Malaysia PM signs defence deal in tilt toward China

BEIJING (AFP) – Malaysia and China signed a defence deal and pledged closer cooperation in the South China Sea Tuesday (Nov 1) , signalling a potential strategic shift by Premier Najib Razak as his ties with the United States fray over a corruption scandal.

Najib’s week-long trip marks another potential setback for Washington’s “pivot” toward Asia, two weeks after President Rodrigo Duterte of longtime US ally the Philippines visited China with olive branch in hand.

Meeting at Beijing’s Great Hall of the People, Najib and his Chinese counterpart Li Keqiang witnessed the signing of nine agreements spanning defence, business and other spheres.

“I believe this visit will bring our bilateral ties to a new high... a historic high,” Najib said prior to meeting with Li.

Asked for details of the defence arrangement, Chinese vice foreign minister Liu Zhenmin said that the two countries were “focusing on naval cooperation,” adding that the deal “marks a big event in our bilateral ties.” 

China and Malaysia have an outstanding territorial dispute in the South China Sea, which is claimed almost in its entirety by Beijing.

Parts of the vast maritime region are also claimed by the Philippines and Vietnam, among others, who have found themselves caught in an increasingly tense dispute between the US and China over Beijing’s construction of military-capable artificial islands in the region.

“China and Malaysia are littoral states of the South China Sea so we need to enhance our cooperation to ensure peace and stability in the South China Sea and enhance our mutual trust,” Liu said.

Last month in Beijing, Duterte stunned observers by announcing his country’s “separation” from longstanding partner the United States.

Though he subsequently backed off, saying their alliance remained intact, the episode underlined China’s increasing diplomatic and economic gravitational pull at the expense of the United States.

Najib’s visit provides fresh evidence, said South-east Asia politics analyst Bridget Welsh.

“This is the new regional norm. Now China is implementing the power and the US is in retreat,” she said, adding Washington’s Asia “pivot” was “dead in the water”.

Taking office in 2009, Najib reached out to Washington, and relations warmed following decades of periodic distrust.

But he has increasingly leaned toward China as it became Malaysia’s biggest trading partner, and especially after the eruption last year of a massive corruption scandal implicating Najib and a state investment fund he founded.

Billions are alleged to have been syphoned from the fund, 1MDB, in a stunning international campaign of embezzlement and money-laundering that has sparked investigations in several countries.

Najib’s ties with Washington became strained when the US Justice Department moved in July to seize more than US$1 billion (S$1.4 billion) in assets it says were purchased by Najib relatives and associates using stolen 1MDB money.

Justice Department filings said a “Malaysian Official 1” took part in the looting. Malaysia has since admitted that official was Najib.

Najib and 1MDB deny wrongdoing and have railed at foreign forces they say concocted the scandal.

1MDB launched a fire sale of assets to stay solvent, and China’s biggest nuclear energy producer China General Nuclear Power Corporation came to the rescue last year, purchasing its power assets for US$2.3 billion.

Depressed oil prices have slashed government revenue in energy-exporting Malaysia, which also faces rising public-sector debt.

“This trip reflects not only Malaysia’s geostrategic re-alignment to China as the ‘regional banker’ but also the reality that Najib is desperate for alternative financial sources,” Welsh said.

China has increasingly won major infrastructure and other projects in Malaysia.

Among the agreements was one to build a new rail line on Malaysia’s east coast.

Later this week Najib will meet President Xi Jinping, as well as Jack Ma, founder of e-commerce giant Alibaba.

The straits Times Singapore

PUBLISHED

NOV 1, 2016, 7:37 PM SGT

Chinese, Malaysian navies to cooperate in South China Sea

BEIJING (AP) — China and Malaysia said their navies will cooperate more in the politically sensitive South China Sea in an agreement signed Tuesday during a visit by Malaysia's leader, who is seeking stronger ties with Beijing as he tries to offset a financial scandal at home.

Prime Minister Najib Razak hopes to use his visit to Beijing this week to woo new investment and boost his image as he is shunned by Western leaders over the scandal, which has prompted a U.S. government investigation, analysts say.

He was given a red carpet welcome Tuesday by his Chinese counterpart, Li Keqiang. After meeting at the Great Hall of the People, they oversaw the signing of agreements, including a memorandum of understanding on defense cooperation.

"We have not touched upon the details of our cooperation. Mostly we are focusing on naval cooperation," Vice Foreign Minister Liu Zhenmin told reporters afterward. As China and Malaysia are both South China Sea coastal nations, "we need to enhance our naval cooperation to ensure peace and stability in the South China Sea and enhance our mutual trust," he said.

Beijing asserts that virtually all of the South China Sea is Chinese territory, but an international tribunal ruling in July invalidated those sweeping claims. China has ignored that ruling. Six other Asian governments also claim part of the South China Sea, and some observers see it as a potential flashpoint that could spark conflict one day.

Najib is the second leader of a nation with rival territorial claims in the South China Sea to visit Beijing in two weeks. The first, Philippine President Rodrigo Duterte, played down his country's dispute with China.

