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Wednesday, May 11, 2016

Philippine president-elect Duterte may shift Manila’s foreign policy, have limited room for change on maritime disputes


The polls opened on Monday for general elections, including the race for the president, in the Philippines. As of press time, Rodrigo Duterte, also known as "the Donald Trump of the Philippines" has assumed a big lead with 39 percent of votes, and is believed to have secured his position as the country's next president.

The 71-year-old Duterte has been mayor of Davao City for over 20 years. But his remarks are far more aggressive than those of US presidential candidate Trump. He has claimed that if he is elected, he will eliminate corruption and crime in this nation within several months and execute 100,000 criminals and dump them into Manila Bay. Not long ago, Duterte even vowed to "forget human rights."

Duterte has also left a strong impression that his concept of foreign policy differs greatly to that of President Benigno Aquino III. He opposes the idea of going to war with China, wants direct negotiation with Beijing about the South China Sea, and doesn't believe in solving the conflict through an international tribunal.

The overwhelming support Duterte received over and above the other contenders suggests there is strong dissatisfaction in the country with Aquino's six-year rule. Though the country enjoyed 6 percent annual growth for the past six years, the public failed to benefit from it. The electorate is also fed up with Aquino's lopsided South China Sea strategy - siding completely with Washington which brought no advantage to Manila.

The public cares most about livelihoods and nationalistic slogans cannot feed them. It is reported that the 40 richest families in the Philippines own 76 percent of the country's total assets. The country is afflicted with corruption and hereditary politics, and as punishment, the Aquino-backed candidate is languishing far behind.

It won't be possible for Duterte to turn the domestic Philippine political arena upside down. Being only a mayor of Davao in the past years, he has no power to move the entire nation. He was obviously bragging when asserting he would eliminate corruption in six months. In an era of rising populism, it seems that a "big mouth" can always be popular wherever they are.

But if there is anything that can be changed by Duterte, it will be diplomacy. Many believe that whoever assumes office will adjust the nations' unscrupulous policy toward China. If the new leader wants to manifest his or her difference from the previous president, as well as to make achievements, improving ties with Beijing is the shortest way.

China will not be too naïve to believe that a new president will bring a promising solution to the South China Sea disputes between Beijing and Manila. However, it sounds accurate that Philippine ties with China have already been through an all-time low during Aquino's presidency. Only time will tell how far the new leader, be it Duterte or not, will go toward restoring the bilateral relationship.

Exclusive interview with Foreign Ministry spokesman Lu Kang



Lu Kang: China hopes new gov't in Philippines will work to solve disputes

CCTV Foreign Affairs Reporter Su Yuting spoke with Foreign Ministry spokesman Lu Kang, for more on China's stance towards the Philippine election and the South China Sea Issue.


Duterte may have limited room for change on maritime disputes


Rodrigo Duterte, the hard-liner mayor of Davao City, seemed to be the sure winner of the presidential election in the Philippines Monday. Duterte shares different political views from the outgoing president Benigno Aquino, and how the China-Philippines relationship will develop after the election is worth exploring.

The South China Sea dispute is at the core of the relationship between Beijing and Manila, yet Duterte's comments on the issue are self-contradictory. Although he suggested settling the disputes via direct negotiations with China, and proposed the principle of shelving differences and conducting joint development in the South China Sea, Duterte also vowed to ride a jet ski to Huangyan Island and plant the national flag there.

Despite the above statements, Duterte is a more practical politician compared with his predecessor. The new government is expected to see adjustments in its South China Sea policy.

However, the room for adjustments is squeezed by the US and the Aquino administration. To begin with, Washington and Manila have reached a series of cooperative agreements including a 10-year long Enhanced Defense Cooperation Agreement and a five-year long Southeast Asia Maritime Security Initiative. By signing these deals, the White House, on the one hand, wants to draw the Philippines over to its side, and attempts to impose restrictions on the new government's foreign policies on the other.

