PIA Dispatch - Tuesday, December 2, 2008

PGMA says economic reforms saved RP from crisis

HONG KONG (via PLDT) -- President Gloria Macapagal-Arroyo said today the ''painful economic reforms'' she carried out during the early part of her administration have worked well for the Philippines to weather the present economic slowdown.

''It is very important for us to make sure that the global crisis will not become a crisis in our country but in order to do that, we need to have resources and if we have not made hard choices several years ago to raise revenues, but since we did, we have addressed the challenge,'' the President told the Clinton Global Initiative (CGI) Asia Meeting at the Grand Hyatt Hotel here.

The President added that with the revenue reforms that tremendously increased revenue collection, the government was able to provide a steady supply of affordable rice, and subsidized rice for the poorest of the poor, as well as keep transportation cost low as the financial crisis began.

''So the biggest challenge is not what steps to take but the resources to be able to carry on those steps,'' she said.

She added that the Arroyo administration would not have been able to mitigate the impact of the present financial crisis and high food prices ''if we did not have the revenues.

''Asked by former US President William Clinton if this is applicable in other countries, the President said, ''certainly, the steps are, but the challenge would be were they able to do their homework beforehand to be able to have the strong fiscal position to do all these.''


PGMA in Hong Kong to participate in the "Clinton Global Initiative" scheduled today

The President left for Hong Kong last night on board a commercial flight of the Philippine Airlines to grace the annual Clinton Global Initiative (CGI) scheduled today (Tuesday, Dec. 2).

While waiting for her flight, the President met with United States legislators led by North Carolina Rep. David Price at the Presidential Lounge of the Centennial Terminal 2 of the Ninoy Aquino International Airport where they briefly discussed RP-US relations.
The Chief Executive will return to Manila early evening on Wednesday (Dec. 3).

She was accompanied to HK by First Gentleman Jose Miguel “Mike” Arroyo and three Cabinet members—Press Secretary Jesus Dureza, Trade and Industry Secretary Peter Favila and Foreign Affairs Secretary Alberto Romulo.

Dressed in an all-black business suit, the President was seen off by Executive Secretary Eduardo Ermita, Justice Secretary Raul Gonzales, National Security Adviser Norberto Gonzales and Peace Process Adviser Hermogenes Esperon.

Dureza, in a pre-departure interview, said the President had been invited by former United States President Bill Clinton to be part of the Clinton Global Initiative (CGI) Asia meetings, the first CGI activity to be held outside the US.

“It’s going to tackle issues like education, climate change and energy. The President, I am sure, will be an active participant there,” Dureza said.

He added that the President will be the second speaker after Clinton in the program today where she will share her insights on issues facing Asia at present.

The Chief Executive had also attended last year’s Clinton Initiative in New York which coincided with her attendance at the 62nd United Nations General Assembly (UNGA).

She discussed the government’s inter-faith initiatives via the Bishop-Ulama Conference (BUC) as part of the continuing effort to bring together Christians and Muslims and end the decades-old conflict in Mindanao.

The Clinton Initiative, a non-government organization (NGO), gathers together world leaders coming from the government, civil society and the business sector to discuss the hottest global issues and challenges of the day and present their action plans.


PGMA pushes for retention of carbon credit mechanism

HONG KONG (via PLDT) -- President Gloria Macapagal-Arroyo strongly pushed today for the retention of the carbon credit mechanism of the Kyoto Protocol.

The first term of commitment of the Kyoto Protocol ends in 2012 and that UN member-countries are looking at other means of financing the greenhouse gas emissions program.

The President made the call during the opening plenary session of the first Clinton Global Initiative Asia Meeting being held at the Grand Hyatt Hong Kong, where she was one of participants.

''Our needs are very small compared to China and the US but we find the carbon credit mechanism very useful and I hope that it can be extended beyond the period of the Kyoto Protocol,'' the President said.

The President said that Toyota Motors Corp. in the Philippines has been using carbon credits to reforest northern Philippines' mountain ranges.

