The fiscal reform program is a major lynchpin of our economic security and let us not turn it into a subject of emotional rabble rousing.

Once the increased VAT is signed into law and eventually implemented, the government shall closely watch the prices of basic commodities that are VAT exempt and act with resolve to protect the interest of the consumers.

We urge the public to look at the positive side of a better economy and a better life. We have to unite and each must have a share and stake in the future of our country.

We expect the DFA to bring back the remains of Suelito Leong in the soonest possible time as well as to get complete information surrounding his death.

We will relentlessly pursue terrorist cells wherever they are.

We are confident this will not hinder the peace talks with the MILF, which is also forsworn to fight terror.

We are confident that Congress will see the new economic team as a strong ally in fulfilling our common economic goals.

For this reason, we believe that the new Cabinet members will be accepted by the Commission on Appointments as issues of conflict of interest are decisively resolved.

The new economic team stands on solid track record and proven integrity.

President Gloria Macapagal-Arroyo is giving Task Force Subic chief retired Gen. Jose Calimlim wide latitude in enforcing anti-smuggling laws to ensure the success of his campaign against smugglers operating at the Subic free port, Press Secretary and Presidential Spokesman Ignacio R. Bunye said.

In a radio interview this morning, Bunye said the President is leaving it to Calimlim to take the necessary legal steps to stop smuggling which has deprived the government of millions of pesos in revenues.

The President’s marching order to Calimlim is: apprehend the leaders and members of all smuggling syndicates, Bunye added.

He said the Chief Executive is confident in Calimlim’s capability to go after smugglers who are using the free port for their illegal activities.

"We will just look at the results. We are confident that he will not let the President down on her expectations that he can stop smuggling," Bunye said.

President Gloria Macapagal-Arroyo inspected today the proposed government housing resettlement projects for informal settlers in the 50-hectare portion of the New Bilibid Prison (NBP) reservation and in nearby Barangay Putatan in Muntinlupa City.

Accompanied by Vice President and Housing and Urban Development Coordinating Council (HUDCC) chairman Noli de Castro on the presidential helicopter, the President made an aerial inspection of the proposed resettlement site within the NBP reservation.

From the NBP compound, where the presidential helicopter landed, she motored to Barangay Putatan to inspect the proposed housing site along the railroad tracks of the Manila-Bicol South Railway System.

Under Presidential Proclamation No. 234, the President declared 50 has. of the 434.0872-ha. NBP reservation as a low-cost housing project for informal settlers in Muntinlupa City.

There are 319 informal settlers in the NBP complex alone.

PP 335, which amended 234, transferred the administration of the 50-ha. portion of the NBP reservation from the Department of Justice (DOJ) to the National Housing Authority (NHA).

PP 335 provides that HUDCC and the Muntinlupa City government shall jointly formulate plans for the housing project and adopt the implementing guidelines on the proper disposition of the property.

The railroad tracks along the South Railway System in Barangay Putatan are dotted with 7,030 shanties – home to 10,471 families, according to the HUDCC.

The strong performance of the peso against the US dollar, the bullish stock market and the 25-year $1.5 billion Philippine bond floatation in Hong Kong last Wednesday are strong indicators of investors’ confidence in the country and the turnaround of the economy, Press Secretary and Presidential Spokesman Ignacio R. Bunye said.

In a radio interview this morning, Bunye said that investors’ have rated high the Philippine bond flotation, with demand reaching $8 billion or more than five times the $1.5 billion on offer.

The largest single sovereign deal, the bond floatation came one week after the global ratings agency Standard and Poor’s downgraded the Philippines foreign currency rating one notch lower to BB - S&P cited the government’s lack of urgency in implementing drastic fiscal reforms for the downgrade.

"We can say that the Standard and Poor’s rating, the normal guide of investors, has not affected our bond rate. Normally, your bond rate will increase if you are downgraded. But this did not happen," Bunye said.

"This means that the investor confidence is there and investors are aware that the President is serious in fixing our economy," he added.

Bunye pointed out that another indicator of a turnaround is the strong performance of the peso which appreciated for the fourth straight day, closing yesterday (Thursday) at P55.15, the highest this year.

He said another sign of investors confidence is the continuing vibrant stock market with the volume of transactions rising yesterday to $326.8 million from Wednesday’s $270 million.

Bunye stressed that these developments also show that the reforms the President is pushing are bearing fruit. The major components of the President’s reform program call for new taxes, the imposition of strict austerity measures, plugging the leaks in the tax collection system, and the fight against corruption.

"And it seems that this formula is working," Bunye said.