Asia

Ph Fastest Rice Producer In Asia

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Despite strong typhoons that ravaged agricultural lands last year, Department of Agriculture Secretary Alcala told about 1,500 farmers that they had produced 18.44 million metric tons of rice, enlisting the Philippines as the fastest growing rice production country in Asia.

Alcala lauded the Central Luzon farmers for helping achieve the highest rice harvest in the Philippine history during the Farmers` Lakbay Palay hosted by the Philippine Rice Research Institute in Science City of Muñoz, Nueva Ecija, April 1-4.

The production also made the country 97-percent rice self-sufficient in 2013. Although three-percent short of the 100 percent target, the country, however, registered a 16-percent increase within three years. The country was only 81-percent rice self-sufficient in 2010.

With the rice sector`s performance last year, the agriculture secretary discouraged the public from focusing on the deficit in the 100-percent rice self-sufficiency target.

“We have tried hard. Nawa`y [mapahalagan] natin, lalo na sa mga nasa Manila, ang pagpupunyagi nating mga magsasaka.  Hindi ho tayo titigil sa 97 percent. Magpupursige pa din tayo para ang isasaing ni Juan dela Cruz, dito ipupunla, dito itatanim, dito aanihin (May we, especially the city dwellers, value the efforts of the farmers. We’ll not stop at 97 percent. We’ll work harder so that the rice that we’ll serve on our table will be planted and harvested in the country),” Alcala said.

Alcala, who also unveiled the latest rice technologies, urged the farmers to be receptive of new farming practices as this may help them reduce production cost and make the price of rice more competitive in the market.

“We can`t solve problems such as rice smuggling in an instant. We still have a long way to go to stop rice smuggling. As long as our production cost is high, rice smuggling will always be around,” he said in Filipino.

He said that rice smuggling persists in the country because domestic rice prices are uncompetitive to Southeast Asian countries such as Vietnam.“Production cost in the Philippines is [about P11 a kilo] while in Vietnam, it`s around P6,” he said.

Alcala said that if farmers can peg production cost even at P8, rice smuggling will be minimized.At present, PhilRice is on its second season of implementing Palayabangan: 10-5 challenge, a nationwide farming competition that aims to produce 10 tons/ha yield at only P5 input cost per kilogram of palay.

Filipinos In China Urged To Comply With Visa Conditions

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The Philippine Embassy in Beijing has reminded all Filipinos in China to comply with the conditions and restrictions of their visas to avoid arrest, prosecution, detention, deportation and blacklisting in the host country.

In a statement, the embassy noted that about 200 foreigners were expelled from China in 2013. Out of this number, 48 or 24% were Filipinos.

The Filipinos were apprehended and detained for holding spurious Chinese

visas or forged passports, working without proper employment visas and

permits, assuming false identity, and overstaying in the country.

Some were arrested for illegally entering China then using it as jumping-off

point for travel to other countries.

The embassy’s information campaign sought to increase the Filipinos’ awareness of Chinese immigration policies, particularly rules for foreigners entering the country on a visitor or tourist visa.

The salient points of the campaignfollow:

1. Filipinos should respect the laws of China and observe the

restrictions of their visas. If their visa is for tourism purposes

only, they should not engage in any employment without proper visa

or permit, whether they are compensated or not.

2. They should not be involved in any unlawful activities or criminal

acts, such as illegal drugs trade and prostitution.

3. They should return to the Philippines on or before the expiry of

their authorized period of stay in China to avoid violating

immigration and labor regulations of that country.

Jokowi, Jojo And Erap (Happy Birthday!)

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Much sooner than most of us know or are aware of, our neighbour, Indonesia (with a population of 250 million) will hold its National Elections for President and Vice President. These were preceded by Legislative (including the Lower House of Parliament) Elections last Wednesday, April 9, 2014. 186 million voters were eligible to vote for 230,000 candidates for 20,000 seats in National (560) and Regional or Local Legislatures (2,137 seats in 33 Provincial Assemblies {DPRD}: 17,560 seats in 497 District Assemblies.).

