Chinese ‘occupation’ of Bajo de Masinloc could reduce PH territorial waters by 38 percent

by Ellen Tordesillas, VERA Files

The Philippines is at a loss over China’s declaration its ships will stay permanently in Bajo de Masinloc, a declaration some experts say could lead to the Philippines losing 38 percent of its territorial waters.
Bajo de Masinloc, a triangular-shaped coral reef formation that has several rocks encircling a lagoon, is located 124 nautical miles west of Masinloc town in Zambales in the northwestern part of the Philippines.

“The shoal is under virtual occupation by China,” said former foreign undersecretary and former Philippine Permanent Representative to the United Nations Lauro Baja.

Foreign Secretary Albert del Rosario confirmed this, saying, “In a subministerial consultation, Chinese Vice Foreign Minister Fu Ying had said to our people that China’s presence was permanent and they had no intention of withdrawing their ships from the vicinity of Bajo de Masinloc.”

The National Mapping and Resource Information Authority (NAMRIA) says Bajo de Masinloc has an area of about 120 square kilometers. It is also referred to as Panatag (calm in Pilipino) by fishermen who seek refuge in the area during stormy weather.

Its international name is Scarborough shoal after the tea-carrying British boat Scarborough which sank in the vicinity in 1784. China also claims ownership of the shoal which is 467 nautical miles away from its mainland, and refers to it as Huangyan Island.

Republic Act 9522, which defines the country’s archipelagic baseline, includes Bajo de Masinloc as part of Philippine territory. The law classifies it as a regime of islands under Art. 121 of the Law of the Sea Convention (LOSC), which means it generates its own territorial sea, exclusive economic zone (EEZ) and continental shelf.

Under UNCLOS, “an island is a naturally formed area of land, surrounded by water, which is above water at high tide.”
An island generates its own maritime regimes, which are 12 nautical miles (nm) for territorial sea, 24 nm for contiguous zone, 200 nm for EEZ and 200 nm continental shelf.

Under this definition, the Chinese claim over Baja de Masinloc means the Philippines risks losing not only the 120-square-kilometer strategically vital reef formation but also some 494,000 square kilometers EEZ, representing 38 per cent of the country’s EEZ.

One of the Philippines’ options to protest the Chinese encroachment is going to the United Nations International Tribunal on the Law of the Sea (ITLOS), the arbitration arm of UNCLOS, of which the Philippines and China are signatories.

Legal experts say the Philippines can ask the ITLOS, which does not deal with territorial disputes, to declare Bajo de Masinloc as a rock rather than an island.

UNCLOS said, “Rocks which cannot sustain human habitation or economic life of their own shall have no exclusive economic zone or continental shelf.”

Retired Philippine Navy Commodore Rex Robles, who has been to the area a few times for gunnery practice, declares that “Panatag shoal is a rock.”

“It cannot support human life. It is not an island,” he concludes.

Lawyer Romel Bagares, executive director of Center for International Law (Philippines), said RA 9522 “does not actually specify whether Bajo de Masinloc consists just of uninhabitable rocks or is capable of economic life pursuant to Art 121 of the UNCLOS. This could be one way of arguing ITLOS has jurisdiction, especially as to the interpretation of provisions. It's a pragmatic approach, no doubt.”

What is obvious, Bagares said, is that RA 9522 assumes that the shoal is part of Philippine territory in the fullest sense of the term.

Del Rosario said, “To the extent that their three ships are within our exclusive economic zone, this is in gross violation of the DOC and UNCLOS.”

DOC is the Declaration of Conduct of Parties in the South China Sea signed in 2002 by members of the Association of Southeast Asian Nations, four of them part claimants to islands in the South China Sea, and China. UNCLOS is the United Nations Convention on the Law of the Sea.

Baja said, “When our ships withdrew from Bajo de Masinloc in June and now (we) could not access the area, the shoal became under virtual occupation by China. “

Baja, who drafted the DOC with Malaysia’s Abdul Kadir, also said Chinese occupation of the disputed shoal has changed the status quo, contrary to the DOC.

The DOC states: “The Parties undertake to exercise self-restraint in the conduct of activities that would complicate or escalate disputes and affect peace and stability including, among others, refraining from action of inhabiting on the presently uninhabited islands, reefs, shoals, cays, and other features and to handle their differences in a constructive manner.”

Baja said China is exercising what the International Court of Justice (ICJ) calls “effectivités.” “This is the basis of the Court’s decision on the Ligatan Sipadan case where the court awarded the area to Malaysia over Indonesia. Also the same principle in the case between Chile and Peru and between Nicaragua and Guatemala,” he said.

