August 30 2007

President Gloria Macapagal-Arroyo's Departure Statement on Her Visit to Malaysia
August 30, 2007

As I leave for Malaysia to join the other ASEAN leaders in the 50th anniversary of Malaysia’s independence from British rule, I am elated that for the second quarter of this year, our gross domestic product or GDP rose by 7.5 percent and gross national product or GNP by 8.3 percent bringing to 7.3 percent our economic growth in the first half of the year.

We bring this elation and pride to Malaysia, the third largest economy in the region, and second home to thousands of overseas Filipino workers. I will bring my thanks and congratulations to the Filipinos in Malaysia for their contribution to our GNP growth. Malaysia also plays an important role in the Association of Southeast Asian Nations and in our peace process in Mindanao.

Since winning independence from Britain, Malaysia has transformed itself into one of the region’s modernized countries, with a remarkable history of political stability and economic growth.

During our visit, I shall take the opportunity to reiterate to the government and people of Malaysia, our country’s profound appreciation for their role in facilitating the peace process in Mindanao.

The Philippines and Malaysia have been co-founders, along with Indonesia, Singapore and Thailand, of the original five-member Association of Southeast Nations (ASEAN) in 1967. Today, ASEAN has grown into a dynamic regional bloc and much sought after trading partner across the world.

The Philippines and Malaysia are members of the 21-nation Asia-Pacific Economic Cooperation (APEC) Forum, which is holding their annual conference in Australia this September. Our participation in APEC has resulted in greater security for all due to stronger multilateral, regional, and bilateral partnerships between and among APEC members against terrorism.

We have made international relations a centerpiece of our government’s political and economic reform agenda. Every diplomatic mission is an occasion to build stronger ties and preserve friendships that can be counted upon when most needed. Always at the heart of such visits is the welfare and future of our OFWs. In Kuala Lumpur, we shall make time to visit and chat with the vibrant and hardworking Filipino community. They, too, are part of this celebration as direct contributors to Malaysia’s growth and our own national economy.

Our agenda for this trip is clear: to honor the invitation of a dear and well-respected neighbor; to thank the King and government of Malaysia for its help in our quest for peace; and to visit our workers who embody the resilient and industrious spirit of the Global Filipino.

Thank you.

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President Gloria Macapagal-Arroyo's Opening/Closing Statements during the Press Briefing on the Philippine Economic Performance and Direction, Rizal Hall, Malacanañg, August 30, 2007

Magandang umaga.

Ang ating mga reporma sa ekonomiya ay nasa harapan ng ating kampanyang bawasan ang kahirapan. Ito ang ating pangkalahatang layunin. Ang pagbalansiyado ng kaban ng bayan ay unang hakbang lamang. Gumagawa tayo ng matagal nang dapat gawing pamumuhunan sa human at physical infrastructure.

Kasama rito ang bilyung-bilyong piso sa edukasyon, kalinga sa kalusugan at training. Kasama ng bilyun-bilyon sa mga bagong tulay, kalsada, pantalan to upgrade the competitiveness of the Philippines. This in turn attracts more investments at lumilikha ng dadag na trabaho. Mas maraming trabaho, mas konting kahirapan.

Hangang ngayon, mataas ang ating hinahangad. Naharap natin ang hamon. No one thought we could get more revenue, cut down on tax cheats, strengthen the peso and move the stock market. No one thought we could bring our budget into balance, pre-pay our debts at dagdagan ang trabaho – ngunit nagagawa natin.

Our newfound money for investments allows us to pick up the pace of growth. Umuobra ang ating plano sa ekonomiya.

Today we have the latest glowing indicators to show it. For the second quarter of the year, gross domestic product or GDP rose by 7.5 percent, (applause) the fastest in two decades, gross national product or GNP rose by 8.3 percent. (applause) This brings our first semester economic growth to 7.3 percent.

We’re confident of meeting our full year growth forecast of 6.1 to 6.7 percent. Based on additional data, our statisticians have also revised the first quarter GDP growth. And that’s why I said that GDP grew in the first semester by 7.3 percent.

Sa mga tagumpay na ito, pinupugay natin ang bawat Pilipino dito at sa ibayong dagat.

