products to U.S. defense contractors.

These counterfeit components have been found in sensitive U.S. missile systems meant to thwart the potential of a Chinese missile attack, in night vision devices and in various military aircraft.

"We do not want a $12 million defense interceptor's reliability compromised by a $2 counterfeit part," Gen. Patrick O'Reilly, director of the U.S. Missile Defense Agency said.

Huawei, suspected of exploiting electronic telecommunications backdoors, continues to sell communications technology in the U.S. and other countries despite a supposed ban on the company that was supposed to keep it from bidding on cellular networks and government contracts, a current intelligence source said.

The electronic backdoor capability reportedly could allow the Chinese government through Huawei and ZTE to access information traveling through telecommunications networks or even sabotage electronic devices, Lignet said.

With this capability, China would be in a position to sabotage critical U.S. weapons systems and sensitive cyber sites and could include intelligence or systems used by defense contractors doing work on behalf of the U.S. government.

With cyber espionage on the rise and increasing attacks aimed at U.S. government computer systems, these sources contend that Huawei has achieved that capability on behalf of the Chinese government.

Sources say that Huawei can use its backdoor access to reach into foreign telecommunications company systems without its knowledge or permission.

In the case of the mobile phone maker ZTE, Lignet said that the company pursued a security vulnerability through an electronic backdoor on cell phones run on Google's Android system.

"This backdoor reportedly could allow someone to remotely control the phone," Lignet said.

In 2013 defense budget legislation, the House Armed Services Committee's Strategic Forces Subcommittee had introduced language to require a search of all U.S. nuclear weapons arsenals and infrastructure to remove products from Chinese companies such as Huawei and ZTE because of the possibility of "backdoors or code for espionage and/or sabotage purposes by the Chinese government," Lignet pointed out.

These revelations follow a warning by the U.S. Department of Defense that Chinese hackers are aiming malware at U.S. government agencies and industries that could threaten the nation's economy.

The indication is that these attacks are directed by the Chinese government itself.

"Chinese actors are the world's most active and persistent perpetrators of economic espionage," according to a DOD in a recent report to Congress. "Chinese attempts to collect U.S. technological and economic information will continue at a high level and will represent a growing and persistent threat to U.S. economic security.

"China is likely to remain an aggressive and capable collector of sensitive U.S. economic information and technologies, particularly in cyberspace," DOD added.

Another concern raised by sources is that Huawei and the other Chinese telecommunications companies also provide technology to Iran and the Taliban.

According to sources, Iran's security network relies on Huawei technology, raising the prospect, sources say, that the Iranians could gain the same backdoor access as the Chinese intelligence service does to U.S. defense and sensitive industries.

This concern has been heightened by new Iranian threats to undertake a cyber war with the U.S. in response to recent revelations that the U.S. was a principal player in launching a sophisticated cyber attack on Iran's nuclear program.

Code-named Olympic Games, the effort by the Obama administration was to initiate a cyber war against Iran along with Israel. Such a revelation left little doubt that the U.S. and Israel also were behind the Stuxnet virus which was inflicted on Iran's centrifuge machines used to enrich uranium.

One source said that Washington already has declared that a cyber attack on U.S. computer systems would constitute an act of war and that would call for a military response. The Pentagon earlier this month said that there would be a U.S. military response if there is a cyber attack on government networks – in effect, equating hacking with an act of war.

Yet, the U.S. already has initiated such an attack on Iran which now is threatening to do the same thing to U.S. computer systems.

In attempting to uncover cyber attacks before too much damage has been done, sources say that there are millions of lines of software code that transmit data securely and to find a malicious code would be problematic and cost-prohibitive

Malaysia Sees- Philippines could be the new ASEAN giant

Ceritalah by KARIM RASLAN (the Star Online – Malaysia)

The Philippines – with natural resources such as gold, copper, nickel and oil and gas aplenty – has tremendous potential. Last year, the republic registered an amazing 7.1% growth rate, and growing.

MALAYSIANS have looked down on the Philippines for decades, seeing the republic as South-East Asia's basket case, a source of maids, manual workers and little else.