In 2002, the ICJ awarded sovereignty over Pulau Ligitan and Pulau Sipadan, two very small islands located in the Celebes Sea, off the northeast coast of the island of Borneo, to Malaysia against Indonesia giving weight to the former’s actual and continued exercise of authority over the islands.

Baja said, “We must act and interact before we lose the territory by default and/or estoppel.”

Seven months after China’s occupation of Bajo de Masinloc, the Philippines is still “reviewing” its options.

Asked about the Philippines’ response to China’s declaration it has no intentions of pulling out their ships from Panatag shoal, Del Rosario said, “We are reviewing all our options in accordance with our three track approach encompassing the political, legal and diplomatic means.”

President Benigno Aquino III has refused to discuss publicly the Philippine efforts on Bajo de Masinloc because he said doing so would be “giving the other side a preview of everything that we will do.”
He said, though, in October at a forum by the Foreign Correspondents Association of the Philippines that the matter “is still being studied by our consultants.”

Aquino added, “There are several law firms that we are consulting, conversant and very well thought of and experts in international law, to precisely chart the course of how we will utilize the legal procedures in international law to advance our claims.”

Experts point to two options available to the Philippines: the military option—which is not really an option considering the inferior state of the Philippine Navy compared with China’s naval might—and the legal option.

THE permanent stationing of three of its ships in Bajo de Masinloc is part of China’s “creeping invasion” of disputed territories in the South China Sea, a high-ranking Philippine government official said.

Bajo de Masinloc is Huangyan island to China, which has time and again reiterated “that Huangyan Island and Nansha Islands have always been parts of Chinese territory and that the People’s Republic of China has indisputable sovereignty over these islands and their adjacent waters.”

“The claim to territory sovereignty over Huangyan Island and Nansha Islands by the Philippines is illegal and invalid,” China says.

Nansha is what the Chinese call the Spratly Islands, a group of islands on the South China Sea, parts of which are being claimed by the Philippines, Vietnam, Malaysia, Brunei and Taiwan.

China’s presence on Bajo de Masinloc is also an alarming reminder to the Philippines of how Mischief Reef came under Chinese control 18 years ago.

In the early 1990s, China had built structures it said were just fishermen’s shelters on Mischief Reef. Through the years, China added installations on the island, including a radar system.
Philippine and U.S Air Force reconnaissance revealed military structures on Mischief Reef belying Chinese claims. In January 1995, the captain of a Philippine fishing boat reported that he was arrested and detained for a week by the Chinese when he ventured into Mischief Reef.

Since then Mischief Reef has been under the control of China and inaccessible to Filipinos.

A paper titled “Geopolitics of Scarborough Shoal” written by Francois-Xavier Bonnet of the Bangkok-based Research Institute on Contemporary Southeast Asia (IRASEC) explains the importance of Huangyan Island to the bigger and long-term objective of China.

Bonnet said Huangyan Island/Bajo de Masinloc is crucial to China’s claim over the Zhongsha Qundao islands which is vital in its controversial “nine-dash line map.”

The map is called “nine-dash line” or “nine-dotted line” because it shows a series of nine dashes or dotted lines forming a ring around the South China Sea area, which China claims is part of its territory. The area includes the Spratlys group and Bajo de Masinloc.

The “nine-dash line map” puts 90 percent of the whole South China Sea under Chinese jurisdiction.

The map does not have coordinates, but was submitted by China to the United Nations on May 7, 2009.

Bonnet explained, “The Zhongsha Qundao is composed of Macclesfield Bank, Truro Shoal, Saint Esprit Shoal, Dreyer Shoal and Scarborough Shoal. All these banks and shoals, except for Scarborough Shoal, are under several meters of water even during low tide. Chinese policymakers know too well that without Huangyan island, the chance of their ownership over Zhongsha Qundao recognized is nil.” Bonnet said, “The stakes are high. If China loses Huangyan/Scarborough, it will lose Zhongsha Qundao, which could be divided by the EEZs of the neighboring countries or placed under the regime of the high seas. By consequence, China’s entire claim to the South China Sea supported by the U-shape line would be moot and academic.”

Last June, China elicited international concern when it established Sansha City on Yongxing Island in the southernmost province of Hainan. Sansha City’s territory includes the Spratlys, the Paracels and Macclesfield Bank.

Immediately after establishing Sansha City, China’s Central Military Commission, its most powerful military body, approved the deployment of a garrison of soldiers from the People’s Liberation Army to guard disputed islands.