The international tribunal case was initiated by Duterte's predecessor, and Duterte has sought to cast himself as far more conciliatory, an approach that appears to have paid off. While Chinese coast guard ships continue to guard a tiny, uninhabited shoal that China effectively seized in 2012, Filipino fishermen have been allowed to fish there for the first time in four years.

Malaysia claims a swath of the South China Sea north of Borneo, along with islands and reefs, but has been relatively understated amid the feuding among fellow claimants China, Vietnam and the Philippines.

Last month, Najib said Malaysia will not compromise on its South China Sea claims, but wants them to be hashed out through dialogue and peaceful negotiations.

Liu said Najib agreed with the Chinese premier "to further advance the proper settlement of the South China Sea issue on a bilateral channel and through dialogue." Beijing always prefers negotiating disputes on a one-to-one basis with the countries concerned, so it can bring more pressure to bear.

Liu said the two sides also agreed to enhance cooperation in infrastructure, agriculture, trade, investment and law enforcement, and will work together to build an east coast railway link in Malaysia and an oil and gas pipeline in Sabah. All this cooperation "will bring our relations to a new high," Liu said.

Najib is to meet President Xi Jinping on Thursday.

Najib has been implicated in a U.S. government investigation into massive fraud at a Malaysian investment fund he founded known by the initials 1MDB. The U.S. Department of Justice said in a lawsuit seeking to seize assets in the U.S. that at least $3.5 billion was stolen from the fund and diverted through a web of shell companies and bank accounts in Singapore, Switzerland, Luxembourg and the United States.

Malaysia's attorney general has defended Najib, even as his popularity at home has plummeted in recent months.

James Chin, director of the Asia Institute at Australia's University of Tasmania, said Najib wants to attract more Chinese money to make up for a drop in foreign direct investment from Western countries spooked by the scandal. He said Najib also wants to show that "there are still powerful countries around the world that are still willing to give him the five-star or red carpet treatment."

"He's showing the Malaysian domestic audience that a new upcoming power like China is still willing to host him, because it is quite obvious that he can't get the same treatment in Western capitals anymore," Chin said.

While Najib has more riding on the visit, the Chinese government is also eager to increase its clout with Malaysia as it looks to develop its "One Belt, One Road" initiative. Under Xi's signature foreign economic expansion strategy, China aims to strengthen land and sea links and bilateral cooperation with the rest of Asia, Africa and Europe. One part of that is a planned high-speed railway from Singapore to the southwest of China which will pass through Malaysia.

"China for its part wants to be closer to Malaysia in economic and political terms because it's trying to draw Malaysia into its sphere of influence," Chin said.

Relatives of Chinese passengers on Malaysia Airlines Flight 370, which went missing in 2014 en route to Beijing, are clamoring to meet with Najib during his visit. About 10 relatives went to the Foreign Ministry and later to the Malaysian Embassy on Tuesday.

The Associated Press - By By LOUISE WATT - Associated Press

November 1, 2016 1:10pm

LMS Purchased From China To Be Built By Joint Venture: BNS +China Shipbuilding & Offshore International Co Ltd.

KUALA LUMPUR: The construction of the four Littoral Mission Ships (LMS), purchased by Malaysia from China, will be done by a joint venture between Boustead Naval Shipyard Sdn Bhd and China Shipbuilding & Offshore International Co Ltd.

Defence Minister Datuk Seri Hishammuddin Tun Hussein said the construction of the ships, procured in conjunction with Prime Minister Datuk Seri Najib Abdul Razak's official visit to the Republic of China, would be monitored by his ministry and the State Administration for Science, Technology and Industry for National Defence (Sastind) of the Republic of China.

"Yesterday, PM Najib Razak has announced the purchase of four LMS in conjunction with his official visit to China. This landmark decision marks the first time in history Malaysia will be procuring a defence asset from China.

"The first LMS will be ready within 24 months upon contract signing and the allocation for the purchase is Off-Budget, which means the funding will come from the Royal Malaysian Navy (RMN) through savings acquired from the 15-5 Transformation Programme," he said in a statement posted on his Facebook page today.

He said this was part of the several initiatives to achieve 'efficiency savings' where the RMN would be decommissioning old vessels that cost a lot to operate and maintain and channelling these funds to buy newer ships which have the latest equipment to obtain operational and maintenance savings.

Through this transformation, the RMN Armada would be revamped to only five classes of ships from 15, he said.

"I believe that this is a creative, transformative and cost-effective initiative to improve our asset base to ensure defence remains a top priority.

"In fact, the acquisition of the LMS also meets the RMN's requirements based on the concept of 'fit for purpose', designed to conduct multi missions in a challenging littoral environment. The LMS also meets international maritime standards," he explained.

Hishammuddin, who is among the Malaysian delegates for the six-day visit, which began Monday, said two of the LMS would be built in China, while the other two would be made in Malaysia.

- Bernama

Published on Thursday, 03 November 2016 09:55

No Information Leak By Insiders In ESSCom

KUALA LUMPUR: Minister in the Prime Minister's Department Datuk Seri Shahidan Kassim denied any leak of information by 'insiders' in the Eastern Sabah Security Command (ESSCom) on security operations in Sabah waters.

