September 03 2007

PGMA goes to APEC with good news on RP economy

Buoyed up by an economy that has reached a new level of maturity and stability, President Gloria Macapagal-Arroyo embarks this week on another economic mission when she flies to Sydney, Australia for this year’s Asia-Pacific Economic Cooperation (APEC) Forum.

The conclave, which will bring together the leaders of 21 economies in the Asia Pacific, including the United States, Japan and China, is slated on Sept. 3-9.

Capping the six-day economic forum will be the Asia Economic Leaders Meeting (AELM) which the President will attend starting Friday.

The AELM is the most significant economic forum of its kind. Hosted by Australia, the sessions will take place in an informal, relaxed, retreat setting in which leaders can address issues of strategic importance to the region.

Expected to top the AELM agenda are the global concerns on climate change, energy security, and terrorism, issues that the President has consistently shown keen interest in.

The President will be going to the annual summit armed with the latest economic data showing a second quarter growth of 7.5 percent of the Philippine economy, its strongest uptick in two decades.

Leaders of the Association of Southeast Asian Nations (ASEAN), of which the Philippines is a founding member, are expected to hold bilateral negotiations with their counterparts from Australia and New Zealand on an ASEAN free trade agreement on the sidelines of the APEC meeting.

The deadline for the free trade talks between the 10-member ASEAN and agricultural powerhouses Australia and New Zealand has been extended to May next year.

Although heads of member economies will issue an APEC Economic Leaders Declaration (AELD) at the end of the summit, the document is not expected to partake of the nature of binding agreements.

Although in the past APEC had taken up such issues as terrorism and bird flu, along with the changing international agenda, its overall agenda remains firmly rooted in its original objective of promoting trade and investment.

Apart from government officials, joining the President in her Australia trip are leaders of the Filipino business community who include San Miguel Corp president and chief executive officer (CEO) Ramon Ang, San Miguel Corp. chairman Eduardo Cojuangco Jr., Philippine American Life and General Insurance Co. president and CEO Jose L. Cuisia Jr.;

Benguet Corp president and CEO Benjamon Philip G. Romualdez, SM Investments vice chair Teresita Sy-Coson, Planters Development Bank chair and CEO Jesus Tambunting, Philam Insurance chair Roberto Romulo, Magsaysay Group of Companies president and CEO Doris Magsaysay-Ho.

Romulo and Magsaysay-Ho are both members of the APEC Business Advisory Council (ABAC).

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PGMA's Statement at the 50th anniversary Celebration of the Social Security System (SSS)
SSS Building, Quezon City, September 3, 2007

Happy Golden Anniversary, SSS! Thank you for half a century of service to the Filipino people.

We also congratulate Cora de la Paz for being the first Asian to be elected president of the International Social Security System!

ix and a half years ago, SSS was facing financial collapse and your funds were in danger of running dry by 2015.

We embarked on a radical reform program and now SSS is back on its feet, stronger and more resilient than ever, and with the credibility regained ranking 3rd in the polls of institutions effectively fighting corruption.

Our administration’s anti-corruption advisor, Tony Kwok, the former anti-corruption czar in Hong Kong who was a key player in efforts to clean up corruption there, believes that perceptions cloud the reality of our progress in the Philippines. SSS is one shining example of the fact that we have undertaken strong and steady effort to curb graft through criminal justice, administrative controls and procedural reforms. This effort of the government focuses on the revenue agencies that, like SSS, have improved their performance in recent years; and agencies that are in the frontline of day-to-day public services. We take this issue very seriously and with the accomplishments of agencies like the SSS, we believe perception will match reality in a few short years. This is a problem that has plagued the Philippines, as it has plagued other countries, for generations; and, as the SSS experience has shown, it won’t be eliminated overnight but progress is being made.

The reform of SSS was part of the hard-fought economic reform battles through which the Philippine economy has finally broken loose from its historic legacy of lethargy. New revenues, including increases in contributions for SSS, better collection and a crackdown on remittance cheats along with fiscal discipline has put the SSS and the Philippines on a path to permanent, sustainable economic growth and stability.