While our economy has reached a new level of maturity and stability with one of the strongest macroeconomic fundamentals in two decades, dapat hindi tayo magpahinga kundi sumulong at isustento ang momentum. Sa susunod na tatlong taon, ita-translate natin ang mga positibong resulta ng ating mga reporma sa ekonomiya sa mga tunay na biyaya para sa taong-bayan.

To sustain our expansion and global business uncertainties, we must undertake more efforts to boost the domestic economy. We call on the business leaders gathered here to join hands with our economic team in advancing crucial initiatives toward faster and faster growth.

First, we must achieve our revenue and deficit targets to maintain investor and creditor confidence and keep the flow of low interest capital strong. We have given strict marching orders to BIR and Customs in three meetings since July to hit their targets or else. And they have been meeting their targets. With resolute collection and payment of the right taxes, we shall all enjoy ample, cheap funds for business and development.

Second, with the world economy hitting some bumps due to dearer oil and market turmoil, we must intensify domestic growth and investment especially in micro, small and medium enterprises, exports and agri-business, tourism and infrastructure. That means addressing business concerns over power costs and red tape.

I have instructed Secretary (Peter) Favila, as chairman of the National Competitiveness Council, to work with the PCCI (Philippine Chamber of Commerce and Industry) and other leading business associations in focusing priority government action on their concerns so that we can report solid gains and solutions when the Philippine Business Conference comes around in a couple of months.

Peter, please slash more red tape, as well as the drag of power costs on our exporters and manufacturers.

Last week, we met with the Department of Energy precisely to ensure our power cost production strategy. DOE has committed to privatize half of months NAPOCOR’s generating capacity in the months ahead, along with Transco which has attracted interest from nine consortia. We hope Congress can prioritize the bill to amend EPIRA and make open access a reality for industrial users of electricity.

Third, I instruct the Super Region champions, the infrastructure agencies and state corporations, and the infrastructure monitoring task force of the Presidential Management Staff to be merciless in ripping through undue obstacles in the way of long overdue priority infrastructure.

Let us end the days when our public works were held back by huge deficits and reenacted budgets. To this end, we also urge Congress to speedily enact next year’s budget for hopefully even faster growth in 2008.

Meron pang trabaho ang PMS – si Cerge Remonde – itulak ang mga government at private financial institutions at NGOs na magpahiram sa mga macro, small at medium na negosyo. Ito ang mga saligan ng ating ekonomiya. Dapat palawakin natin sila sa sapat na pautang at technical assistance.

Salamat muli sa lahat sa sama-samang pagtatrabaho para gawing mas kahanga-hanga ang Pilipinas habang paspas tayo sa larangan ng progreso at prosperidad.

Sa pag-aani din ng debidendo ng ating mga pagsisikap sa kapayapaan at seguridad at sa mas malaking mga pondo ng ating mga programang panlipunan, nakakapamuhunan tayo sa paglikha ng trabaho. Mas mabuting kalinga sa kalusugan at higit na oportunidad sa edukasyon. Ito ang mga susi para umahon ang mahihirap.

Sa tulong ng Maykapal, magbalikatan tayo sa sama-sama nating trabaho.

Maraming salamat.

And now I ask Estrella Domingo, the Secretary General of the NSCB (National Statistical Coordination Board), to give a presentation that will open the press conference on economic issues.

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PGMA: Poverty reduction our over-arching goal

President Gloria Macapagal-Arroyo said today that her administration’s bold economic reforms are not only working, they are producing the much-needed funds for the government’s efforts to reduce poverty in the country.

In a press briefing this morning in Malacanang, the President explained that alleviating the widespread poverty is the over-arching goal of her administration.

Reducing poverty is also the driving force behind her economic reform programs, she added. Poverty reduction is “our over-riding objective -- ang pagbalansiyado ng kaban ng bayan ay unang hakbang lamang; gumagawa tayo ng matagal nang dapat gawing pamumuhunan sa human at physical infrastructure.”

The President said upgrading the country’s competitiveness forms part of her administration’s strategy for poverty reduction. Investments create additional jobs – “mas maraming trabaho, mas konting kahirapan.”