However, he did not rule out the possibility of the information being shared by illegal immigrants having family ties with terrorists who attacked the east coast of Sabah.

"There is no leakage of information through insiders from ESSCom, " he said when winding up the debate on the Supply Bill 2017 at the Dewan Rakyat here Wednesday.

The issue was raised by Datuk Dr Ewon Ebin (BN-Ranau) when debating the bill.

Shahidan, who is also Arau Member of Parliament, described as unreasonable a proposal by Wong TienFatt@Wong Nyuk Foh (DAP-Sandakan) for the government to disband ESSCom as it had failed to protect the waters off Sabah.

"ESSCom's responsibility is to ensure that the waters in Sabah is safe. Its establishment is to prevent intrusions in the eastern coast of Sabah following the incident in Kampung Tanduo, Lahad Datu," he added.

- Bernama

Malaysia’s Navy Deal with China: Meeting A Complex Security Challenge

By Koh Swee Lean Collin

Synopsis Beyond geopolitics, the latest revelation of Malaysia’s purchase of Littoral Mission Ships from China needs to be viewed in perspective.
Commentary PRIME MINISTER Najib Razak’s current visit to Beijing has been underscored by what the Malaysian leader described as a “landmark decision” - a two-year defence contract to buy and build four Littoral Mission Ships (LMS) from China. This deal might have come across as surprising to many who have long known that Malaysia has customarily operated Western naval equipment. As Najib told the Malaysian media in Beijing: “I call this a landmark decision because before this, we had not bought such vessels from China.”

Such a revelation sparked much speculation about Kuala Lumpur’s further geopolitical shift towards Beijing and consequent ramifications for regional security, especially the United States’ Asia rebalancing strategy. But geopolitics aside, this deal, if it is formally inked and implemented, should not have come across as any surprise. In fact, last year the Royal Malaysian Navy (RMN) reportedly also mulled Chinese replacements for the aging Italian-made missiles on board its Laksamana-class corvettes.

Persistent Shortfalls

Notwithstanding Malaysia’s sprawling maritime zone that spans from its Indian Ocean-facing peninsular western seaboard, all the way across the South China Sea to the Celebes and Sulu seas off Borneo, the country has long been afflicted by budget and equipment shortfalls.

In the face of such immutable geographical circumstances, what has become more pertinent in recent years has been the increasingly complex maritime security challenges Malaysia is confronted with. Eastern Sabah remains a key focal point – a problem that stemmed from the 2013 infiltration by Sulu militants into Lahad Datu, and most lately, the spate of “kidnap-for-ransom” incidents in the Sulu Sea, involving attacks on Malaysian vessels.

In this regard, the Eastern Sabah Security Command (ESSCOM) has consumed a
huge chunk of funding – over RM1.1 billion (about US$263 million) at least had been allocated under the previous state budgets. These do not simply go to purchase of physical surveillance and patrol assets, but also land infrastructure construction, including the ESSCOM Fusion Centre. More recently, with the rising threat from the self-proclaimed Islamic State, Kuala Lumpur also raised its maritime security alert posture along the coasts of peninsular Malaysia.

Not a Strange Purchase

Overall, the Malaysian Armed Forces is no stranger to purchasing equipment from sources outside its traditional Western circles, including Poland and Russia since the 1990s. An interesting example is the Sukhoi Su-30MKM Flanker, essentially a hybrid multi-role fighter jet combining a Russian airframe and retaining some of its baseline native systems with a mixture of South African and Western components. Viewing today’s cut-throat competition in the global arms market, it has become an imperative for suppliers to meet customers’ demand for “mix and match”, customising platforms according to their needs. This way, the customer is not necessarily beholden to one source.

Of course, this can lead to various problems; for example, it becomes more
complicated to integrate systems from different sources together on a common
platform. There may also be consequences for after-sales life cycle support,
especially concerning logistics.

Neighbouring Thailand is a proximate example to look at this reported LMS purchase from China. Back in the early 1990s, as part of its major naval buildup Thailand acquired several warships from China, including four Chao Phraya/Kraburi-class frigates which were essentially Jianghu-III/IV outfitted with all key Chinese systems.

The Royal Thai Navy (RTN) was reportedly dissatisfied with these ships, citing poorquality systems and frequent breakdowns.

Subsequent buys changed the equation. A pair of Naresuan-class frigates was
purchased in the mid-1990s, again based on a modified Jianghu hull but outfitted
with mainly Western systems and only some Chinese components. These ships
worked fine, and remained the RTN’s principal surface combatant at least until the new South Korean-built DW3000H frigate enters service.

Bangkok appears satisfied – after 2007 it commissioned a pair of Pattani-class
offshore patrol vessels, based on Chinese hull but outfitted with Western systems.
The lead ship, HTMS Pattani was deployed to the Gulf of Aden in 2010 to join in
counter-piracy operations.

Challenging Fleet Rationalisation?

