Communities RP Government Updates Philippine Consulate General - NEWS RELEASE - 28 January 2008
| Philippine Consulate General - NEWS RELEASE - 28 January 2008 |
Philippine Consulate General
Los Angeles, California
NEWS RELEASE
28 January 2008
1. Statement of the President before the Filipino Community in Dubai on 27 January 2008
OFWs
"We honor and value the contribution of our overseas workers for your sacrifice and dedication to your work, your family and your nation."
"Salamat sa inyong Tulong sa ating pag-unlad sa pamamagitan ng mga remittances ninyo patungong Pilipinas. Remittances from UAE exceeded half a billion dollars last year."
"I am also proud to say that our ambitious economic reforms are helping to break the offshore cycle and supporting an economy that is growing at its fastest pace in 20 years. The economic gains we are
seeing now are paving the way to the day when Filipinos no longer need to go abroad for a job and the day when overseas work is just another career option and not the only choice you have to earn a living."
"We are hereby officially launching this hedging facility today.
1. A pre-agreed exchange rate if the peso further strengthens, but not if the peso weakens; or
2. Paying an "insurance fee" to DBP at approximately 1.14% of the amount to be remitted to cover the OFW at a pre-agreed exchange rate if the peso strengthens, and pay the prevailing market exchange rate if the peso weakens."
"We are also launching the OFW bond during this visit to Dubai. We are also working with the Central Bank and the Philippine Stock Exchange to promote financial literacy among OFWs and your families so that you can turn your hard-earned money into working capital and become Overseas Filipino Investors."
Economy
"Our economy has reached a new level of maturity and stability with some of the strongest macroeconomic fundamentals in a generation. Seven years ago, no one thought we could get more revenues, cut down on tax cheats and smugglers, and move the stock market. No one thought we could bring down our budget deficit, lower our national debt and raise employment, but we have. Kaya tuloy lumakas ang piso."
"We recognize that the strong peso has reduced the buying power of the remittances sent home by many of our Overseas Filipino Workers, our OFWs. On the other hand, the peso has helped offset the impact of the rising cost of oil, so transportation fares have not gone up despite of the high price of oil in the world market. It has reduced the amount of national debt we have to pay and therefore it has reduced
interest rates, which helps your families buy homes or start businesses. It has contributed to lowering the price of imports and in the process, kept inflation down."
"But to cushion the impact on the strength of the peso, our administration is addressing the weak dollar very aggressively."
"Moody's upgraded the Philippines to positive this week for very good reasons: we have the fastest growth in a generation - 7% for 2007, faster than our neighbors in the region."
"Our aim is to make our reforms permanent so that our nation is on a sustained path of economic growth and stability. We have turned the economy and for the first time in a generation, we are investing
heavily in human and physical infrastructure. Roads, bridges and airports as well as new schools and scholarships are the central building blocks that are necessary for the long term prospects of our
citizens."
Social Services
"We are also launching the program to franchise Tindahang Pinoy so that OFWs can be encouraged to have an additional source of income. Tindahang Pinoy consolidates the products from the participants of our One Town One Product program such as Cornick or Boy Bawang from the North, Broas or some other delicacies or native products from the South, Sarangani Bay sardines from Mindanao, dried mangoes from Cebu."
2. PGMA launches DBP program that protects OFWs vs strong peso
DUBAI (via PLDT) - President Gloria Macapagal-Arroyo launched here on Sunday the hedging program of the Development Bank of the Philippines (DBP) that would protect the earnings of overseas Filipino workers (OFWs) against fluctuations in foreign exchange rates, particularly by the strong peso.
Speaking before the Filipino community here, the President said she met earlier with top employers in the United Arab Emirates (UAE) who have expressed their willingness to help the OFWs relative to the
DBP's hedging program.
"In order to mitigate the effects of the stronger peso on your take-home pay, we met with the big Emirati employers to solicit their support for the efforts of our government to ease the effects of the
strong peso or weak dollar on your inward remittances to your families, and the employers affirmed their support," the President said.
The President said the DBP's hedging program for OFWs consists of the voluntary foreign exchange insurance with insurance fees that protect OFWs from a strengthened peso.
In the outright forward, OFWs may sell dollars and buy pesos at a pre-agreed rate that does not require insurance fees.
