Bangko Sentral ng Pilipinas (BSP) Governor Rafael B. Buenaventura has reported that foreign portfolio investment transactions registered a sizeable US$675.8 million net inflow in 2003, or over threefold the US$211.7 million figure in 2002.

Data sources for the foreign investment inflow are weekly reports submitted to the BSP by the five largest custodian banks.

Buenaventura said non-resident investments in all types of portfolio investment instruments posted net inflows during the year: Philippine Stock Exchange (PSE)-listed securities, US$30.7 million; government securities/money market instruments, US$180.3 million; and peso bank deposits, US$464.8 million.

In 2002, only investments in peso bank deposits showed a net inflow of US$350.2 million while investments in PSE-listed securities and government securities/money market instruments registered net outflows of US$115.2 million and US$23.3 million, respectively.

On a gross basis, foreign portfolio investment inflows totaled US$1,644.2 million in 2003, reflecting a 29 percent increase over the US$1,277.6 million figure in 2002.

On the other hand, withdrawals of foreign investments in portfolio instruments dropped by 9 percent to US$968.4 million, from US$1,065.9 million in 2002.

On a monthly basis, only the month of February recorded a net outflow (a minimal US$1.6 million).

Buenaventura said that positive developments, such as strong gains in Wall Street, the generally lower-than-expected budget deficit and inflation rate figures, reduced interest rates and high corporate earnings, have outweighed the negative factors such as the US-Iraq War, the SARS outbreak and the lingering security and political concerns.

Earlier, the BSP also reported that the country’s gross international reserves (GIR) stood at US$16.815 billion as of end-December 2003, slightly lower compared to the end-November level of $16.826 billion.

But the end-December 2003 GIR level was favorably higher than the US$16 billion year-end target set by the Monetary Board.

Buenaventura said that in terms of reserve adequacy ratios, the end-December 2003 GIR level was adequate to cover 4.7 months of imports of goods and payments of services and income.

A total of 187 priority and doable projects worth P12.148 billion has been lined up for completion by June 30 this year by the Department of Public Works and Highways (DPWH) in line with President Gloria Macapagal-Arroyo’s directive to speed up infrastructure development.

On-going mostly in the last three years, 126 of the projects are locally funded to the tune of P1.623 billion, while 61 are foreign-assisted worth P10.525 billion and spread out in all regions nationwide.

Due to election ban, the DPWH said work on the locally-funded projects (LFPs) faces delay, but all the projects will be completed by June 30, 2004.

According to the DPWH about 52 percent of the projects, will be completed in the first quarter of the year. Of these, a total of 63 out of 127 are locally funded, while 34 out of 61 are foreign–assisted projects (FAPs).

The tabulation of LFPs and FAPs shows construction of roads comprises about 68 percent of the projects; 11 percent, bridges; 5 percent, flood control systems; and 18 percent, other projects such farm to market roads, public markets and school buildings.

The 127 road projects are worth P9.732 billion, bridges P1.06 billion, and flood control projects P574 million.

Malaysian Prime Minister Abdullah Ahmad Badawi will discuss with President Gloria Macapagal-Arroyo improvement of bilateral relations and vital security concerns, when he makes a two-day state visit to the Philippines starting tomorrow.

Prime Minister Badawi, who succeeded Dr. Mahathir Mohammed as Prime Minister in October 2003, will arrive at the Villamor Airbase in Pasay City at 8:30 P.M. Monday. He is flying in from Laos, the previous stopover of his orientation journey through Southeast Asia.

This marks Badawi’s first visit to the Philippines as a Prime Minister, although he had been frequently to the country in his capacity as Malaysia’s deputy Prime Minister and foreign minister.

The Malaysian Prime Minister and his official entourage are billeted at the Shangrila Hotel in Makati City where they will spend the night before plunging into a busy round of activities the whole of Tuesday.

Prime Minister Badawi is expected to arrive at Malacaņang Palace at 10:00 A.M. where military honors await him as soon as he set foot at the Kalayaan ground. After a ceremonial walk with the President, the Prime Minister will sign the Guest Book at the Ante Room of the Palace Reception Hall.

