Once more, I congratulate the House of Representatives for taking the lead in putting our fiscal house in order.

This is an act of valiant civic duty that builds a better future to all Filipinos by growing the economy to create more jobs and push our 10-point pro-poor agenda.

The strong executive-legislative partnership is reinforced by a new economic team that will continue our policies and programs for the benefit of the average Filipino.

The economy is on a roll and we shall continue to ensure that the most marginal sectors are shielded from short term adversities by cushioning prices where the most telling social impact is expected.

The new appointees have so much to offer and to contribute to the President’s 10-point agenda.

They have proven their excellence in their respective fields as demonstrated by the respect they enjoy in the business sector.

The President expresses her sympathy to the family of Mr. Suelito C. Leong and wants the DFA to coordinate closely with the Saudi authorities to get at the root of this matter.

If there was foul play, we shall pursue justice for him.

Meanwhile, the DFA is working with DOLE so we can bring home his remains soonest.

Members of President Gloria Macapagal-Arroyo’s new economic team have one thing in common -- they enjoy her trust and confidence.

Press Secretary and Presidential Spokesman Ignacio R. Bunye stressed this today in a radio interview, saying the President’s Cabinet choices all subscribe to her vision and programs, particularly her 10-point legacy agenda.

"Ang number one consideration dito ay iyong kakayanan at iyong kagustuhan na ipatupad itong 10-point agenda ng ating Pangulo (The No.1 consideration here is their ability to perform and implement the 10-point agenda of our President)," he said.

The President named yesterday former Nestle Philippines chairman Juan Santos as new secretary of the Department of Trade and Industry (DTI), Power Sector Assets and Liabilities Management (PSALM) president and chief executive officer Raphael M. Lotilla as secretary of the Department of Energy (DOE), and Airfright 2100 chairman Alberto Lina as new customs commissioner.

Bunye pointed out that the latest appointments emphasize continuity in the public service and "we are on track as far as implementing the priority programs are concerned."

He said Santos is a professional manager who became the first Filipino to head a Nestle firm abroad, while Lotilla, who is concurrently PSALM president, is not new to the energy sector.

Lina, according to Bunye, is chairman of the highly successful FedEx franchise in the country, Airfreight 2100 and brother of former Interior and Local Government Secretary Joey Lina.

The whole official family is constantly under review, Bunye said, adding that the President’s initiatives are finally paying off.

"We can see the reaction of the stock market and the peso’s renewed strength as signs of investor confidence," he said.

President Gloria Macapagal-Arroyo hailed today the launching of the first private equity fund in the Philippines for small and medium enterprises (SMEs), saying it is an integral part of the government’s economic program.

Speaking at the launching of the Planters Bank-Aureos SME Equity Fund at the Rizal Hall of Malacanang, the President cited the need to support small and medium entrepreneurs in line with her thrust of creating six to ten million jobs in the next six years.

"We need to support the small and medium entrepreneurs to grow the economy and provide more than a million jobs a year as we unleash the entrepreneurial spirit of our people, so that we can row our own boat, set our own course, and sail forward to better times," she said.

The President said the private equity fund complements the government’s training programs on trade and entrepreneurship, skills development and product design.

"Dynamic self-employment is the name of the game among the small entrepreneurs," she said. "But if we consider the capital to employment ration, indeed we are employing a large number of people for every peso of capital. "

The payback, according to her, is durable social stability and economic prosperity.

The Chief Executive said the government would bring the benefits of macro-economic performance to the average Filipino by supporting small and medium entrepreneurs.

"We shall soldier on, just as our small and medium entrepreneurs both in the business districts and barrios of the archipelago are soldiering on, especially now with the very first private equity fund through institutional partners like Planters and Aureos," she said.

Press Secretary Ignacio R. Bunye said today the government has generated savings of P300 million from its operation following the abolition of some task forces under the downsizing-the-bureaucracy program.

Several task forces and units have been abolished as part of the administration’s policy to streamline government operations, do away with redundant offices, avoid duplication of functions, and cut operating costs.

In a radio interview this morning, Bunye said the government re-engineering would be stepped up during the second stage of the program.

He said the operation of various government agencies were being reviewed preparatory to the launching of the second stage of the downsizing program.

In her State of the Nation Address (SONA) last July 26, President Gloria Macapagal-Arroyo underscored the need to trim down the bureaucracy, and asked Congress to pass a bill downsizing the government.

"We will downsize the government, motivate excess employees to become entrepreneurs, and increase the pay of a lean and mean bureaucracy," she said.

Bunye said that an initial review of the functions and operations of various government units during the first stage of the downsizing program showed rampant duplication of functions. The redundant agencies had to be re-engineered or abolished, he added.

President Gloria Macapagal-Arroyo witnessed today the turnover (exchange) of agreement for the $25 million parallel investment fund between Aureos Capital Ltd. and Planters Development Bank (Plantersbank), that will help provide much-needed equity financing for small and medium enterprises (SMEs) in the country.

The turnover of the $25 million Plantersbank-Aureos SME Equity Fund accord between Plantersbank chairman, Ambassador Jesus Tambunting and Aureos Capital managing partner Liam Cully, was held in simple rites this afternoon at the Rizal Hall in Malacanang.

Aside from the President, those who witnessed the turnover were members of her new economic team including incoming Finance Secretary Cesar Purisima, incoming Trade and Industry Secretary Juan Santos, incoming Customs Commissioner Alberto Lina, and outgoing Finance Secretary Juanita Amatong.

Earlier, Plantersbank announced its partnership with Aureos Capital for the establishment of the Aureos South East Asia Fund (ASEAF) that would bring private equity investments of $25 million into the country in the next four years.

The leading manager of SME private equity funds in developing countries, Aureos Capital is a joint venture between Actis, which is partly owned by the British government through the Department of International Development (CDC Group), and the Norwegian Investment Fund (Norfund) for Developing Countries.

President Arroyo said the Philippines is not alone in its drive to provide the needed capital to accelerate economic growth through entrepreneurship, that has proven to turn economies around in the shortest possible time aside from creating more jobs.

"We thank our allies from the United Kingdom and Norway for putting up this equity fund," the President said. She also thanked Aureos for transferring its regional headquarters from Bangkok to Manila.

Under the parallel investment fund, the first SME equity fund of its kind in the country, Plantersbank agreed to contributed $5 million to the fund while the $20-million balance will come as direct foreign investment from the CDC group and Norfund as anchor investors in the ASEAF.

Tambunting said the fund would provide equity financing for SMEs that demonstrate strong potential for profitable growth, employment generation, and foreign exchange savings.

He observed that many SMEs exhibit strong potentials for growth but are unable to expand their operations because of their limited capital resources.

Tambunting also informed the President that the Development Bank of the Philippines (DBP) has agreed to join in their SME lending venture and would immediately participate once DBP has completed the regulatory approval process.

He said they hope the establishment of the SME Equity Fund would encourage not just local institutions, but also foreign investors, to establish similar equity funds to support domestic SMEs.

Tambunting also informed President Arroyo that Plantersbank had completed a P1-billion Tier II capital note issue last December 2004 that was oversubscribed, with the bulk of the subscription taken up by the German government’s investment and development company, DEG.