President Gloria Macapagal-Arroyo today instructed the nine-member mission to Malaysia to look into the ground conditions of the thousands of Filipino repatriates who are currently being held in various holding centers in Sabah.

The President called the nine-member team led by former Tawi-Tawi Rep. Nur Jaafar to meeting this morning in Malacaņang shortly before she left for an inspection visit to the National Food Authority (NFA) site in Cabanatuan City.

In their meeting, the President tasked the Jaafar-led mission to submit recommendations on what further measures should be taken in order to ensure the safety and welfare of the Filipino repatriates.

Jaafar’s team is slated to leave at 3:20 p.m. today on board a Malaysian Airlines flight en route to Kota Kinabalu.

Aside from Jaafar, among those who attended the meeting were Executive Secretary Alberto Romulo, Social Welfare Secretary Corazon Juliano Soliman and the members of the Malaysia-bound mission namely Labor Undersecretary Lucy Lazo, DFA Undersecretary Arturo Brion, Health Undersecretary Mila Fernandez, Undersecretary Abraham Purugganan of the Office of the Presidential Adviser on Special Concerns, Department of Social Welfare and Development (DSWD) Director Farisya Taradji, Col. Francisco Gudane of the Department of National Defense (DND), Atty. Abdel Gani Papua of the Office of Muslim Affairs (OMA), and Rey Milan of the Office of Presidential Adviser on Regional Development.

The team was constituted upon orders of the President with specific mission to go to Kota Kinabalu, Sandakan, and, if necessary, to Tawau which is located in the southern portion of Sabah.

The President said another team from the Department of Foreign Affairs (DFA) has already been dispatched for the purpose of documenting the remaining Filipinos in Sabah.

In a briefing with reporters, Jaafar said the focus of the team in going to Malaysia is to find out the actual conditions of the Filipino repatriates being confined at the various holding centers in Sabah.

Jaafar said there are three holding centers in Karamunting near Kota Kinabalu, Sandakan and in Tawau.

"We will appeal to the authorities there to be lenient to allow us a breathing spell to do our diplomatic channeling to negotiate for a better procedure in transporting our Filipino citizens from that area who are due to be deported," Jaafar said.

If necessary, Jaafar said, they will recommend the establishment of at least three strategic departure areas back to the Philippines to handle Filipino deportees.

Jaafar said his team will also ask the Malaysian authorities in Sabah to allow Filipino social workers to have access to the holding centers and if possible, to negotiate for ample time to process those who intend to work in Sabah or Malaysia.

Meanwhile, Press Secretary Igancio Bunye stressed that the deportation of Filipinos from Malaysia and the Sabah claim are two separate issues that should not be discussed together.

"If we will claim Sabah based on the deportation issue, we might be doing so for the wrong reason. We might be acting out of emotion," Bunye said.

SAN ISIDRO, Nueva Ecija—President Gloria Macapagal-Arroyo today ordered the National Food Authority (NFA) to ensure that regular-milled rice at P16 per kilo will be readily available for the poor in the market.

In her remarks at the 106^th anniversary of the "Unang Sigaw ng Nueva Ecija," the President said that everyday she has been nagging NFA Administrator Anthony Abad to see to it that the P16 per kilo regular-milled rice can be bought by ordinary people in the market.

She said she was glad to find out that the regular-milled rice at P16 per kilo is available in the markets of Cabanatuan City and not just at the NFA warehouse where she visited.

"Para sa mga mahihirap, dapat parating my P16 na regular-milled rice (The P16 per kilo regular-milled rice should always be available to the poor)," the President said.

"Ang bigas ng mayayaman, problema na iyon ng mayayaman. Ang bigas ng mahihirap, lahat ng problema ng mahihirap, dapat problema ng pamahalaan (Rice for the rich is a problem of the rich, but rice for the poor, and all the problems of the poor, should be a problem of the state)," the President said.

The President said that Nueva Ecija is playing a key role in rice production and in agricultural modernization in general, adding that the province has the distinction of being the country’s rice granary.

She said that there should be no reason why cheap rice should not be available in Nueva Ecija.

SAN ISIDRO, Nueva Ecija—President Gloria Macapagal-Arroyo today appealed to the public to help the government in meeting the needs of the thousands of illegal Filipino workers and their families who were deported by Malaysia.

In her remarks at the 106^th anniversary of the "Unang Sigaw ng Nueva Ecija," the President said that the government alone could not possibly solve of the problem of these deportees, adding that what is happening is "a great tragedy."

"Bago ito lumala at magdulot ng malagim pang situwasyon, pagtulungan natin itong harapin at wakasan (Before the situation worsens, I ask for your support in addressing this problem)," the President said.