China’s Ministry of Civil Affairs said in June that putting Macclesfield Bank, the Paracels and the Spratlys under Sansha would “further strengthen China’s administration and development” of the three island groups.

The Philippines protested the establishment of Sansha City, specifically the inclusion of a part of its territory, Macclesfield Bank, one of the largest underwater atolls in the world, covering an area of 6,500 square kilometers.

Former foreign undersecretary and Philippine Permanent Representative to the United Nations Lauro Baja said there is no doubt that China has Bajo de Masinloc in its long-term territorial design.

Incidents of Philippine Navy ships apprehending Chinese fishermen in the vicinity of Bajo de Masinloc is common. In 1999, the Philippine Navy even “accidentally” sank a Chinese fishing boat. But the conflict never went beyond the standard diplomatic protests.

Former Foreign Secretary Domingo Siazon recalled one apprehension in 1998 that was a subject of a diplomatic protest by China involving a young navy officer named Antonio Trillanes IV, who would would later on become a senator and play a controversial role in the tension between the Philippines and China over the disputed shoal.
But Philippine encounters with the Chinese in Baja de Masinloc took a different turn on April 8, 2012, when the BRP Gregorio Del Pilar, the Philippines lone modern warship acquired from the United States, arrested Chinese fishing vessels in the area.

Philippine military officials said BRP Gregorio del Pilar was due for preventive maintenance servicing in Subic at that time but was redirected to Northern Luzon as contingency undertaking for an impending North Korea rocket launch.
The combat ship was also ordered to verify reports about the presence of the Chinese fishing vessels in Bajo de Masinloc. They arrested Chinese fishermen in eight fishing boats caught with sizable quantities of endangered marine species, corals, live sharks and giant clams.

Looking back, officials say the April 8, 2012 incident gave China an excuse to occupy the area.

China immediately deployed three Chinese Marine Surveillance (CMS) ships to Bajo de Masinloc to rescue their fishermen and added more than 80 vessels as the standoff dragged on.

The Philippines later withdrew BRP Gregorio del Pilar, which was replaced by a Philippine Coast Guard ship and a research vessel by the Bureau of Fisheries and Aquatic Resources in observance of “white to white,” referring to civilian ships, and “gray to gray,” meaning navy-to-navy rules of engagement.

The standoff that lasted 57 days spilled over to the economic front with China rejecting inferior quality bananas from the Philippines and cancellation of Philippine-bound Chinese tour groups.

It was only broken upon the insistence of the United States State Department that the issue be resolved because President Barack Obama did not want it included in the agenda of his June 8, 2012 meeting with President Benigno Aquino III at the White House.

With the breakdown of communication between the straight-talking Philippine Foreign Secretary Albert Del Rosario and Chinese Ambassador Ma Keqing in Manila, U.S. Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell proposed to Chinese Vice Foreign Minister Fu Ying in Washington D.C. that Chinese and Philippine vessels withdraw simultaneously from the disputed shoal.

By that time, Trillanes had entered the picture and was directly negotiating between Beijing and Malacañang to help de-escalate the tension.

Hours before Aquino left for London and Washington D.C. on June 4, 2012, Malacañang announced the pullout of Philippine ships from Bajo de Masinloc “consistent with our agreement with the Chinese government on withdrawal of all vessels from the shoal’s lagoon to defuse the tensions in the area.”

Diplomatic sources said Fu Ying never committed complete withdrawal of their ships from Bajo de Masinloc as there was resistance from the People’s Liberation Army, an important sector in China’s power structure.

Del Rosario said when he met with Fu Ying during her Manila visit last Oct. 19, “I was very direct in saying that the presence of their ships is in clear violation of our sovereign rights, and they must withdraw their ships at the earliest possible time.”

Fu Ying did not respond, he said. 

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph.

BOP surplus, among other factors, to help PHL withstand ‘potential shocks’

Business Mirror - THE surplus in the balance of payments (BOP) in 2012 was not as high as the year before but at $9.23 billion still exceeded the forecast for the year.

At the annual reception of bankers that the Bangko Sentral ng Pilipinas hosted on Friday, BSP Governor Amando M. Tetangco Jr. said the surplus, indicating excess foreign-currency earnings over expenses, continued to widen.

He announced the surplus state of the BOP in the wake of an earlier announcement citing the sustained rise in gross international reserves, an indicator of capacity to pay for imports and maturing foreign debt, to $84.2 billion.