The Malaysian LMS fleet is thus foreseeably not going be a “thorough-bred” Chinese ship with all Chinese systems, but likely a hybrid platform based on a Chinese hull combined with various Western and Chinese components.
In the current climate of austerity – the defence budget allocated for 2017 is US$3.6 billion, a 13% drop from about $4.1 billion the previous year. In the face of pressing operational and technical requirements to address capacity shortfalls to cope with a myriad of complex, evolving maritime security challenges across a vast domain, this “mix and match” approach may constitute a means to diversify supply sources.

However, for the RMN which has been using Western systems, it may take time to familiarise with and assimilate the new platform and its systems in service. Logistics also potentially constitute a long-term challenge to the 15-to-5 Armada
Transformation Programme proposed by the navy’s leadership early this year.
The plan envisages reducing the current 15 classes of vessels, averaging 30 years
of age and sourced from seven different countries, to five broad categories: 1)
Second-Generation Patrol Vessel-Littoral Combat Ship; 2) New-Generation Patrol Vessel (Kedah-class); 3) LMS; 4) Multi-Role Support Ship and 5) Submarine (modified Scorpene; Tun Abdul Razak-class).

Balancing Priorities

For now, what take precedence are addressing the need for block replacement of
ageing systems and maintaining at least a critical mass of assets and thus
operational readiness in peacetime. Kuala Lumpur will continue to be fixated on
eastern Sabah and generally the rising terror threat posed by IS.
This means possibly lesser funds available in future for “big-ticket” purchases but instead, simpler, less expensive yet more useful patrol vessels (especially for the Malaysian Maritime Enforcement Agency).
The Malaysian example is not the first, and likely not the last, where it comes to the tough act of balancing competing economic, political and operational priorities in the process of building maritime forces capacity – especially in the era where new, lower-tier players have emerged amongst the global arms suppliers.

Purchasing arms from China may not necessarily reflect just Malaysia’s geopolitical choice, but more pertinent concerns over day-to-day upkeep of an effective yet costconscious force capable of tackling immediate security challenges at sea.


Koh Swee Lean Collin is a Research Fellow with the Maritime Security Programme at the Institute of Defence and Strategic Studies, a constituent unit of the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University, Singapore.
Nanyang Technological University
Block S4, Level B3, 50 Nanyang Avenue, Singapore 639798
Tel: +65 6790 6982 | Fax: +65 6794 0617 | www.rsis.edu.sg

Duterte tells worried foreign businesses to go

AFP

 27  October 25, 2016

"Russel says 'Duterte comments causing worries in business communities'. Then you pack up and leave. We will recover, I assure you."

TOKYO: President Rodrigo Duterte on Tuesday urged foreign businesses in the Philippines worried about his deadly drug war to “pack up and leave”, as he launched another anti-American tirade before flying to Japan to attract investments.

Duterte voiced outrage at comments the previous day by the top US envoy to Asia that his fiery rhetoric and crime war, which has claimed about 3,700 lives in four months, were bad for business.

“These Americans are really crazy. Their style is to walk here. They think they are somebodies,” Duterte said, as he held up a newspaper with headlines reporting the criticism from US assistant secretary of state Daniel Russel.

“Russel says ‘Duterte comments causing worries in business communities’. Then you pack up and leave. We will recover, I assure you.”

Duterte then flew to Japan, one of the top US allies in Asia, for a three-day visit that is partly aimed at building on two-way trade of more than $18 billion dollars last year.

“With Japan as the Philippines’ top trading partner, I shall seek the sustainment and further enhancement of our important economic ties,” Duterte, 71, said in prepared remarks at Manila airport.

“I look forward to meeting business leaders in Japan. I will tell them clearly that the Philippines is open for business.”

Duterte will meet with Prime Minister Shinzo Abe and have an audience with Emperor Akihito during the trip, which follows his headline-grabbing state visit to China last week.

Duterte, a self-proclaimed socialist with close links to communists, announced in Beijing the Philippines’ “separation” from the United States, throwing into doubt a 70-year alliance that is anchored on a mutual defence treaty.

He quickly walked back from his comments after returning from China, saying “separation” did not mean he would “sever” ties and that the US alliance would continue.

But his anti-American vitriol also continued.

No lapdog

Duterte said Tuesday he was not a “lapdog” of the United States, and again voiced anger at American and European criticism of apparent extrajudicial killings on his watch.

“You are a son of a whore,” he said referring to his critics.

“Do not make us dogs. Do not. As if I am a dog with a leash and then you throw bread far away that I cannot reach.”

Duterte has previously branded US President Barack Obama a “son of a whore” and told him to “go to hell”.

Russel, the US envoy, said after meeting Philippine Foreign Secretary Perfecto Yasay on Monday that many people around the world were becoming increasingly worried about Duterte’s tirades.

“The succession of controversial statements, comments and a real climate of uncertainty about the Philippines’ intentions have created consternation in a number of countries,” Russel said.

“Not only in mine and not only among governments, but also growing concern in other communities, in the expat Filipino community, in corporate boardrooms as well.”

Japan, which is wary of China’s rising influence in the region, signalled it would be looking for clarification from Duterte about his foreign policy plans.