However, with Noynoy Aquino's thumping electoral victory in last year's presidential election, international perceptions are starting to change and the Philippines fastpaced of its Rebranding.

At long last, the republic has a leader with an unquestionable mandate.

Indeed, the Philippines – especially for the businessman – is beginning to look very interesting.

On a personal note, and having experienced how Indonesia started turning around soon after Susilo Bambang Yudhoyono's victory in 2004, Manila 2011 reminds me a great deal of how Jakarta was all those years ago: gradually reaching some measure of stability before booming.

Of course, recent natural disasters such as Typhoon Pedring have tended to focus our attention on the Philippines' many weaknesses, much in the same way the 2004 tsunami shook Indonesia.

Still, there's no denying that the two countries share many unfortunate similarities, beginning with their susceptibility to natural disasters, high levels of corruption and poverty, poor infrastructure and weak government.

Nonetheless, scale has its advantages.

The two great archipelagic nations are sprawling, island-based nations with huge populations – the Philippines' 94 million to Indonesia's 240 million.

Both are hampered by poor infrastructure, vast distances and a degree of lawlessness – especially in regions far from the centre of power.

However, the Philippines' poverty levels are more acute.

More than a fifth of all Filipinos (23.1 million) currently subsist on less than US$2 (RM6.2) a day.

Furthermore, the Philippines, having endured decades of Marcos' autocratic and venal kleptocracy, has only just managed to achieve a measure of political stability as institutions and civil society now seek to regain strength and resilience.

Indeed, political violence is still a reality in the Philippines – as the 2009 Maguindanao massacre tragically demonstrated.

Nevertheless, the Philippines, much like Indonesia, has tremendous potential.

In 2010, the republic registered an amazing 7.1% growth rate.

Natural resources ranging from gold, copper and nickel are also plentiful. Troubled Muslim-majority Mindanao is estimated to have a whopping US$1 trillion (RM3.1 trillion) worth of natural oil and gas deposits.

Indeed, the Philippines – for decades an international laggard – is no longer cash-strapped.

For starters, individual Filipinos have become big savers and the country's reserves (US$76bil or RM238.6bil) far exceed net foreign debt: a record that would put most European nations to shame.

There are three fast-growing drivers of the local economy; business process outsourcing (BPO), remittances and tourism.

According to the brokerage CLSA, BPO generated US$9bil (RM28.2bil) in 2010, up 25%.

Indeed, the republic is targeting US$25bil (RM78.5bil) in revenues by 2016.

Meanwhile, BPO jobs have kicked off a mini-boom as housing, banking and auto-sales have benefited from the advent of well over 600,000 middle-class consumers across the country with major hubs in provincial cities such as Cebu and Davao.

Remittances have also been growing steadily.

With over ten million Filipinos working abroad in 2010, well over US$18.8bil (RM59bil) was sent home.

Moreover, the country is sending more and more trained and skilled workers (such as nurses, accountants and technicians) to Europe, the Middle East and North America.

Tourism is also set to grow.

The archipelagic nation is set to become a major playground for North Asian tourists.

The soon-to-be inaugurated Air Asia Philippines will no doubt bring even more visitors to the islands of Bohol, Boracay and Iloilo with their white sandy beaches and historic towns and cities.

At the same time, casino operators, having witnessed Resorts World's phenomenal success, will be pouring money into newer and even grander developments along the Manila Bay area, thereby enhancing Philippine tourism offerings even more.

With a 70% approval rating, President Aquino has a golden opportunity to change his nation's future fundamentally.

Having seen how SBY has altered Indonesia's standing, it would be very unwise to bet against the Philippines' nascent turn-around.

What does this all mean for Malaysia?

For starters, it means that Filipinos, much like Indonesians, will not be flocking to work in our homes or on our plantations and construction sites in the near future.

Today's Filipino overseas workers possess skills (including fluency in the English language) that often surpass what's available in Kuala Lumpur, Johor Baru or Penang.

Second, the Philippines will become a major challenge to our own services economy.

Third, the republic's booming and vast domestic market will attract global MNCs desperate for growth, distracting them from smaller nations including our own.

