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| 25 JANUARY 2008 | . | |
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| 25 JANUARY 2008 | . | |
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| World's top business leaders cite PGMA for excellent handling of RP economy |
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DAVOS, Switzerland (via PLDT) -- President Gloria Macapagal-Arroyo's
handling of the Philippine economy, which is experiencing its fastest growth
in more than a decade, is nothing short of phenomenal. This was the consensus of the 11 members of her International Board of Advisors (IBA) who met with the President in Zurich before she proceeded to Davos to attend the annual meeting of the World Economic Forum (WEF). Presidential Adviser for International Competitiveness Roberto Romulo, who attended the Zurich meeting on Wednesday, said the President decided way back in 2001 to create the IBA composed of chief executive officers (CEOs) and noted businessmen from top international corporations to seek their views and make comments on her economic programs. During the meeting, Romulo said the advisors, including Zuellig Pharmaceuticals Chairman Dr. Stephen Zuellig and other key international players from various industries, freely expressed their views on the President's handling of the country’s economy. According to Romulo, the advisors congratulated the President for her sound economic programs and praised the Bangko Sentral ng Pilipinas (BSP) for its excellent handling of the country's monetary policies. Romulo said the advisors expressed concern over a possible revenue shortfall but Finance Secretary Margarito Teves, who also attended the meeting, explained that any shortfall could be offset by earnings from the government's ongoing privatization program. The advisors also said that the Philippines is well on its way towards achieving a strong economy but expressed concern if the President's programs can be sustained even beyond her term in 2010. Romulo said the President expressed confidence that her programs, particularly in infrastructure and education sector, are strongly in place and the Philippines would continue to reap the benefits of these investments regardless of who succeeds her in 2010. |
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| PGMA renews call for advancement of Doha Round of Trade Talks |
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DAVOS, Switzerland (via PLDT)—President Gloria Macapagal-Arroyo renewed her
call for the advancement of the World Trade Organization (WTO) Doha Round of
Talks in a meeting here on Thursday with Ms. Susan Schwab, the US Permanent
Trade Representative to the WTO. Philippine Trade and Industry Secretary Peter Favila said that in the meeting held at the Casa Bracke in the ski resort of Davos, the US sought the Philippines' commitment "to have an ambitious outcome of the Doha Talks." "The President did say that she is not changing her position. In fact, she has called upon her colleagues in the ASEAN (Association of Southeast Asian Nations) to get this moving forward," Favila said. The Philippines is included in the G-33, a grouping of developing countries that coordinate trade and economic issues pertinent to negotiations within the WTO. During the Philippines' chairmanship of the 12th ASEAN Summit in Cebu in 2006, the ASEAN leaders approved the President's proposal for a stand-alone statement that reinforces the region's commitment to the Doha Round of Talks calling for a fair and liberal global trade and offers a tangible means to reduce poverty globally, particularly in the ASEAN region. However, negotiations continue to hang in the air as industrialized countries refused to cut down on their subsidies, particularly to their farming sectors. Developing countries have been asking the developed nations to remove their agricultural subsidies to level the playing field that have resulted in trade distortions and made their products artificially cheaper. The President has a scheduled meeting here with WTO Director General Pascal Lamy to push for the conclusion of an agreement to reduce these subsidies to provide increased market access to developing countries such as the Philippines. |
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| PGMA invites Intel Corp. to consider RP as site for remote diagnostics medical projects |
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DAVOS, Switzerland (via PLDT)--President Gloria Macapagal-Arroyo has invited
computer electronics giant Intel Corporation to consider the Philippines as
a site for the company's revolutionary remote diagnostics medical project. The President made the invitation after learning of the company's experimental remote diagnostics project in strife-torn Lebanon during the courtesy call on her of Intel Chairman Craig Barret on Thursday at the Congress Center here. Barret said the Intel project utilizes sophisticated computers linked through the Internet that can enable doctors in urban centers to remotely conduct diagnosis of patients in rural areas. Barret said Intel is also an active partner of the government and private sector in the Philippines in conducting training programs for teachers and the information and communications technology (ICT) sector. Currently, the Philippines is using a similar scheme in the government's distance learning program that enables students in rural areas to interact with teachers electronically. The President told Barret that if Intel can undertake the remote diagnostics program in Lebanon, they can easily do it in the Philippines because of the country's existing ICT infrastructure. "We will look into that," Barret said. |
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| Statement of Cabinet Secretary Ricardo L. Saludo: Beware of false headlines |
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As it did recently with Education Secretary Jesli Lapus, the Philippine
Daily Inquirer has wrongly attributed a statement to Cabinet Secretary
Ricardo Saludo. Contrary to a headline story today, Secretary Saludo never