“It is important to have good communication and to listen directly to what Mr Duterte has in mind,” Japanese Foreign Minister Fumio Kishida told reporters when asked about the firebrand leader’s comments on ties with Washington.

Abe had worked to improve bilateral relations with Duterte’s predecessor, Benigno Aquino.

Japan provided patrol boats to support the Philippines in its territorial row with Beijing over rival claims to the South China Sea, as it sought backing in its own maritime dispute with China.

Aquino took Beijing to an international tribunal over its extensive claims in the South China Sea — where it has built artificial islands capable of hosting military facilities — and the Philippines won a resounding victory in July.

But Duterte has sought not to use the verdict to anger China, instead worked to improve ties and attract billions of dollars in Chinese loans and investments.

Duterte wants US troops out in two years

borneo post  October 27, 2016, Thursday

Philippine president willing to scarp defence pacts with long time ally Washington if necessary

TOKYO: Philippine President Rodrigo Duterte said yesterday he wants US troops out of his country in the next two years and is willing to scrap defence pacts with longtime ally Washington if necessary.

The comments follow a series of anti-American tirades by the firebrand leader, who has repeatedly attacked the

US while cosying up to Beijing, upending his nation’s foreign policy in comments that have sometimes been quickly retracted.

“I want, maybe in the next two years, my country free of the presence of foreign military troops,” Duterte told an economic forum in Tokyo, in a clear reference to US forces.

“I want them out and if I have to revise or abrogate agreements, executive agreements, I will,” he added.

The US, which once operated sprawling bases in the country, now has a small number of Special Forces on the southern island of Mindanao to aid in counter-terrorism operations.

Duterte has previously said he wants US troops out of Mindanao because their presence stokes tensions on the island where Islamic militants have waged a decades-long separatist insurgency.

The acid-tongued leader arrived in Tokyo Tuesday on his first visit to Japan since taking office June 30, looking to persuade executives his country is “open for business”, after overturning Manila’s traditional diplomatic alliances.

The 71-year-old has also slammed Washington for questioning his violent crime crackdown, which has claimed some 3,700 lives and attracted widespread international criticism.

Duterte has also insulted President Barack Obama, calling him a “son of a whore” and announcing a “separation” from the US during a visit to Beijing last week.

Although he quickly walked back from his comments, saying that “separation” did not mean he would “sever” ties, he reiterated his calls yesterday for an end to all joint war games with the US.

“This will be the last manoeuvre war games between the United States and the Philippines’ military,” he said of an event hosted in recent weeks by the Philippines.

Duterte is set to hold a summit with Prime Minister Shinzo Abe later on Wednesday and will also meet with Emperor Akihito during the trip.

Although his Japanese hosts depend on the US for security, Tokyo has so far not responded to Duterte’s diatribes, while Washington has taken a calm approach.

“We’re going to take the long view,” State Department spokesman John Kirby said Tuesday.

“We’re not going to react and respond to every bit of rhetoric,” he added.

Abe had worked to improve bilateral relations with Duterte’s predecessor, Benigno Aquino, providing patrol boats to support Manila in its territorial row with Beijing over rival claims to the South China Sea.

The Philippines took Beijing to an international tribunal over its extensive claims in the region and won a resounding victory in July.

But Duterte has not pressed the issue with Beijing, instead working to improve ties and attract billions of dollars in Chinese loans and investments.

Duterte also attempted to calm worries in Japan over his trip to China, assuring his audience that he was not seeking military ties with Beijing, just a closer economic relationship.

“We did not talk about arms, we did not talk about stationing of troops,” he said. “We avoided talking about alliances, military or otherwise.” — AFP

Filipino President Rodrigo Duterte called Obama and Pope Francis a “son of a whore.”

White House looks to ride out Duterte storm

AFP

 | October 25, 2016

WASHINGTON: President Barack Obama has only a handful of months left in office, but facing the shock loss of a pivotal Asian ally in the Philippines, his White House is playing a long game.

Filipino President Rodrigo Duterte says a lot of things. Most notably, the capricious 71-year-old has called Obama (and Pope Francis) a “son of a whore.”

This week he declared decades of US-Filipino ties over, although he later qualified that remark.

“We haven’t heard any specifics” said White House spokesman Josh Earnest, “but those comments are creating unnecessary uncertainty in our relationship.”

On the face of it, Duterte’s casual desecration of a 65-year-old military alliance and his eager embrace of China are blows for US influence and for Obama’s “pivot to Asia.”

The United States risks losing presence and access to ports and bases in the heart of the South China Sea — a contested geopolitical hotspot.

Under Duterte’s predecessor Benigno Aquino, China and the Philippines were at loggerheads over the contested economically vital waterway — to the point that senior US officials worried about being dragged into a war with China.

But since Duterte took office in June, he has suspended joint US-Philippine patrols and threatened an end to joint military exercises.

A split would have regional ramifications. Duterte’s sinophile turn could further split the ASEAN regional bloc, which Washington has cultivated as a counter to Beijing’s designs on dominance.

China’s hardline territorial claims and confrontational stance had given Washington the upper hand.