The most important of these three levels was the election for the 560 seats in the Lower House of the National Parliament (DPR). The results have to be tallied and completed by law within 30 days. Under Clause 9, Law 42 of 2008, only parties that won at least 20 % of the DPR seats or 25 % of the popular vote in the Legislative elections can nominate a candidate for President and VP. If a party failed to achieve these criteria, then it has to combine with another party or a combination of other parties if it wants to field a candidate (s). The nominations have to be completed within seven days of the above results.

The Presidential and Vice Presidential Elections will be held on July 9. The campaign will be in May and June. Then another two months of campaigning in June and July for the Run-off elections which will be held in September. The new President will take office on October 20. 2014, when the incumbent President, Susilo Bambang Yudhoyono, steps down. The latter was elected in 2004 and 2009 in the first and second direct elections for President. He is barred from seeking a third term.

The main opposition party, the Indonesian Democratic Party – Struggle (Megawati Sukarnoputri), will nominate the Governor of Jakarta (since Oct 15, 2012; defeated the incumbent in the September 20, 2012 Run-off elections.), Joko “Jokowi” Widodo, age 52, born June 21, 1961, in Surakarta (Solo), Central Java. He was the Mayor there from July 28, 2005 to Oct 1, 2012.

In most of the Opinion Polls, Jokowi is now leading the race. His Party got the highest number of MP’s as well as popular votes. Both Suharto’s Golkar, the Gerindra Party and the Incumbent’s Democratic Party are trailing behind both in the polls as well as in the elections. Meanwhile five Islamic parties increase their combined total dramatically from 26 % in 2009 to the present 32 %.

Jokowi was educated in public schools in Surakarta at the Primary (Grade School) and Junior and Senior Secondary (High Schools) Levels. He took up Engineering at the Gadjah Mada University and graduated in 1985. He was a property and furniture businessman before he entered politics.

In both positions, as Mayor of Surakarta and as Governor of Jakarta, he adopted an interactive approach and relationship with his constituents. At the same time he adopted the development framework of European cities. He gained the trust of his constituents and was recognized for his achievements both at the National and International levels.

Jokowi reminds me of both President/Mayor Joseph “Erap” Marcelo Ejercito Estrada of Manila and the Philippines and Vice President Jejomar “Jojo” Cabauatan Binay, Mayor of Makati from 1986 to 1988 and 2001 to 2010. Jokowi became a Mayor at the age of 44 and a Governor at the age of 51.

Erap was born on April 19, 1937 in Tondo, Manila. He was elected Mayor of San Juan in 1967  (However, he was cheated and lost the elections but won an electoral protest and assumed office in 1969.) at 30, Senator in 1987 at 51, Vice President in 1992 at 55, President in 1998 at 61 and again Mayor of Manila in 2013 at 76.

Jojo was born on November 11, 1942 in Paco, Manila. He was appointed OIC Mayor of Makati in 1986 at 43. He was elected Mayor in 1988, 1992, 1995, 2001, 2004 and 2007. He was elected VP in 2010 at 67. In May 2016, he will be 73.

The three of them, Jokowi, Erap and Jojo share the same populist style. The big difference is that unlike Erap, neither Jokowi nor Jojo were actors or showbiz personalities before they became Mayors. The other difference is that Erap had to go through serving five years as a Senator before he ran for President and then slid down to Vice President in 1992.

The third difference is that undoubtedly, Jokowi as opposed to all the other strong candidates or candidates of the big parties, represents the new politics in Indonesia. On the other hand, will both Jojo and Erap be identified with the old politics in the Philippines? Or can they reinvent themselves into something new but proven. The difference between the Philippines and Indonesia is that the latter had a little taste of the new politics a decade and a half ago. The former has just had a big taste of the failed new politics in the incumbent President Benigno “Noynoy” Aquino.