The President said the DBP has been going around the Filipino communities and would be giving more information about this facility through the Overseas Workers Welfare Administration (OWWA).
3. PGMA launches LandBank OFW cash card in Dubai
DUBAI (via PLDT) - Overseas Filipino workers (OFWs) can now send to their relatives back home their remittances faster, cheaper, and more secure with the use of a LandBank OFW Cash Card.
President Gloria Macapagal-Arroyo launched the OFW Cash Card during her meeting with the Filipino community at the Madinat Jumeirah Hotel here on Sunday.
The President said the card is among the package of government programs in recognition of the contributions and sacrifices of OFWs who bear the brunt of the strong peso.
Finance Secretary and LandBank Chairman Margarito Teves said the launching of the OFW Cash Card is in response to the President's Administrative Order No. 215 directing the Land Bank of the
Philippines to provide cheaper remittance services for OFWs.
The LandBank OFW Cash Card is an electronic debit card linked to a Smart cellular phone that would enable telephone companies or banks abroad to offer mobile phone-based remittances.
An overseas worker can load cash to the OFW Cash Card linked to a Smart cellphone and send it electronically to pay bills or transfer funds directly to the OFW Cash Cards of their relatives in the
Philippines.
When done, the OFW sender then instantaneously receives on his/her cellphone a confirmation that the money has been transferred.
4. PGMA bares new program to ease impact of strong peso on OFWs
DUBAI (via PLDT) - President Gloria Macapagal-Arroyo has announced the launching next month of a new deposit instrument designed to ease the impact of fluctuations in currency rates on the remittances of overseas Filipino workers (OFWs).
The Long-Term Negotiable Certificates of Deposit scheme was presented by the Land Bank of the Philippines as investment opportunities for OFWs during the President's meeting with the Filipino community at the Madinat Jumeirah Hotel here Sunday.
Land Bank president Gilda Pico said the flotation of the instrument in P20,000 denomination has a five-and-a-half- and 10-year maturity periods, and will yield an annual interest of 6.25 and 6.88 percent,
respectively.
An OFW who invests P20,000 in the new deposit instrument will earn an interest of P8,056 in five-and-a-half years and P12,760 in 10 years, Pico said.
She said the launch of the deposit instrument this March will be carried out through a public offering.
In her speech during her meeting with the Filipino community here, the President said the instrument would greatly help OFWs, who bear the brunt of the strong peso, and help them not only as OFWs but overseas Filipino investors (OFIs) as well.
The forthcoming launch of the new deposit instrument is only one of the steps being taken by the President to soften the blow on the OFWs' income arising from the strong peso.
She has also launched the Tindahang Pinoy under the One Town, One Product program of the Department of Trade and Industry (DTI) that would enable OFWs earn extra income as franchise holders in the sale of quality Filipino products in their host countries.
The Tindahang Pinoy is also part of the Overseas Workers Welfare Administration's (OWWA) entrepreneurship training for OFWs wanting to engage in business when they return to the Philippines.
5. Statement of the President during a Roundtable Meeting with UBS Investors
Dubai, United Arab Emirates
January 27, 2008
Economy
"An aggressive policy is essential to the lifeblood of the Philippines. That's why I'm meeting with you, investors, who have expressed an interest in the Philippines."
"Dubai is in the Middle East and the Philippines is in Southeast Asia but we are both in Asia. Further economic integration among Asian nations is imperative if we as a region are to take advantage of the
expanding global trade and economic opportunities."
"Our economy has reached a new level of maturity and stability with some of the strongest macroeconomic fundamentals in a generation. We've aimed high, we've met the challenge. Seven years ago, no one thought we could get more revenues or crackdown on tax cheats or
strengthen the peso, or move the stock market. No one thought we could bring our budget close to balance, lower our national debt, and raise employment but we have done all these things that no one thought we could do."
"So today, the Philippines is on path to permanent growth and stability. Investors are pouring in, the Peso is strong, and our stock market has reached its historic heights. We've created seven
million jobs in seven years. I'm glad that Dubai and the Gulf are taking notice and I hope that you consider the Philippines as one of the best values in Asia for your investment."
"The good news for the Philippines is that we have matured and diversified our markets so much that in the last few years, we've developed so many markets and we developed our own domestic economy.
We are confident that our economic turnaround is permanent and our economy is resilient to major economic destructions."