“The region was in many ways coming to the realization that China is not a reliable long term partner,” said Lyle Morris of the Rand Corporation.

But Beijing is picking off cash-strapped ASEAN members like Cambodia and drawing them into its orbit with vast infrastructure spending.

Duterte’s recent visit to Beijing — the provocative setting for comments on dissolving US relations, bagged him billions of dollars in deals.

“A key motivator driving the Philippine president to mend fences with China is economic,” said Murray Hiebert of CSIS.

The souring with Washington could also hit counterterrorism operations against the Abu Sayyaf Group, which has been linked to Al-Qaeda and has carried out bombings, murder and kidnapping.

Echoes of Estrada?

In its response, the White House has been wary of one lesson of Duterte’s whole political career — from mayor of Davao to president of the republic — he has a short temper.

Officials have limited public chastisements, particularly over Duterte’s war on crime, which has claimed about 3,700 lives in less than four months and raised fears about mass extrajudicial killings.

“He’s very very sensitive to criticism,” said Rand’s Morris “So any time we do — like with the extrajudicial killings — he gets really really upset and that forces him to make decisions that might not be in the best interest of the Philippines.”

Instead, the White House has largely been content to weather the storm as best it can and stress the relationship is bigger than Duterte.

As officials tweet about events around “Filipino American History Month” they point out that day-to-day contacts have little changed since Duterte came to office.

For all Duterte’s bluster, he has not followed through.

Even some Philippine officials admit they are as befuddled by Duterte’s intentions as their counterparts in Washington.

Many believe that his ability to carry out his “separation” may be limited by his own politics and popular opinion.

He would have to secure legislative support to withdraw from the mutual defense treaty, which underpins the relationship.

There is little sign that support is there. Despite being former US colonial subjects, Filipinos are overwhelmingly pro-American.

Within the armed forces — particularly the Navy and Airforce — there is already deep unease about his pivot to China.

In some quarters Duterte is being compared to Joseph Estrada — the populist former president who was ousted in 2001 amid mass protests.

Jobs, jobs, jobs

The Obama administration has begun to gently push back against the most egregious insults and actions.

It cancelled a planned meeting with Duterte in Laos and has warned ominously about “uncertainty” in corporate board rooms.

Aside from the war on drugs and America’s perfidy, Duterte’s favored topic of conversation is the economy.

Here, the United States has some leverage.

It is the second largest foreign direct investor to the Philippines — after the British Virgin Islands, an off-shore tax haven — according to Santander bank.

US-Philippines Trade ties date all the way back to 1797, when “the Astrea” was the first US vessel to return from the Philippines, loaded with indigo, hemp, spices and sugar.

Ultimately, that history and America’s trading clout may provide Obama — and his successor — with a port in this storm.

US says Littoral Combat Ship USS Coronado, now in Singapore, is combat ready

by: Wes Goodman | .

Bloomberg | .

published: October 17, 2016

USS Coronado arrives to Changi Naval Base, Singapore, on Oct. 16, 2016 to begin a rotational deployment to the Indo-Asia-Pacific region. Joshua Fulton/U.S. Navy

The latest U.S. Littoral Combat Ship to arrive in Southeast Asia is combat ready, according to a senior Navy officer, after a series of mechanical snafus cast doubt on the ability of the vessels to operate effectively in shallow coastal waters.

The USS Coronado is "ready to go do its job," said Rear Admiral Don Gabrielson, Commander of Task Force 73 and Singapore area coordinator, adding operation, maintenance, design and training issues have been addressed. "Every ship has maintenance issues. Any time you take a new class of ship and you have a new model for taking care of the ship and training the crew, there are going to be things that you learn."

"It's crossed many miles of Pacific Ocean to get here all by itself," he said on Sunday on board the ship in Singapore.

The Coronado is the first deployment of an independence-variant Littoral Combat Ship to Southeast Asia and the third overall in the class. It has a larger flight deck than other LCS vessels and greater fuel capacity. It will use Singapore as a maintenance hub and carry out drills with countries in the region.

The ships, designed for the kinds of shallow coastal waters that surround many islands and reefs in Southeast Asia, are a spearhead for the U.S. military rebalance to the region, a key part of the Obama administration's bid to balance China's greater military and economic clout. Still, they have been confronted with equipment breakdowns and harried crews, with the Navy now moving to revamp the $29 billion program.

Issues with LCS maintenance haven't set back the U.S. presence in Southeast Asia, Gabrielson said. "There's a huge amount of demand for the Littoral Combat Ship by every nation out here in terms of exercise and integration."

The ship, built in two versions by Lockheed Martin Corp. and Austal Ltd., has been criticized for its reliability flaws, limited combat power and uncertain ability to survive in combat. The service is using its first ships for more extensive testing, reducing the rotation of crew members and de-emphasizing the swapping of missions and equipment that was supposed to be a hallmark of the vessels.

Two of the first vessels experienced propulsion-system failures, in December with the Milwaukee and in January with the Fort Worth. The Fort Worth was sidelined in port in Singapore for eight months. Two more vessels experienced failures in July and August.

