President Gloria Macapagal-Arroyo’s economic managers today expressed optimism that the economy will recover with a stronger performance expected in the next six months of 2003.

In a press statement, Economic Planning Secretary Romulo Neri, who is concurrently Director-General of the National Economic and Development Authority (NEDA), said that exports growth will spur the economic recovery in the second half of the year.

The NEDA has forecast a 4.5 percent growth of the gross domestic product (GNP) in the second half of 2003 as compared to the 3.9 percent GNP growth rate posted in the January-June period.

Neri said that the Macapagal-Arroyo administration has laid the groundwork for growth-inducing sectoral policies that are expected to capture the financial flows from the economic recovery of the United States and Japan, the Philippines’ two leading trading partners.

The sectoral policies, he pointed out, include a productivity program in agriculture that provides for use of hybrid rice and certified seeds, rehabilitation of the irrigation network and application of roll-on-roll-off port facilities and vessels.

The government has also lined up support for medium- and small-scale enterprises by enhancing their access to credit and exempting them from the Minimum Wage Law with the passage of the Barangay Business Enterprise Law, he said.

Other sectoral policies cover support for housing by lengthening loan repayment periods and reducing the bureaucratic requirements; fast-tracking micro-credit lending, particularly the release of P1 billion for loan applications already approved; and more timely payments of payables to government suppliers and contractors.

In a separate statement, Secretary Emilia Boncodin of the Department of Budget and Management (DBM) said that the "appetite for expenditures in the past two quarters" of 2003 had been contained, and that "the budget deficit of the national government is firmly under control."

Boncodin also noted that the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) have finally been meeting their revenue collection targets.

"In the first six months of the year, revenues have exceeded targets by P24 billion," she said. "This is a positive sign that the fiscal burden will finally be tamed this year."

The DBM secretary was likewise hopeful that the budget deficit would eventually be eliminated. "In 2003," she said, "the Development Budget Coordination Committee expects the deficit-to-GDP (gross domestic product) ratio to decline to 4.7% from 5.2% in 2002. This will progressively fall every year until the deficit is eliminated by about 2009."

President Gloria Macapagal-Arroyo is set to hold one-on-one talks in New York with Malaysian Prime Minister Mohammad Mahathir, particularly on the Malaysian offer to host the resumption of peace negotiations between the Philippine government and the Moro Islamic Liberation Front (MILF), Presidential Spokesman Ignacio Bunye said in a radio interview this morning.

The President and Mahathir may also talk about issues concerning peace, security and development in the region, Bunye added.

The primary purpose of the President’s New York visit is to address the 58^th session of the United Nations General Assembly where she is expected to push the country’s bid for a seat in the UN Security Council.

Bunye said that the UN Security Council seat is very important because it is one of the major organs of the UN and decides on most of the major world policies.

Over the prestige that goes with being a member of the Security Council, the Philippines will also be able to take part in the discussions and decision-making process of the world body, Bunye furthered said.

Bunye said that the Philippines has been angling for a seat in the Security Council for so long and now is the most opportune time to really go for it since a seat has been reserved for an Asian representative.

He expressed optimism on the chances of the Philippines landing a seat since the President herself would be making a pitch for it before the UN General Assembly.

While in New York, the President is also expected to meet with the foreign ministers and ambassadors from the Organization of Islamic Conference (OIC) and discuss ways on how OIC member countries can help in the development of Mindanao, especially in the former conflict areas.

The President also plans to call on UN Secretary General Kofi Annan and meet with the members of the Filipino community in New Jersey.

ZAMBOANGA CITY--President Gloria Macapagal- Arroyo arrived at 9:25 a.m. today at the Edwin Andrews Airbase here en route to Jolo, Sulu, where she was the guest of honor at the 613^th founding anniversary of the province.

The President was met by government officials led by Governor Farouk Hussin of the Autonomous Region in Muslim Mindanao (ARMM) and Chairman Michael Defensor of the Housing and Urban Development Coordinating Council (HUDCC).

Also in the President’s party were Secretary Corazon Juliano-Soliman of the Department of Social Welfare and Development (DSWD) and Lead Convenor Teresita Quintos-Deles of the National Anti-Poverty Commission.