International Relations
"The global economic situation is clearly a prime issue for us. Because the more interconnected we become, the more we need to manage to the ups and downs of another nation's bubbles. This is certainly
true should the U.S. economy experience more volatility."
"Clearly, there will be some impact of the U.S. uncertainty on all countries because of the global significance of the U.S. economy.
However, while a slowdown on the U.S. economy could dampen the global emerging markets, we are confident that the Philippines will withstand the adverse effects of such a development largely because of our economic fundamentals."
6. Another Dubai World subsidiary sets investment in Zambales
DUBAI - JAFZA International, a wholly owned subsidiary of Dubai World, will develop a 42-hectare property in the Subic Bay Metropolitan Authority (SBMA) area in Zambales.
President Gloria Macapagal-Arroyo was presented a copy of the Memorandum of Understanding (MOU) between JAFZA and SBMA during her tour of the JAFZA offices here.
During her visit to JAFZA's headquarters, the President was briefed about the business profile of Dubai World by vice chair Jamal Majid Bin Thaniah. Out of the company's 30,000 workforce, 6,000 are Filipinos.
Press Secretary Ignacio R. Bunye said the MOU will further enhance trade, investments and other commercial relations of the Philippines with other countries through the JAFZA network.
JAFZA Executive Vice President Noel W. Gulliver said the MOU calls for a comprehensive planning and development of the 42-hectare property inside the SBMA free zone. He added that JAFZA will help inject new ideas and provide impetus to fuel expansion in the Subic free trade zone.
"We will also help out in the marketing and promote to locators the setting up of shops inside the SBMA," said Gulliver.
Bunye said the MOU was signed Sunday in time for the President's tour of the Jebel Ali Free Trade Zone.
7. PGMA invites Dubai businessmen to invest in RP
DUBAI -- President Gloria Macapagal-Arroyo invited Sunday (Manila time) international businessmen to invest in the Philippines which, she said, offers one of the best values in Asia for domestic and
foreign investments.
The President made the pitch during the joint luncheon forum hosted by the Dubai Chamber of Commerce and the Philippine Business delegation headed by Ayala Corporation, International Container Terminal Services Inc. and Aboitiz Power Corporation.
"Today, I am interested in getting your investment to the Philippines. The Philippines offers one of the best values for investment in Asia," she said.
The President told the Dubai businessmen of the IT-proficient, English-speaking Filipino workforce and the Philippines' strategic location as an ideal hub for international business operations in
Southeast Asia.
She said the Philippines offers numerous opportunities for products such as garments, furniture, fashion accessories, and dried fruit products, among others.
The President said that marketing the Philippines comes more important at this time of current global economic uncertainties.
8. Citigroup chair congratulates PGMA on RP's great economy
January 26, 2008
The chairman of Citigroup and Citibank has renewed his company's commitment to work with the Philippines in the power sector and in privatization efforts as he congratulated President Gloria
Macapagal-Arroyo and her economic team for the Philippines' "great economy."
This was revealed by Press Secretary Ignacio R. Bunye who furnished media with the highlights of the courtesy call of Citigroup/Citibank Chair William "Bill" Rhodes on President Arroyo at the Casa Bracke
Klosters in Davos, Switzerland last Jan. 24.
Rhodes "congratulated the President and her team for the great economy, and noted that everything has gone better than projected," said Bunye.
The Citigroup chair, who "renewed commitment to work with the Philippines in, among others, the power sector and in privatization efforts", also promised the President, thus: "I will be happy to continue in helping the Philippines in the IBA (International Board of Advisors)."
Bunye said Rhodes discussed the ongoing slowdown in the US economy and is bullish on the Philippines' chances of weathering the impact.
"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," enthused Rhodes who, however, warned about
repercussions of what is happening in the United States.
"We all need to be cautious in the next six months. Systemic risks, price stability, crisis prevention -- all of these come into focus," advised Rhodes who pointed out that "the (US) 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, plus the slowing US market will have a ripple effect," surmised Rhodes.
For her part, President Arroyo, an economist, told the Citibank chair that she is well aware of the situation: "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," the President stressed.
Still on the US economic slowdown, Rhodes said, "we are looking at a challenging situation over the next six months, not just for the US economy but worldwide."
But Rhodes enthused, thus: "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 three quarters. Everything I see about RP indicates that you are in best position to go into the crisis," Rhodes further enthused.
