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| PGMA's Speech during the Forum Organized by the International Friendship Exchange Council (FEC) Japan-ASEAN Economic and Cultural Committee, and the Asian International Exchange system (AIS) |
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Fuji Room, Imperial Hotel |
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19 June 2009 |
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Thank you very much. Mr. Inamori, Mr. Hanioka, officials of the International Friendship Exchange Council, Secretary Romulo, other officials of the Philippine government who are here today, members of the business delegation, ladies and gentlemen. I thank the Chairman and President of the International Friendship Exchange Council for inviting me to address you, the members of the FEC. I thank the various Ambassadors who have also joined us here today. The FEC are friends of the Philippines. We share many goals. As we are all aware, the world is experiencing unprecedented economic challenges. Without doubt, this is a global economic crisis that has affected all nations, rich and poor, developed and underdeveloped, North and South. This is also a crisis that has taught us all many lessons that will serve us well as we work together to restructure the global economic system. The most important thing we have learned is that our economies are all closely interconnected. We sink or swim as one global economy. Only months ago, the condition of that global economy was quite grim. Today, while we are by no means out of the woods, there are rays of hope. I heard this from leaders of the business community that I spoke with yesterday, and I heard this with officials of the Japanese government as I have been hearing from American economists and other experts from around the world. Japan deserves special credit for its role in working to return the world to sustainable economic growth. Its innovative, generous and bold leadership in the G-7, G-20, ASEAN Plus Three and East Asian Summit, and its early pledge to provide the IMF 100 billion dollars for lending to countries facing financial liquidity not only provided much-needed support at a very critical time, it also encouraged other large economies to make similar pledges. Japan’s commitment to global and regional development has also been instrumental in tripling the capital of the Asian Development Bank and in increasing to a 120 billion dollars the level of funds for the Chiang Mai Initiative Multilateralization, which is an ASEAN solution to an ASEAN challenge. Moreover, Prime Minister Aso’s “Growth Initiative towards Doubling the Size of Asia’s Economy” comes at a very crucial time for developing Asia. We in the Philippines will do our part to meet its objectives because we recognize that it can contribute to enhancing the economic prosperity of East Asia and lead to greater economic stability throughout the world. If there is any silver lining in this crisis, it is that the world will emerge from this challenge with a structure that is more aligned to global realities than it was before the global downturn. But we must not look only at the economic situation of the world, we must also look at the security of our region. And in doing this, we cannot overlook the important issue of the Democratic People’s Republic of Korea and its nuclear weapons’ program. The Philippines stands with our trusted friend and ally, Japan, against the dangerous experimentations with nuclear weapons by North Korea. Japan has stood with the Philippines, with ASEAN, and with the region. Now we must stand with Japan for the success of critical talks about the future of the Korean peninsula. In this regard, we support the decisions of the United Nations Security Council. And while we all want North Korea to become a responsible member of the world of nations, the Six-Party Talks is the appropriate forum to make this happen. The Philippines is committed to work for a world free of nuclear weapons. In this regard, we continue to work as a member of the Board of Governors of the International Atomic Energy Agency to ensure an efficient and effective Agency for the promotion of the peaceful uses of nuclear energy and for the prevention of nuclear weapons proliferation. In cooperation with the IAEA, the Philippines is in the process of renewing our energy options including the use of nuclear power. We seek the cooperation of Japan for the training of our technical people and for Japan’s counsel and advice in this very sensitive area. As part of our drive for energy independence, the Philippines is also engaged in the development of renewable energy sources like geothermal, solar and wind which are climate friendly. We also have projects for alternative transport fuels in biodiesel and bioethanol. Large tracks of land have been identified for the development of alternative fuels. They offer tremendous opportunities for foreign investment. And just this morning, before I came to this hall for this talk with you, I received the Chairman of Toyota who said that, indeed, Toyota intends to invest in this alternative energy in the Philippines. Forty-four percent of Philippine energy requirements are supplied from renewable resources. We intend to increase the share of this renewable energy in power generation. In this regard, we are seeking the cooperation of Japan. And later this shall be part of our message when we have our conversation with JBIC. As an island developing country, the Philippines is seriously affected by climate change. And that is why renewable and climate friendly energy is important to us. According to a recent report of the ADB, Southeast Asia could face falling rice yields, a lack of water and higher costs to our economy due to the impact of climate change. But while Southeast Asia is especially vulnerable to climate change, for the whole world, the challenge of climate change and the devastating permanent impact it will have on economies around the world will still be with us long after the global economy returns to health. That is why we must all take immediate and collective action to do everything possible to halt the practices that cause climate change. Action on this front is urgent. We count on Japan to use its considerable influence to convince other major economies to commit to medium-term targets and the 80 percent 2050 target for emission cuts. The Philippines would like to see a meaningful medium-term target and a goal of an 80 percent reduction of greenhouse gas emissions by 2050 in line with the upper limit announced by former Prime Minister Fukuda. Without diminishing the urgency of climate change as an important challenge for our nation, the Philippine economy remains, of course, our priority. In 2007, Philippine GNP grew by 8.0 percent, the highest in many years. Last year, when two-thirds of the world went into