Recently, the Pentagon, by sending warplanes in the international airspace in the vicinity of Huangyan Island, has actively intervened in the South China Sea disputes. The US is always hyping up the Huangyan Island disputes and stirring up troubles against China. The US military intervention is attempting to influence the foreign policies of the new government.

Duterte's political performances will be limited by the Aquino administration as well. The Aquino government unilaterally initiated the international arbitration in 2013 and has been obstinately pushing forward arbitral proceedings regarding the South China Sea disputes ever since.

"If the tribunal rules that the Reed Bank [Liyue Tan] belongs to the exclusive economic zone of the Philippines, then of course we have the right to proceed," Antonio Carpio, Supreme Court Senior Associate Justice, urged the new government to proceed with the arbitration. The National Task Force for the West Philippine Sea was also created by Aquino to unify national actions on the South China Sea issues.

Before leaving the office, Aquino will still strive to manipulate public opinion and provoke nationalist sentiments against China in every possible means. The Ministry of Foreign Affairs has even introduced a Philippines Diplomatic Handbook for the new government's reference. The Aquino administration is trying every means to exert influence on the new government and force it to accept the final verdict of the arbitration.

As mayor of Davao City, Duterte had limited political influence on the whole nation. Earlier, Aquino called on all presidential candidates to form a united front against Duterte. The hard-line new president is likely to face challenges from traditional elites and Manila. "The moment he [Duterte] tries to declare a revolutionary government, that is also going to be the day he will be removed from office," Senator Antonio Trillanes, a former navy officer known for the failed military uprisings in 2007 and 2003, said earlier.

With his "big mouth," Duterte is seen by many as the "Donald Trump of the Philippines." His victory reflects Philippine citizens' strong dissatisfaction with Aquino's rule. The overall situation in the Philippines has not seen significant improvements in recent years. Politically, corruption is severe. Economically, the interests of the lower-class citizens have been neglected. The nation's infrastructure is in urgent need to improve as well. The Philippines is lagging far behind its Southeast Asian neighbors. It is understandable that the Philippine citizens want a hard-line leader to change the status quo.

China has to be prepared for the negotiations with Duterte after the election. Despite the South China Sea disputes, Beijing and Manila have seen frequent people-to-people exchanges and strong economic ties in recent years. The two states should be prepared for direct communications to settle the disputes, and lead the bilateral relationship to a new level.

By Chen Qinghong Source:Global Times

The author is a research fellow at the Institute of South and Southeast Asian and Oceania Studies under the China Institutes of Contemporary International Relations. opinion@globaltimes.com.cn

US destroyer’s South China Sea show an insipid affair

If the South China Sea eventually becomes the main stage for strategic rivalries between China and the US, it will benefit China more. The whole of Chinese society will be more resolute and it means China would have the chance to solve its peripheral and strategic problems at the same time. But the US, whose acts are prompted by greed, will view the South China Sea as its burden sooner or later.

Chinese legal experts refute Philippine claim in South China Sea



Philippines arbitration lacks legal evidence




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Tuesday, May 10, 2016

Experts share insights on property market in Malaysia

  Speakers Chris Tan (left) and Dr Choong Kwai Fatt sharing their thoughts to attendees of StarProperty Prime Investment Forum at Nexus, Bangsar South. - RAYMOND OOI/ The Star

PETALING JAYA: Malaysians should start thinking about home ownership before it becomes out of reach, said a property consultant.

Chur Associates founding managing director Chris Tan said property buyers were living in an era of the best home owner protection where incentives and attractive financing plans were provided to genuine home buyers.

“Firstly, one must understand one’s risk profile, metaphorically by setting your investment style either as a hare or tortoise’s pace, as well as any other method that falls in between,” he added.

Tan shared his insights on Malaysia’s agenda of “Housing the Nation” during the StarProperty. my’s Prime Investment Forum 2016 held on Sunday.

Over 400 registrants attended the forum, sponsored by Mah Sing Group Bhd, at Oak Room, Nexus, Bangsar South.

Tan pointed out that “property investment is low-risk and is one of the most important portfolios, even for richer and successful nation groups, as property investment is tangible and is constitutionally guaranteed.”

