 |
||
| 24 JANUARY 2008 | . | |
|
|
||
| 24 JANUARY 2008 | . | |
|
|
| Strong macroeconomic fundamentals make RP more resilient to external volatility - PGMA |
|
ZURICH, Switzerland (via PLDT)-- President Gloria Macapagal-Arroyo
said on Wednesday she is confident that the Philippines’ strong
macroeconomic fundamentals would make the country more resilient to external
volatility, particularly with the anxiousness about the recent economic
slowdown in the United States that could affect emerging economies. |
|
|
| PGMA invites Swiss businessmen to invest in RP; cites country's competitive advantage |
|
ZURICH, Switzerland (via PLDT)--President Gloria Macapagal-Arroyo enticed on
Wednesday Swiss businessmen to invest in the Philippines which, she
stressed, “offers one of the best values in Asia for investment,”
particularly in the outsourcing industry. "The Philippines is ranked among the most attractive off-shoring destinations in the world because of cost competitiveness and more importantly our country's highly trainable, English-proficient, IT-enabled quality manpower,” the President said in her speech before the officers and members of the Swiss Chamber of Commerce at the Savoy Hotel here. “Our outsourcing sector has the potential to grow 40 percent per year from 2007 until 2010, which would put it on track to double its global market share in three years," she added. The President said this rate of growth also means revenues from the outsourcing sector would grow four-fold from the current level of $1.3 billion, and employment would triple to 900,000 jobs. She said the Philippine government and private sector are working “together to develop talent to support the rising demand for quality workers in outsourcing and expand outsourcing capabilities to new locations across the country beyond the centers of Manila and Cebu to tap larger talent pools.” The joint initiatives include training, funding for education, and creating awareness of career opportunities to attract more graduates to pursue jobs in the outsourcing sector, she said. The government and the private sector also work together to reassess current tertiary and secondary education curricula to respond to the emerging needs of the market, the President said. To develop next wave cities after Manila and Cebu , the President said the government is also developing other IT (Information Technology) hubs in other strategic parts of the country to encourage greater levels of outsourcing investment in these locations. "In recent years, the outsourcing sector has expanded not only geographically but also beyond call centers and IT to include a range of professional and business processes, including accounting, human resources, financial analysis, design engineering, animation, medical services, legal services, insurance processes, banking processes, map making, publishing, content creation, and research,” the President stated. "We are certainly a leader in the outsourcing space,“ the President said, adding that in 2007, the United Kingdom outsourcing association awarded the Philippines as the “outsourcing destination of the year." The President also asked the Swiss businessmen to invest in other sunshine and high-growth industries in the Philippines such as in manufacturing, technology, mining, energy, tourism, infrastructure, and health care. "In fact, recently, the European Chamber of Commerce and Industry together with the American, Japanese and Korean Chambers of Commerce have endorsed our strengths in this area by forming a coalition to promote the Philippines as a healthcare destination for foreigners," the President said. She said the surge of foreign investment in the Philippines has grown more than five-fold from 2003 to 2007 anchored by billion-dollars plus investments by several major international companies. |
|
|
| PGMA to DOLE: Review contracts of OFWs to protect them from peso-dollar fluctuations |
|
ZURICH, Switzerland (via PLDT)--President Gloria Macapagal-Arroyo directed
on Wednesday the Department of Labor and Employment (DOLE) to start
reviewing the contracts of overseas Filipino workers (OFWs) to ensure that
their remittances are protected from fluctuations in the peso-dollar rate. Answering questions after delivering her speech at the meeting of the Swiss Chamber of Commerce at the Savoy Hotel here, the President said wages of OFWs should be paid by foreign employers in dollars or pesos, whichever is stronger, to protect Filipino workers from monetary fluctuations. "I have instructed the DOLE to review the contracts between foreign employers and Filipino workers so that such contracts will stipulate that they will be paid in pesos or dollars, whichever is stronger," she said. The President's directive is one of the facilities under the government's hedging program that include the OFW bond which she is expected to unveil when she visits Dubai after her attendance at the 2008 World Economic Forum (WEF) in Davos. The government would also launch soon the financial literacy campaign to help educate OFWs on the proper way to invest their dollars and become overseas Filipino investors (OFIs). |
|
|
| Statements of Cabinet Secretary Ricardo L. Saludo |
|