The question is whether the revulsion with Pork, Corruption and Plunder will make the majority of voters gamble with the new and the young again or will they choose to stay with the old but proven leaders. If the former becomes true, then we will have a myriad of possible – Grace Poe, Alan Peter Cayetano, Vilma Santos, Sonny Trillanes and maybe even Bongbong Marcos. If the latter remains true, then we will have Binay and Estrada to choose from. They will have Mar Roxas and Chiz Escudero and others to choose from.

Meanwhile, Erap will be celebrating his 77th Birthday this coming Sabado de Gloria. Meanwhile, he will have to think and ponder whether to retire in 2016 after one term as Mayor or go on and run again for President in 2016. Will he be forced to run and win at the National level to vindicate his family just as Dra. Loi and Jinggoy ran and won as Senators in 2001 and 2004 and served to vindicate Erap then. Happy Birthday!

 

Entrepreneurship in Relation to ASEAN 2015

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ONE more year and the member countries of the Association of Southeast Asian Nations (ASEAN) are gearing towards freer and wider market in its Economic Integration pushing for the realization of the ASEAN Economic Community (AEC). Such countries are Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Lao PDR, Myanmar and Cambodia;  with China, Japan, and South Korea in the ASEAN Plus.

To those who are not so familiar with the ASEAN Economic Integration, let me put it in simple terms – “free-flow”. With it, people would be allowed to purchase, sell products and services, work and invest in any of the member countries of the ASEAN with lesser restrictions unlike what we are used to – strict protectionism. Instead of having to spend so much in terms of tariffs and complying with bloody requirements, strict procedures and other trade burdens, trading would be a lot easier, because the aim of the ASEAN is to have zero or near zero trade barriers. This would be enjoyed by all ASEAN member countries.  In addition, Southeast Asians wanting to work overseas (in ASEAN countries) would experience easier processes. Free-flow of work-force would happen.  Investors could capitalize their resources freely as they expand from one nation to another nation in the ASEAN.

Entrepreneurs would directly benefit from the ASEAN Economic Integration. There is a lot to be excited about for them.

The Philippines would be able to compete in the global setting through the one market and production base of the ASEAN. In this sense, there would be unity and more productivity among the member countries. Ironically, as member countries compete in terms of the ability to offer lower prices to consumers brought by removing or lessening trade barriers, the whole of ASEAN could benefit as a group – bonded together in creating economic progress. The free-flow would give reason for entrepreneurs to be able to cut costs for their production materials, equipment and manpower, because they would be able to get it at significantly cheaper amounts. They could have the needed edge to compete with the other larger companies in the whole world.

At a regional scale, the lending and borrowing from banks would be easier as it would have to adjust with the changes and accompany the needs for capitalization of entrepreneurs. I believe that bank transactions between and among ASEAN countries would be a lot busier compared before and it would mean significant money coming in and out of the country.

The country’s local government units (LGUs) are being improved to become business-friendly and competitive. LGUs have programs that streamline Business Permits and Licensing System (BPLS) and develop the economy through the Local Economic Development (LED) programs. In this way, the country’s budding entrepreneurs who would like to take the opportunity to do business in the ASEAN would have better access to acquire the necessary documents they need to possess in order to establish legitimate enterprises.

Free-flow could not flourish if not for state-of-the-art infrastructure as well.  Entrepreneurs know the hassle of transporting precious goods from one point to another.  Even though we already have some notable infrastructure, there is still so much that need to be improved. With the ASEAN Economic Integration, lagging behind would not be an option. The budget and plans in developing infrastructure would have to be applied, so that the country would be able to connect with the member nations internally and externally – roads, bridges and ports would have to be made.   Entrepreneurs would be able to transport their products in the country more safely and accessibly, in all of its provinces and cities and of course out of the country to all other ASEAN countries. Consequently, entrepreneurs that focus on the tourism sector would benefit from the ease of travel. Good news for all businesses in our tourist spots.

The ASEAN Economic Integration would also mean more opportunities for the country to develop its communications and information technology facilities. In this age of high technology, entrepreneurs could benefit even more from the World Wide Web when they try to compete with the tigers and reach their customers in the global setting. We know of it as entrepreneurs have established their on-line stores which are gaining more and more attention from customers who would rather remain in the comforts of their homes and order the latest products at best deals!  Entrepreneurs who are home-based and who are mostly just starting up do business on-line. Why not?  Communications brought by the internet has proven to be very effective and efficient.