President Arroyo created the International Board of Advisors (IBA) in 2001 to seek their views on her economic programs. It is composed of chief executive officers and noted businessmen from top international corporations.
9. Moody's investors upgrades Philippines credit outlook from stable to positive
January 25, 2008
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.
10. Military supports me - PGMA
January 25, 2008
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.
11. Statement of the President: On the demise of former Indonesian President
"The Government of the Philippines and the Filipino people join me in offering deepest sympathies and condolences on the demise of former President Soeharto.
Generations of Filipinos and Southeast Asians will remember President Soeharto for his key role in regional community building and for his contributions to consolidating the gains of peacebuilding in Mindanao.
As one of the founding fathers of ASEAN, President Soeharto was among those who had the pioneering vision of establishing a more peaceful, progressive and prosperous Southeast Asian region founded on respect and understanding.
With ASEAN taking the historic step towards full integration with the signing of the ASEAN Charter, we remember those - especially former President Soeharto - who have helped lay the firm ground upon which ASEAN is built on.
The Philippines is likewise grateful to former President Soeharto for his commitment to achieving just and lasting peace in Mindanao.
With the assistance of President Soeharto, stakeholders were drawn together to conclude the historic peace pact between the Government of the Philippines and the Moro National Liberation Front.
To this day, we are working to further deepen the roots of peace in the Southern Philippines as we continue to reap the benefits of peace-building's fruits.
For these enduring legacies, President Soeharto will never be forgotten."
12. President renews call on Myanmar to return to the path of democracy
January 26, 2008
DAVOS, Switzerland (via PLDT) -- President Gloria Macapagal-Arroyo said Friday Myanmar should return to the path of democracy by freeing freedom fighter Aung San Suu Kyi as part of its commitment when it signed the Association of Southeast Asian Nations (ASEAN) Charter in Singapore last year.
The President asserted this in her opening statement during the high-level plenary session of the 2008 World Economic Forum (WEF) tackling the role of ASEAN as an emerging Asian community.
In her four-minute speech, the President said that ASEAN is well aware of the Philippine position on the need for political reforms in Myanmar, stressing that the Philippine Senate would not ratify the
ASEAN Charter unless Myanmar returns to the path of democracy.
During the signing of the ASEAN Charter by the 10 leaders in Singapore last year, the President noted that by signing the Charter, Myanmar had committed itself to democratic reforms and should start by
releasing Aung San Suu Kyi.
"Not only are we committed to seeing political reforms in Myanmar. Our Senate will not ratify the ASEAN Charter, unless they see real political reforms take place in Myanmar. So we must work together to
make the tough choices to make ASEAN to reel and Aung San Suu Kyi free," the President said.
ASEAN is composed of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam
13. RP takes lead in efforts to protect Coral Triangle's marine diversity
DAVOS, Switzerland (via PLDT) - The Philippines is taking the lead in protecting the Coral Triangle, the world's richest source of marine biological diversity, from environmental destruction.
The Philippines, the eighth largest fish producer in the world, lies in the center of the Coral Triangle bordered by Indonesia, Malaysia, Papua New Guinea, Timor-Leste, and the Solomon islands.
During coffee with the Philippine media, the President said administration will host a forum to save the Coral Triangle during the Association of Southeast Asian Nations (Asean) Senior Official's Meeting (SOM) in May this year.
The Coral Triangle holds not only the richest source of marine biological diversity, but also directly sustains more than 120 million people living within the area, and supports the livelihood and food
security of millions worldwide.
Marine experts have warned that unsound practices such as over-fishing and illegal fishing methods, pollution, development and tourism-related activities, and the burgeoning seafood markets have placed the Coral Triangle in peril.
The President said the Coral Triangle is a tuna spawning ground that supplies the big demand of top consumer countries such as Japan, China, United States, European Union and Australia.
During the high-level plenary session of the World Economic Forum on the role of Asean in an emerging Asia in Davos, Switzerland, the President said the world must be more conscious in protecting the Coral Triangle because it is "the world's epicenter of marine life abundance."
Last November, the Philippines proposed the creation of a high-level council composed of leaders from the Southeast Asian nations and states bordered by the Coral Triangle to save it from further ecological degradation.
The first formal planning meeting of the Coral Triangle initiative was held in Bali last December.
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