For first time home buyers, Tan advised that it would be best for each individual to own their very own home, only if they can afford it.

Tan added that property investment was one of the methods to overcome inflation due to property valuation.

Dr Choong: ‘In order to purchase a property, one should first select a developer that has a good track record.’ Advocate and solicitor, tax and GST consultant Dr Choong Kwai Fatt said: “In order to purchase a property, one should first select a developer that has a good track record.

“This is the first assurance of a successful property investment.”

He added that now is the best time to buy a property.

“If the currency drops in value in future, it will be harder to purchase properties.

“Therefore, while the Malaysian currency still holds good value, it is best to invest right away.”

Meanwhile, Mah Sing Group sales and marketing director James A. Bruyns said the company has a range of properties in the northern region and scattered areas in Kuala Lumpur.

In fact, the forum has brought together all Mah Sing’s astounding offerings to property investors, he added.

Among the leading developments presented at the Prime Investment Forum include Ferringhi Residence and SouthBay City in Penang as well as the central region developments, Cerrado residential suites from Southville City in Bangi and Lakeville Residences in Taman Wahyu, Kuala Lumpur.

Bruyns concluded that there wasn’t a good or bad time to invest and if one has the means to invest, they should go ahead and invest.

He said: “Investing in property is a good way to build up the market sentiment especially when people are still investing, where there are good take-up rates as well as good property products.”

By Viknesh Ashley Clarence The Star

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Monday, May 9, 2016

China's Long March-7 Rocket shipped to South China's Launch Center, Hainan






http://english.cctv.com/2016/05/08/VIDEyzjguMSuBLw9MhaJunYz160508.shtml

TIANJIN, May 8, 2016 (Xinhua) -- A container carrying China's new-generation Long March-7 rocket is seen at the port in north China's Tianjin, May 7, 2016. The Long March-7 rocket departed for its launch base in Hainan on Sunday from Tianjin. It has taken researchers eight years to develop the medium-sized rocket, which can carry up to 13.5 tonnes to low Earth orbit, said Li Hong, director of the Carrier Rocket Technology Research Institute with the China Aerospace Science and Technology Corporation. (Xinhua/Chen Xi)


China's new-generation Long March-7 rocket departed for its launch base in Hainan on Sunday from north China's port of Tianjin.

It has taken researchers eight years to develop the medium-sized rocket, which can carry up to 13.5 tonnes to low Earth orbit, said Li Hong, director of the Carrier Rocket Technology Research Institute with the China Aerospace Science and Technology Corporation.

"The Long March-7 launch scheduled for late June will be of great significance as it will usher in China's space lab mission," said Yang Baohua, deputy manager of the company.

China also plans to launch the heavy lift Long March-5 to transport cargo for the planned space station.

China's second orbiting space lab, Tiangong-2, will also be launched this fall, and it is scheduled to dock with manned spacecraft Shenzhou-11 in the fourth quarter.

Yang said that the Long March-7 carrier is more environmentally friendly than earlier Long March models. The rocket will become the main carrier for space launches.

A container carrying China's new-generation Long March-7 rocket is seen at the port in north China's Tianjin, May 7, 2016. The Long March-7 rocket departed for its launch base in Hainan on Sunday from Tianjin. It has taken researchers eight years to develop the medium-sized rocket, which can carry up to 13.5 tonnes to low Earth orbit, said Li Hong, director of the Carrier Rocket Technology Research Institute with the China Aerospace Science and Technology Corporation. (Xinhua/Chen Xi)

 
A container carrying China's new-generation Long March-7 rocket is seen at the port in north China's Tianjin, May 7, 2016. The Long March-7 rocket departed for its launch base in Hainan on Sunday from Tianjin. It has taken researchers eight years to develop the medium-sized rocket, which can carry up to 13.5 tonnes to low Earth orbit, said Li Hong, director of the Carrier Rocket Technology Research Institute with the China Aerospace Science and Technology Corporation. (Xinhua/Chen Xi)