She added that carbon credits are also being used in the Philippines to transform methane from garbage dump to power.

''I think the carbon credits are very useful...it is very useful for the Philippines,'' she stressed, adding that she had attended several fora that made 'fun '' of carbon credits.

Carbon credits are a key component of national and international emissions trading schemes that have been implemented to mitigate global warming.

They provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading.

The concept of carbon credits came into existence as a result of increasing awareness of the need for controlling emissions.

The mechanism was formalized in the Kyoto Protocol, an international environmental treaty intended to achieve stabilization of greenhouse gas concentrations in the atmosphere.

The end of the first commitment period of the Kyoto Protocol is in 2012 and by then a new international framework would have been negotiated.


PGMA bats for compliance by industrialized nations on level of greenhouse gas emissions

HONG KONG -- President Gloria Macapagal-Arroyo batted strongly today for compliance by industrialized countries of the Kyoto Protocol binding various countries to reduce their emissions of greenhouse gases and the retention of the carbon credit mechanism of the agreement.

The President made the call during the opening plenary session of the Clinton Global Initiative (CGI) at the Grand Hyatt Hong Kong. This is the first time that the CGI forum is being held outside the United States.

The President -- who is attending the forum upon the special invitation of former US President Bill Clinton, her college classmate at Georgetown University -- said the Philippines’ ''needs are very small compared to China and the US but we find the carbon credit mechanism very useful and I hope that it can be extended beyond the period of the Kyoto Protocol.''

A legally binding agreement, the Kyoto Protocol calls on industrialized economies to reduce their collective emissions of greenhouse gases – carbon dioxide, methane, nitrous oxide, sulfur hexafluoride HFCs and PFCs – by 5.2 percent compared to 1990 levels.

This represents a 29-percent reduction in the greenhouse gases compared to the emission levels that could be expected by 2010 without the Kyoto agreement.

The first term of commitment of the Kyoto Protocol ends in 2012. UN member countries are looking at other means of financing the greenhouse gas emissions program.

The President said that Toyota Motors Corp. in the Philippines has been using carbon credits to reforest northern Philippines' mountain ranges.

She added that carbon credits are also being used in the Philippines to transform methane gas from garbage dumps to electric power.

''I think the carbon credits are very useful... It is very useful for the Philippines,” she stressed, adding that she had attended several fora that made “fun'' of carbon credits.

Carbon credits are a key component of national and international emissions trading schemes that have been implemented to mitigate global warming.

They provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading.

The concept of carbon credits came into existence as a result of the increasing awareness of the need for controlling emissions.

The mechanism was formalized in the Kyoto Protocol, an international environmental treaty intended to achieve stabilization of greenhouse gas concentrations in the atmosphere.

The first commitment period of the Kyoto Protocol ends in 2012, and by then a new international framework would have been negotiated.


PGMA looks forward to working with NY Senator Clinton as US Sec of State

HONG KONG (via PLDT) -- President Gloria Macapagal-Arroyo congratulated today New York Sen. Hillary Rodham Clinton for her nomination as the next US Secretary of State.

The President sent her congratulatory message to Mrs. Clinton through the latter’s husband, former US President William Clinton, during the opening of the plenary session here of the Clinton Global Foundation Asia Meeting.

''I'm looking forward to working together for the US-RP relations to become stronger,'' the President said to the delight of her former Georgetown University classmate.

US-elect President Barrack Obama nominated on Monday (US time) the New York senator as Secretary of State.

For his part, the former US President said of President Arroyo ''I'm especially proud of her for her extraordinary leadership. She was my college classmate but she looks 20 years younger than I am.''

The President arrived at the Hong Kong International Airport at 8:30 last night to attend the First Clinton Global Initiative Asia Meeting at the Grand Hyatt Hong Kong Hotel.

