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| Backgrounder on ASEAN | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ASEAN Vision 2020
In 1997, the ASEAN Leaders adopted the ASEAN Vision 2020: ASEAN as a concert of Southeast Asian Nations, outward looking, living in peace, enjoying stability and prosperity, bonded together in partnership in a dynamic development and in a community of caring societies. As a first step towards the attainment of this vision, the Philippines joined ASEAN member countries in coming up with the Hanoi Plan of Action (HPA) adopted by ASEAN leaders in 1998, that serves as roadmap and blueprint for political, economic and functional cooperation in priority areas over a six-year time frame (1998-2004). The HPA calls for, among others, the attainment of greater economic integration, strengthening of regional peace and security, protection of the environment, promotion of sustainable development, upgrading of social and human resources development, coordination of policies to address the social impact of the financial and economic crisis and heightening of people’s awareness about ASEAN and its standing in the international community. BALI CONCORD 2003 At the 9th ASEAN Bali Summit in October 2003, the leaders reaffirmed the broad vision for ASEAN 2020. The resolve to bring into being a regional community of Southeast Asian nations is ASEAN’s response to the twofold challenges of broadening and deepening as a result of the expansion of ASEAN to ten member countries on one hand, and greater economic and security interdependence in the region and beyond. Therefore ASEAN Member countries have reaffirmed their shared responsibility for achieving the said goals with a greater sense of community. The Leaders agreed to establish an ASEAN Community that would be supported by the three pillars of " political and security cooperation", "economic cooperation", and " socio-cultural cooperation." These would be closely intertwined and mutually reinforcing in the effort to achieve peace, stability and prosperity. ASEAN Leaders agreed that through this effort ASEAN would reach a closer and mutually beneficial integration among its member countries and among its peoples. They also agreed to continue their efforts to promote regional peace and stability, security, development and prosperity with a view to realizing a dynamic and resilient ASEAN Community. To this end, the Leaders adopted the framework to achieve this ASEAN Community through ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. The Philippines initiated the idea of a third pillar of ASEAN cooperation, called the socio-cultural cooperation, to give balance to the goals of an ASEAN community. While ASEAN works towards economic integration, we should be mindful of the social development of our communities, including the promotion of human resources to gain skills and employment, promotion of their health, environment and regional identity. ASEAN Security Community ASEAN Leaders envisaged that the ASEAN Security Community would bring ASEAN’s political and security cooperation to a higher plane, and would ensure that ASEAN members live in peace with one another and in peace with the world in a just, democratic and harmonious environment. They also agreed that members of the ASEAN Security Community would rely exclusively on peaceful means in the settlement of intra-regional differences and regard their security as fundamentally linked to one another and bound by geographic location, common vision and objectives. The ASEAN Security Community should fully utilize the existing institutions and mechanisms within ASEAN with a view to strengthening national and regional capacities to counter terrorism and other trans-national crimes; and should work to ensure that the Southeast Asian Region remained free of all weapons of mass destruction. It should enable ASEAN to demonstrate greater capacity and responsibility to serve as the primary driving force of the ASEAN Regional Forum. ASEAN Economic Community (AEC) The AEC would be characterized by a single market and production base, with free flow of goods, services, investment and labour, and free flow of capital. ASEAN has a population of over 520 million and single market economically integrated allow enhanced trade and investment opportunities. The Leaders recognized that the realization of a fully integrated economic community requires implementation of both liberalization and cooperation measures. There is a need to enhance cooperation and integration activities in other areas. These will involve, among others, human resources development and capacity building; recognition of educational qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transaction through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement. ASEAN Socio-Cultural Community (ASCC) The ASEAN Leaders envisaged an ASEAN Socio-Cultural Community in consonance with the goal set by ASEAN Vision 2020, in which ASEAN would be bonded together in partnership as a community of caring societies. Through the Socio-Cultural Community, ASEAN could foster cooperation in social and rural population, and at the same time, seek the active involvement of all sectors of society, including women, youth and community groups. The ASEAN Socio-Cultural Community would intensify cooperation in addressing problems associated with population growth, education, unemployment, prevention of infectious diseases such as HIV/AIDS and SARS, environmental degradation and trans-boundary pollution. The Philippines took the lead in the drafting of the ASCC Plan of Action and the text has focused on four (4) core elements: 1. Building a