ON ECONOMY: Our economic surge remains secure if we maintain the policies and undertakings that have lifted output, confidence and investment in our country — fiscal strength, massive infrastructure and development programs for our people, and a stable, secure society. The government is accelerating public works and social services, and we await the 2008 budget to sustain our programs for the economy and the poor. Let us avoid measures that could undermine our success formula, including big tax cuts. Let us show the world that we will not allow political noise and agitation derail our drive for growth. *** ON GOVERNMENT APPOINTMENTS: The economy’s surge and diminishing poverty and hunger are ample evidence that the government team is performing well on the whole. The few who falter are replaced, as the President has recently done. Performance, not paper credentials, is the ultimate qualification that matters to our people, and questions about legal qualifications are best addressed through due process, not through sweeping generalizations in luncheon speeches. As for ex-soldiers and police in government, our people elected four of them to the Senate. Why should generals not serve in the Executive branch as well, with their proven discipline and leadership experience? *** ON POLICE VS. MEDIA: The front pages and the airwaves are not the places to resolve the issue of safely covering conflict situations, and any allegations of civilian misconduct during the Manila Peninsula uprising. Both sides should discuss guidelines to ensure public safety in media coverage of dangerous events. And let due process, not trial by publicity, be applied to any evidence and charges of unlawful acts during the uprising. *** ON PEACE TALKS: The government is heeding the Church’s call for peace initiatives, and we call on the CPP-NPA-NDF to do the same by accepting a ceasefire that would end the bloodshed and lay the foundation for sincere, productive negotiations toward a lasting settlement of the communist rebellion. At the same time, the government has undertaken several local peace and security initiatives, as instructed by the President and spearheaded by provincial governors and Catholic bishops. These local peace efforts are ongoing in Bohol, Caraga, Leyte, Laguna and Masbate, with another due to start in Davao next month, and others planned elsewhere in the country. To support these initiatives, the President has proclaimed an amnesty for rebels who wish to return to the fold of law, and we call on Congress to heed the Church’s call for peace and concur with the amnesty proclamation. With the combined efforts of national and local governments, Congress and the Church, we shall advance peace in more and more areas of the country, even as we await a sincere response to the government and the Church’s call for peace talks. |
|
|
|
President Gloria Macapagal-Arroyo's
speech before the Swiss Chamber of Commerce Savoy Hotel, Zurich, Switzerland January 23, 2008 |
|
A PATH TO PERMANENT ECONOMIC GROWTH AND STABILITY: CREATING A NEW
PHILIPPINES I thank the Swiss Asian Chamber for your warm reception and hospitality and I thank each of you for taking time out to join us today. I also want to thank those of you who visited the Philippines last September. This meeting is timely because it is taking place during a period of great uncertainty for the global economy. This is an especially crucial time for world leaders in business and government to band together to turn the challenges we face today into opportunities, from the issue of climate change to volatility in the world markets and the rise of Asia against these uncertainties. The Philippines offers a strategic location in the fast-growing region of Southeast Asia. Our workforce is well educated, productive and English speaking and we are cutting red tape to simplify the requirements for investment. In the midst of world uncertainties, we remain a competitive location for a wide range of manufacturing and high-end services. The Philippines is on a path to permanent economic growth and stability. We have created seven million new jobs in seven years. We have achieved 28 consecutive quarters of economic growth even when many of our neighbors experienced negative growth or even recession at some time or another of the last seven years. In fact, our economy, which rose 7.1 percent in the first three quarters of 2007, is experiencing its fastest growth in more than a decade. The Philippine economy grew faster than the rest of Southeast Asia, despite oil price volatility and a global economic slowdown. Our international reserves are also at record levels. We have a balance of payments surplus, a low inflation rate and low interest rates. Business and investor confidence is on the rise, the peso is one of the world’s best performing currencies, and our stock market has reached historic heights. Our budget is under control and we are raising unprecedented amounts of revenue. The Philippines offers one of the best values in Asia for investment. Over the last seven years, our Administration and our people have aimed high. We have met the challenge of economic and fiscal reform. Seven years ago, expanding the taxpayer base, strengthening the peso and attracting foreign investment were our biggest challenges. To some, our goals of balancing the budget, lowering debt levels and raising employment seemed ambitious at best. Seven years down the road, our unwavering commitment to installing the necessary reforms to move our nation forward has allowed us to make important progress on all these fronts. In the midst of world uncertainties, it helps that we have one of the best and most awarded Central Banks in the world, which has helped the Philippines achieve a stable macroeconomic environment that is making us much more resilient to external volatility. We are vigilant that our efforts should not be derailed by the sub-prime crisis and the subsequent credit crunch. We count on the Central Bank Governor and his team, who operate independently, to continue to ensure stable macroeconomic fundamentals to support our robust economic growth during a time of continued global economic volatility. Foreign investment in the Philippines has grown more than five-fold from 2003 to 2007. This surge of investments has been anchored by billion dollar plus investments by several