These and many other macroeconomic developments during the year should “continue to enhance confidence in our ability to meet potential shocks” down the line, Tetangco said.

This pertains, for the most part, to the disorderly unwinding of short-term portfolio placements by foreign fund managers looking to exploit emerging markets like the Philippines, where the interest differential and prospect of continued growth form an irresistible incentive not to be missed.

Tetangco, in a moment of reflection, said the Philippines growth story averaging 6.5 percent in just nine months of 2012, when inflation was also well behaved at just 3.2 percent, became a victim of its own success.

“Now, our challenge is dealing with the consequences of this ‘apparent’ success. In particular, surges in capital flows. As Fed Reserve Chairman Ben Bernanke stated, emerging markets have been attracting capital because we have remained resilient even at the height of the recent crisis. Essentially, he was saying we are the victims of our own success.  Of course, the near-zero interest-rate regimes in the advanced economies have also been a factor behind the strong capital flows going to emerging markets,” he said.

He urged that the capital-flow surges be converted into “real economic assets, such as factories in the manufacturing sector or storage facilities in the agricultural sector. In doing so, we would have leveraged the financial resources into added productive capacity.”

Tetangco bared a degree of apprehension over the likelihood that the foreign capital inflows will remain in the financial sector, where its speculative intent could wreak havoc on the economy down the line instead of boosting the growth potential with the building of bricks-and-mortar productive enterprises that generate taxes for the government and employ the bulk of some 3 million jobless Filipinos at present.

“If these resources remain financial in nature and in search of better returns for risks they deem acceptable, then the onus shifts… once again…to the BSP. More than ever, monetary policy-making requires great care and balance—balance to contain speculative actions but not to discourage investments… and balance to maintain financial and macroeconomic stability but not to stifle competition and growth,” he told the gathered crowd of bankers and businessmen.

The surplus BOP was highest month-on-month at $3.18 billion in July last year, when the BSP cut its policy rates by 25 basis points to 3.75 percent for borrowing and 5.75 percent for lending, and in November, when the surplus for the month stood at $2.16 billion also following another 25-basis point cut the previous month.

Tetangco and six other members of the policy-making Monetary Board imposed a full-percentage point cut in 2012 as part of the broad effort to manage the foreign capital inflows.

BSP Deputy Governor Diwa C. Guinigundo also told reporters on Friday the anticipated surplus state in the BOP this year was likely to moderate to a lower level as import activities were seen rising in part because the local currency the peso has grown stronger the past 12 months and because much of those purchases are capital goods.

As a result, local output this year was seen sustained at a high level, averaging 6 percent to 7 percent, based on a forecast bared by the National Economic and Development Authority.

The World Bank anticipates the Philippines growing by around 6.2 percent this year but homegrown analysts at the First Metro Investments Inc. and at Banco de Oro, for example, see growth averaging as high as 8 percent this year.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph.

HK investment banker buys into Manila Jockey Club unit

Rappler - A group of Hong Kong-based investors is acquiring a 33% stake in a unit of Manila Jockey Club, one of Asia's oldest racing clubs, which will pursue casino, entertainment, and other tourism-related ventures, as well as develop the San Lazaro horse racing hub in Manila.

In a disclosure to the stock exchange on Friday, January 18, MJC Investments Corp. (MJIC), the hotel and tourism estate unit of Manila Jockey, said the group led by investment banker Cheah Teik Seng will subscribe to 450 million MJIC shares with a two-year lock-up period.

It did not provide additional details, except that Manila Jockey will retail control.

Seng is Executive Director of boutique group, ECM Libra Financial Group Berhad, and was former managing director of BNP Paribas in Hong Kong as well as ECM Libra Financial Group Berhad. He has more than 20 years working experience in the international investment banking industry, and currently sits in various boards of companies in Hong Kong, China and Malaysia.

Manila Jockey previously increased its capital base from P1.5 billion to P5 billion to accommodate the entry of new business partners as part of efforts to expand and participate in the growth of the tourism sector without incurring additional debts.

Its key assets are the San Lazaro estate in Sta. Cruz, Manila spanning about 7,500 square meters, as well as undeveloped parcels of land, including a 1.67-hectare property, and another 5,000-square meter property near San Lazaro.

Manila Jockey conducts its racing operations at its facility in Carmona, Cavite.

The Sta. Ana race track -- the other racing circuit in Manila -- is being converted into an entertainment and sports complex by the Ayala group. The development is a joint venture with the Philippine Racing Corporation, which has relocated the Sta. Ana race track to Cavite. 