Community of Caring Societies The Plan of Action was approved at the 10th ASEAN Summit and annexed as part of the Bali Concord II. At the wake of the Tsunami Summit, adjustments have to be made in the work of the ASEAN Committee on Disaster Management. The path or stages, as tackled in the Jakarta Summit on Tsunami, should be relief, rehabilitation/reconstruction, prevention and mitigation. It is clear from the Plan of Action that ASEAN has been working on disaster preparedness and the Philippines is proud to have ownership of such initiative. The plans of action for the 3 pillars of the ASEAN Community were adopted by the ASEAN Leaders in November 2004. Clearly, ASEAN must muster the political will necessary to make the newer members (Cambodia, Laos, Myanmar, and Vietnam) stand shoulder to shoulder with the old 6. ASEAN should be able to prioritize regional projects and to look at the bigger picture instead of national interest. Vientiane Action Program (VAP) as ASEAN’s Roadmap The Hanoi Plan of Action (HPA), the first in a series of action plans or programmes leading to the end-goal of ASEAN Vision 2020 ended in 2004. The VAP is the successor of the HPA and elaborates on the themes of the ASEAN Vision 2020 by setting goals and strategies to reach the goals of an ASEAN Community, founded on three pillars of political and security cooperation, economic cooperation and socio-cultural cooperation. It is considered ASEAN’s blueprint of activities in the medium term covering the period 2004-2010. It is the instrument which cross-links and unifies the ASEAN Economic Community, ASEAN Security Community and the Socio-Cultural Community established under the Bali Concord II document adopted at the 9th ASEAN Bali Summit. The VAP has 2 dimensions. The first is to intensify current economic cooperation activities targeted for completion by 2010 and accelerate integration in the initial 11 priority sectors recommended by the High Level Task force on ASEAN Economic Integration which includes: agro-based products, air travel, automotives, e-ASEAN, electronics, fisheries, healthcare, rubber-based products, textiles and apparel, tourism, and wood-based products. The Philippines is the lead engine country in electronics, one of the 11 economic priority sectors. The second being, identifying strategies for bridging development gaps within the region through close technical and development cooperation among Members and strengthening linkages with dialogue partners and other ASEAN supporters. The Initiative for ASEAN Integration (IAI), an existing program to bridge the development gaps in the VAP will be broadened to include development efforts not only for the CLMV but also the poorer sub-regions in the ASEAN-6. The development of sub-regions such as the BIMP-EAGA was also included as a priority concern. As a process leading to the establishment of the ASEAN Community is continuously evolving, the VAP is perceived to be an evolving document. The list of activities that are envisaged to be implemented from the period of 2004-2010, as contained in the various annexes to the VAP, are non-exhaustive. There are also sections on resource mobilization and evaluation of the VAP. The VAP proposes the establishment of a common pool of fund called the ASEAN Development Fund to finance complex and strategic projects under the programme. It aims to attract donor countries, international organizations and private sector to assist in regional integration efforts. Member countries would be called upon to contribute when the balance of funds fall to 25% of its original level. |
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| The Philippines in ASEAN | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ASEAN today is 38 years old and the Philippines is proud to be a founding member since its inception. With its membership now covering 10 Southeast countries, ASEAN is moving progressively as it strives to realize its vision of a single ASEAN Community by 2020. The success of ASEAN can be attributed to increasing economic integration, cultural understanding and the unique ASEAN way. The ASEAN way is harmonious combination of national priorities and regional interests and following a step by step approach in the implementation of common principles and values. Today, ASEAN is evolving from a mere loose association of nations into a regional community which is economically integrated, politically coherent and bonded together as caring societies. Philippine Stakes in ASEAN The priority of ASEAN in Philippine foreign policy stems from the undeniable and inescapable fact that the geography is immutable. The Philippines’ strategic location in the Southeast Asian region is vital determining factor in building the country’s network of relationships and maximizing opportunities to advance national interests in the political, security, economic, social and cultural spheres. The historical interaction of the Philippines with its geographical neighbors has likewise given the impetus for coming together to forge stronger regional cooperation and enhance community-building efforts. Consequently, the Philippines became one of the original founding members of ASEAN in 1967. Over the past 38 years, the Philippine has committed to the ideals and objectives of ASEAN. Philippine leaders and government officials, the business community, non-governmental organizations and other societal groups continue to embark on and participate in collective efforts to move ASEAN forward for the welfare of the region’s half a billion people. The Philippines is an active participant in ASEAN initiatives against terrorism and other transnational crimes, promotion of regional peace and stability, economic growth and development and cultural cooperation. As ASEAN today is confronted with formidable challenges to regional and international peace and security and economic growth and development, it becomes even more urgent and imperative for the Philippines to work and stand together with its ASEAN neighbors through consensus, consultation, collaboration, cooperation and integration to attain ASEAN Vision 2020. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Overview of Philippines - Malaysia Relations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Establishment of Diplomatic Relations