major international companies, including Texas Instruments, which chose the Philippines over other locations including China for its $1.6 billon wafer fabrication plant, Korea’s Hanjin which is putting up two shipyards for $3.7 billion, making us the fourth largest shipbuilder in the world; Marubeni, Tokyo Electric and America’s AES which have put in billions in our electric power industry and Mittal Global which has conveyed to me their plans for putting up a $1.6 billion integrated steel mill in Mindanao. Significant new investments are being made across the board in a number of industries, especially mining, technology, energy, tourism, business process outsourcing and infrastructure, are also creating significant investment opportunities for both domestic and international investors alike. The Philippines is ranked among the most attractive off-shoring destinations in the world because of cost competitiveness and more importantly our country’s highly trainable, English-proficient, IT-enabled quality manpower. Our outsourcing sector has the potential to grow 40 percent per year from 2007 until 2010, which would put it on track to double its global market share in three years. This rate of growth also means revenues from the outsourcing sector would grow four-fold from the current level of $1.3 billion, and employment would triple to 900,000 jobs. The Government and private sector work together to develop talent to support the rising demand for quality workers in outsourcing and expand outsourcing capabilities to new locations across the country beyond the centers of Manila and Cebu to tap larger talent pools. Some of the joint initiatives include training, funding for education, and creating awareness of career opportunities to attract more graduates to pursue jobs in the outsourcing sector. The Government and the private sector also work together to reassess current tertiary and secondary education curricula to respond to the emerging needs of the market. To develop next wave cities, the Government is developing IT hubs in Clark, Dumaguete and Iloilo to encourage greater levels of outsourcing investment in these locations. In recent years, the outsourcing sector has expanded beyond call centers and IT to include a range of professional and business processes including accounting, human resources, financial analysis, design engineering, animation, medical services, legal services, insurance processes, banking processes, map making, publishing, content creation, and research. We are certainly a leader in the outsourcing space, but we cannot underestimate the contribution of other high growth sectors to our economy: manufacturing, technology, mining, energy, tourism and infrastructure. Our strongest competitive advantage – our people – is also opening doors for us in medical tourism. The Philippines is recognized internationally for the uniquely Filipino brand of hospitality, care and compassion that makes us a competitive player in this sector. In fact, recently, the European Chamber of Commerce and Industry together with the American, Japanese and Korean chambers of commerce have endorsed our strengths in this area by forming a coalition to promote the Philippines as a healthcare destination for foreigners. Mining is a key driver of our economy and an important sector that is bringing in significant levels of investment, creating jobs for the people and spurring exports. The world’s biggest players from Australia, America, China and Japan have already been flocking to our country to invest and to conduct exploration. Last year, investments grew more than the last three years combined. Mining will grow into a US$10 billion industry by 2010. Our economy is booming, but like so many places in rich and poor nations alike, we must fight to close the gap in income inequality. There is no justification in this time and place in history that government policies should be tilted to maintaining the status quo that ensures the domination of the many by the few. And while I am fighting for social justice, I am fighting even harder for economic justice, for a strong economy is the best weapon for the liberation of the poor and oppressed. We are now focused on further raising our competitiveness to sustain our momentum. For the first time in decades, less of our revenue is being used to service debt and more resources are being directed towards investment in human and physical infrastructure including education, healthcare and training as well as new bridges, roads and ports. Hopefully this will attract more investment, including Swiss investment. We take pride in the discipline of our Administration to focus on the economy and our overall economic health. Our economy is performing at an all-time high in every aspect. We are in a stronger position than ever to instill permanent economic change in our country and to work together to ensure we achieve long-term prosperity for many generations to come. There is no better time for investors to take advantage of the many opportunities created by our strengthening economy. |
|
|
| WEF cites Asean as new actor in Asia's drive for regional peace, stability |
|
DAVOS, Switzerland (via PLDT) - The World Economic Forum (WEF) has cited the
Association of Southeast Asian Nations (Asean) as a new actor in the
