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02 JANUARY 2004

bulet-arow.gif (856 bytes) The Good News: RP now produces 50 percent of main parts of cell phones and laptops worldwide
bulet-arow.gif (856 bytes) Expanded benefits in store for OFWs in 2004
bulet-arow.gif (856 bytes) Statement of the President: Re Lucena fire tragedy
bulet-arow.gif (856 bytes) Statement of the President: Re Betty Sy case
bulet-arow.gif (856 bytes) Statement of the President: Re Air marshals
bulet-arow.gif (856 bytes) Yearender: SME development got lion's share from gov't financing agencies
bulet-arow.gif (856 bytes) Defensor cites 'winnability' of GMA-De Castro tandem
bulet-arow.gif (856 bytes) Mikey files COC to run for Congressman in Pampanga

The Good News: RP now produces 50 percent of main parts of cell phones and laptops worldwide

Did you know that the Philippines now produces 50 percent of the main components used in the manufacture of digital cellular phones and laptops worldwide?

Facts and figures from the Department of Trade and Industry (DTI) showed that two out of the three digital cellular phones shipped worldwide have something made in the Philippines.

For example, the digital switch processor (DSP), which is the heart of a Nokia cellular phone, is made by Texas Instruments (TI) in Baguio City.

The Texas Instruments, with a work force of 1,750, is the number one producer of DSPs in the region and accounts for 50 percent of worldwide DSP production.

The Philippines now supplies 50 percent of world demand for 2.5" hard disk drive (HDD) and 10 percent of the world demand for 3.5" HDD.

Toshiba Information Equipment (Phils) Inc. produces 1 million units of HDDs for notebook, sub-notebook and mini-notebook PCs and bridge media.

Toshiba also produces 150,000 laptops monthly, which accounts for 8 percent of Toshiba’s world market share of laptops.

Industry estimates show that there are now more than 20 million cellular phone users in the Philippines.

As of end 2002, there were 15.2 million cellular phone users in the Philippines, a 25 percent increase over the 12.15 million figure in 2001. The 2001 figure was more than double the 6.45 million recorded in 2000.

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Expanded benefits in store for OFWs in 2004

Benefits for the overseas Filipino workers (OFWs) and their families will be expanded in 2004, according to the Department of Labor and Employment (DOLE).

In a report to Malacanang, DOLE said that the Overseas Workers Welfare Administration (OWWA) Board of Trustees chaired by Labor and Employment Secretary Patricia Sto. Tomas has approved the implementation of the expansion of OFW’s welfare and ensure their integration into the mainstream of society.

The OWWA will set up a National Livelihood Support Fund to revitalize its dormant livelihood loan financing program for OFWs and strengthen OFW integration.

In cooperation with the Land Bank of the Philippines, the OWWA will also set up a novel pre-departure financing program so that would-be OFWs will be able to avail of financial assistance for the processing of the papers and other requirements so that they will not be victimized by predatory loan sharks and illegal recruiters.

Another salient development is the improvement of the OWWA’s scholarship program allowing OFWs and their dependents to finish bachelor’s degree course.

"Under the guidance and inspiration of the OWWA board, our objective is not merely to dole out funds to develop the talent, qualities and capabilities of OFWs and their families ultimately ensuring their future with reliance and success," DOLE said.

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Statement of the President: Re Lucena fire tragedy

I have the deepest sympathy for the families of the Lucena fire victims, but such tragedies could have been prevented if precautionary measures were observed.

I would like the DILG through the Bureau of Fire Protection to work with the LGUs in conducting thorough inspections of all vulnerable commercial or residential areas, especially in urban areas, to enforce compliance with fire safety measures under the law.

Let us start now and let us not relent until we can get rid of these fire traps and hazards that pose a threat to public safety.

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Statement of the President: Re Betty Sy case

I commend the NAKTAF and all its allied units for this latest accomplishment.

We are also grateful to the ordinary citizens in the community who provided information leading to the arrest of the mastermind behind the kidnapping and murder of Ms. Sy.

This bolsters the restoration of the public’s faith in our quest for criminal justice.

That the arrest of Fernando Niegas came on New Year’s Day is a sign and an assurance that the country’s peace and order situation will continue to look up in 2004.

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Statement of the President: Re Air marshals

We are prepared to deploy air marshals in PAL planes entering US territory as requested, on the basis of reciprocity.

I would like the National Security Adviser to see to it that US commercial passenger aircraft entering the Philippines are similarly covered so that we can have a two-way mechanism to check terrorist incursions.

This is important for the safety of our own nationals as well as foreign travelers, and is part of our commitment to the global fight against terror.

We shall continue to provide seamless security to air travel on the ground and on air.

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Yearender: SME development got lion's share from gov't financing agencies

In 1994, Rogelio "Jojo" Balisi, a former overseas contract worker, gathered all his courage and started a furniture shop with a meager capital of P100,000. It turned out to be a move in the right direction. Today, Jojo’s JBRL Enterprises based in Cabagan, Isabela has grown to a P5-million company.

In 1998, Michael Cases left his lucrative job as project engineer in Brunei and started a food processing business in his native Dipolog City. Like Jojo, Mike was also able to nurture his micro-business, named Tito Mike’s Food Co., to the level of small and medium enterprise (SME).

Of course, government intervention, through the Department of Trade and Industry (DTI) and its attached agencies, was crucial to the growth of JRBL and Tito Mike’s Food Co. and thousands of other similarly situated SMEs nationwide.

The promotion of SMEs is meant to help ensure a more equitable distribution of income, stir up economic activities in the countryside and create a potent force in the struggle against mass poverty.