‘accused media of conducting trial by publicity vs PNP’ or ‘slammed
journalists for finding fault in the PNP’s move to justify a tough stance on
media reporting on coups and other crisis situations.’ Here is Secretary Saludo’s statement in full: ‘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 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.’ There is no mention anywhere in the statement, of journalists’ misgivings over the PNP’s position on the coverage of crisis events. The only reference to ‘trial by publicity’ is regarding ‘charges of unlawful acts during the uprising,’ not media criticism of the PNP. In fact, Secretary Saludo has urged that any suspected offenses, like the alleged help given to an escaped rebel soldier, be subjected to due process, as media has also advocated. Similar misreporting was done to Secretary Lapus in a January 3 frontpage story wrongly titled ‘DepEd chief: RP education has sunk to its lowest level.’ Secretary Lapus wrote the Inquirer to deny the false statement and point out that he actually told its reporter about education gains under President Gloria Arroyo. The newspaper did not print the denial. In the interest of truth and fairness, readers should be wary of occasional but prominent distortions in Inquirer headlines. For questions and clarifications, please call or text 0918-8030827. |
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| PGMA, Swiss Confederation president hold 30-minute bilateral meeting |
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DAVOS, Switzerland (via PLDT) - They were both born on the same date – April
5 - and the uncanny coincidence gave an added warmth and sense of
camaraderie between President Gloria Macapagal-Arroyo and her Swiss host,
President Pascal Couchepin during their bilateral meeting. The two Presidents met for 30 minutes before noon Thursday (Swiss time) at the sidelines of the 2008 World Economic Forum (WEF). Before they got down to the substantive topics of their meeting at the Morosani Posthotel here, President Couchepin pointed out to President Arroyo that they were both born April 5. The President replied that she was born on a “Sabado de Gloria,” the Saturday following the Maundy Thursday and Good Friday, the holiest two days of the Catholics’ Holy Week calendar. To this, the Swiss leader responded that he, too, was named after a saint who was born April 5. Press Secretary Ignacio R. Bunye said the President was surprised at President Couchepin's wide range of knowledge about the reform policies and economic growth of the Philippines, as well as its relations with other countries. He said that during the 30-minute meeting between the two leaders, President Couchepin congratulated President Arroyo on the Philippines' excellent economic performance, including the enactment of the expanded Valued Added Tax (VAT) Law. While describing the 12 percent expanded VAT as “very modest,” the Swiss Confederation president said the passage of the tax law was a good strategy to improve the government's fiscal position, Bunye said. He said President Couchepin expressed satisfaction with the growth of trade between Switzerland and the Philippines that reached $2 billion last year. For her part, President Arroyo expressed her appreciation for the role of leading Swiss investors in the development of the Philippines of leading Swiss companies including Zuellig Pharmaceuticals, UBS, Nestle, and Credit Suisse. Bunye said the President also made a strong pitch for the country's booming outsourcing industry, which has emerged as big contributor to economic growth. |
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| Saludo raps daily on 'false headlines' |
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Cabinet Secretary Ricardo Saludo cautioned the public today to be “wary of
occasional but prominent distortions” in the headlines of the Philippine
Daily Inquirer. In a statement, Saludo slammed the PDI for distorting his statement Thursday on media coverage of conflict situations such as the Manila Peninsula Hotel siege by renegade soldiers. In a frontpage report headlined: “Now Malacanang accuses media of conducting trial by publicity vs PNP,” the PDI reported that Malacanang had “turned the tables on the media and accused journalists of conducting a ‘trial by publicity’ against the Philippine National Police.” “Cabinet Secretary Ricardo L. Saludo slammed journalists for finding fault in the PNP’s move to justify a tough stand on media reporting on coups and other crisis situations,” the PDI report said. In his statement today, Saludo retorted that as it “did recently with Education Secretary Jesli Lapus,” the PDI has wrongly attributed a statement to him. Saludo pointed out that contrary to the PDI headline story, he “never ‘accused media of conducting trial by publicity vs PNP’ or ‘slammed journalists for finding fault in the PNP’s move to justify a tough stance on media reporting on coups and other crisis situations’.” He asserted that nowhere in his Thursday statement was there any mention “of journalists’ misgivings over the PNP’s position on the coverage of crisis events. The only reference to ‘trial by publicity’ is regarding ‘charges of unlawful acts during the uprising,’ not media criticism of the PNP.” Saludo added that, in fact, he had “urged that any suspected offenses, like the alleged help given to an escaped rebel soldier, be subjected to due process, as media have also advocated.” He said that like him, Lapus was also a victim of misreporting in the Jan. 3 frontpage story of the PDI which was “wrongly titled ’DepEd chief: RP education has sunk to its lowest level.’” Lapus wrote the PDI to deny the false report and set the record straight but the newspaper did not print the denial. “In the interest of truth and fairness, readers should be wary of occasional but prominent distortions in Inquirer headlines,” Saludo said. Here is Secretary Saludo’s Thursday statement in full: “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 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.” |