The President was among the five participants of the plenary session opening which discussed the topic, “Balancing Growth, Sustainability of Equity,'' where she shared the Philippines’ efforts in lessening the negative impact on the poor of the global economic meltdown and high food prices.


PGMA orders NDCC to mobilize rescue and relief operations in Camarines Norte

MANILA, Dec. 2 (PNA) – President Gloria Macapagal-Arroyo has ordered the National Disaster Coordinating Council (NDCC) to immediately mobilize rescue and relief operations in Camarines Norte province in the Bicol region where hundreds of residents were affected by flash floods.

Earlier reports said two persons died and 11 others were missing as a result of the floods that affected 114 barangays in nine municipalities of the province.

“The President has instructed the NDCC to make sure that those affected families, inside and outside the evacuation centers, be provided with relief support,” Deputy Presidential Spokesman Anthony T. Golez said in a press briefing at Malacanang.

According to Golez, 3,058 families or 12,590 persons are presently staying in the evacuation centers.

Golez said some bridges were damaged by the flood waters, resulting in the isolation of some barangays. He added that the Department of Public Works and Highways (DPWH) has already started repairing the damaged structures.

He also said that the Department of Social Welfare and Development (DSWD) has begun distributing relief packs to the affected families.

The Department of Health (DOH), on the other hand, has mobilized medical surveillance teams to prevent any disease outbreaks, Golez said.

He added that to ensure the supply of potable water for the residents, water filtration equipment has already been sent to the province as requested by the provincial government.

Report said that the floods also damaged the facilities of the local water utility supplying potable water to key areas in the province. (PNA)


Petron and Shell set to slash LPG prices by P4 per kilo

MANILA, Dec. 2 (PNA) — A P44 reduction in the cost of an 11-kilogram cylinder of liquefied petroleum gas (LPG) will be implemented by two major oil companies on Wednesday.

This was announced by Pilipinas Shell Petroleum Corp. and Petron Corp. during a meeting called by Energy Secretary Angelo Reyes at the Department of Energy (DoE) Tuesday.

Roberto Kanapi, spokesman for Shell, said they are reducing the prices of their LPG by P4 per kilogram effective 12:01 a.m. of Dec. 3 as contract prices in the world market continue to move down.

Price monitoring conducted by the DoE indicated that prices of an 11-kg LPG cylinder range between P440 and P506. With the new price cut, it is projected to drop to nearly P400.

Virginia Ruivivar, public affairs manager of Petron, on the other hand, said that while they wanted to reflect the reduction in world market prices of the LPG, they could not implement a big one-time rollback because of their inventory.

“We expect to reflect (the falling contract prices) on a gradual basis. We cannot implement it one time because of our inventory of one and a half to two months,” Ruivivar explained.

She said that for the month of December, LPG prices should be rolled back by at least P7 per kilogram.

Secretary Reyes said the downturn in the international prices is indicative of more “reductions in the prices of LPG.”

The LPG Marketers Association (LPGMA) rolled back the prices of their LPG products by P1 per kilogram or P11 for an 11-kg tank Tuesday morning.

Meanwhile, the oil companies refused to confirm any rollback on the prices of their gasoline and diesel products this month.

Kanapi said it would still depend on the movements in the market.

“Assuming all things are the same [prices are maintained at the same level today] we could consider a rollback [for gasoline and diesel],” Kanapi said.

According to Kanapi, Shell in terms of income during the first nine months of 2008 posted a 10 percent drop in its profit and a reduction of 6 percent in terms of volume sales.

Joey Cruz, vice president for retail network operations of Flying V, said that using the daily MOPS [Mean of Platts of Singapore] as a benchmark, it is possible that another rollback will be implemented soon.

“If daily MOPS for December is at US$ 64 per barrel, the SRP [suggested retail price] for January would be around P33.30, so we're looking at another P1 per liter rollback,” Cruz said.