With free-flow, the market is even wider and tougher and we could expect even greater – tons of exportation and importation dealings happening from one corner of the world to another with the use of the internet. Imagine how else entrepreneurs could speed up the increase of their sales, but with the use of the continually developing communications and information technology! Almost everything could be just one click away from happening.  In order to “go with the flow”, the free-flow would have to be accompanied with improved communications and information technology.

Investors coming in the country for expansion would provide entrepreneurs that sub-contract for more opportunities to do business. Entrepreneurs who would like to invest in another ASEAN country would be encouraged and would enjoy none, if not fewer restrictions.

The Philippines would have to adjust and better its competitiveness as it would need to keep up with the requirements of the AEC and integrate with all member countries.                  There would be no other sensible way, but to improve. Sink or swim they say, but I am confident, our country’s entrepreneurs would have what it takes to take advantage of the free-flow and run with the tigers.

 

Reference:

“Rising as one: The Filipino Nation Towards The ASEAN Economic Integration” by Local Government Academy

Boon or Bane?

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Editorial

The Philippines is not ready for the Initiative for ASEAN Integration (IAI) in 2015. The Initiative for ASEAN Integration refers to reducing various forms of disparities among and within member States where some pockets of underdevelopment persist, which could narrow the development gap in the region.

With the integration, people would be allowed to purchase, sell products and services, work and invest in any of the member countries of the ASEAN with lesser restrictions unlike strict protectionism. This would be enjoyed by all ASEAN member countries.

But according to Asian Development Bank, the economic integration of the Association of Southeast Asian Nations (ASEAN) will likely not be attained by 2015. Although various reasons were cited for the continued difficulties of attaining the AEC targets, what stands out is the unawareness of the private sector.

Since 2010 when this integration was first hatched, the Philippine government failed to prepare for it. In trade relations alone, where products are supposed to be exported to a less-restricted environment, the recipient chooses which products to accept or to reject.   Naturally the more superior product in terms of quality and price are allowed into the member country. How can we export cheaper products when the cost of production is high? Electricity and labor costs, which are factors to production, are high.

Also, promoting greater mobility of skilled workers and better regulation and management of unskilled labor movements are to be addressed. In the Philippines, unemployment and underemployment are pervasive. Skills do not commensurate with job requirements. Can we compete with our ASEAN neighbors in the labor market?

What about our infrastructure?

There are so many things that we have to prepare for in order to be competitive. If we are not competitive, what benefit can the Initiative for ASEAN Integration do for us? Nada.

 

All’s Well That Ends Well

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By Dong Maraya

Recently a Filipino citizen living in Manila has laid claim—as sultan of Sulu—to the Malaysian state of Sabah on Borneo. Jamalul Kiram III’s claim is based on a token rent which Malaysia pays the royal house of Sulu for the use of Sabah. Calling themselves the Royal Army of Sulu, the clan members said they were descendants of the Sultanate of Sulu in the southern Philippines, which ruled parts of northern Borneo for centuries.

The February 2013 invasion by more than 200 Filipinos seemed to take both the Philippines and Malaysia by surprise. At least 60 have been killed in the ongoing conflict. The Malaysian government has been forced to take the worsening situation seriously, and launched an offensive on March 5, which included fighter jet air support.

However, the Sabah intrusion did not damage ties between Malaysia and the Philippines. Nevertheless, both sides should increase their mutual engagement in the business, economic and cultural spheres. The Philippines is maintaining close ties with Malaysia despite the siege.

“There has been no strain with our relationship in Malaysia. We recognize that this was an attempt by a few that should not affect the relationship of the whole,” a Philippine government official said in a news briefing.