President Arroyo took a few minutes rest before boarding a helicopter for Luuk, Sulu, to inaugurate a Kapit-bisig Laban sa Kahirapan (Kalahi) project of the DSWD in the town.

In Jolo, the President would deliver a speech as part of the province’ 613^th founding anniversary at the Sulu Sports Complex. She will also participate in the Maligay Festival, an annual event that showcases the rich cultural heritage of the Tausug tribe.

JOLO, Sulu--Sulu Governor Yusup Jikiri today said that the visit here of President Gloria Macapagal-Arroyo would help in projecting a better image of the province, which had been portrayed as a war-torn area by the media mainly due to the activities of the Abu Sayyaf.

"The President would fairly see for herself that Sulu is not as bad as it has been projected on the papers. We live normal lives here and it is as peaceful as you can get feel of it now," Jikiri said.

Jikiri also emphasized that the provincial government has been supportive of the military and police authorities in their campaign to attain sustainable peace and tranquility in the province, which has been tagged as home to a faction of the Abu Sayyaf terrorists.

"The Abu Sayyaf has weakened and with sincere efforts to cripple its strength, one day this problem would be eliminated in Sulu," he said with optimism.

The governor said that the Maligay Festival, which is held as part of the celebration of the 613^th founding anniversary of Sulu, showcases the rich cultural heritage of the Tausug tribe.

A maligay is a tower-like shape of artistically decorated colorful foodstuff such as steamed rice, native cakes, local delicacies, viands prepared by villagers during festivities like weddings, graduation, baptism, thanksgiving prayer and other religious celebrations.

The festival is a community-oriented annual felicitation in honor of the "maligay" draped in colorful display of the richness of the culture, lifestyle, tradition and values of the Tausugs.

JOLO, Sulu - President Gloria Macapagal-Arroyo today led the observance of the 613^th foundation of Sulu Governance and Public Administration and participated in the celebration of Maligay Festval.

The President landed at Jolo Sports Complex around 11:30 A.M. on board a Bell helicopter. She flew in from Luuk, Sulu where she presided over a ceremony that energized some 200 houses at Barangay Capual and distributed livelihood assistance to local farmers and fisher folks.

The President was received by Sulu Gov. Yusop Jikiri, Rep. Hussin Amin, Vice Gov. Abdel Anni, Jolo Mayor Hadji Suod Tan and Vice Mayor Hadja Delma Ynawat.

While on her way to the Provincial Sports Complex, the President stopped by the Agro-Industrial Exhibit located in front of the provincial capitol building. Twenty six municipalities and local government agencies are participating in the exhibition, which the President opened today.

During the anniversary program, President Macapagal-Arroyo presented assorted medicines to Mayor Tan and 50,000 units of canned goods to Maj. Gen. Gabriel Habacon, commander of the 104^th Brigade.

The President also handed a check for P100,000 to Nursida Nain, president of Balik Bayan Livelihood Association, and another P100,000 check to the Pabahay Livelihood Association.

She also distributed certificates of ownership to some 40 beneficiaries of the Pabahay Project and deportees under the Kapit-Bisig Laban sa Kahirapan (KALAHI) program, 1,000 hybrid coconut seedlings to the Farmers Association of Paticul, 10 bags of open pollinated variety (OPV) of registered corn seeds under the GMA Corn Program, 1,800 packets of assorted vegetables seeds to the Pabahay Livelihood Association, and 10 certificates of land titles under the Handog Titulo Program of the Autonomous Region in Muslim Mindanao.

One of the highlights in the 613^th founding anniversary of Sulu was the Maligay Festival, which showcases the rich culture, lifestyle, tradition, and values of the Tausug, and aims to foster better understanding, peaceful coexistence, and unity among the diverse peoples of Sulu.

LUUK, Sulu—Finally, after many years in the dark, some 200 houses in the remote Barangay Kapual here now have electricity after President Gloria Macapagal-Arroyo officially switched on today the button that energized the barangay.

The President made a short visit here on board the presidential chopper before she personally led the 613^th founding anniversary celebration of the province held this noon at the Sulu Sports Complex in Jolo, just a 2-minute walk from the Provincial Capitol of Sulu.