President Macapagal-Arroyo and Prime Minister Badawi will then proceed to the Music Room of Malacaņang for a private meeting. This is to be followed by a bilateral meeting in which senior officials of both governments will be present. The two leaders had their first one-on-one meeting in Tokyo at the sideline of the ASEAN-Japan Commemorative Summit last January

The President and the Prime Minister are expected take up, among other matters, bilateral issues and the latest developments in connection with Malaysia’s efforts to broker a peace parley between the Philippine government and the Moro Islamic Liberation Front (MILF).

Foreign Affairs Secretary Delia Domingo Albert has affirmed Malaysia’s "central and exclusive role" in brokering the government-MILF peace talks. "We have had very involved discussions with Malaysia on their central and exclusive role in our peace talks with the MILF," she said.

After recalling that Prime Minister Badawi had assured President Macapagal-Arroyo in Tokyo on Malaysia’s commitment to broker the RP-MILF peace talks, Albert said, "We are very grateful for Malaysia’s commitment to peace and we look forward to the holding of the peace talks shortly."

Following the bilateral meeting, President Macapagal-Arroyo and Prime Minister Badawi will conduct a joint press conference at the Palace Ceremonial Hall.

At noon Tuesday, President Macapagal-Arroyo will host a luncheon in honor of the visiting Malaysian Prime Minister at the State Dining Room of Malacaņang. Afterwards, the visitors will motor back to the hotel and prepare for their departure via the Villamor Airbase.

Badawi is the fifth Prime Minister of Malaysia since the country’s independence from Britain in 1957.

Buoyed by military-police successes in operations against kidnap for ransom (KFR) and illegal drug syndicates that have gained praises in the business sector and the Filipino-Chinese community, the government remained steadfast today in its decision to carry out the death penalty unless stopped by the Supreme Court from doing so.

Presidential Spokesman Ignacio R. Bunye said, in a radio interview this morning, that "the execution of the two death convicts (on January 30, 2004) will push through. Only a judicial intervention from the Supreme Court could stop the executions."

Bunye said that President Gloria Macapagal-Arroyo had made it clear that the moratorium on the death penalty does not apply to high profile illegal drug and KFR cases.

Speaking at a Thanksgiving Party of the National Anti-Kidnapping Task Force (NAKTAF), held Friday night at Camp Aguinaldo in Quezon City, Miguel Varela, chairman emeritus of the Philippine Chamber of Commerce and Industry (PCCI), attributed to "lifting of the moratorium on the death penalty and successful mopping up of kidnapping and drug syndicates" the recent successes of government’s drive to promote peace and order.

Varela said, "We commend the highest leadership of the land, our President, for providing the vision that created the task force and thus far achieved unprecedented success in her effort to cut short cropping peace and order difficulties in the country."

Varela, who chairs the NAKTAF Advisory Board, said that "law and order (is) an important, if not the most important, issue in any of the macroeconomic fundamentals – if we are to attain genuine economic progress and development."

On behalf of the business community. Varela pledged to do their share and contribute to government efforts in solving the country’s economic and social problems.

"On the part of the business community, whose entire leadership is almost present here tonight, we fully commit our social responsibility to join efforts with the government and the whole society to look forward and move beyond in confronting peace and order obstacles that impede our nation’s growth and development," he said.

Among those present at the party were NAKTAF Chief Secretary Angelo Reyes, military officials led by Armed Forces Chief of Staff Gen. Narciso Abaya, members of the Police Anti-Crime and Emergency Response (PACER) Unit, Citizen’s Action Against Crime (CAAC) Chairperson Teresita Ang-See, industrialist Raul Concepcion, and several other business leaders.

The President, along with Varela and the other members of the NAKTAF Advisory Board, presented a plaque of appreciation to Reyes and the composite members of NAKTAF for their untiring efforts that resulted in a "kidnap-free Christmas" and the neutralization of kidnap-for-ransom groups.

Ang-See described the NAKTAF accomplishments, particularly these past two months, as "spectacular."