As the First World shudders once again with an impending credit crisis, middle-income nations like Malaysia have to weigh their options carefully.

Are we nimble enough to compete with Singapore and Hong Kong?

If not, can we fend off the competition from the new Asean giants – Indonesia and, now, the Philippines?

Can we become a more efficient destination for global business as these vast nations begin to stir?

International Court of Justice may cancel judgeship of Senator Merriam Santiago

Group of individuals which lodged petition for rejection and reconsideration for Miriam Defensor-Santiago's assumption of her International Criminal Court (ICC) judgeship.

Malacanang Palace expressed rutted feeling after "That's a private initiative. I did see it on the news... and that will be up to them because we nominated Sen. Miriam Defensor Santiago," deputy presidential spokesperson Abigail Valte said.

"It's a free country, the senator's verdict should be respected in the same way that the opinion of the other people should also be respected," Valte said.

She said the nomination had been borne out of the record of the senator and that the government did push for Santiago and "she's already there."

"I think it should end there... She has been accepted, she will be assuming her post –I'm not sure if within the year – but that is something that is already done," Valte said.

She added there was no truth to reports that the administration would strike back at the senators who did not vote for the conviction of chief justice Renato Corona.

Valte said it would be up to Santiago to decide when to assume her post because she wanted to finish the impeachment proceedings. "That was upon her own request to defer her oath taking and her assumption of duty... Her only reason given was that she wanted to finish the trial," she said.

The petition addressed to the ICC said: "We have taken the liberty of writing to you on behalf of concerned Filipino organizations and individuals in the Philippines and overseas who subscribe to and actively advocate the goal of competent, honest and progressive governance of our homeland.

"We are respectfully bringing to your attention a serious matter that affects the image and reputation of the Philippines and, potentially, the image and reputation of the International Criminal Court," it said.

The petition said as an independent court that "tries persons accused of the most serious crimes of international concern, namely, genocide, crimes against humanity and war crimes, and as a court committed to the observance of the highest standards of fairness and due process, we respectfully assume that you require those you have elected to your roster of judges to meet the most stringent standards."

In addition to mastery of international jurisprudence and forensic skills, the petition stated "we assume that you also require a sound mind, emotional and psychological stability, unsullied integrity and incorruptibility, as well as patience, civility and impeccable decorum."

"We submit that a person who is emotionally or psychologically unstable, prone to fits of uncontrollable rage, lacking in patience and empathy, ruthless with the feelings of fellow human beings, bereft of civility and uncaring about decorum does not deserve a place in your honorable court," it said. "We further submit that an individual who has admitted to having publicly lied and who has demonstrated partiality, prejudice, lack of principles and questionable integrity as a public official does not deserve to be a judge, much less a judge of the International Criminal Court," the petition added.

In this regard, the petitioners said they "regret to inform" the ICC that such an undeserving individual like Santiago had been elected to the ICC, in a lapse of good judgment on the part of the Philippine government.

"We are bringing this matter to your attention for fear that you may construe her uncivilized behavior and her loose ethics as epitomizing the Filipino people. While, ironically, it should be a source of pride for Filipinos to have one of our own elected to your honorable court, we are embarrassed by the ill-considered nomination of Sen. Miriam Defensor-Santiago. Far from representing the best of us, she typifies the worst. We fear that her presence in the International Criminal Court will make us the laughing stock of the world," the petition said.

"While it is entirely your prerogative to determine how to deal with Senator Defensor-Santiago, in light of these revelations, we respectfully submit that the onus will also be on your collective heads should she, as a judge of the International Criminal Court, display the kind of boorish and bizarre behavior that has been her trademark in the Philippine Senate and in other public fora. We, therefore, respectfully submit that a reconsideration of her election to the International Criminal Court is called for and that her nomination be rejected upon reconsideration," the petition read. 

Read more in PhilSTAR 

Philippines Coast Guard Acquiring 10 New Patrol Vessel from Japan

The Coast Guard is negotiating a loan for the acquisition of 10 units of 40-meter patrol ships (photo : pdff)

Phl acquiring 10 patrol boats from Japan

MANILA, Philippines - The Philippines will acquire 10 brand new patrol vessels from Japan for the Coast Guard in the West Philippine Sea.