Malaysia is a federal constitutional monarchy in Asia. It consists of thirteen states and three federal territories and has a total landmass of 329,847 square kilometers (127,350 sq mi) separated by the South China Sea into two similarly sized regions, Peninsular Malaysia and Malaysian Borneo. Land borders are shared with Thailand, Indonesia, and Brunei, and maritime borders exist with Singapore, Vietnam, and the Philippines. The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government. In 2010 the population was 28.33 million, with 22.6 million living on the Peninsula.

The independent state of Malaysia came into existence on Sept. 16, 1963, as a federation of Malaya, Singapore, Sabah (North Borneo), and Sarawak. In 1965, Singapore withdrew from the federation to become a separate nation. Since 1966, the 11 states of former Malaya have been known as West Malaysia, and Sabah and Sarawak as East Malaysia.

The country is multi-ethnic and multi-cultural, which plays a large role in politics. The government system is closely modeled on the Westminster parliamentary system and the legal system is based on common law. The head of state is the king, known as the Yang di-Pertuan Agong. He is an elected monarch chosen from the hereditary rulers of the nine Malay states every five years. The head of government is the Prime Minister.

By the late 1960s, Malaysia was torn by rioting directed against Chinese and Indians, who controlled a disproportionate share of the country’s wealth. Beginning in 1968, it was the government’s goal to achieve greater economic balance through a national economic policy.

Since its independence, Malaysia has had one of the best economic records in Asia, with GDP growing an average 6.5% for almost 50 years. The economy has traditionally been fueled by its natural resources, but is expanding in the sectors of science, tourism, commerce and medical tourism. Today, Malaysia has a newly industrializedmarket economy, ranked third largest in Southeast Asia and 29th largest in the world.

Malaysia’s foreign policy is officially based on the principle of neutrality and maintaining peaceful relations with all countries, regardless of their political system. The government attaches a high priority to the security and stability of Southeast Asia, and seeks to further develop relations with other countries in the region.

Malaysia is a relatively open state-oriented and newly industrializedmarket economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans. In the 1970s, the predominantly mining and agricultural-based economy began a transition towards a more multi-sector economy.

International trade and manufacturing are the key sectors. Malaysia is an exporter of natural and agricultural resources, and petroleum is a major export. Malaysia has once been the largest producer of tin, rubber and palm oil in the world.

In an effort to diversify the economy and make it less dependent on export goods, the government has pushed to increase tourism to Malaysia. As a result, tourism has become Malaysia’s third largest source of foreign exchange, although it is threatened by the negative effects of the growing industrial economy, with large amounts of air and water pollution along with deforestation affecting tourism. In the 1980s, Dr. Mohamad Mahathir succeeded Datuk Hussein as prime minister. Mahathir instituted economic reforms that would transform Malaysia into one of the so-called Asian Tigers.

Beginning in 1997 and continuing through the next year, Malaysia suffered from the Asian currency crisis. Instead of following the economic prescriptions of the International Monetary Fund and World Bank, the prime minister opted for fixed exchange rates and capital controls. In late 1999, Malaysia was on the road to economic recovery, and it appeared Mahathir’s measures were working.

The Malaysian Ambassador to the Philippines Dr. Ibrahim Saad is from the northern state of Penang, a highly developed city also known as the Silicon City of Malaysia. Industrialized as it may be now, Penang is also a recognized UNESCO Heritage Site. Dr. Saad stressed that he has one wife with whom he has two sons and three daughters and he is currently doting on his four grandchildren. Though the family members are based in Malaysia, they make it a point to come once in a while as they love the surfing and diving in the country. In fact, he says, they just love the Philippines.

Dr. Ibrahim Saad is not a career diplomat. He started out in the academe, graduating with a Ph.D. in Education from the University of Wisconsin in America. He later on joined the government as a member of the State Assembly, became a deputy chief minister of and vice governor of Penang before he moved to a higher post in the Prime Minister’s department. Perhaps the call of the academe proved stronger then, because he left politics again and went back to the world of academe, becoming vice chancellor and president of a prestigious university in his beloved city until the government recalled him into active service and he accepted the post of Malaysian ambassador to the Philippines in 2010.