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph.

Net hot money inflow hits $3.885B

Philippine Star - Foreign investors swamped the local financial markets last year, with the net inflow of foreign portfolio investments beating official forecasts, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

Portfolio investments – also called “hot money” for the ease they enter and exit economies – posted a net inflow of $3.885 billion in 2012, well above the BSP’s revised $3.2-billion projection. The total tally, however, was down 4.7 percent from a net inflow of $4.077 billion reached in 2011.

A net inflow indicates more foreign investments entered the country than left. For December alone, hot money recorded a net inflow of $212.65 million. “(This) reflected… renewed interest in PSE-listed securities, coupled with sustained investor confidence in the country’s sound macroeconomic fundamentals,” the central bank said. Hot money investments are usually placed in the bond and stock markets.

The BSP has been watchful of portfolio investments as they can cause volatility in the stock and foreign exchange markets which could be detrimental to businesses.

 For 2012, data showed gross inflows for the year reached a 10-year high of $18.456 billion, while gross outflows amounted to $14.571 billion. Investments were mainly channeled to listed companies at the Philippine Stock Exchange (PSE), the central bank said.

The benchmark PSE index, which closed up 0.41 percent to 6,072.18 yesterday, has reached seven record-highs this year. By source, the United States, the United Kingdom, Singapore, Luxembourg and Hong Kong were main sources of inflows, the central bank noted. Top beneficiary sectors were not immediately available.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph.

Bank loans up 14% to P3.134 T

Philippine Star - Loans granted by big banks grew at a slower pace in November, but the Bangko Sentral ng Pilipinas (BSP) said credit levels remained supportive of economic growth.

Excluding BSP placements, outstanding loans extended by universal and commercial banks rose 14 percent to P3.134 trillion as of November last year, slower than the 15.8-percent growth recorded in the first 10 months.

The growth rate further drops to 13.3 percent when money with the central bank is included, data released yesterday showed. That also marked a slowdown from 14.2 percent the previous month.

Loans are good gauge of economic activity. As a regulator, BSP sees to it that banks are healthy enough and are able to lend to boost consumption and investment activities.

In a statement, BSP Governor Amando Tetangco Jr. attributed the over-all slowdown to an easing across all types of loans. During the period, credit to production activities grew 14.6 percent from 16.4 percent, while consumer loans expanded 12.1 percent from 13.9 percent.

“The growth in bank lending, especially to productive activities, should provide needed resources to raise the growth potential of the economy,” Tetangco explained.

Loans for production activities accounted for the bulk of loans, amounting to P2.860 trillion for the first 11 months of 2012, figures showed.

Under this category, credit to public administration and defense expanded the fastest pace at 48.9 percent. This was followed by loans to the following sectors: financial intermediation (37.3 percent), wholesale and retail trade (26.9 percent) and transportation, storage and communication (26.5 percent).

Lending to real estate, renting and business services and manufacturing sectors also grew by 24.8 percent and 13.6 percent, respectively, data showed.

Declines, on the other hand, were observed in lending to agriculture, hunting and forestry which dipped 41.8 percent, and mining and quarrying that dropped 39.5 percent.

Meanwhile, consumer loans— or credit used to finance household needs such as purchasing of appliances— reached P252.116 billion as of November with credit card and auto loans leading the pack.

Compared to previous year, credit card receivables grew 10.1 percent while auto loans increased 13.1 percent.

Continued loan growth was supported by increasing domestic liquidity, which accelerated to P4.9 trillion as of November, an improvement of 9.8 percent year-on-year, figures showed. Expansion was faster than October’s 8.6 percent.

“The faster expansion in domestic liquidity during the month reflects in part the impact of previous policy actions of the BSP to help support non-inflationary economic growth…,” Tetangco said.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph.

Aquino approves P147-B infra projects

Philippine Daily Inquirer - President Benigno Aquino III on Friday approved five big-ticket infrastructure projects that will cost a whopping P146.9 billion.

Two of the projects are designed to decongest traffic and cut travel time in the National Capital Region and outlying provinces.

The infrastructure projects will be funded through a combination of official development assistance (ODA) loans and government equity.

Most of these projects will be implemented from 2013 to 2018 and will not be completed until after Mr. Aquino’s term ends in 2016.

“All these projects are meant to promote inclusive and rapid growth,” Ricky Carandang, head of the Presidential Communications Development and Strategic Planning Office, told reporters following a Palace meeting of the National Economic and Development Authority (Neda) board, which approved the projects.

The President chairs the Neda board.