promotion of peace and stability in the region. An update on the Asean by the WEF secretariat said the regional grouping’s commitment to sign a charter would move Asean beyond economic cooperation into the realm of regional stability and peace. "A new actor in Asia is the revamped Asean, committed to signing a Charter that will move the group beyond economic cooperation to become a regional force to promote peace and stability," the WEF secretariat said. President Gloria Macapagal-Arroyo, Singapore Prime Minister Lee Hsien Loong and Malaysian Prime Minister Abdullah Badawi will talk about Asean at a session and Asean reception here Friday. The President was largely responsible in pushing for the Asean Charter when the Philippines chaired the 12th Asean Leaders Summit in Cebu in January 2007. During the Cebu summit, the10-nation regional grouping agreed to draft an Asean Charter, which was formally signed by the Asean leaders at the 13th Asean Summit in Singapore last year. The signing of the landmark document strengthened the regional grouping’s alliance as a cohesive bloc committed under a binding legal, institutional framework. To further promote peace and stability in the region, the President has consistently expressed her support for a more democratic Myanmar, a stand that was echoed by US Secretary of State Condoleezza Rice at the WEF’s opening here Wednesday. The Myanmar issue would likely be a major point of discussion during the ASEAN sessions of the WEF on Friday. |
|
|
| Cabinet Secretary Saludo twits CSC Chair David on appointments issue |
|
Cabinet Secretary Ricardo Saludo twitted today outgoing Civil Service
Commission (CSC) Chair Karina David on her allegations that a number of
President Gloria Macapagal-Arroyo’s appointees are unqualified. In a statement, Saludo said: “The economy’s surge and diminishing poverty and hunger are ample evidence that the government team is performing well on the whole.” “The few who falter are replaced, as the President has recently done. Performance, not paper credentials, is the ultimate qualification that matters to our people…” said Saludo. The Cabinet Secretary added that “questions about legal qualifications are best addressed through due process, not through sweeping generalizations in luncheon speeches.” Saludo was referring to David’s recent speech reportedly attributing the “bloated bureaucracy” to President Arroyo’s alleged unqualified appointees. “As for ex-soldiers and police in government, our people elected four of them to the Senate. Why should generals not serve in the Executive branch as well, with their proven discipline and leadership experience?” Saludo asked. David’s diatribe against the President was dubbed a “disservice” by Press Secretary and Presidential Spokesman Ignacio R. Bunye. In his statement yesterday (Jan. 23), Bunye said David’s “sweeping generalizations in a luncheon speech do a disservice to the over one million civil servants, both career and appointed, who work diligently each and every day to serve the people of the Philippines.” “Be that as it may,” Bunye stressed, “all presidential appointees must perform. If they don’t, they have to go, whatever their credentials may be.” Meanwhile, in his Malacanang Press Corps briefing yesterday, Executive Secretary Eduardo Ermita said, “We must go by the principle that the President, as chief executive, is empowered to choose the people who can help her in governance.” After all, stressed Ermita, “it has been proven that things are moving…” Also, it is the President who is held accountable for everything that happens in her administration even as the Administrative Code allows her to choose her appointees, most of whom are co-terminous with the appointing authority, said Ermita. The Executive Secretary, who is a former Armed Forces of the Philippines (AFP) vice chief of staff, pointed out that the President’s appointees are “very qualified – 13 former congressmen, one former senator, and one vice president.” As for the qualifications of retired generals, of which he is one, Ermita said they have “managerial capability – hindi matatawaran ang kanilang kapasidad…” David’s criticism was “a motherhood statement,” he said, stressing that the President must be given “leeway” in appointing the people whom she trusts and, being her appointees, people who are “madaling maalis.” The review of the bureaucracy is “an ongoing thing,” added Ermita who belied reports that there are some 53 presidential advisers and 43 presidential assistants. “That’s not true!” Ermita said, adding there are only seven presidential advisers and 15-20 presidential assistants who are “co-terminous with their bosses.” |
|
|
| Big tax cuts a step backward for RP -- Saludo |
|
Malacanang said today that big tax cuts as proposed by certain sectors would
be a step backward for the country and derail the growth of the economy. In a statement, Cabinet Secretary Ricardo Saludo stressed that the proposal would undermine the success formula that has snatched the economy from zero growth to its present turnaround. “Let us avoid measures that could undermine our success formula, including big tax cuts. Let us show the world that we will not allow political noise and agitation derail our drive for growth,” Saludo said. He pointed out that the country’s economic growth could be sustained amid external threats if the fiscal and economic policies that have contributed to the country’s economic turnaround are maintained. Notable among these threats to the local economy are the steep oil prices in the world market and the feared US recession. For the first time in 20 years, the country’s economy posted a 7.1 percent growth in the first three quarters of 2007. Saludo said that aggressive government spending on public infrastructure, coupled with the accelerated delivery of social services and the approval of the proposed P1.223-trillion 2008 national budget, would sustain pro-poor and economy-growth programs. “Our economic surge remains secure if we maintain the policies and undertakings that have lifted output, confidence and investment in our country—fiscal strength, massive infrastructure and development programs for our people, and a stable, secure society,” he said. Saludo was reacting to