The President said that donations intended for the deportees could be coursed through the local chapters of the National Disaster Coordinating Council (NDCC) or through private groups or organizations.

She said that in her visit to Bongao, Tawi-Tawi last week, she had seen for herself the anguish and the difficulties encountered by the thousands of deportees.

The President said that she was thankful that Malaysian Prime Minister Mahathir Mohamad had agreed to her request for a moratorium of the deportation after their telephone conversation during the weekend.

She also thanked all the private firms that have pledged to help in ensuring a safe and orderly movement of people from Sabah to Mindanao.

The President particularly cited the WGA shipping company for its willingness to send commercial vessels as well as the Cebu Pacific for its willingness to send its airplanes to help in the transport of the deportees to Mindanao.

SAN ISIDRO, Nueva Ecija -- The government will continue to focus on developing small and medium enterprises (SME) and boosting agricultural growth to raise domestic demand in the wake of a weakening American export market.

President Gloria Macapagal-Arroyo stressed this today as she noted the role of SME’s in effecting a significant rebound in neighboring Thailand’s economy.

In a speech here where she attended rites marking the "Unang Sigaw ng (First Cry of) Nueva Ecija" in commemoration of the province’s participation in the 1896 revolution against Spain, the President took pride in the country’s latest economic gains, a product of her administration’s effective social, economic and fiscal policies.

The President hinted that these gains have prodded her to give more time to maintain, if not further strengthen, the economy.

"Ako ay babalik sa ekonomiya (I will return to the economy)," she said, after lauding the glaring accomplishments of the police, military and other law enforcement agencies in the fight against crimes nationwide.

"Magbabalik tayo sa (We will return to the) road map," she added, referring to the world economic situation that might not attain positive changes in the coming years.

She noted that the economy of the United States, the world’s top importer, has not yet reached tip-top conditions.

"Kaya hindi pa rin tayo makakaasa sa kanya (We still cannot rely on America)" in terms of exports, she stressed, in spite of recent statistics that showed that the country’s export receipts have been increasing.

"Ngayong tumataas ang export, huwag tayong maging kampante (Even if export figures are rising, let us not be complacent)," she said.

The President said that instead of dwelling too much on exports, the country would go back to the SMEs, an economic sector that could bring about domestic demand and one that could efficiently use capital.

"Iyan ang bibigyan natin ng pansin sa mga susunod na panahon. Sila ang magiging susi ng ating economic recovery (We will give the SMEs due attention. They will provide the key to our economic recovery)," she said.

The President said the government would urge banks to avoid providing credit for less-productive sectors like those on luxurious property and manufacturing firms that still maintained a huge excess capacity. Instead, banks should serve the needs of SMEs.

She further called for lower interest rates for credit given to SMEs.

She noted that this was the very strategy that Thailand Prime Minister Thaksin Shinawatra hoped to implement to revive his country’s waning economy. Thaksin today presented this strategy to the Thai parliament.

Among Thaksin’s economic plans were grants to villages, a deferral of farm debt repayments and the creation of a national asset management agency to take over bad bank debts.

President Macapagal-Arroyo said Thaksin’s economic formula could also work well in the Philippines.

She said the country’s economic managers have been working on and implementing long-term structural financial and economic policies along these lines, while promoting private sector-led growth.

The same strategy is being done worldwide as a safety net against the serious downtrend of modern living in the US, she added.

"Ang domestic demand sa Asya ay bukang-bibig ngayon sa lahat. Ang mga Asian ay tumatayo ngayon sa sariling sikap at iyon ay kailangan nating gawin (Domestic demand in Asia is being talked about. Asians are standing up to the worldwide economic challenges on their own. We have to also do things ourselves)," she stressed.

To address the housing problem in the country, the administration of President Gloria Macapagal-Arroyo is planning to raise public shelter budget from P20 billion this year to P27.5 billion next year.

This was revealed last week by Housing and Urban Development Coordinating Council (HUDCC) Secretary Michael Defensor in a speech at the 11^th Mindanao Business Conference in Surigao City.

Defensor said the government will accelerate the provision of security of tenure for the informal sector by granting to them the lands they are occupying through the issuance of Presidential Proclamations.

According to the HUDCC secretary, the government has already opened a new lending window for end-user financing to cater to the non-formal sector that includes the P500-million lending facility that Land Bank of the Philippines has opened for cooperatives.

"We have made housing loans available and affordable to low-salaried employees by lowering interest rate, providing developmental financing to developers, and by pursuing institutional housing projects for soldiers, overseas Filipino workers, teachers and the like," he said.

Defensor pointed out that the Pag-IBIG Fund is studying ways on how to make loans as cheap as those prevailing in the market, adding that Pag-IBIG had initially brought down to 12 percent the interest on loans below P500,000 and to 14 percent for loans above that amount.