 
A container carrying China's new-generation Long March-7 rocket is lifted at the port in north China's Tianjin, May 7, 2016. The Long March-7 rocket departed for its launch base in Hainan on Sunday from Tianjin. It has taken researchers eight years to develop the medium-sized rocket, which can carry up to 13.5 tonnes to low Earth orbit, said Li Hong, director of the Carrier Rocket Technology Research Institute with the China Aerospace Science and Technology Corporation. (Xinhua/Chen Xi)

The Long March-7 rocket, pillar of China’s space program


 

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Saturday, May 7, 2016

Malaysian property market correction to continue in 2016, its economic cycles the past 25 years


Malaysia's Q3 Property Market Update




Check your risk appetite and start investing as this is as good a time as any to invest in real estate be they physical assets, property stocks or real estate investment trusts (REITs).

Industry experts held this view during a panel discussion entitled “Where to put your money – real estate, stocks or REITs?” at The Edge Investment Forum on Real Estate 2016 (REIF 2016) on April 30.

For housebuyers especially, this is a good time to buy as the market correction which started last year will continue this year, said panellist Sunway Bhd managing director of the property development division for Malaysia and Singapore Sarena Cheah.

She said the banking sector is well-capitalised while non-performing loans are declining, which means borrowers still have the ability to service their loans.

Cheah noted that property prices have been on the uptrend for the past 10 years with an average capital appreciation of 8% to 9% from 2005 to 2015, buoyed by a healthy employment rate and low interest rate.

“Property price growth for 2015 had dipped 2% compared with 2014, but the compounded annual growth rate (CAGR) of capital appreciation had achieved 12%,” she shared.

“Property investment is a safe investment as it is one of the basic necessities. Strong demand will continue to support the capital appreciation of properties,” she added.

However, she advised investors to study the location, the developer and the future growth potential of a property or project before buying.

Also on the panel were Kenanga Investment Bank Bhd head of equity research Sarah Lim and Axis REIT Managers Bhd chief executive officer and finance director Leong Kit May. The Edge Communications Sdn Bhd and The Edge Property Sdn Bhd managing director Au Foong Yee was the moderator.

Lim expected property prices to plateau for the next few years before the next upcycle.

“The big rally in transaction volume and prices in 2010 to 2012 was supported by the baby boomers who were in their late 30s or early 40s. The next upcycle will depend on the next generation which would be the Millennials,” she explained.

In the near term, Kenanga Investment Bank has placed an “underweight” rating on the property sector as it expected property stocks to be volatile and eventually be range-bound due to the absence of catalysts, while earnings risks remain.

However, steady defensive big-cap players such as UOA Bhd and S P Setia Bhd have light balance sheets and high exposure to areas in the Klang Valley while Sunway Bhd and Eco World Development Group Bhd are worth looking at, she said.

Among the small to mid-capital players to look out for is Hua Yang Bhd – it is undervalued and has high yields.

Lim also noted that Malaysia’s residential supply is outpacing demand in the wrong segment as there is insufficient supply for residential properties priced between RM250,000 and RM500,000.

“Residential developments priced below RM500,000 constitute less than 35% of most developers’ upcoming projects,” she said.

Meanwhile, REITs could be the cornerstone of a portfolio of quality assets for investors who are looking for lower risk and stable income from rental properties.

“A REIT is a listed vehicle that invests in a portfolio of income-generating properties. Rents collected from tenants, less expenses, are distributed on a regular basis to provide stable yields to unit holders,” said Leong.

She noted that the current dividend yield for Malaysian REITs is at 6.69%, compared to fixed deposits which is at 3.31% and the Employees Provident Fund’s yield of 6.40%.

“The benefits of investing in REITs include the predictability in income stream in the form of distribution income, having a liquid proxy to physical property investment, transparent daily pricing, high level of disclosures and transparency, low entry cost and professional management,” she added.