Before the ceremonial switch-on of the electric facility, the President inaugurated the Children’s Playground in front of Luuk Municipal Hall.

The Special Zone of Peace and Development (SZOPAD) Social Fund allocated P6.9 million for the project out of a loan grant from the Organization of Oil Exporting Countries (OPEC) of US$ 1 million.

The President also handed over a check of P200,000 for the construction of day care center here, another check of P300,000 for the livelihood assistance for fishermen for the purchase of fishing boats, and P80,000 for the construction of solar dryer.

After the distribution of checks, the President turned over some 2,000 hybrid coconut seedlings worth P60,000 for the coconut seed bank here; 1,000 packets of assorted vegetable seeds worth P30,000 to support the nutrition program of the local government for small farmers and fisher folk.

She also turned over 25 bags of open-pollinated variety (POV) corn registered seeds variety BAR 10 and 12 worth P37,500 for the town’s seed production program and assorted medicines to Luuk Mayor Abdurahman Arbison.

Among the Cabinet members who accompanied the President in her visit here were Secretary Corazon Juliano-Soliman of the Department of Socoal Welfare and Development; Lead Convenor Teresita Quintos-Deles of the National Anti-Poverty Commission; and Chairman Michael Defensor of the Housing and Urban Development Coordinating Council (HUDCC),

President Gloria Macapagal-Arroyo said today that the raid on robbers’ lair in Taguig, Metro Manila is a serious crackdown on organized crime even as she commended the military and police for arresting the suspects in the series of bank heists that included one on Citibank in Makati City, the first on an international bank.

In a statement, the President said the next step is to establish the links between the robbers’ group and other underworld networks "so that we can bring these criminal conspiracies out of the woodwork."

"This is part of a self-cleansing process within the AFP and the PNP as much as it is a serious crackdown on organized crime," the President said.

Saying crime does not pay whether for petty snatchers or rogues in uniform, she said the culprits would be exposed, arrested and prosecuted.

Presidential Spokesman Ignacio Bunye said in a press briefing that the President expressed elation over the positive results of the raid which was actually part of a PNP clampdown on robbery syndicates.

The raid netted 12 suspected robbers, some of whom were former policemen.

In a related development, Bunye denied reports that Malacanang has given the go signal for summary executions in the wake of the recent spate of crimes, saying it will not condone any extra-judicial acts.

He also said the President has already asked the PNP to coordinate with the National Press Club in the solution of cases involving journalists.

It is in the wake of this recent spate of crimes that rumors about another coup attempt and the possible declaration of martial law surfaced which Malacanang has repeatedly denied.

MARUNGAS, Hadji Panglima Tahil, Sulu—President Gloria Macapagal-Arroyo today made a quick visit to this remote island to personally inspect the huge agar-agar (carrageenan) farm here.

The presidential party, which included civilian and local officials, rode in six speedboats from the port of Jolo in going to the island. Travel time was about 20 minutes.

The President was the guest of honor this noon at the 613^th founding anniversary celebration of the province held at the Sulu Sports Complex in Jolo.

The President stayed for about 30 minutes in the island before boarding the presidential helicopter for the hop to Zamboanga City where she was scheduled to visit the Camp Navarro General Hospital in the city.

During her visit to the island, the President was accompanied by Chairman Michael Defensor of the Housing and Urban Development Coordinating Council (HUDCC), Secretary Corazon Juliano-Soliman of the Department of Social Welfare and Development (DSWD), Lead Convenor Teresita Deles of the National Anti-Poverty Commission, Governor Parouk Hussin of the Autonomous Region in Muslim Mindanao and Sulu Governor Yusop Jikiri.

Armed Forces Chief of Staff Gen. Narciso Abaya and Major Gen. Roy Kyamko, commanding general of the Southern Command (Southcom), also joined the President’s trip to this island but on a separate speedboat.

The seaweed farm here, which literally encircles the island, is being funded by the United States Agency for International Development (USAID).

The US government has earlier pledged to extend financial support, mostly in the form of grants, to residents of Mindanao, particularly those in conflict-affected areas.