Thanks to the SSS and other outstanding institutions, the rate of poverty is down, employment is up and our education and healthcare services to the poor vastly improved. We have a long way to go, but only through a strong economy and strong institutions like the SSS can we improve the plight of the poor. We have turned the corner on our economy. New revenue sources are here to stay, for the national government and for the SSS: our national budget will be balanced next year, while SSS assets have risen to P248 billion and its investment income P15.58 billion in the last six months; the peso is strong. This allows us to invest in job creation, better healthcare and more educational opportunities. Most notably and most felt, this has allowed us to increase the SSS pensions twice in the last 12 months; 10% in September last year and another 10% last month, SSS 50th anniversary present to the Filipino people.

We have also condoned penalties and restructured housing loans, allowing 6,000 SSS members to keep their homes, enabling the speedy grant of housing loans to calamity victims and various loans for sickness and other personnel emergencies, and the fast-track processing and quicker delivery of retirement and disability pensions.

I ask Thelmo Cunanan and the SSS board to extend the condonation program for six more months. This is social payback.

We are proud of the discipline of SSS to focus on financing viability, sound investments, quality service, and corporate culture. We are committed to making sure we use the new resources these developments are generating to provide vital social and economic needs. It has been a tough road, both for the national government and for the SSS, but long ago I made a decision not to sacrifice long term gains for short term political expediency. And Cora de la Paz long ago made the same decision for the SSS, backed up fully by Thelmo Cunanan and his board.

SSS reflects the new level of maturity and stability our economy has reached with some of the strongest macroeconomic fundamentals in two decades.

New social security schemes are imperative as we modernize our economy.

I encourage your strategic plans to expand your membership through mandatory coverage of all OFWs, especially seafarers and amend the SSS Charter, particularly to institutionalize actuarial standards and formulas.

Last week, I issued a directive to push government and private financial institutions and NGOs to increase lending to micro, small and medium enterprises which are the biggest job generators. Thank you for your recent announcement of a P1 billion special window for MSME lending in celebration of your fiftieth jubilee.

SSS at 50 has done a good job balancing your vital functions of capital build-up and support for national social programs along the mandate of providing a lifeline to your members. I am confident that you are up to the challenge of continuing to be financially viable and living up to your anniversary theme as our people’s KAAGAPAY, KAIBIGAN AT KABALIKAT. MAGPAKAILANMAN. Thank you!

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PGMA asks SSS to extend condonation program

President Gloria Macapagal-Arroyo directed today the Social Security System (SSS) to extend its housing loan condonation program by another six months and strongly pushed for the inclusion of overseas Filipino workers (OFWs) in the roster of its more than 27 million members.

The President issued the directive during the 50th anniversary celebration of the agency this afternoon at its main office along East Avenue, Quezon City.

Among those who welcomed the President were SSS president Corazon dela Paz, SSS chairman Thelmo Cunanan, and former SSS administrator Jose Cuisia.

As part of the social payback of government reform programs, the President said the condonation of penalties and restructuring of housing loans has already benefited more than 6,000 SSS members.

"I ask Thelmo Cunanan and the SSS board to extend the condonation program, if possible, for another six months. This is social payback," the President said.

In the past several years, the SSS, together with other government revenue agencies, has implemented various reforms that resulted in higher collections, with the SSS providing more benefits and making sound investments.

Some six years ago, the President said the SSS was facing financial collapse with its actuarial life forecast at 2015.

As a result of the hard-fought economic reforms, the President said SSS assets now have ballooned to P248 billion and its investment income in the last six months alone has already reached P15.58 billion.

“New revenues, including increases in contributions for SSS, better collection and a crackdown on remittance cheats along with fiscal discipline has put the SSS and the Philippines on a path to permanent, sustainable economic growth and stability," she said.

Also as part of its anniversary present to the Filipino worker, the President said SSS also increased the members' pensions twice in the last 12 months -- 10 percent in September last year and another 10 percent last month.

The President also encouraged the SSS to expand its membership to include the mandatory coverage of OFWs, especially seafarers, the plan to amend its Charter, and institutionalize actuarial standards and formulas, among other proposals.

The President thanked the SSS for recently providing the P1 billion special window for micro, small and medium enterprises (MSMEs) which, she said, are the biggest job generators in the country.

