We are confident that these travel advisories will be reconsidered and lifted as soon as we can make significant gains in the hunt against the perpetrators and on our overall anti-terrorism campaign.

The Valentine’s Day bombings have made the terrorists complete outcasts in our society, and we have full public support to punish them.

We believe Moody’s decision is quite severe but we take this as a challenge to pursue reforms with a greater sense of urgency.

The Executive and Congress remain committed to carrying out a shared agenda of improving our revenue base and significantly reducing our debt levels.

We have made significant headway in addressing the country’s fiscal challenges.

Press Secretary Ignacio Bunye said today setting former Autonomous Region in Muslim Mindanao (ARMM) Gov. Nur Misuari free as demanded by his loyalists from the Moro National Liberation Front (MNLF) in Sulu "is tantamount to government surrender" to terrorism.

Bunye made this clarification in a radio interview this morning in answer to reported proposals by certain lawmakers, including Ilocos Norte Rep. Imee Marcos, for the government to release Misuari from jail to pacify the currently rampaging MNLF renegades.

"We all know Misuari is in jail because he is facing charges," Secretary Bunye, who is also Presidential Spokesman, stressed. The Justice department, he added, is now expediting the resolution of his case.

Misuari was charged with rebellion after he led his supporters in raiding a military outpost and a police station in Sulu in November 2001.

The raids were ostensibly aimed to stop the ARMM elections that year that was certain to unseat him. He is now detained in a police training camp in Sta. Rosa, Laguna.

"If Misuari is guilty of the charges against him, then he has to be in jail permanently, but if it is otherwise, then he has to be set free," the Presidential Spokesperson said.

The government now holds Misuari incommunicado or deprived of all communications between him and his followers pending the outcome of the investigation on whether the former ARMM governor has played a role in the ongoing violence in Sulu.

Malacanang will study the advisability of declaring a state of emergency in Mindanao in the light of the continuing armed clashes between government troops and the terrorist Abu Sayyaf and MNLF Breakaway Group in Sulu .

In a radio interview this morning, Press Secretary Ignacio Bunye said the government is open to well-meaning suggestions like that of Senator Jun Magsaysay, who proposed that Congress grants the President emergency powers to resolve expeditiously the ongoing Mindanao conflict that has already claimed scores of lives.

"At my level, all I could say is we will study such proposal but that will be decided by the President herself, in consultation with her security advisers," Bunye, who is also Presidential Spokesperson, said.

He stressed though that such proposals have to be thoroughly studied on account of its widescale implications.

"This is a security matter and if indeed there is a need to declare a state of emergency, the President has to consult her security advisers. In other serious cases, she may convene the National Security Council which has a bigger membership," he added.

President Gloria Macapagal-Arroyo formally welcomed to the Palace today four incoming Ambassadors Extraordinary and Plenipotentiary from Thailand, Great Britain and Northern Ireland, Cuba and Cambodia.

In rites held this morning at Malacanang’s Rizal Hall, the President formally accepted the letters of credence of the four incoming ambassadors who will start their tour of duty to the Philippines within the year.

The President first accepted the letter of credence of Peter Beckingham, Ambassador Extraordinary and Plenipotentiary of the United Kingdom of Great Britain and Northern Ireland.

Beckingham told the President that the Philippines is one of the popular nations rich in mineral resources which has a common link with Great Britain in terms of the English language.

He said the Philippines and Great Britain have improved their ties in terms of British investment in the country. The British government, he added, employs 50,000 Filipinos whom they have trained to enhance their skills.

Beckingham was accompanied by his wife Jill; Robert Fitchett, deputy head of mission; John Fielder, consul, and Sherah Chua, development officer.

Next to present her credentials was Thai Ambassador Asha Dvitiyananda, former director-general of the Department of European Affairs of Thailand in 2002 and a minister at the Permanent Mission of Thailand to the United Nations Office and other International organizations in Geneva.

The Thai diplomat was accompanied by Phairoj Vikiniyatanee, deputy chief of mission; Mansakdi Musiklad, commercial minister-counselor; and Group Captain Permklat Lavanamal, defense air attaché.

Cuban Ambassador Extraordinary and Plenipotentiary Jorge Rey Jimenez also presented his credentials to the Chief Executive. Jimenez, a Minister-Counselor of the Cuban Embassy to Vietnam from 1998 to 2002, was accompanied by his wife, Elba Marina Gonzales Delgado.

Jimenez obtained his Psychology degree from the University of Havana. On official missions from the Cuban Ministry of Foreign Affairs he has traveled to France, Algeria, Angola, Mozambique, the Philippines and other Asian countries.

Cambodian Ambassador Extraordinary and Plenipotentiary Ok Sochea was the final diplomat to turn over his letter of credence to the President. He was accompanied by Theam Sothy, deputy Head of Mission, and Philippine Foreign Affairs Undersecretary Franklin Ebdalin.