But Fernando Martinez, president of Eastern Petroleum and chairman of the Independent Philippine Petroleum Companies Association (IPPCA), said that they have completed their rollback. (PNA)


Citigroup Philippines to grow workforce despite global job cuts

American financial giant Citigroup may be slashing more than 50,000 jobs from its global workforce, but in the Philippines, it is planning to grow its workforce by as much as 20 per cent.
The unit in the Philippines says it expects to create about 1,000 new jobs next year.

Though next year will be a tougher year for global financial institutions, Citibank Philippines says that it will still hire more people as Citigroup's global restructuring would require the expansion of regional business process outsourcing (BPO) hubs.

As one of the first financial institutions to put up a BPO centre in the country, Citibank Philippines plans to build more processing and call centres and expand its financial reporting operations next year.

"As we restructure and reposition, countries like the Philippines will ultimately be net beneficiaries as well because during times like these, we will also look at positioning some of the jobs and locations like the Philippines, which we have been doing for a number of years," said Citigroup's country officer in the Philippines, Sanjiv Vohra.

With the local BPO industry growing at a rate of 40 per cent annually, Citibank Philippines is confident that the country will continue to be a preferred location for regional hubs.

"There might be some slowdown in the BPO industry, but I feel that it will probably be short-term. The kind of jobs we are moving in here are definitely in areas that are high value-added, that is to take advantage of the skills and talents we see in the Filipinos, and which something the dynamic and young population of the Philippines will be excited about," said Vohra.

Citibank Philippines currently employs more than 4,000 people.


IT SMEs from Japan mull expansion in the Philippines

Small and medium IT Japanese enterprises are keen on expanding their operations in the country particularly in the areas of animation, engineering designs, medical transmission, software development and other back office operations to save on cost as the world’s second largest economy plunges into recession.

Trade and Industry Undersecretary Elmer C. Hernandez, also Board of Investments managing head, said this after a successful investment mission in Japan sponsored by the ASEAN Japan Center.

"Japan is looking at the prospect in the Philippines for IT offshoring and outsourcing," Hernandez said even as he noted of the strong interests generated during the mission both in Tokyo and Sapporo in Hokkaido, Japan’s second largest island and the largest, northernmost of its 47 prefectural-level subdivisions.

According to Hernandez, ASEAN Japan Center head Ambassador Nobutoshi Akao cited the country’s very promising sector because of its comparative advantage in having a qualified manpower pool.

"Japan has just slipped into economic recession and the only way to save on cost is through offshoring some of its operations," he said.

He said the Philippines has the best offer as an alternative site among Asian countries by the developed countries but whose economies are undergoing deep financial trouble and economic dislocation.

Hernandez said that most of the participants during the seminars were SMEs.

"We have a good turnout of participants and we have a good number of leads although most of them are still in the exploratory stage," Hernandez said.

Some Japanese firms already operating in the country and members of the Philippine Software Industry have provided testimonials on their successful business here during the seminar.

In Sapporo, which is an hour and a half by plane from Tokyo, most of the IT firms are catering to the Japanese market and as such any offshoring would require people, who are knowledgeable of the Nihongo language.

But Hernandez told the roomful of participants including Masafuri Yamamoto, director-general of the Hokkaido Bureau of Economy Trade and Industry, that the Philippines is building up the Japanese language capability of some IT people.

The Philippines is also eyeing at serving the non-Japanese clients since some of the Sapporo IT firms are starting to expand outside of Japan. Initially, they are tapping China.

During the IT mission, Hernandez spoke with the lead principals of Mitsubishi Corp, Mitsui & Co. Ltd., Marubeni Corp., Mizuho Bank and Trans Cosmos Inc., a client of Mizuho with an ongoing operation in RP and asked to expand, SOJITZ IT and Itochu Corp.

During the meeting, Hernandez said he discussed prospective businesses outside of IT. Marubeni had acquired most of the Mirant energy assets in the country while Mitsui is also into logistics and IT.

Hernandez also discussed with Mitsubishi officials the motor vehicle development in the country. (Bernie Cahiles-Magkilat)