On the future performance of MREITs, Leong said the company foresees no future interest hikes which augurs well for REITs as a higher interest may affect the trust companies’ ability to pay higher dividends. - The Edge Property

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Philippine presidential election a chance to settle South China Sea issues


The Philippine presidential election on May 9, arguably the most contentious in decades, will see a new leader assume power because incumbent President Benigno Aquino III is barred from seeking re-election. Since Aquino is responsible for the souring of Beijing-Manila relations by endorsing Washington's "rebalancing to Asia-Pacific" policy over the past six years, the world is waiting to see what the new Philippine government's China policy will be.

Backed by the United States, the Aquino government has constantly sought to challenge China over the South China Sea issue, which, however, has proved to be a fool's errand.

To begin with, Manila's attempt to confront Beijing over its Huangyan Island has failed.

To maintain relations with the Philippines, however, China has exercised exemplary restraint in the island dispute. And the Philippines was expected to reciprocate the gesture for the sake of bilateral ties, which Aquino has long refused.

Encouraged by Washington, Manila sent military vessels to harass Chinese fishing boats and fishermen operating in waters off Huangyan Island in 2012, triggering a two-month confrontation with China's surveillance ships. This prompted Beijing to strengthen its presence on the island, leaving no scope for Manila to encroach upon the Chinese territory.

Thanks to the Aquino administration's accommodative policy, US troops, which the Philippine people fought strenuously to get rid of, are back in the country and will be stationed at five military bases.

Seeking Washington's protection might not be a good move for Manila-it could even be counter-productive-because Philippine soldiers, despite being equipped and trained according to US standards, have not been able to defeat the poorly-equipped anti-government forces.

By selling its Hamilton-class cutters and other advanced weapons to the Philippines, Washington is strengthening its military alliance with Manila.

But the Philippines should realize that it is just a piece on the US chessboard. The US may make use of the Philippines to meddle in the waters of the South China Sea, but it will never get involved if it leads to open confrontation between China and the Philippines. Should a serious conflict break out between Beijing and Manila over the South China Sea issue, which is about China's maritime sovereignty, Washington might prefer to watch from the sidelines because it does not concern the US' core interests.

Manila's provocations such as those around the Huangyan Island and the filing of an arbitration case in its dispute with China in the South China Sea, have a lot to do with the deteriorating bilateral relations, which have dealt a heavy blow to their trade and commercial cooperation.

As such, the incoming Philippine government should recalibrate its China policy.

But the prospects for that do not look encouraging, because the US is likely to take steps to ensure the new Philippine administration keeps serving its "rebalancing to Asia-Pacific" policy.

On the one hand, Washington is expected to ramp up its military aid to Manila in the next five years. On the other, in an attempt to hype up China's legal construction on its South China Sea islands, the US flew six of its military planes through the international airspace near Huangyan Island last month, injecting more uncertainties into China-Philippines ties.

The Aquino government has been trying to justify its hawkish stance on the South China Sea issue and urging the incoming leadership to follow the same policy. Worse, its anti-China propaganda has seriously affected domestic opinion, as more Philippine citizens now seem to distrust China.

Given these facts, the new Philippine administration should take appropriate measures to improve Beijing-Manila ties and seek peaceful solution to bilateral disputes without becoming an expendable part of Washington's Asia-Pacific maneuver.

By CHEN QINGHONG (China Daily)

The author is a researcher in Southeast Asian studies at the China Institutes of Contemporary International Relations.

China has sound reasons to reject South China Sea arbitration

An aerial photo taken on Sept. 25, 2015 from a seaplane of Hainan Maritime Safety Administration shows the Yacheng 13-1 drilling rig during a patrol in South China Sea.(Xinhua file photo/Zhao Yingquan)

Interview: No 'ruling' can destroy China's sovereignty over S. China Sea

CCTV have talked to Victor Gao, the Director of the China National Association of International Studies. He says whatever the ruling is, the end result may be the opposite of what the Philippine government wants  http://t.cn/RqEfUgE
http://english.cctv.com/2016/05/06/VIDEiXOWX2qORs4PH2OlXKHk160506.shtml

The Philippines' unilateral attempt at arbitration over South China Sea disputes is not a real attempt to find a solution, but pursuit of selfish gains in the name of "rule of law."