"Thanks to the SSS and other outstanding institutions, the rate of poverty is down, employment is up and our education and healthcare services to the poor vastly improved," she said.

The President also congratulated De La Paz for being the first Asian woman to head the International Social Security Association (ISSA), which is also celebrating its 80th year.

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PGMA earmarks P8 billion for irrigation, P5 billion for FMRs under 2008 budget

PALAYAN CITY, Nueva Ecija – President Gloria Macapagal-Arroyo said here today that the government has earmarked P8 billion for irrigation projects and P5 billion for farm-to-market roads (FMRs) under the national budget for 2008.

She said the P8 billion allocation is enough to irrigate an additional 100,000 hectares of farmlands, while the P5 billion will fund the construction of 3,000 kilometers of farm roads nationwide.

The President helicoptered to Barangay Manggahan, this city this morning to inaugurate the P295-million Aulo Dam.

“Sa 2008, naglaan tayo ng P5 billion para sa mahigit tatlong libong kilometro ng kalsadang bukid. Sa irigasyon naman, P8 billion ang gugugulin, mas mataas ng kalahating bilyon sa badyet ngayong taon. Sandaang libong ektarya ang magkakaroon ng bago o isinaayos na patubig,” she said.

The President added that some P3.4 billion will also be used to rehabilitate existing irrigation projects through the National Irrigation Administration (NIA).

“Hahawakan ng National Irrigation Administration o NIA ang P3.4 billion ng badyet sa irigasyon para sa pagpapaayos ng mga patubig na itinayo natin.”

The Aulo Dam, or Aulo Small Reservoir Irrigation Project, can irrigate a total of 810 hectares of orchards and ricelands.

With the completion of the dam, farmers can now plant rice two times a year instead of only one cropping season in previous years, Agriculture Secretary Arthur Yap told the President.

In her opening statement at the open-air Pulong Bayan here, the President said the fruits of the reforms instituted by her administration are beginning to trickle down to the ordinary people, including the Novo Ecijanos.

“Dahil sa ating mga reporma na nag-ambag sa kaban ng bayan, lalo nating naipadarama sa milyun-milyong Pilipino ang mga biyaya ng malakas na ekonomiya. Noong Huwebes, iniulat natin ang pinakamabilis na paglago ng ekonomiya sa loob ng halos dalawampung taon,” she said.

“Dito sa Nueva Ecija, inaasahan nating nararamdaman ang biyaya ng paglagong ito sa mga proyektong patubig at kalsadang bukid. Kabilang ang mga Novo Ecijano – nangunguna pa nga – sa libu-libong magsasaka na nakinabang sa halos isang milyong ektaryang bagong isinaayos na irigasyon mula 2001,” the President added.

Under the 2008 national budget, P1.5 billion will be earmarked for the Casecnan Dam, P700 million for the Binaogang project in Ilocos Sur, P250 million for the Balog-Balog project in Tarlac and irrigation projects in southern Philippines.

The President explained that through her administration’s farm-to-market road and irrigation projects, “lalong maipadarama sa taong bayan ang mga biyaya ng reporma sa ekonomiya, lalo na ang pagdami ng abot-kayang pagkain dahil sa pagtaas ng ani at mas maginhawang pagdala sa mga mamimili.”

The President also released sacks full of bangus fingerlings into the Aulo Dam waterway.

The Aulo Irrigation Small Reservoir Irrigation Project can irrigate a total of 810 hectares, consisting of 445 hectares of ricelands and 365 hectares of orchard farms.

Started in June 2001, the Aulo Small Reservoir Irrigation Project was completed on Jan. 31, 2007.

Among the Novo Ecijano officials who attended the Pulong Bayan were Gov. Aurelio Umali, Vice Gov. Edward Tomas Joson, Palayan City Mayor Romeo Capinpin, and Congressmen Eduardo Nonato Joson (1st district), Joseph Gilbert Violago (2nd district), Cherie Umali (3rd district), and Rodolfo Antonino (4th district).

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Statement of Secretary Ignacio R. Bunye Re: Senate Hearings

I'll cross the bridge when I get there.

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03 SEPTEMBER 2007