Thus far, the DTI said, the SME sector comprised about 99.6 percent of all registered firms nationwide, employing 69.9 percent of the national labor force. The DTI also said the SMEs contributed 32 percent of the annual revenue income.

To speed up SME development across the country, the Macapagal-Arroyo administration allocated staggering amounts, mainly released through government financing institutions (GFIs). From January to July 2003 alone, GFIs funds used for SME programs hit the P15 billion mark. The funds were coursed through the Land Bank of the Philippines, the Development Bank of the Philippines, the Small Business Guarantee and Financing Corp., the Philexim Bank, the Quedan Corp. and the National Livelihood Support Fund.

Of the P15 billion, P1.98 billion was released as wholesale loans to thrift banks and rural banks, P12.81 billion were retail loans and P245.59 million comprised guarantee loans released directly to the SMEs.

A total of 175,688 SMEs benefited from this program.

The true yardstick of a strong economy is not the size of business empires in the hands of a few mega-capitalists, but the proliferation of small and medium enterprises owned and operated by Filipinos in the countryside.

To ensure that entrepreneurship filters down to the grassroots level, the DTI vigorously set in motion the Barangay Micro Business Enterprise (BMBE) Act enacted in 2002, providing a package of incentives and benefits to those who want to start their own businesses.

In compliance with President Gloria Macapagal-Arroyo’s directive, the DTI convened all key players in SME development, including pertinent government departments and agencies, and formulated the National SME Development Agenda. This gave rise to the creation of the SME Unified Lending Opportunity for National Growth (SULONG) program.

Apart from financing, government assistance in SME development also covered marketing, training, product development, technology intervention and advocacy.

In August 2001, the policy of providing government guarantee for SME loans was restored. Over a two-year period ending in August 2003, approved guarantees for 88 loan accounts with the SBGFC totaled P331.39 million.

During the same period, 60 loan accounts with Philexim (Philippine Export-Import) Bank amounted to P303.24 million, while Quedancor released P983.85 million.

The Macapagal-Arroyo government also launched in May 2002 the Small Enterprises Technology Upgrading Program (SET-UP) with an allocation of P100 million "to enhance the productivity and competitiveness of the SMEs through technology application and upgrading." To date, some 6,271 SMEs have benefited from SET-UP.

Meanwhile, the government remained focused on attracting investments in contact centers and back office operations. As of September 2003, the country has registered 45 contact centers, mostly in Metro Manila, two each in the Clark Ecozone and in Cebu, and one in Laguna.

Government concern in this area is geared at promoting fast-growing industries in areas where "high-value jobs are most plentiful." DTI records showed that from January to August 2003, information technology investments generated by contact centers amounted to P2.65 billion, creating an estimated 11,392 job opportunities.

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Defensor cites 'winnability' of GMA-De Castro tandem

Secretary Michael Defensor, the presidential campaign spokesman, today stressed the "winnability" of the tandem of President Gloria Macapagal-Arroyo and Senator Noli De Castro because of their performance and track record.

In a media briefing in Malacanang, Defensor said the team could also greatly push the present administration’s initiatives for reforms, unity and reconciliation.

"Naniniwala kami na ang pagtutulungan ng Pangulo at ni Senator De Castro ay mas malaki ang magagawa hindi lang sa punto ng reporma pati na rin sa pagkakaisa at rekonsilyasyon (We believe the teamwork of the President and Senator De Castro would contribute greatly in achieving reforms, unity and reconciliation)," Defensor said.

Defensor, who is also the chairman of the Housing and Urban Development Coordinating Council (HUDCC), said the team’s performance has already been proven in the government projects such as in housing, electrification, and provision of potable water particularly in Metro Manila.

Defensor said Senator De Castro has shown excellent performance in the Senate, including in the deliberation of major bills, such as in housing and other issues.

He said De Castro’s acceptance as the vice presidential candidate of the President would help heal and unite the country, being a respected journalist and close to the masses.

"With Senator De Castro’s candidacy as vice president, I think we would be able to heal and unite the country," Defensor said.

Defensor said Senator De Castro would also help the President present the administration’s policies and programs to the people.

He said the President, De Castro, and their senatorial slate, which would be finalized later today, would file their certificates of candidacies most likely on Monday, January 5, the last day for the filing of the certificates of candidacies set by the Commission on Elections (COMELEC).

"We would be having a briefing this afternoon as to the dates of the filing and the events that would take place before the filing on January 5," Defensor said.

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Mikey files COC to run for Congressman in Pampanga

SAN FERNANDO CITY, Pampanga—Bring more economic progress for the province of Pampanga.

This was the main consideration when the President’s son Pampanga Vice Governor Juan Miguel "Mikey" Arroyo decided to run as representative of the second district of Pampanga.

The Vice Governor was accompanied by his wife Angela, mayors from different towns of the province, barangay chairmen and tanods, and representatives from different non-government organizations (NGOs), when he filed his certificate of candidacy (COC) at the Commission on Elections (Comelec) office here.

In a statement, Arroyo thanked all the mayors, barangay officials, and representatives from different NGOs for their outpouring support for his candidacy.

He said he decided to run as representative for the second district instead of the gubernatorial post because the people want him to help the province through legislation.

"They feel that I can help the province better through legislation. And I am very much honored for this outpouring of support," Arroyo said.

He said that he wants to concentrate on education, economic and other concerns that would improve the lives of the people in Pampanga, particularly the barangay captains, barangay tanods and teachers.

Arroyo said that his mother has advised him to remember that as a public servant "one has to give his whole heart and whole soul."

"And to put public service always ahead of your family but only second to God Almighty," Arroyo added.

Angela said in a separate interview that she will support her husband in his the decision to run for Congress.

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