Defense Secretary Voltaire Gazmin said he could not discuss details of the acquisition as it is still in progress.

“I know that they (Japan) have a standing offer (to bolster the country’s maritime territorial defense),” he said.

“The Coast Guard has the complete details of the procurement.”

Speaking to reporters, Coast Guard commandant Vice Adm. Edmund Tan said the acquisition of the patrol vessels is subject for approval of the National Economic and Development Authority (NEDA).

“The arrival of the vessels in the country would depend on how fast the loan is being processed and approved by NEDA,” he said.

The Coast Guard is negotiating a loan for the acquisition of 10 units of 40-meter patrol ships, Tan said.

Quoting the Japanese newspaper Nihon Keizai Shimbun, the Korean Broadcasting System reported that Japan intends to provide thePhilippines with patrol vessels after easing three Principles of the Arms Export law.

The handover of the 1,000-ton patrol vessels is scheduled before the yearend, the report added.

Nihon Keizai Shimbun also reported that the Japanese government wants to help boost maritime safety capabilities in the West Philippine Sea.

(PhilStar)

China 'arrests high-level US spy' in Hong Kong

1 June 2012 Last updated at 15:27 GMT

 http://www.bbc.co.uk/news/world-asia-china-18299065

A Chinese security ministry official has been arrested on suspicion of spying for the US and passing on state secrets, Hong Kong media reports say.

The man, who was private secretary to a vice-minister in the security ministry, was arrested earlier this year, various press reports say.
US Secretary of State Hillary Clinton declined to comment on the reports.
If confirmed, it would be the third major incident to hit China-US relations in the past few months.
It would also be the highest-level spy case involving China and the US to become public since 1985, when intelligence official Yu Qiangsheng defected to the US.
The official had been recruited by the CIA, local press and Reuters report.
'Pretty woman trap' Hong Kong-based Oriental Daily quotes the monthly New Way as saying on 25 May that the official "fell into a pretty woman trap" set up by the CIA.
After the two were photographed in secret liaisons, he was blackmailed and agreed to supply secret information to the US, the reports say.
"The destruction has been massive," a source told Reuters.
The official was arrested between January and March on allegations that he had passed information to the US for several years on China's overseas espionage activities, Hong Kong press and Reuters report.
China's foreign ministry did not respond immediately to a request for comment faxed by Reuters on Friday.
China-US relations have been fraught with tension in recent months, following two high-profile cases.
In March, rising political star Bo Xilai was sacked as Communist party chief in the city of Chongqing, after his police chief fled to the US consulate in the city of Chengdu in neighbouring Sichuan province.
And earlier this month, blind activist Chen Guangcheng left for a new life in New York, after he caused a diplomatic crisis by escaping from house arrest and seeking refuge in the US embassy in Beijing.
It would put further pressure on China's security chief, Zhou Yongkang. Rumours were swirling about his possible downfall in the wake of Mr Bo's sacking, wrote the BBC's Beijing correspondent Damian Grammaticas at the time.
Most China-US spy cases involve industrial espionage. Last year, an Indian-born engineer was found guilty in the US state of Hawaii of selling military secrets to China to do with the B-2 bomber.
In 2003, a US woman who had been recruited to spy on China by the FBI was arrested along with her lover, a former FBI agent, but a judge later dismissed the charges against her. 

French aircraft manufacturer enters Philippines

Eurocopter, Dassault jet store opens

By Recto Mercene

May 24, 2012

THE Philippine economy must be performing well, gauging by the decision of Eurocopter Philippines and France’s Dassault Falcon to jointly sell the seven-seater helicopter and the eight-seater Falcon jet as complimentary package for the country’s top 500 corporations, including chairmen and chief executive officers of multinational companies and conglomerates.
 

There is a family of Falcons to choose from—six distinct aircraft to suit the company’s budget—while the helicopter needs no further introduction, having been introduced in the Philippine market since 1970.