He added that the Government Service Insurance System (GSIS) no longer limit borrowers to set home models and has opened its housing loan windows for any kind of housing.

At the same time, Defensor said both the GSIS and the Social Security System (SSS) shall work with local government units interested in housing ventures.

Last Friday, Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) Director-General Dante B. Canlas said the administration has proposed to Congress an indexation of excise taxes on cigarettes and liquor to raise revenues that will support the housing program of the government.

He said the proposed plan to raise additional budgetary resources would help subsidize down payments by low-income households and expansion of rent-to-own schemes under socialized housing.

Meanwhile, reforms are under way to address the issue on providing homes to poor Filipinos who according to the National Anti-Poverty Commission (NAPC), are now estimated at 3.3 million in urban areas.

These are: the land-titling process which aims to eliminate the proliferation of fake land titles; and coordination with the local government units (LGUs) to reduce the number of signatures required by LGUs for housing and urban development projects.

Moreover, on housing finance, the government is working jointly to strengthen the housing mortgage market via the Securitization Bill which was discussed recently at the Legislative-Executive Development Advisory Council (LEDAC) meeting.

He likewise said the establishment of the proposed Department of Housing is a step to sustain programs of the government.

"The success of the housing program depends on the government, both at the national and local levels, forging new and strong partnerships with business and communities, "Canlas reiterated.

Malacaņang today assured the public that President Gloria Macapagal-Arroyo would choose the next Chief of Staff of the Armed Forces of the Philippines (AFP) based on merit and not for "political reasons".

"The President will make known her choice on September 4 and all she said is that she will choose the AFP Chief of Staff based on merit and this has nothing to do whatsoever with any alleged relationship with any politician," Press Secretary Ignacio Bunye said in his regular press briefing this afternoon.

Bunye was reacting to reports that the President is inclined to appoint Lt. Gen. Benjamin Defensor, Philippine Air Force chief, as AFP chief, vice Gen. Roy Cimatu, whose retirement has been extended to September 10.

Bunye stressed that President Macapagal-Arroyo will just follow her own criteria in choosing the next AFP Chief of Staff.

When asked if the President will give much weight on the seniority aspect for choosing new AFP top leader, Bunye advised the media to just wait for the President’s announcement on the matter and stop making speculations on the issue.

SAN ISIDRO, Nueva Ecija – President Gloria Macapagal-Arroyo today underscored the need to weed out active and retired members of the military and police found involved in illegal drug trafficking.

In a speech during the 106^th anniversary of the "Unang Sigaw ng Nueva Ecija" (First Cry of Nueva Ecija) at the JF Sports Complex here, the Chief Executive called on Nueva Ecija Governor Tomas Joson to help track down drug syndicates.

"Iyong mga sindikato ng droga, sila rin halos ang sindikato ng ibang mga karumal-dumal na krimen. (These drug syndicates are the same syndicates that commit various heinous crimes), the President said.

She also lauded Joson for the improved peace and order condition in Nueva Ecija. Joson also serves as chairman of the Regional Peace and Order Council (RPOC) in Central Luzon.

She hoped that the RPOC in Central Luzon (Region III), through the stewardship of Joson would help in the government’s drive to eliminate drug syndicates and other criminal rings.

In her recent meeting with top officials of the Dangerous Drugs Board (DDB) and the Philippine Drugs Enforcement Agency (PDEA) at Malacanang, the President launched a "sustained and high-intensity campaign" against illegal drugs in the country as part of her administration’s no-letup drive against all forms of criminality and terrorism.

The President said the anti-drug campaign should be given stress following the series of successful hits against kidnap and other criminal gangs.

In a message Saturday (Aug. 31) before law enforcers who attended the two-day PDEA sponsored intelligence workshop in Camp Crame, the President ordered the agency to make sure that a specific unit is assigned too neutralize each identified transnational and local illegal drug ring operating in the country.

The President said these special units should ably pinpoint, monitor the activities of and eliminate the drug syndicates.

She cited PDEA Director General Undersecretary Anselmo Avenido’s report that said 11 transnational and 215 local drug groups have been identified to be actively operating in the country.

Malacaņang today said that calls for the resignation of Finance Secretary Jose Isidro Camacho are "unwarranted" since the secretary has been doing his job in addressing the country’s economic problems.

"From our point of view, Secretary Camacho has done a good job," Press Secretary and Presidential Spokesman Ignacio Bunye "Toting" said in his regular press briefing this afternoon.

Bunye said that if the reason for the call of Camacho’s ouster is his alleged failure to control the fiscal deficit, this was not actually a problem.

He said the problem only arises when one considers the budget deficit in absolute amount, adding that it is true that the budget deficit has breached the P130-billion ceiling for the year.