In welcoming the four incoming diplomats, the President expressed hope their tour of duty will bring more stronger relations between their respective countries and the Philippines.

President Gloria Macapagal-Arroyo said today that fighting poverty can only be successful with a practical plan and a strong will.

In a speech during the launching of a United Nations Millennium Project at the Dusit Nikko Hotel in Makati City this morning, the President pointed out that the United Nations development goals are "mirrored" in her 10-point pro-poor legacy agenda that aims to shore up the economy, uplift the lives of the people, strengthen democracy and forge peace and national solidarity.

"We launched this practical plan to attain the millennium development goals, to build prosperity for our people, and in the process, mop up the breeding grounds of terrorists’ recruits," she said.

Investing in Development: A Practical Plan to Achieve the Millennium Development Goals was prepared by the Millennium Project as independent advisory body to UN Secretary General Kofi Annan.

The President assured the people that she will continue to provide the political will to drive its implementation forward to fruition and wage the fight against terror alongside the war against poverty.

She said her new economic team, which she had put in place to carry out her agenda, consists of officials who are capable, loyal and dedicated to change.

"I fully expect this team to work with me to lead the nation to a new era of prosperity, freedom and national growth," the President said.

Thanking Congress for passing the 2005 budget, the President said her administration is working to clamp down on corruption, to weed out wasteful government spending and to raise revenues which are the key pillars of her economic plan to bring stability and prosperity to the nation.

"We are turning the corner," the President added as she underscored the country’s being taken out from the watch list of the Financial Action Task Force (FATF) by forging fiscal discipline and strictly enforcing law and order.

The President said the creation of safe streets, free from crime and kidnappings, is central to the aim to enable the workers, businessmen, and foreigners to go about their jobs without fear of being harmed.

The President also disclosed that in line with the anti-corruption campaign, more government officials are being charged with corruption. "Soon, they will not only be charged, they will have their ill-gotten wealth forfeited to the government," she said, adding this is her next instruction to her anti-corruption officials.

The President noted that the House of Representatives recently formed a committee on the Millennium Development Goals (MDGs) with Congresswoman Nerissa Ruiz as chairperson.

She expressed elation to hear that 12 city mayors are working closely with the Department of Interior and Local Government, the United Nations and the Philippine Country Team to promote the MDGs.

The President said her administration is reinforcing the building blocks of human development with the mortar of political unity and the rule of law and justice for all.

She noted that Philippine development is built on the principled solidarity of the political institutions and focused commitment to change and reform.

"We will slay the deficit dragon by raising revenues through our own power and initiative so that we stop financing our development with incessant borrowings," she said.

Press Secretary Ignacio R. Bunye today said the government’s plan to dispose off its sequestered media assets stands but the timing and manner of their privatization have yet to be finalized.

In a radio interview Wednesday, Bunye confirmed that Malacañang has indeed issued instructions to privatize the sequestered television stations RPN9 and IBC 13, but added Secretary Cerge Remonde, Government Mass Media Group head, is the best person who could speak on the matter.

President Gloria Macapagal-Arroyo cited today the success story of furniture maker Padua International Corporation (PIC) in Antipolo City to highlight the role of Small-Medium Enterprises (SMEs) in creating 10 million new jobs under her 10-point pro-poor legacy agenda.

In an informal interaction with PIC president Vincent Padua and his workers, the President said that these new jobs would be generated from the full support given to the three million small entrepreneurs in the country.

A classic example of the success story of a small entrepreneur is Padua, who was granted with a P20 million loan from the Small Business Corporation (SBC) in 2002. He managed to increase his capital four times in four years as well as its coterie of workers.

The majority of micro entrepreneurs form the bulk of the three million entrepreneurs whose status the President is determined to uplift into a medium enterprise like that of Padua’s.

"He proved his credit worthiness. This is what we want to happen --to have three million Vince Paduas in the next six years…This is a classic example that we can BEAT THE ODDS and create prosperity for the greater number of our people," the President said.

PIC was assured by Trade Undersecretary and SBC president Mel Alonzo that Padua’s company is most welcome to borrow for its possible expansion program.

Padua International is a Filipino corporation making furniture and furnishing designed for the millennium lifestyle. It is focused on serving the discriminating upper end of the international market.

It was established in 1986 and posted a rapid growth that by early 1998, it started joining furniture trade exhibits and became one of the major players in the domestic market.

Against the backdrop of Moody’s rating action, we are heartened by Japan R&I’s (Research and Investment Information, Inc.) affirmation of the Republic of the Philippines credit rating of triple b minus (investment grade). Notwithstanding a change in outlook from stable to negative, R&I cites our rapid GDP growth and the government’s resolve to restoring its finances.

We feel that putting us in negative outlook, compared with the drastic action taken by Moody’s, fairly recognizes our response to the continuing challenges we face in addressing the country’s fiscal issues.