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| PGMA confident RP will ride out storm affecting global economy |
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DAVOS, Switzerland (via PLDT) – President Gloria Macapagal-Arroyo expressed
optimism today that owing to its strong macroeconomic fundamentals, the
Philippines would be able to ride out the storm now affecting the global
economy. The good news is that because of the implementation of wide-ranging fiscal and economic reforms, the Philippines has achieved a level of maturity and stability that will enable it to withstand external shocks, the President said in a live interview here by Reuters senior reporter Steve Clark Friday morning. She added that the economic and fiscal reforms instituted by her administration have made the Philippines more resilient to withstand external shocks at any point in its history. The interview was carried on the official website of the 2008 World Economic Forum (WEF) here. In response to Clark’s question on the Philippines' growth projection in the face of unfolding negative world developments such as the looming US recession and Asian markets tumble this week, the President said: "Well, let us put it this way. Because we are very interconnected in the world today, every nation should be able to manage another, the ups and downs of another nation's bubbles.” She added: “But having said that, the good news is that the Philippines seems to have, because of our reforms, achieved a level of maturity and stability, that can help us to withstand, that makes us more resilient than at any other point in time in our history to be able to withstand the external shock.” The President told Clark the country's strong economic fundamentals have been acknowledged and praised by her International Board of Advisors composed of the top financial Chief Executive Officers (CEOs) from around the world during their meeting wednesday. She said that on top of her objective in attending the global economic forum here is to showcase the Philippines as one of the best value destinations for investments. The Davos gathering is also an opportunity for the world and financial leaders to collaborate with one another especially at this time of uncertainties in the world economy. With major events in the world happening this week, all the more the Davos gathering of world political and business leaders is viewed with great importance, the President said. |
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| Highlights of the courtesy call of Citigroup Chair Bill Rhodes on President Gloria Macapagal-Arroyo at Casa Bracke Klosters in Davos, Switzerland, January 24, 2008, as released by Press Secretary Ignacio R. Bunye |
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Mr. Rhodes raised the following points: Congratulated the President and her team for the great economy, and noted that everything has gone better than projected. Renewed commitment to work with the Philippines in, among others, the power sector and in privatization efforts. On the US economy: One aspect of the current problem in the US is that very lowly capitalized insurance companies have issued a significant amount of guarantees. This has undermined the people’s confidence in the economy. In the past days, the US markets went up in anticipation of a bail out- but this has not been organized yet. The market remains nervous, so there is much volatility. The credit markets are not yet back where they need to be, so there is uncertainty and turmoil. One of the things we should be looking at is the possible global repercussion from what is happening in the US economy. The real question is not whether it is recession or just slow growth. The markets have to work through all these; all these plus the slowing US market will have ripple effect. Even China is talking about tightening, but there is an anomaly here because China is worried about overheating, but at the same time it knows there will be repercussions from the slowdown of the global economy. Now they are talking about moving the RMB closer to the dollar more rapidly. We are looking at a challenging situation over the next 6 months not just for the US economy but worldwide. Everyone is very positive about the Philippines; the peso is at an all time high, and the President and her economic team have turned everything around. However, we all need to be cautious in the next six months. Systemic risks, price stability, crisis prevention = all of these come into focus. In reply, BSP Governor Tetangco pointed out that: There are mitigating factors in the case of the Philippines. We have a comfortable level of external liquidity and our reserves are high. On the real sector side, domestic demand will absorb some of the impact of the downturn in the US and other major economies. This is not to say we will not be affected; we will be, but we will have some buffer. Remittances continue to be healthy. A lot will depend on depth and duration of slowdown. If it will take only a couple of quarters, impact will not be too much. However, there will be repercussions if it takes longer and if the slowdown is deeper. Mr. Rhodes: The Philippines is going into the crisis in very good shape. I think that the slowdown will only be for a couple of quarters, maximum 3 quarters. Unlike in the 1990s when you have isolated incidents affecting then S and Ls, the difference now is credit markets are more volatile and disturbed adjustment of rates is all that Central Bank is doing. Everything I see about RP indicates that you are in best position to go into the crisis. BSP: There are varying reactions to what the Fed is doing. They are trying a combination of fiscal stimulus and easing of monetary policy. Some sectors remain skeptical. Mr. Rhodes: For now, the credit crunch is in real estate, eventually, it may spill over to credit cards. We don’t like to see a situation where we have financial institutions pulling back because they are worried about asset quality. Need to create confidence so people