But when you talk about the percentage of the deficit to the gross domestic product (GDP), then the government is still on target, Bunye said.

Earlier, Socioeconomic Planning Secretary Dante Canlas said that the target deficit-to-GDP ratio of 3.3 percent will be realized for this year.

"Economic performance as of the second semester indicates that the economic program of the administration is working. The deficit reduction program will thus continue," Canlas said.

Canlas reported an average growth rate of 4.1 percent for the real GDP and 4.7 percent for the real gross national product (GNP) for the first half of the year.

President Gloria Macapagal-Arroyo today lauded the Philippine National Police for the arrest of three suspected kidnappers who earlier engaged the policemen in a shootout in Intramuros, Manila.

The President motored to the Western Police District (WPD) headquarters on United Nations Avenue immediately upon arrival from a visit in Cabanatuan City for the presentation of the suspects to media.

The arrested suspects were identified as Michael Bautista, Ramil Safra and Boyet Ramos.

A fourth suspect was wounded but in stable condition at the Ospital ng Maynila while a fifth died during the actual gun battle with Manila policemen.

In a brief statement, the President said the arrest of the suspects proves that the police are indeed committed to curbing criminality in the country.

WPD reports showed that a mobile patrol car spotted the suspects’ van and tailed it up to Anda Circle in Intramuros.

Sensing that they were being followed, the suspects, with kidnap victim Richard de la Cruz, opened fire at the lawmen.

The victim, a bank employee, was rescued unharmed after the firefight.

De la Cruz said the suspects, who posed as policemen, accosted him in front of the Pasay City Post Office at noon and divested him of cash and valuables.

During the President’s visit at the WPD, Philippine National Police (PNP) chief Director General Hermogenes Ebdane, Jr. also presented to the President Victor Mabaldo, 27, a suspect in the fatal ambush of former Manila Third District Councilor Chika Go.

The former Manila city councilor was killed in Binondo three weeks ago.

According to the police report, Mabaldo is a hired killer from Maasin City, Southern Leyte.

The police confiscated from the suspect two firearms with silencers when the latter was arrested Sunday night in Sta. Cruz, Manila.

President Gloria Macapagal-Arroyo today stressed that one of the country’s major challenges this year "is to continue to build up the economic momentum we achieved in 2001."

In the President’s taped statement before the 2002 Mid-Year Economic Briefing at the Dusit Hotel, she invited businessmen "to work with me and my team" to build a strong Republic.

She said the global challenge "remains daunting but in the Philippines we have the environment, the capacity and the political will to perform."

"The transformation of our economy will continue and we will remain focused on the implementation of the Philippine Economic Plan. We are succeeding in pushing reform and we will continue to take steps that provide macro economic growth and stability," she said.

She said the country’s bright economic prospects were brought about by "the effective implementation of the Philippine Economic Plan."

"Our program has significantly improved our macro economic environment in the last 20 months. Macro economic stability is indispensable to a strong Republic," she noted.

She took pride in the country’s comfortable pace of economic growth accompanied by a generally stable business environment that saw inflation and interest rates at historic lows and relative stability in foreign exchange.

The President said her administration remained committed to fiscal discipline.

"We are embarking on revenue enhancing measures both in the short and long term for the Bureau of Internal Revenue and the Bureau of Customs," she said.

She disclosed the implementation of changes through specific institutional reforms and the prosecution of erring individuals, while enforcing prudent expenditure management "as we work towards our committed deficit ceiling of 3.3 percent" of the gross domestic product (GDP) for 2002.

The President reiterated her administration’s economic policies and strategies for the second half of this year.

These included:

• An economic philosophy of free enterprise appropriate to the 21^st century hinged on macro-economic stability and structural reforms;

• Modernized agricultural sector founded on social equity.

• A social bias towards the disadvantaged to ensure that economic growth would bring prosperity to the greatest number; and

• An unwavering commitment to raise the moral standards of government and society that would combine reform initiatives in peace and order and good governance.

The government is likewise focused on addressing investment and productivity concerns such as transparency, peace and order and power costs to create and improve job opportunities, the President noted.

Congress, she said, has been working on passing critical legislation to speed up the pace of much needed reform.

"These are expected to have a direct and positive impact on the level of new foreign direct investment and the jobs that this investment creates," she said.

She also stressed the government’s aggressive thrust on the issue of peace and order. "

"We have been successful in targeting the kidnap-for-ransom syndicates, the drug lords and smugglers and now we are working on the remaining Abu Sayyaf terrorists," she said.

The government has been on track in lowering the cost of doing business in the country. She cited cuts in the price of electricity. "And we will continue to do so," she added.

The Chief Executive also disclosed a price incentive scheme for large industrial users.