recession, our GNP grew at 6.1 percent. For the first quarter of this year, GNP growth was 4.4 percent. We remain optimistic, though cautiously optimistic, about our prospects for growth in 2009. We are heartened by the fact that we are still so far a growth story in the midst of this global challenge. We certainly don’t take this for granted. We will remain vigilant. We will continue to take whatever action is required to preserve our hard-earned economic progress. The Philippines has resisted the worst effects of the global downturn so far because we resisted the temptation, we broke the temptation to continue on our nation’s previous path of debt, deficit and slow growth. That cycle was broken a few years ago when we pushed through fundamental reforms that changed the way we do business. Today, the Philippines is one of the best investment choices in Asia, with our strong workforce, our world-class information and communications technology infrastructure, and our renewed commitment to economic reform, fiscal responsibility and global engagement. Since 2004, Philippine national government debt has improved from more than 78 percent of GDP to about 56 percent at the end of 2008. Our ability to reduce debt has been due in large part to our success in raising revenue. This can be attributed in turn in large part to the increase of our Value Added Tax in 2006. Tax reforms, including tax administration, as well as an aggressive privatization program, have provided the much-needed space for fiscal expansion during the current economic downturn. The Philippines is finally unlocking its full potential and value for the benefit of its people but also for the benefit of its strategic partners. And no partner is more crucial to our success than Japan. I would love nothing more than for our two nations to accelerate our economic relations and build on the Japan Philippines Economic Partnership Agreement or JPEPA that was ratified recently by the Senate, by our Philippine Senate. We are proud that our Philippine Senate -- represented here in the hall by Senator Angara and in our trip by Senator Miriam Santiago as well who chaired the Committee on International Relations that took care of the ratification -- we are proud that our Senate, very independent by tradition, joined hands with our Administration and forged ahead with a new strategic economic relationship with Japan that will help define the contours of our economic relations for generations. And that is the reason why we are here again here in Japan for the seventh time in my Administration including a State Visit in 2002 because this time our focus is on making sure that we have a smooth implementation of the Japan-Philippines EPA. Last May, Filipino nurses and caregivers, who came to Japan under the new Japan-Philippines EPA framework, started language training in Tokyo, Osaka, Nagoya and Hiroshima. This, I hope is the beginning of a mutually beneficial cooperation between our two countries in the important healthcare sector. I am confident that these, our first batch of Filipino nurses and caregivers and other Filipino healthcare workers who are very much in demand in the whole world, will help satisfy the fast-growing manpower requirements of Japan’s aging population. Our countries are also cooperating closely in the maritime sector. The Philippines accounts for approximately 70 per cent or 30,000 seafarers of the sailors manning Japanese vessels. It is no wonder that whenever I have a meeting with the Philippine community here in Japan we always hold it in the headquarters of the Japan Seamen’s Union because they are such a dominant presence in that union. Japan shipowners have established schools and training facilities in the Philippines. This is an important and creative approach to economic cooperation. It could be applied in other sectors of Japanese industry, in particular, the health sector now that the Japan-Philippines EPA has opened the doors for health workers to come to Japan. As a major supplier of the world’s seafarers, we greatly appreciate Japan’s decision to send vessels from the Maritime Self-Defense Force to the Indian Ocean to protect Japanese ships and foreign ships from the scourge of piracy. Piracy is an international crime that requires close cooperation if it is ever to be stopped. The active participation of Japan in combating piracy in the Indian Ocean is an example of the many roles that Japan have assumed internationally. This action and other actions clearly demonstrate that Japan should be a permanent member of the U.N. Security Council. And as Asia’s largest economy and largest source of Official Development Assistance, Japan is also in a position to work towards or to lead the work towards an Economic Community of Asia, to include South Asia, Southeast Asia, East Asia, the Middle East, Central Asia, Russia and Oceania, to maximize growth, trade, investment and financial stability in the Asian region. Because if we look at the world around us, Asia is the best situated to weather the global crisis and come out the strongest, compared with other regions. Japan is in a position to convene the regional groups such as the East Asian Summit, the South Asian Association for Regional Cooperation or SARC, the Gulf Cooperation Council, Russia and the Commonwealth of Independent States, and the Southwest Pacific Dialogue to discuss an Economic Community of Asia as a bulwark against economic crisis. Ladies and gentlemen, FEC members, members of the diplomatic community, members of the Philippine delegation, we have all learned from the Japanese experience. We would do well to remember that in good times and bad, Japan has been there for all of us these last 50 years. In every endeavor, Japan has helped move mountains, be it in areas of regional peace and security, global economic stability or environmental stewardship. On the part of the Philippines, we will remain on our path of reform and renewal, of fiscal prudence, targeted investments, and the fight against poverty. We want to succeed someday as Japan has succeeded. We need the continued investment, development assistance, and political leadership of Japan now more than ever. With deep appreciation for all that Japan has done and is doing for our people and the world, I express our heartfelt thanks from a grateful nation for the historic support from the people of Japan. We may all be challenged by the current state of the global economy, but I dare say our best days are ahead of us maybe because precisely of the lessons we have learned from this global crisis. Asia, the best place to survive the crisis and come out the strongest for it has tasted the bitter sting of economic setback, but we Asians are fighters. Far from setback, we are poised for a comeback. And we are glad that the Japan-Philippines EPA will be there to help us in this Asian comeback. I thank you. |