don’t pull back from lending side and people don’t stop spending on consumer side. Let’s all hope it’s a shallow adjustment and these measures kick in. People like to take these measures because it’s election year. PGMA: We realize the uncertainty of the situation, and the need to play our cards right. But knowing the danger and doing the right thing are two different things. We are happy to be coming in from a strong position, but we still need to play our cards right. Mr. Rhodes: John Negroponte sends his regards. We are still working on the WTO. Protectionism in the US growing, and this is not good. I will be happy to continue in helping the Philippines in the IBA. DOF: Citigroup helped refine approach to private public partnership. We would like to work further with them on a project. It is not quite there yet, but we are still polishing. Mr. Rhodes: I will be glad to help. Thank you for making time for me. |
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| Moody's investors upgrades Philippines credit outlook from stable to positive |
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DAVOS, Switzerland (via PLDT)- President Gloria Macapagal-Arroyo could not
do but smile when Reuters senior reporter Steve Clark told her that
international ratings agency Moody's Investors has upgraded the country's
credit outlook because of her sound economic fundamentals. This was the President's simple reaction as no one knows but probably an economist that her sound and sometime stringent economic reform measures would eventually pay dividends in the end. "There has been a ratings upgrade from Moody's today and there is the good news for you," Clark said. The President was among the world personalities interviewed live by Clark at 7:30 a.m. today (Swiss time) over the official television channel of the ongoing 2008 World Economic Forum here. In newspapers today, Moody's senior vice president Tom Byrne announced that it raised the country's credit rating outlook from stable to positive because of the Philippines' stabilized public sector finances and lesser dependence on foreign money. "Improved macroeconomic conditions and fiscal performance are mutually reinforcing each other. Low inflation has anchored inflationary expectations, despite upward pressure from high international food and oil prices," Byrne said in a statement. The Philippines’ strong macroeconomic fundamentals resulted to a stronger peso and low domestic interest rates that have lowered debt service payments, allowing the government to invest in much needed infrastructure projects, Byrne said. "The government has not masked inflation by subsidizing retail petroleum prices, thereby avoiding contingent fiscal liabilities and adding pressure on the balance of payments by encouraging higher oil imports," said Byrne. The ratings agency also warned some of Filipino senators against their move to suspend the value-added tax on oil products as a stop-gap measure to cushion the impact of the high prices of oil in the world market. Byrne said such a move would deprive the government from raising the much-needed revenues from the implementation of tax reforms. |
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| Military supports me -- PGMA |
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DAVOS, Switzerland (via PLDT) - President Gloria Macapagal-Arroyo is not
deterred by rumors of destabilization as the Armed Forces of the Philippines
(AFP) fully supports her and the Filipinos are tired of instability. The President told this to Reuters senior reporter Steve Clark during the live interview Friday morning at the Davos Library aired at the official television program of the 2008 World Economic Forum (WEF). Clark told the President of talks of destabilization while she is in Davos. "Well, they (armed forces) have been supporting me fully in all of the challenges to peace and order that we have been having, and also the people do not want any more instability," the President said. The President said the Philippines achieved a 7.1 percent growth rate in the last three quarters of 2007, and the poverty and unemployment rate is down due to strong macroeconomic fundamentals in place. She said the Philippines is winning its war against rebels through an amnesty program and bringing development to the grassroots to clear them from being breeding grounds of insurgency. "The people want peace and order, and they want progress and they want jobs, they don't want political instability," the President said. |
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| PGMA: RP on way to balancing its budget ahead of schedule |
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DAVOS, Switzerland (via PLDT)— President Gloria Macapagal-Arroyo told the
world today that the Philippines is well on its way to balancing its budget
way ahead of schedule. The President said this during the live interview by Reuters senior reporter Steve Clark at the Davos Library aired Friday morning (Swiss time) at the official television program of the 2008 World Economic Forum here. Because of the country's strong macroeconomic fundamentals, the President said the Philippines achieved a 7.1 percent growth average in the last three quarters of 2007 "way beyond the projections of the international financial institutions." Under the Medium-Term Philippine Development Plan (MTPDP), the President said balancing the country's budget does not come until 2010. However, due to the administration’s implementation of vital tax reforms, the President said her economic managers moved the target to 2008. She said that in November of last year, the country recorded a 7.1 percent average growth rate, coupled with a surplus of P11.7 billion. "So when the figures of the last month will come out, well, my economic managers might surprise even themselves, that we might have had a balanced budget in 2007. But in any case, the market wasn't expecting that, but so if it comes, then it’s going to be a windfall," the President said. |
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