Speech of Press Secretary Ignacio R. Bunye Fellowship Dinner of the 14th Metro Manila Business Conference

The Bellevue Hotel, Muntinglupa City  (16 August 2006)

As Founding Chairman and Honorary Member of the Muntinlupa Chamber of Commerce and Industry, I join the four other chambers of the South Sector – Las Pinas, Makati, Paranaque and Pasay – in welcoming you here tonight.

It is always an honor to be among Filipino businessmen and women of Metro Manila, some of who may soon follow the footsteps of billionaire-philanthropist, John Gokongwei.

I hope you heard that Mr. Gokongwei recently did your sector and all Filipinos proud by donating P10 Billion to education and P500 Million to the University of San Carlos, in a single act of charity, on his birthday.

He isn’t here, but I think that such a good man with a good deed deserves a round of applause from all of us.

By the way, if you have some billions or millions that you want to donate, please ask for my telephone number so I can help you pick out -- a charity -- of my choice.

The philanthropic act of John Gokongwei segues neatly into your theme: One. Global. Filipino. Indeed, the world has, in the words of Thomas Friedman, become flat. Employers overseas hire Filipinos here at home to answer calls from customers that remain invisible, but audible. Our workers here continue to be in demand in places and occupations abroad that pay well enough to ensure that their children get a college education.

The Philippines is a global nation with 8 million sales agents around the world, who are quick to tell their foreign friends how beautiful our country is.

As entrepreneurs, this offers you the opportunity to reach out to the world through our vast overseas Filipinos’ network.

The importance of SMEs has been acknowledged worldwide. In every country, they constitute the bulk of all enterprises. That is why SME development is a global movement, and the concerted push for it is especially evident in Asian countries.

All of us are taking part in this global movement to attain sustainable growth through SME development.

SMEs contribute to the creation of wealth, employment, and income generation, both in rural and urban areas, thus ensuring a more equitable income distribution. They also provide the economy with a continuous supply of ideas, skills and innovations necessary to promote competition and the efficient allocation of scarce resources.

In the last five years, the SME sector has contributed to the Philippines’ 6% growth and 5 million new jobs. According to the NSO, 99.7% of the more than 810,000 registered businesses in the country are micro, small and medium enterprises by which 70% of our labor force earn a living. Around 30% of the total sales and value added in the manufacturing sector come from SMEs as well.

Many of our local products – from furniture to processed food – have the potential of becoming world-class and competing in the global market. Medical tourism industry is gaining popularity. The business process outsourcing is expanding, while other industries are steadily positioning themselves in the world market.

Globalization has altered the landscape for SMEs. The global industry has evolved towards more knowledge-based activities, the predominance of services and a greater role for smaller firms. Industrial activities in knowledge-based economies are more directly based on the production, distribution, and use of knowledge and information.

The mastering of new technologies and their application to production processes and products is crucial to competitiveness.

Our entrepreneurs are part of Philippine global competitiveness. That is why the President has asked DTI Secretary Peter Favila to conduct soon a national competitiveness summit in order to help you.

We are aware that much remains to be done. There are disparate impediments to SME growth. Limited access to financing, marketing, human resource development, modern technology and information – together they impede, even inhibit, SME development.

This is why, although SMEs in the Philippines comprise 99.7% of all firms in the country, a figure that is on a par with those of South Korea, Japan and China; and employ 70% of labor force (lower than South Korea’s 78%, Japan’s 88% and China’s 75%), they contribute only 32% of value-added to our economy, definitely lower than South Korea’s 47%, Japan’s 56% and China’s 68%.

This is the imbalance that we seek to correct through the National SME Agenda, an integrated SME development program that is expected to create a vibrant SME sector that will provide a strong domestic supply base for globally competitive industries.

The good news is that our fellowmen seem to have gotten tired of political bickerings and just want the country to get back on its feet. There is an obvious lack of public support to the renewed attempt by the opposition to impeach the President on alleged electoral fraud and other charges.

Public opinion polls showed that a majority of Filipinos believe the opposition should instead join the nation in moving forward.

The President said last week that she was happy that the people’s mindset now is for us to just move on with life and our work. To be fixated in the events of the past, will guarantee us a future of disruption, of interrupted growth and overlooked opportunities.

You will recall that in her State of the Nation Address last month, President Arroyo unveiled a massive spending initiative to jumpstart the economy and build economic "super-regions" to spur development in the countryside. This calls for building or upgrading at least 20 airports as well as roads, railways, bridges, ports and ferry services, tap water and irrigation projects.

This plan is bound not only to attract more foreign investments into the country but also create more jobs for the people. This is her personal tribute to the sacrifices of the Filipino people who willingly pay a higher consumer tax as an unparalleled act of daily patriotism.

The President’s dream for the Philippines is for it to become better so our people will just stay and work here. As she said in Cebu over the weekend, "I want a day to come when a job abroad will be a choice rather than a necessity for Filipinos."

The government has been doing our best to get the OFWs trapped in Lebanon taken out of harm’s way and safely brought back to the Philippines. The complexities of our Age demand that we seek a safer and more prosperous haven for our workers here at home. If we fail, more of them could be caught in a cycle of violence that has existed long before our generation.

Given this dream, and with the various challenges that our beloved country is facing today, we definitely need more brave and daring entrepreneurs like you to stimulate our economy, create jobs, and provide livelihood especially to the poor.

However, Government cannot do it alone. Our best-laid plans will remain simply that, without the cooperation of constructive and productive people like you.

Once again, let us turn to John Gokongwei for wisdom earned through the years. In his speech before the Ateneo de Manila University, he said, "I chose to live my life unafraid even during times when I WAS afraid. I discovered that opportunities don’t find you. You find your opportunities."

President Arroyo is trying her very best to create an environment for opportunities to emerge – for entrepreneurs and the average Filipino as well.

One.Global.Nation is not just a pipe dream. It is a reality brimming with opportunities for those who will it to come their way. With your help and under the President’s focused leadership, I am confident that a better Philippines will soon be here.

Thank you and good evening to all of you.

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