The U.S. is targeting to have four of the vessels in Southeast Asia in coming years, Gabrielson said. The presence of the LCS is not meant to send a specific message to China, he added. "It's not a message to anyone other than what is going on in this part of the world matters to the whole world."

China claims the bulk of the disputed South China Sea, where its military buildup and land reclamation have created tensions with some Southeast Asian nations. It has also sparked friction with the U.S. amid a broader tussle for influence between the two powers in the western Pacific.

The risk of a clash in the South China Sea lies with non-military ships, Singapore Defence Minister Ng Eng Hen said earlier this month, as China deploys more heavily armed coast guard vessels in the disputed waters.

Singapore has joined other nations in the region and the U.S. in warning the reliance on fishing boats and coast guards to assert territorial claims in the South China Sea raises the prospect of an incident. It's a key shipping lane that carries as much as $5 trillion in trade a year.

China has used its so-called white hull fleet to chase and shoo ships including fishing boats from other countries away from the reefs it claims.

The U.S. Navy commissioned the nation's seventh Littoral Combat Ship (LCS) – USS Detroit (LCS 7)

USS Detroit, the fourth Freedom-variant in the LCS class, completed acceptance trials in July and was delivered to the U.S. Navy on August 12. It joins three other Freedom-variant ships in the fleet: USS Freedom (LCS 1), USS Fort Worth (LCS 3) and USS Milwaukee (LCS 5). Collectively, Freedom-variant ships have sailed over 225,000 nautical miles and successfully completed two overseas deployments.

"The entire Lockheed Martin-led LCS team is honored to have delivered USS Detroit and witness the ship being commissioned and brought to life in her namesake city," said Joe North, vice president of Littoral Ships and Systems. "For decades to come, USS Detroit will serve in the defense of our great nation, enabling the U.S. Navy to carry out its missions around the world and representing our nation where and when needed."

The Lockheed Martin-led industry team is currently in full-rate production of the Freedom-variant, with six ships under construction at Fincantieri Marinette Marine (FMM) and three more in long-lead material procurement. The ship's modular design and affordable price enables the U.S. Navy to provide presence where and when needed at a fraction of the cost of other platforms.

LCS 7 is the sixth U.S. Navy ship named USS Detroit. Previous ships to bear the name included a Sacramento-class fast combat support ship, an Omaha-class light cruiser, a Montgomery-class cruiser and two 19th century sloops of war.

The Lockheed Martin-led LCS team is comprised of shipbuilder Fincantieri Marinette Marine, naval architect Gibbs & Cox, and more than 500 suppliers in 37 states. The Freedom-variant's steel monohull is based on a proven, survivable design recognized for its stability and reliability. With 40 percent reconfigurable shipboard space, the hull is ideally suited to accommodate additional lethality and survivability upgrades associated with the Freedom-variant Frigate.

About Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 98,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

About Fincantieri Marinette Marine

Founded in 1942, Fincantieri Marinette Marine (FMM) is located on the Menominee River flowage into Green Bay. The largest shipyard in the Midwest, FMM has delivered more than 1,300 vessels to the U.S. Navy, U.S. Coast Guard, and commercial customers, including the technologically advanced Littoral Combat Ship Freedom variant for the U.S. Navy. In 2008, FMM along with several sister shipyards also based in the Great Lakes region, became part of FINCANTIERI, one of the world's largest shipbuilding groups and number one by diversification and innovation, with almost 19,000 employees, of whom more than 7,800 in Italy, 20 shipyards in 4 continents.  FINCANTIERI operates in the United States through its subsidiary Fincantieri Marine Group, serving both civilian and government customers. Over the past five years, FINCANTIERI invested more than $100 million in both capital infrastructure and its resources to support FMM's transformation into what is now one of the best shipyards in the United States. Employing approximately 1,500 employees, today FMM is a state-of-the-art, full service new construction shipyard.

LCS commanding officer fired amid pivotal US defense budget negotiations

The Pentagon's multibillion dollar Littoral Combat Ship program was dealt another damaging blow Friday after the commanding officer of the USS Freedom was relieved of his command

While Cmdr. Michael Wohnhaas was ultimately held responsible for engine damage sustained during Freedom's deployment in the Pacific this July, his firing sheds new light on the frailties of the long-suffering LCS program and offers congressional detractors fresh ammo to ditch the project as negotiations for the country's defense budget reach a pivotal stage.

The Naval Surface Force Pacific (SURFPAC) said in a press release that the commanding officer's departure was because of a "loss of confidence in his ability to effectively lead and carry out his assigned duties."

"The loss of confidence followed an investigation into the facts and circumstances surrounding damage to the ship's number 2 main propulsion diesel engine that occurred in the operation areas off the coast of southern California on July 11," the SURFPAC release said. "No final decision has been made yet on the options for follow-on repairs to Freedom related to the July 11 engineering casualty." 

Even though the LCS Freedom was built in Milwaukee, Wisconsin, the news will also trouble the Alabama-based Austal as it will also be caught up in discussions surrounding the 2017 National Defense Appropriations Act taking place on Capitol Hill over the next month. Although the bill has passed every year since 1963, it comes with intense negotiations between members of the House and Senate, who are scrambling to ensure that defense manufacturing and military bases in their state and districts are not cut back or scrapped altogether.  