The core of the Beijing-Manila South China Sea dispute is territorial issue, caused by the illegal occupation of some of China's islands and reefs since the 1970s by the Philippines, and the issue of maritime delimitation.

The arbitration violates the basic principles of international law and undermines the integrity and authority of the UN Convention on the Law of Sea (UNCLOS).

The court has no right to adjudicate on the case as in 2006, China exercised its right under Article 298 of the UNCLOS and made a declaration excluding compulsory arbitration on disputes concerning maritime delimitation.

The UN Charter and international law advocate peaceful settlement of disputes through dialogue and negotiation. The UNCLOS respects the dispute settlement procedure chosen by the parties themselves.

Meanwhile, the Declaration on the Conduct of Parties in the South China Sea (DOC), signed by China and ASEAN countries, stipulates that disputes be resolved through consultation and negotiation by those directly concerned.

Therefore, China has sound reasons to reject compulsory arbitration. Whatever the result of the arbitration, it will not be binding on China.

The Philippines has distorted and abused the international arbitration mechanism, and reneged on its promise to solve disputes through negotiation.

It is also an outright lie to say that "all bilateral tools have been exhausted."

China and the Philippines have conducted several rounds of consultations on building trust, managing disputes and promoting maritime cooperation and, during these occasions, the Philippines has never talked with China about any of the appeals it mentioned in the arbitration case.

As Chinese Foreign Minister Wang Yi pointed out, attempts to pressure China over an arbitration of maritime disputes is "either political arrogance or legal prejudice."

It doesn't hold water to say that filing for an arbitration is upholding international law, while not accepting arbitration violates international law. This is not viable in international practice .- Xinhua


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China rebukes U.S. official's criticism on South China Sea arbitration
BEIJING, April 29 (Xinhua) -- A Chinese spokesperson on Friday rebuked U.S. Deputy Secretary of State Antony Blinken's remarks on the impending "arbitration" of the South China Sea issue, saying the United States is in no position to criticize China.
On Thursday, Blinken told a House of Representatives hearing in Washington that China "can't have it both ways," by being a party to the convention but rejecting its provisions, including "the binding nature of any arbitration decision." Full story

Backgrounder: "Geng Lu Book," encyclopedia on South China Sea
BEIJING, May 1 (Xinhua) -- The "Geng Lu Book," a historic book written between China's Ming Dynasty (AD 1368-1644) and Qing Dynasty (AD 1644-1911), begins with a few sentences outlining an accurate maritime navigation route of ancient Chinese fishermen sailing from the Tan Men port of China's Hainan Province to the South China Sea.
The origin of the "Geng Lu Book" could date back to the early Ming Dynasty. The book records names of more than 100 locations in and important maritime information about the South China Sea, including sailing directions, time, distance, islands and submerged reefs, as well as sea current speeds and weather changes. Full story

Backgrounder: China has indisputable sovereignty over South China Sea islands
BEIJING, April 29 (Xinhua) -- The Philippines, distorting and partially applying the United Nations Convention on the Law of the Sea (UNCLOS), attempts to challenge China's sovereignty over the Nansha Islands.
In its unilaterally-initiated arbitration, the Philippines argues that low-tide elevations and submerged reefs are part of the exclusive economic zone and continental shelf, a claim that totally runs contrary to historical fact, reality and international law. Full story

Historical documents record China’s sovereignty in South China Sea


Taiwan Republic of China (ROC) President Ma visits Taiping Island



President Ma convenes international press conference after visits

http://english.president.gov.tw/Default.aspx?tabid=491&itemid=36718&rmid=2355
Office of the President, ROC (Taiwan) ... See us on. youtube. flickr ... After arriving at Taiping Island, President Ma first heard a briefing at the Nansha Command and ... a speech explaining the purpose of his visit and his hope for peace in the South China Sea. ... Office of the President, Republic of China (Taiwan)

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