Malaysia is essentially a highly industrialized and developed country, and many tourists come to their shores to shop at high-end stores. They recently launched Luxury Malaysia in the country which extols their relatively cheap shopping because only gas, glasses, drinks, cigarettes and chocolates are taxed.

With a population of 25 million people and an economy that is steadfastly registering a double-digit growth (they have a per capita income of US$8,000) Malaysia needs a lot of manpower which the Philippines can provide. Currently, they have one million foreigners with work permits in Malaysia, and they are in the process of regularizing another one million workers.

Turnover of Japan-Funded Disaster-Prevention Equipment in Cagayan de Oro

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Minister Akio Isomata, Embassy of Japan’s Minister for Economic Affairs turned over fishing nets and dredging machines to the Department of Agriculture (DA) and Department of Public Works and Highways (DPWH) in a ceremony last March 14 for the Japan-funded Non-Project Grant Aid for the Restoration and Disaster Prevention in Cagayan de Oro, Misamis Oriental. The ceremony was also attended by Cagayan de Oro Mayor Oscar Moreno and Congressman Rufus Rodriquez.

The assistance, signed two years ago, provided 600 million yen (approximately 315 million pesos) for the purchase of necessary products for the recovery and disaster prevention of Typhoon Sendong affected areas. Aside from the fishing nets and dredgers, housing materials will also be provided under this project to assist the victims in the restoration and rebuilding of their homes. This assistance comes on top of the 25 million yen (approximately 14 million pesos) emergency relief, composed of water tanks, tents and other relief items, and the 2 million US dollar emergency grant through international humanitarian agencies.

In his speech during the ceremony, Minister Isomata referred to the importance of proactive involvement of local communities in enhancing disaster preparedness and said, “Japan, being also a disaster-prone country, is committed to assist the Philippines in enhancing its ability for disaster risk reduction and management, and have worked together with the Philippines in this field for many years through various ODA projects. But, there is one thing we always have to bear in mind in implementing any kind of disaster-related efforts. That is, we need a heightened awareness of local communities for the prevention of natural disasters even at normal times.”

Japan, as the top donor of ODA to the Philippines as well as a disaster-prone country itself, has supported the Philippines’ disaster mitigation and management efforts by sharing its experiences and lessons learned from the past natural disasters.  Recently, the Government of Japan provided assistance for the victims of Typhoon Pablo in 2012, the Bohol Earthquake and Typhoon Yolanda in 2013. Moreover, a 50 billion yen Post-Disaster Standby Loan was signed last December 2013, when President Aquino visited Tokyo, to further assist in the restoration and recovery of disaster stricken areas.  These projects reaffirm the continued commitment of Japan to extend cooperation in minimizing threats and impacts of disasters.

Japan Commits PHP215 Million ODA Providing “Next-Generation Vehicle Package”

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Japanese Ambassador Toshinao Urabe and Secretary of Foreign Affairs Albert F. Del Rosario exchanged notes for the “Non-Project Grant Aid (Next-Generation Vehicle Package)” amounting to 500 million yen (approximately 215 million pesos) on March12, 2014.

The “Non-Project Grant Aid (Next-Generation Vehicle Package)” aims to contribute to the reduction of environmental pollution in the Philippines caused by greenhouse gas (GHG) emissions. The products to be provided under this project will be decided in accordance with the Philippine Government’s requests. Specifically, the project is intended to provide eco-friendly products that will promote the development of the Philippines through making use of Japanese technology such as hybrid vehicle (HV), plug-in hybrid electric vehicle (PHEV), electric vehicle (EV) and clean diesel vehicle (CD).

Projects under the Non-Project Grant Aid (NPGA) seek to assist developing countries in responding to different economic and social needs. The NPGA offers foreign currency funding for importation of goods such as industrial materials that will address a specific concern of a developing country. The objectives of these projects are in line with the concept of “Inclusive Growth” stated in the Philippine Development Plan 2011-2016, as well as the concept of “Human Security” being advocated by the Japanese Government. Projects such as this serve as a continuing testimony of strategic partnership between Japan and the Philippines.