Jussi Hoikka, commercial director of Eurocopter Philippines, said the company has locally sold 60 Eurocopters, at $3 million to $3.2 million per unit, representing a 60-percent share of the market.

Its most exclusive feature is the Fenestron tail rotor, which is enclosed and not exposed like most helicopters. This prevents personnel or passengers from being cut accidentally when the rotor is turning.

The Eurocopter T3 is also equipped with an “active vibration control system,” vibrations being a natural curse of all helicopters owing to its design. This helicopter, however, senses the vibrations and a damper removes this bone rattling sensation, lessening the noise to give passengers comfortable ride, devoid of nausea.

The Falcon costs $30 million, excluding the 12-percent to 25-percent tax. So far, only one has been sold locally, compared to the 25 percent to 30 percent that Chinese billionaires had gobbled up so far.

However, as Hoikka pointed out, they aim to sell about six to 10 Falcons for the next two years, and in five years, be the leading executive jet supplier in the country.

He said a busy executive can jet to any point in the Philippines, and still afford to make it on time to any remote locations by hopping to a waiting Eurocopter, which would be the favorite chariot of choice by mining executives, oil and gas barons and politicians hot on campaign trails.

The helicopter can be also be used for emergency medical evacuation and to enter the remotest jungle or reach any isolated islands.

Eurocopter Philippines has a 95-percent Filipino staff, mostly industry professionals, serving customers that include the Coast Guard, the Navy, the National Police, charter operators, corporate operators and other private owners.

The Falcon 2000LX, the latest in the lineup, has enough headroom for tall persons, and offers 5-percent additional range, which would be 4,500 nautical miles, over the 2000EX EASy model.

It can land and takeoff on 1,500 meters of runway.

At the cockpit, cutting-edge technology includes two onboard computers, a fully digitalized cockpit, a trackball like in a computer game, where the pilot places the cursor in on a map, and pinpoints the runway locations anywhere in the world. The map could be enlarged to see the airport’s layout and all information needed for navigation.

Instantly, the pilot is provided with any particular runway’s length, configuration, navigational aids, frequencies to tune in and all related data.

Not many airplanes, even commercial ones, have this computerized cockpit.

Capt. Frederick Lascourreges, the check-pilot, shows how, by the turn of the trackball, he can avail of any information at his fingertips, having done away with the “Flying Kit Bag” a bulky black leather bag that used to contain all the maps and the pilot’s survival kit.

Chinese fake parts 'flood' US military -- Senate report

22-May-12, 8:13 AM | Michael Mathes, Agence France-Presse

WASHINGTON DC -- More than a million Chinese counterfeit electronic parts are estimated to be in use in US military aircraft, according to a US Senate report released Monday saying the discovery jeopardizes safety and national security.

The Senate Armed Services Committee said its year-long investigation launched by Democratic chairman Carl Levin and ranking Republican John McCain uncovered 1,800 cases of bogus parts, including on the US Air Force's largest cargo plane, special operations helicopters and Navy surveillance planes.

The 112-page report "outlines how this flood of counterfeit parts, overwhelmingly from China, threatens national security, the safety of our troops and American jobs," Levin said.

"It underscores China's failure to police the blatant market in counterfeit parts -- a failure China should rectify."

The report also said the Chinese government denied visas to committee staff to travel to the Asian giant as part of the committee's probe, with a Chinese embassy official saying the issue was sensitive and that a negative report could end up "damaging" US-China relations.

While the senators lay the blame squarely on China, the report said US authorities and contract companies contributed to the vulnerabilities to the defense supply chain by not detecting the fakes, or routinely failing to report suspected counterfeiting to the military.

"The failure of a single electronic part can leave a soldier, sailor, airman or Marine vulnerable at the worst possible time," the report said.

"Unfortunately, a flood of counterfeit electronic parts has made it a lot harder to prevent that from happening."

The fakes included parts in the Electromagnetic Interference Filters used in night missions and in operation of "hellfire" missiles on SH-60B Navy helicopters.

The were also found in memory chips in the display systems of C-17 Globemaster III and C-130J military cargo planes, and refurbished ice detection modules on the Navy P-8A Poseidon, modified Boeing 737 aircraft incorporated with anti-submarine and anti-surface warfare capabilities.