Congressional heavyweights such as Arizona Republican John McCain, who heads the Senate Armed Services Committee (SASC), have taken issue with the ships design, durability, combat ability, usefulness and overall cost. In mid-September, McCain and ranking Democrat on the SASC, Jack Reed of Rhode Island, said that the $29 billion LCS project must undergo major changes or risk losing their support for future purchases.

In total, the LCS class has suffered five engineering issues over the last year, furthering scrutiny on the entire program. In light of the problems, Navy top brass ordered a stand down of all LCS engineering in August and ordered all engineers on the ships to re-train and re-certify. The move was applauded by McCain and Reed, but did not go far enough.

McCain and Reed suggested reducing the days the vessels deploy overseas, reducing the chances of major reliability failures and crew fatigue. The suggestion means that the LCS would deploy for less than 50 percent of their projected 25-year service life,

"Until these actions are taken, we will have significant concerns about supporting the procurement of additional LCSs," Senators McCain and Reed, wrote Navy officials on Sept. 15 in a letter obtained by Bloomberg News.

Current budget levels allows for 12 LCS vessels or frigates to be procured from 2018 through 2025. The House Armed Services Committee and its Senate counterpart have approved two requested for the upcoming 2017 budget, while a third was added by Congressional appropriators. So far, eight vessels in a total 40-vessel program have been delivered.

US warship challenges China's claims in South China Sea - officials

WASHINGTON - A US navy warship sailed near islands claimed by China in the South China Sea on Friday, the latest attempt to counter what Washington sees as Beijing's efforts to limit freedom of navigation in the strategic waters, US officials said.

The guided-missile destroyer USS Decatur challenged "excessive maritime claims" near the Paracel Islands, among a string of islets, reefs and shoals over which China has territorial disputes with its neighbors, the officials said, speaking on condition of anonymity.

The latest US patrol, first reported by Reuters, is expected to anger Beijing and could further escalate tensions over the South China Sea. The destroyer sailed within waters claimed by China, close to but not within the 12-nautical-mile territorial limits of the islands, the officials said.

The Pentagon said the Decatur "conducted this transit in a routine, lawful manner without ship escorts and without incident." One official said the ship, which sailed near Triton and Woody Islands, was shadowed by three Chinese vessels and that all interactions were safe.

It was the fourth challenge that the United States has made to what it considers overreaching maritime claims by China in the South China Sea in the past year, and the first since May.

China, Washington's main strategic rival in Asia, claims almost the entire South China Sea, through which about $5 trillion worth of trade passes each year. The United States has criticized Beijing's build-up of military facilities in the sea and expressed concerns they could be used to restrict free movement.

China has a runway on Woody Island, the site of the largest Chinese presence on the Paracels, and has placed surface-to-air missiles there, according to US officials. Taiwan and Vietnam also have claims on the Paracels.

In the last three US freedom-of-navigation operations in the South China Sea within the last year, US warships cruised within 12 nautical miles of islands claimed by Beijing. The actions drew angry responses from China, which has accused the United States of stirring up trouble there.

The latest operation comes just after the volatile president of the Philippines announced, during a visit to China, his "separation" from Washington and realignment with Beijing. The Philippines has been a key ally of the United States and a territorial rival of Beijing in the South China Sea. Rodrigo Duterte took office as Philippine president in June.

Duterte's announcement on Thursday was a significant turnaround after a tribunal in The Hague ruled that China did not have historic rights to the South China Sea in a case brought by the previous Philippine administration and strongly backed by the United States.

But in Washington a person close to the matter said the latest naval operation was not timed for Duterte's China visit this week and that planning for the patrol had long been in the works.

Rival claims

Brunei, Malaysia, the Philippines, Taiwan and Vietnam all have rival claims in the South China Sea, but Beijing's is the largest. It argues it can do what it wants on the islands it claims as they have been Chinese since ancient times.

The last US freedom-of-navigation operation in May went within 12 miles of Fiery Cross reef in the Spratly Islands and China scrambled fighter jets in response.

In January, a US destroyer went within 12 miles of Triton Island, and China called the action "irresponsible and extremely dangerous."

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US officials have said the operations will continue despite Beijing's protests, but the Obama administration has been criticized in Congress for not conducting them more regularly and robustly.

Greg Poling, a South China Sea expert at the Center for Strategic and International Studies think tank, said the administration was likely to face further criticism after opting for relatively uncontroversial challenges to China in all of its freedom-of-navigation operations in the past year.

"They will have essentially performed the same FONOP, meaning an objection to China's demand for prior notification, four times in a year," he said.

"That is not only redundant, but it does nothing to put a spotlight on the other, much more worrying, restrictions China is placing on freedom of navigation."

China has been placing more serious restrictions on movement, he said, around artificial islands China has built on reefs in the Spratly chain, notably Mischief Reef. 

(Additional reporting by David Brunnstrom)

Idrees Ali and Matt Spetalnick, Reuters22/10/2016