The biggest of these projects are the Cavite-Laguna Expressway, or Calax (P35.57 billion), and the North Luzon Expressway-South Luzon Expressway (NLEx-SLEx) connector road project (P25.55 billion).

The latter two are on the Aquino administration’s priority public-private partnership (PPP) list. The NLEx-SLEx connector road project was an unsolicited proposal from the Metro Pacific Investments Corp. that was approved and awarded last December.

Three rural infrastructure projects are: the construction of water impounding facilities, or Pasa Small Reservoir Irrigation Project in Isabela City (P1.29 billion); phase 2 of the Cordillera Highland Agricultural Resources Management Project (P2.94 billion); and the continuation of Kalahi-CIDSS National Community Driven Development Project (P89.1 billion).

Kalahi-CIDSS, which stands for Kapit-Bisig Laban sa Kahirapan–Comprehensive Integrated Delivery of Social Service, is a community-driven development project being implemented by the Department of Social Welfare and Development (DSWD).

It is widely viewed as an anti-insurgency program since it is aimed at providing comprehensive livelihood and social services to the countryside.

According to the DSWD, the program trains communities and their local government units “to choose, design and implement subprojects that address their most pressing needs.”

The program is assured of funding until 2018.

On the Calax, a four-lane, 47.02-km highway, Carandang said the total cost of the project was brought down to P35.5 billion, from P43.4 billion, due to “minor revisions in the scope.”

“Little tweaks to specifications of the projects resulted in savings,” he said.

Target date of completion is 2017.

The NLEx-SLEx connector road will be a 13.4-km, four-lane, mostly elevated expressway that will be constructed over the existing Philippine National Railway right of way. When completed in 2016, it will run from Caloocan City to Buendia in Makati City.

Among the PPP programs presented to investors in 2010, the Aquino administration has already awarded to Ayala Corp. the P1.956-billion Daanghari-Southern Luzon Expressway Link Road, the first PPP project of the Aquino administration to be awarded, and two school building contracts awarded to BF Corp. and  Citicore-Megawide consortium for a combined cost of P16.5 billion.

Carandang said the water impounding facility project in Isabela would address climate change.

“The benefit of this is it will prevent flooding and reroute water for greater irrigation [of agricultural lands],” resulting in higher crop yields, he said.

Of the P1.029-billion cost for the Isabela project, P935 million will come from ODA while P93 million will be shouldered by the local government. It will be finished in 2016.

The Cordillera project was started in 2009. Phase 2 will start this year until completion in 2015. 

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph.

Remittances Reach $19.4B In Nov.

11-Month Total

Manila Bulletin - Overseas Filipinos’ cash remittances sent through the formal banking channels grew six percent year-on-year to $19.42 billion as of the end of November and exceeding the five percent forecast for 2012, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

As for personal remittances which include funds transferred through informal means such as the “padala” system, the BSP said this amounted to $21.59 billion, up 6.1 percent compared to what was reported same time in 2011.

The BSP tallies remittances as cash or transfers via the banking networks and as personal remittances. The projection for 2012 is that remittances will reach $21.1 billion or five percent higher than 2011’s $20.1 billion.

For the month of November alone, cash remittances rose 7.6 percent to $1.9 billion while personal remittances also increased by 7.6 percent to $2.1 billion.

In a statement, the BSP said the growth in personal remittances was helped along by the 12.7 percent increase in transfers from sea-based workers and land-based overseas Filipino workers with short-term contracts, as well as the 13.4 percent increase in remittances from land-based workers with work contracts of one year or more.

As for the expansion in cash remittances, BSP stated that remittances “sustained an uptrend” as cash transfers from both land-based and sea-based workers increased by 4.2 percent and 12.5 percent, respectively.

Bulk of cash remittances or about 78 percent are sourced from the US, Canada, Saudi Arabia, United Kingdom, Japan, United Arab Emirates, and Singapore.

According to the BSP, “remittances continued to draw strength from the increasing demand for skilled and professional Filipinos abroad along with innovations in remittance services offered by banks and financial institutions.”

Based on data from the Philippine Overseas Employment Administration, for 2012 there are 782,201 job orders that has been approved. About 42.2 percent or 329,947 are already processed job orders for service, production and related workers, as well as for professional, technical and related workers.

The demand came from mostly Middle East nations such as Saudi Arabia, UAE, Kuwait and Qatar. More job orders from Taiwan and Hong Kong were also processed last year.

The BSP also reported that government efforts to deploy more workers overseas have been improving during the past year.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph.