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Philippine WeeklyPhilippine Update WEEKLY UPDATE WE TELL IT LIKE IT IS VOLUME IV, NO. 19 May 13 – 19, 2013 _______ ___ _ ____ __ ___PHIL. Copyright 2002 _ THE WALLACE BUSINESS FORUM, INC. accepts no liability for the accuracy of the data or for the editorial views contained in this report.__ Political "Quotes Poll body proclaims all 12 winning senators On May 18 the Commission on Elections (Comelec) proclaimed the final 3 winning senators, of the Week" completing the Top 12 in this year’s senatorial race. The 3 newly proclaimed senators are former Las Pinas Representative Cyntia Villar( 10th place with 13,696,120 votes); former San th Juan Representative Joseph Victor Ejercito (11 with 13,552,991 votes); and re-electionist th senator Gringo Honasan (12 with 13,070,031 votes). The first 9 senators proclaimed (based on rankings) were former censors chief Grace Poe; re-electionist senators Loren Legarda, Alan Peter Cayetano, and Francis Escudero; vice president’s daughter Nancy Binay, former “We in the legislature will do our part and work Aurora representative Sonny Angara; former National Youth Commission chairman Paolo doubly hard to achieve the goals of good Benigno Aquino; and re-electionist senators Koko Pimentel, and Antonio Trillanes. The governance, peace and security, and inclusive administration (Team PNOY) line-up got 9 of the 12 slots at stake. Only Binay, Ejercito, and Honasan belong to the opposition United Nationalist Alliance. growth, with the President's ‘daang matuwid’ as our clear guide to change and transformation in the next three years” Senate President Enrile likely to be replaced as pro-Aquino senators dominate 16th Congress A change in senate leadership looms as administration senators dominate the Upper Senator Franklin Drilon saying that by Chamber this 16th Congress. Of the Top 12 senatorial candidates, 9 are from the electing a majority of Team PNoy bets, the administration line-up (Team PNOY), while 3 are from the opposition-led United Nationalist voters have given President Aquino a fresh Alliance (UNA). The 9 slots are enough for the administration bloc to secure the majority in the mandate to govern. next Congress and possibly replace Senate President Juan Ponce Enrile. At this point, Senator Franklin Drilon seems to be the prime choice to replace Senate President Enrile. Sen. Drilon is a former senate president (2000 and 2001-2006), one of President Aquino’s “They just can’t come over here.” strongest allies in the Senate, served as Team PNOY’s campaign manager, and has always been supportive of Malacañang’s priority bills. He currently holds 2 powerful committees, Justice Secretary Leila de Lima saying Finance and Ways and Means. Having a cooperative senate leader would help ensure that Taiwan has to go through steps and make an President Aquino’s reform agenda is sustained and his priority bills are enacted on time. official request to the Manila Economic and Cultural Office (MECO) before conducting any Buhay leads 14 party-list frontrunners investigation in the Philippines for the killing of Fourteen party-list groups are likely to get at least 1 seat in the House of Representatives, a Taiwanese fisherman in the country’s with Buhay (Life) leading the race, based on the Commission on Elections (Comelec)’s latest exclusive economic zone. partial and unofficial results. Buhay is led by former Manila mayor Lito Atienza. The top 14 party-list groups were Buhay with 897,575 votes (4.84%) followed by A Teacher with 679,799 (3.66%); Bayan Muna, 646,878 (3.49%); 1-Care, 582,968 (3.14%); Akbayan, 565,218 (3.05%); Ako Bicol Political Party, 511,258 (2.76%); Abono, 502,664 (2.71%); Gabriela, 502,588 (2.71%); OFW Family Club, Inc., 495, 122 (2.67%); Senior Citizens, 462,283 (2.49%); AGAP, 411,650 (2.22%); Cibac, 408,485 (2.20%); COOP-NATCCO, 406,045 (2.19%); and Magdalo, 371,573 (2.00%). Based on the Party-list System Act, only party-list groups that are able to garner 2% of the total number of votes cast in the party-list race are assured of earning House seats. Vote buying rampant – Comelec The Commission on Elections (Comelec) said vote buying remained rampant in the country’s DISCLAIMER 2nd automated elections last Monday (May 13). Comelec spokesman James Jimenez said The articles in this Philippine Weekly Update they received reports of vote buying from all over the country. The amount used in vote buying (PWU) have been culled from various media sources. We cannot, therefore, vouch for ranges from P200 to P5,000.He said the automation of the elections might have worsened the the accuracy of what is reported. incidence of vote buying. Mr. Jimenez said, “It gives a sense that it has become rampant since the (election) operators cannot manipulate the results of the precinct count optical scan (PCOS) machines, that’s why they resort to vote buying.” Under the Omnibus Election Code, vote-buying is an election offense involving the giving, offering or promising money or anything of value directly or indirectly to induce anyone or the public in general to vote for or against any candidate. The offense carries a penalty of 1 to 6 years imprisonment, removal of the right to vote, and disqualification from running for public office. 