PIA Dispatch - Tuesday, August 4, 2009

'Painful' economic reforms shield RP from global economic downturn – PGMA

MANILA, Aug. 4 - President Gloria Macapagal-Arroyo attributed the Philippines’ economic resiliency in the wake of the global economic crisis to the “painful” economic reforms instituted by her Administration several years ago.

In an interview with CNBC anchor and business reporter Maria Bartiromo aired in New York Monday afternoon (4:45 a.m. Tuesday Manila time), President Arroyo said these economic reforms are now “paying off.”

“We are fortunate that we are one of few countries up to the first part of 2009 that have not contracted and we attribute this to the fact that we made very painful economic reforms years ago and now these reforms are paying off,” the President said.

Among the notable economic reforms implemented by President Arroyo include the expanded value added tax (EVAT) law which increased the amount of VAT from 10 to 12 percent. It has been heralded as the single biggest act that led to the surge in revenue collection.

The national attrition law which pushed revenue collecting agencies to work double time to reach revenue targets or face consequences and the tobacco excise tax according to her, have also greatly contributed to the record breaking tax collections recorded by the government.

The EVAT and the National Attrition Law were both enacted by President Arroyo in 2005 while the tobacco excise tax under Republic Act No. 7171 was implemented in 1992.

The President said that aside from shielding the country from the adverse effects of the global meltdown, the economic reforms have also propped up the image of the Philippines as a very viable investment site.

“These (economic reforms) have created a firewall that eases the pressures of the global economic crisis and also, they position us well to have a good environment for more investments and business in the Philippines,” the President said.

She noted, however, that the Philippine economy has had it share of downtime too.

“Of course there are challenges. While our growth has been positive, it’s been slower,” the President said.

To address this, the President pointed out that the country has embarked on a “spending spree” on vital human and physical infrastructures.

“So, we are working tirelessly to secure our food, fuel and rice needs. We are investing in energy and rice self-sufficiency. We’re investing in education. We are investing in human and physical infrastructure and this will also position and accelerate growth when the world economy rebounds,” the President said.


PGMA to focus on 3Es for remainder of her term

MANILA, Aug. 4 - From now until her term ends next year, President Gloria Macapagal-Arroyo will be focusing investments on the three Es -- education, economy and environment.

In an interview with noted business television anchor Maria Bartiromo over her Closing Bell program on CNBC aired Tuesday morning, President Arroyo said there are so many things that still need to be done despite the short period left on her term.

“We still have the global economic crisis upon us. So, we still have to address that and not be complacent. A lot of challenges still lie ahead, a lot of work still has to be done within the next year,” she added.

She then went on to describe the two Philippines: one is where the economy is working again and moving forward. The other is where the political system is still broken.

“And so we have done many fundamental reforms in the economy and its time to begin to do fundamental reforms in the political system,” the President said.

“Where that will go, what the specific reforms will be, that would really be up to those who are in charge of doing such amendments.”

Asked on the issue of her stepping down when her term ends, the President said: “I’ve said it over and over again. My term ends in 2010 but until the last day I’m going to continue to work hard for our economy, our environment and our education.


PGMA to offer mass for Cory in Malacanang tomorrow

MANILA, August 4—President Gloria Macapagal-Arroyo will offer a mass on Wednesday morning at the Heroes Hall in Malacanang for former President Corazon Aquino.

President Arroyo is expected to arrive in Manila before dawn on Wednesday.

The mass will be held at 8 a.m. at the Heroes Hall of Malacanang. All employees are expected to attend the mass for Cory.

Mrs. Arroyo while in New York issued Proclamation 1851 declaring August 5, burial day of Cory, as a special non-working holiday.

She also issued Proclamation 1850 declaring a 10-day of national mourning for the death of the former president.

President Arroyo also called Cory a “national treasure” being an icon of democracy.


Cory’s death should signal reconciliation of Filipinos

MANILA, Aug. 4 - Malacanang said today the death of former President Corazon Aquino, who was responsible for bringing democracy back to the country, should signal reconciliation of all Filipinos.

Cabinet Secretary Silvestre Bello said in a press briefing that President Aquino’s death should put closure to divisiveness among Filipinos following the visit of Congressman Ferdinand “Bongbong” Marcos and sister Imee Marcos to the wake of the late leader at the Manila Cathedral today.

Aquino led the nation in a peaceful People Power revolution in 1986 that toppled the dictatorship of Ferdinand Marcos.

Bello dismissed insinuations that President Arroyo’s plan to visit the wake of the late leader may make some people uncomfortable, saying Filipinos are not that ill-mannered.

“I believe in Filipinos as civilized human beings. They would not resort to extreme expression especially if you are talking about the funeral of a national treasure. I don’t think anyone would dare spoil the occasion,” Bello added.

President Arroyo is set to arrive in Manila on Wednesday morning to pay the last respects to the former leader.


RP an attractive haven for investors, PGMA says on CNBC

NEW YORK, Aug. 4 – Even on US television, President Gloria Macapagal-Arroyo was busy promoting the Philippines as an attractive haven for investors.

In an interview with top business news anchor Maria Bartiromo over CNBC’s Closing Bell program, the President said the country has a lot to offer for investors who want to put their money in the Philippines.

“The Philippines has a very good regulatory regime for foreign investment and lots of success stories of those who have invested,” she said over the program aired 5 p.m. Monday (5 a.m. Tuesday Manila time).

The President cited in particular the business process oursourcing (BPO) industry which now provides high-paying jobs to some 600,000 Filipinos, a hundred-fold increase from the 6,000 in 2001.

“We have major electronics corporation like Texas Instruments who just recently put up $ 1.5 billion plant aside from their old chip-making plant in the country,” she said. “And their plants in the Philippines, they are not feeling the world economic crisis.”

The President pointed out that the country also has a world-class, easily trainable and English-speaking workforce.

The government, she noted, is investing heavily in education and research and development to develop a pool of well-educated and highly skilled workforce.

“And that becomes a major force of attraction for investors,” she added.

The President said she implemented the bitter pill of financial and other economic reforms years ago to protect the country from the global economic slowdown.

She noted the Philippines also has a prudent and permissive banking system that could well position the country when the world economy rebounds.