“Kasama rito ang bilyun-bilyong piso sa edukasyon, kalinga sa kalusugan at training; kasama ng bilyun-bilyon sa mga bagong tulay, kalsada, pantalan…”

“Hanggang ngayon, mataas ang ating hinahangad – naharap natin ang hamon,” the President said, even as she pointed out that earlier, “no one thought we could get more revenue, cut down on tax cheats, strengthen the peso and move the stock market.”

Recalling the initial pessimism that her economic reforms would work, the President said, “No one thought we could bring our budget into balance, pre-pay our debts, at dagdagan ang trabaho – ngunit nagawa natin. Our new-found money for investments allows us to pick up the pace of growth.”

“Umu-ubra ang ating plano sa ekonomiya – today we have the latest glowing indicators to show for it,” the President said.

The Chief Executive rattled off the latest accomplishments of her administration, saying: “For the second quarter of the year, gross domestic product or GDP rose by 7.5 percent – the fastest in two decades.”

“Gross national product or GNP rose by 8.3 percent – this brings our first semester economic growth to 7.3 percent … (and) “we’re confident of meeting our full-year growth forecast of 6.1 to 6.7 percent,” she said.

Admitting that a lot of work remains to be done, the President said the government cannot rest on its laurels: “Dapat hindi tayo magpahinga, kundi sumulong at i-sustento ang momentum sa susunod na tatlong taon. Ita-translate natin ang mga positibong resulta ng ating mga reporma sa ekonomiya sa mga tunay na biyaya para sa taong-bayan.”

“To sustain our expansion… (and) to boost the domestic economy,” the President called on the business leaders present “to join hands with our economic team in advancing crucial initiatives toward faster and faster growth.”

The initiatives include the following: (1) achieve our revenue and deficit targets to maintain investor and creditor confidence and keep the flow of low-interest capital strong; (2) intensify domestic growth and investment, especially micro, small and medium enterprises, exports and agri-business, tourism and infrastructure, and addressing business concerns over power costs and red tape; and (3) “be merciless in ripping through undue obstacles in the way of long-overdue priority infrastructure.”

She said she had given “strict marching orders to the BIR (Bureau of Internal Revenue) and (the Bureau of) Customs in three meetings since July to hit their targets or else – and they have been meeting their targets.”

She added that “with resolute collection and payment of the right taxes, we shall all enjoy ample, cheap funds for business and development.”

The President also called on Trade and Industry Secretary Peter Favila to “please slash more red tape, as well as the drag of power costs on our exporters and manufacturers.”

She also reiterated her directive to the Department of Energy (DOE) last week “to ensure our power cost production strategy.”

“DOE has committed to privatize half of National Power Corporation’s generating capacity in the months ahead, along with the National Transmission Corporation (Transco) which has attracted interest from nine consortia.”

The President also said she hopes Congress would prioritize the bill amending the Electric Power Industry Reform Act (EPIRA) and open access for industrial users of electricity a reality.

For the third initiative, the President said she assigned the clearing up of the obstacles impeding priority infrastructure projects to the super regions champions, the infra agencies, state corporations, and the infra-monitoring task force of the Presidential Management Staff (PMS).

“Let us end the days when our public works were held back by huge deficits and reenacted budgets. To this end, I also urge Congress to speedily enact next year’s budget for hopefully even faster growth in 2008,” she said.

The President also directed the PMS to push government and private financial institutions and non-government organizations “na magpahiram sa mga micro, small at medium na negosyo – ito ang saligan ng ating akonomiya, dapat palawakin natin sila sa sapat na pautang at technical assistance.”

Among those present during the presentation of the 2007 Second Quarter and First Semester Economic Performance were Roger Dallas, president and manager of the American Chamber of Commerce of the Philippines; Toshifumi Inami, president of the Japanese Chamber of Commerce and Industry of the Philippines; Jesus Arranza, president of the Federation of Philippine Industries; and Benjamin Philip Romualdez, president of the Chamber of Mines of the Philippines.

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PGMA and other heads of state join the celebration of Malaysia's 50th Independence Day

President Gloria Macapagal-Arroyo’s two-day official visit to Malaysia will be highlighted by her witnessing the Independence parade tomorrow and attending a Hi-Tea ceremony hosted by the Malaysian King.

The President left today for Malaysia to attend the grand celebration of its 50th Independence Day Friday, Aug. 31.