the statements of Senators Manuel A. Roxas II and Francis Escudero that the best way to cushion the impact of high oil prices on the people was to waive the 12 percent value added tax (VAT) on oil and oil products for six months. President Gloria Macapagal-Arroyo has declined to waive the VAT on oil as this would have a negative effect on the country’s fiscal programs and deny much-needed funding for vital socio-economic programs. Instead, she has ordered a 1 percent cut on oil tariffs, or from 3 percent to 2 percent. Earlier, Finance Secretary Margarito Teves said that exempting oil products from VAT would affect investor confidence, especially with credit rating agencies. He pointed out that investors and economic analysts are carefully monitoring the government's overall reform package, and any backsliding in the implementation of the tax programs would be harmful to the country. The International Monetary Fund (IMF) has already warned against scrapping the VAT on oil, saying it would be more advantageous to the Philippines to maintain, rather than lift the VAT. "Our analysis has shown that the poor are better protected by increasing social spending than reducing energy taxes," IMF's resident representative to the Philippines Reza Baqir said. "The reason for this is because the benefits of social spending are better targeted to the poor," he said. "On the other hand, cutting gasoline taxes would only benefit the higher income groups because in the low-income bracket, transportation expenses account only for a small portion of their spending which is dominated by food," he added. The suspension of the VAT on oil was proposed by Roxas and Escudero, who argued that such a move would be more effective in cushioning the impact of high oil prices compared to slashing the tariffs on imported petroleum. Baqir, on the other hand, said that generating the all-important revenues from the VAT on oil and then spending them on social and health services would be a better way of helping the poor where intervention have the biggest multiplier effect. The EVAT, the “bitter pill” that the President urged the people to take, has been generating much-needed revenues for the government’s socio-economic programs and projects. Saludo called on the people to “show the world that we will not allow political noise and agitation to derail our drive for growth.” |
|
|
| RP aviation to regain category 1 in 3 months -- Mendoza |
|
Malacanang expressed confidence today that the United States Federal
Aviation Authority (FAA) would reverse its decision downgrading the
Philippine aviation standards from Category 1 to Category 2 and the country
will regain its Category 1 status within three months. Transportation and Communications Secretary Leandro Mendoza, who is also acting Air Transportation Office (ATO) chief, said that the government is doing everything possible to comply with the international air safety standards in the interest of the riding public. He said that with the support of Congress and the commitment of President Gloria Macapagal-Arroyo, he is confident that the ATO would overcome” the problems that led to the FAA’s downgrading of the country’s aviation safety rating.” Mendoza was interviewed by reporters covering Malacanang after the taping of “The Cabinet Speaks” hosted by Cabinet Secretary Ricardo Saludo and his co-host Ace Romero of the Business World at the New Executive Building in the Palace complex. Mendoza said that he has assured two FAA representatives who met with him this afternoon that the government would be able to meet the three-month deadline to upgrade ATO’s facilities. He added that the FAA representatives also offered to help the government by providing advisories and tips on how it would be able to comply with the airport and airlines safety and security requirements of the US aviation agency. Right now, the ATO is seeking fiscal autonomy in order to staunch the continuing exodus of highly trained personnel to foreign carriers due to the low salary. The monthly salary of highly trained ATO personnel ranges from P18,000 to P25,000, way below the $5,000 monthly of their counterparts abroad. Before his meeting with the FAA representatives, Mendoza admitted that he also met with Bacolod City Rep. Monico Puentevella, chairman of the House Committee on Transportation and Communications, who assured him that the new Civil Aviation Authority of the Philippines (CAAP) bill has been scheduled for deliberation in the bicameral committee when Congress resumes session later this month. Mendoza said he is “very confident” that the CAAP bill would be signed into law by the President as soon as it reaches Malacanang, hopefully next month. Earlier, the President ordered Budget Secretary Rolando Andaya to fast track the release of P110 million to finance the upgrading of the ATO. The President has also given Mendoza three months to improve the country’s aviation facilities, services and operations. Mendoza said part of the P110 million will be utilized to finance the training of qualified transportation inspectors such as check pilot inspectors in Singapore and Japan. Also to undergo training are other ATO personnel in-charge of determining the airworthiness of all aircraft, both domestic and international flying in and out of Philippine airports. This effort, Mendoza added, is aimed at improving the country’s air transportation regulatory functions and upgrading ATO’s technical guidance system by hiring highly qualified technical personnel. |
|
|
| Statement of Secretary Ignacio R. Bunye |
|
May I just request Atty. Lambino to keep me out of this premature political
nonsense. My focus is to communicate the President's programs that will sustain our economic gains and move our country forward and upward. |
|
|