1 The Wallace Business Forum, Inc. May 13 – 19, 2013 Philippine Weekly Update BIR reminds candidates to report campaign expenses Candidates in the last elections were reminded to report all their campaign disbursements to the Bureau of Internal Revenue (BIR) and pay income taxes for excess funding they received during the election period. Under Revenue Regulation 7-2011, the tax bureau clarified that all unspent election contributions and donations will be recorded under a candidate’s personal income and will thus be subject to 5% creditable withholding tax. The report should be submitted 30 days after the polls (June 13), similar to the requirement of the Commission on Elections (Comelec). Pres. Aquino calls for calm in dealing with Taiwan issue To avoid unwanted repercussions, President Aquino appealed for calm in settling the issue with Taiwan over the Philippine Coast Guard (PCG)’s alleged shooting at Taiwanese fishermen. The President said he was discussing the issue with officials as the PCG personnel involved in the incident had been relieved and placed under investigation. He said the Department of Foreign Affairs (DFA) was in touch with concerned authorities to ensure that the incident will not have unwanted repercussions. Taiwanese President Ma Ying-jeou warned they would consider sanctions against the Philippines, including a freeze on the hiring of Filipino workers and recall of their representative in the Taipei Economic and Cultural Office, over the shooting of a Taiwanese fisherman in a high seas scrum. K to 12 program signed into law President Aquino signed into law the K to 12 Basic Education Program, which adds 2 years to basic education and makes enrollment of children in kindergarten compulsory. Republic Act 10533 or the “Enhanced Basic Education Act of 2013” was signed barely 3 weeks before the opening of classes in public and private schools nationwide on June 3. Under the K to 12 program, children are required to enroll in kindergarten before they can begin 6 years of primary education. Two years will be added to the 4-year high school curriculum. The law also mandates the use of the mother tongue as the medium of instruction from kindergarten to third grade before English is introduced. The additional years will serve as a specialization period for senior high school students, whether in vocational skills, music, arts or sports. They will be prepared in middle-level skills development, entrepreneurship, employment and tertiary education. Senior high school graduates will then have an option to take either short-term technical vocational courses, wherein employment is immediate, or pursue college education. Economy S&P retains forecasts Standard & Poor’s (S&P) has maintained growth forecasts for the Philippines highlighting the country’s strength, while it cut projections for several neighboring economies. Although the region continues to outperform the rest of the world, indicators show that the rebound seen in 2012 has lost some traction, the credit rater said in a report. Export growth has stalled given weaker consumption in China, pulling down trade-dependent countries. As a result, S&P lowered growth projections for China, Hong Kong, India, Japan, South Korea, Singapore, Thailand and Vietnam. Only Malaysia, the Philippines, and Taiwan were upgraded, "reflecting the ongoing strength of those economies." Under the base case, the Philippines is estimated to grow by 6.5% this year, 6.3% in 2014 and 6% in 2015. Back in March, S&P expected the country to grow by only 5.9%, 5.7% and 5.4%, respectively. The forecasts were raised in April and kept in the latest report. The Philippines grew by a healthy 6.6% last year, beating market expectations and the government’s 5-6% goal. A higher trajectory is targeted for succeeding years: 6-7% in 2013 and 6.5-7.5% in 2014. S&P said, "Southeast Asia’s relatively domestically driven economies, led by Indonesia, will perform well again, with growth of 5.6% in both 2013 and 2014... In contrast, the newly industrialized economies, which are more trade-dependent, will continue to see below-potential growth averaging around 3% in 2013, picking up to 4.1% in 2014 as the global recovery and trade growth broaden." Inflation seen staying within targets The private sector expects inflation to pick up speed but stay within central bank targets over the next few years. A Bangko Sentral ng Pilipinas or BSP (central bank) survey showed that the median inflation forecast of 26 banks and think tanks is 3.5% for this year up from the 2012 result of 3.2%.