Among those who sent the President off this afternoon at the Kalayaan Lounge of Villamor Air Base in Pasay City were Vice President Noli de Castro, Executive Secretary Eduardo Ermita, Ninoy Aquino International Airport (NAIA) general manager Alfonso Cusi, Philippine National Police (PNP) chief Director General Oscar Calderon and the service commanders of the Armed Forces of the Philippines (AFP).

Included in the President’s official delegation were Foreign Affairs Secretary Alberto Romulo, Press Secretary Ignacio R. Bunye, Philippine Ambassador to Malaysia Victoriano Lecaros, and some members of the House of Representatives.

After a three-hour flight to Kuala Lumpur, the President is scheduled to meet with the Filipino community at the Hotel Nikko in Kuala Lumpur tonight.

In her departure statement, the President said that since winning its independence from Britain, Malaysia has transformed itself into one of the region’s modernized countries, with a remarkable history of political stability and economic growth.

During her visit, the President said she would also thank the people and government of Malaysia for their role in the peace process in Mindanao.

On Friday morning, the President and the Philippine delegation would witness the National Day Parade at the Merdeka Square.

Later in the afternoon, the President is scheduled to attend a Royal Hi-Tea ceremony hosted by the Malaysian King and Raja Permaisuri Agong at the Banquet Hall of Istana Melawati in Putrajaya.

The President and her party would leave Kuala Lumpur International Airport at around midnight and arrive early Saturday in Manila.

Aside from her, other heads of state from the Association of Southeast Asian Nations (ASEAN) also accepted the invitation of the Malaysian king, His Majesty Seri Paduka Baginda Yang di-Pertuan Agong, to attend the celebration of its Independence Day that marks half a century of self-rule after the Federation of Malaysia was granted independence by Great Britain in February 1956. However, due to a number of reasons, it was decided that the official proclamation of Malaysia’s independence be made on Aug. 31, 1957.

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Gov't on track to meet full year 6.1 - 6.7 percent growth target -- PGMA

President Gloria Macapagal-Arroyo said today that the government is on track to meet its full year economic growth target of 6.1-6.7 percent.

In a press briefing in Malacanang this morning, the President said that based on additional data, the country’s gross domestic product (GDP) grew by 7.3 percent in the first semester of the year.

“We are confident of meeting our full year growth forecast of 6.1-6.7 percent. Based on additional data, our statisticians have also revised the first quarter GDP growth. And that’s why I said that GDP grew in the first semester by 7.3 percent,” she said.

GDP is defined as the market value of all final goods and services produced within a country in a given period of time.

Citing latest economic indicators, the President said that in the second quarter of the year, GDP rose by 7.5 percent, the fastest in 20 years, while gross national product (GDP) hit 8.3 percent.

“This brings our first semester economic growth to 7.3 percent,” she added, as she attributed the country’s improved economy to all Filipinos here and abroad.

She warned, however, against complacency. “While our economy has reached a new level of maturity and stability with one of the strongest macroeconomic fundamentals in two decades, we must sustain the momentum” of economic growth, she said.

“To sustain our expansion and global business, we must undertake more efforts to boost the domestic economy. We call on the business leaders gathered here to join hands with out economic team in advancing crucial initiatives toward faster and faster growth,” the President said.

In her report on the Performance of the Philippine Economy for the Second Quarter of 2007, Estrella Domingo, assistant secretary general of the National Statistical Coordination Board (NSCB), said the GDP growth for the second quarter of 2006 was 5.5 percent while that of the GNP was 6.4 percent.

During the same period this year – April to June 2007 – the growth rate for GDP was 7.5 percent while that for GNP was 8.3 percent.

For the first half of 2006, the GDP growth rate was 5.6 percent compared to this year’s 7.3 percent; while last year’s GNP growth rate was 6.4 percent compared to 8.0 percent this year, Domingo added.

Domingo also noted that during the second quarter of 2007, the industry sector grew by 8 percent compared to last year’s 4.4 percent.

She attributed this to the big jump in the growth rate in the mining and quarrying sub-sector which registered a record 33.3 percent growth this year, compared to only 3.3 percent last year.

The construction sub-sector of the industry sector also recorded a growth rate of 21 percent during the same period, compared to last year’s 4.0 percent.

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30 AUGUST 2007