The report said the Defense Department "lacks knowledge of the scope and impact of counterfeit parts on critical defense systems," and that the use of unvetted independent distributors for the supply of critical military parts results in unacceptable risks to national security and safety.

DBS Singapore slashed down Philippine inflation forecast – PHL market seen resuming climb

Philippines—The country's largest mutual fund group, Bank of the Philippine Islands-managed ALFM Mutual Funds, sees the local stock market hurdling the fresh turmoil in the eurozone and resuming its climb to new heights this year.

In the last two weeks, Philippine stocks have retreated due to the negative sentiment prevailing in the European region, which had spilled over to local markets. Last week, the main Philippine Stock Exchange index suffered its steepest weekly drop this year. It fell by 5.4 percent to 4,879.42 on Friday (May 18, 2012), on escalating risks that the eurozone will break up.

"But we remain constructive of the domestic market given our healthy macroeconomic fundamentals. We think cyclical stocks such as banks and property, which are expected to benefit from the low interest rate environment and improving incomes, will continue to lead the Philippine stock index to higher levels," ALFM director Maria Theresa Marcial-Javier said in a report to stockholders.

"Downside risks are plenty, with the external factors having a hand in shaping the domestic economy. Nevertheless, our confidence in the economy has not wavered," said ALFM chairman Romeo Bernardo.

"We still expect above-trend GDP [gross domestic product] growth, supported by benign inflation. We anticipate the government's fiscal and external position to continue improving. We anchor hopes on the sustained strength of remittance flows, high business process outsourcing sector growth, improved confidence in the government and on the economy, the government's commitment to fiscal prudence, and the priority given to infrastructure development," Bernardo said.

Javier, who heads BPI's asset management and trust group, said in an interview after the ALFM stockholders meeting that the stock market's support level at 4,750 should hold and levels close to this barrier would be an opportunity to increase position.

BPI asset management is sticking to its view that the PSEi would hit 5,500 to 5,800 levels this year.

"As of the end of April 2012, the Philippines is the third-best performing equity market in the region, with a return of 19 percent, driven by strong liquidity flows attracted by the country's favorable growth prospects and generally strong first quarter 2012 corporate earnings. Net foreign buying amounted to $909 million, already more than half of the 2011 level of $1.33 billion," Javier reported to stockholders.

In her report, Javier said 2011 turned out to be a year of opportunities as well as challenges for the economy, the financial markets and investment management industry.

"We expect 2012 to be as exciting and thought-provoking. Nevertheless, we look to the future with optimism, with our expectations strongly anchored on the resilience of our domestic economy, yet remaining mindful of the difficulties that still lie ahead as we confront the challenges in the global financial markets," she said.

Malacañang says welcomes DBS cutting of inflation forecast

Malacañang on Sunday  (May 20, 2012) welcomed the reported cutting by Singapore-based DBS Bank Ltd. of its inflation forecast for the Philippines for 2012 and 2013, saying it may result in lower prices of goods and services.

Presidential spokesman Edwin Lacierda said this is "good news" for the Philippines, even as he noted world oil prices are starting to soften.

"That's good news for us.... Then considering world oil prices are softening, mababa ang ating inflation (our inflation is low), which is good for us," he said on government-run dzRB radio.

He also noted that while world oil prices had risen in past months, prices of basic goods in the Philippines did not soar drastically due to the efforts of Philippine economic managers.

Earlier reports said DBS lowered its inflation forecast for the Philippines due to lower-than-expected consumer prices in the first four months of the year as well as softening oil prices.

The report said DBS slashed its inflation forecast to 3.5 percent instead of four percent this year and 4.3 percent instead of 4.8 percent in 2013.

National Statistics Office data showed inflation rose to three percent in April from 2.6 percent in March.

source: Rebuilding for better Philippines

http://betterphils.blogspot.com/2012/05/dbs-singapore-slashed-down-philippine.html#.T7s_Idz9PQg

U.S.-Philippines Alliance 2012 - Congressman Royce