The Philippines and Malaysia established diplomatic relations on 18 May 1964. Bilateral relations have been cordial but had been prevented from reaching its full potential due to the question of Sabah. Highlights of Philippines-Malaysia Bilateral Relations Political Relations The establishment of the Philippines-Malaysia Joint Commission for Bilateral Cooperation (JCBC) in July 1993 provided a consultative and monitoring mechanism to facilitate discussion and implementation of cooperative undertakings between the two countries. Significant developments which served to enhance relations between the Philippines and Malaysia include the successful hosting by the Philippines of the 5th Meeting of the Philippines-Malaysia Joint Commission on 14-16 July 2004 in Manila, after almost four years since the last meeting of the Joint Commission in Kuala Lumpur in 2000. Another manifestation of the continued expansion of the two countries’ bilateral relations is the intensification of government-to-government contacts at the highest levels, such as the successful state visit and official visits to Malaysia of President Gloria Macapagal-Arroyo in August 2001, May 2002, and February 2003 and the official visit of Secretary Romulo to Malaysia on 3 – 4 March 2005. In October 2005, the President went to Kuala Lumpur to express her condolences and attend the burial of the Prime Minister’s wife, Datin Seri Endon Mahmood. The Peace Process in Mindanao Malaysia is an important partner of the Philippines in the latter’s quest for lasting peace and broad-based development in Southern Philippines. In its efforts to find a durable solution to the conflict in Mindanao, since the assumption to the presidency of President Gloria Macapagal-Arroyo, Malaysia hosted a series of important peace negotiations between the Philippine Government (GRP) and the Moro Islamic Liberation Front (MILF). The Malaysian-led International Monitoring Team (IMT), dispatched in Mindanao, is tasked to observe and monitor the implementation of the ceasefire agreement and the peace agreement. The IMT has a substantial role in monitoring the implementation of the security, rehabilitation and development aspect of the GRP-MILF Tripoli Agreement on Peace of 2001. Bilateral Endeavors The Philippines and Malaysia have concluded a number of bilateral agreements, such as the agreements on anti-smuggling, taxation, air services, and tourism, among others. Other bilateral agreements are presently being worked out in the following areas:
The Philippines, Malaysia, and Indonesia are the three principal countries that concluded the Agreement on Information Exchange and Establishment of Communications Procedures at the sidelines of the working visit to Malaysia of H.E. President Gloria Macapagal-Arroyo on 7 May 2002. Thailand, Cambodia, and Brunei also acceded to the Agreement. The Philippines and Malaysia have also worked together in a wide range of areas such as piracy, border patrol and border crossing, and environmental protection. As partners in ASEAN, the Philippines and Malaysia have continued to work closely with their ASEAN neighbors, towards the establishment of an ASEAN Community. Economic Relations Trade Since the establishment of diplomatic relations, the two countries have witnessed the gradual, yet steady, increase of bilateral trade. In the last five years, the years 2002 and 2003 posted the highest growth in trade between Malaysia and the Philippines. From 1999 to 2004, Philippine exports to Malaysia grew by an average of 10.41% while Philippine imports from Malaysia increased by an average of 13.21%. Total volume of trade between the Philippines and Malaysia in 2004 registered at US$3,779.24 million up by US$86.02 million or 2.06% compared to the previous year. The Philippines continued to enjoy a trade surplus amounting to US$354.88 million in 2004. Philippine exports to Malaysia slightly declined to US$2,062.06 million in 2004 from US$2,334.69 million recorded the previous year due to a drop in electronics exports which contributed 83.76% to the total Philippine exports to Malaysia. Electronics exports fell to US$1,722.19 million in 2004 from US$2,063.65 million in 2003. RP-MALAYSIA
MERCHANDISE TRADE, 1999 –2005
Semiconductors remain our top export with sales reaching US$1,518.22 million in 2004, and accounts for 73.63% of our total exports to Malaysia. In 2004, semiconductor export registered at US$1,518.23 million with a whooping 552% growth rate compared to the previous year. Coming in a far second is electronic data processing equipment accounting for a total share of 7.2% of our total exports or US$148.43 million. Transport equipment came in third with a share of US$53.58 million or a measly 2.6% share to total. Imports likewise experienced a moderate surge with a total value of US$1,707.18 million in 2004 up by US$348.64 million or 25.66% compared to 2003 figures of US$1,358.55 million. Top imports for 2004 are, petroleum products, which accounted for US$272.79 million or 15.98% of the total imports. Coming in second is other industrial manufactures (excluding packaging products), with a share of 15.76% to total imports or US$269.02 million. Semiconductor is our third largest import with receipts totaling US$188.31 million making up 4.86% of the total. TOP PHILIPPINE EXPORTS TO MALAYSIASource: DTI (www.tradelinephil.dti.gov.ph) January – December 2004 (FOB Value in US dollars)
TOP PHILIPPINE IMPORTS FROM MALAYSIASource: DTI (www.tradelinephil.dti.gov.ph) January – December 2004 (FOB Value in US dollars)
Investments Philippine investments to Malaysia for the past five years were minimal. The Philippines is one of the countries with the least investment in Malaysia and vice versa. It did not reach top ten investing countries in the Philippines, with less than one per cent of the total foreign investments in the span of 5 years. This can be attributed to the fact that both countries encourage inbound foreign investment. They both recognize the important role that FDI can play in the economic development of their respective countries. Among the notable Malaysian companies operating in the Philippines are Maybank and Leader Universal, Metroplex Berhad, and Petronas Energy Philippines, Inc. FOREIGN DIRECT INVESTMENT IN THE PHILIPPINES BY MALAYSIASource: DTI (www.tradelinephil.dti.gov.ph) (in million pesos)
(in thousand RM)
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| Concluded Bilateral Agreements between the Philippines and Malaysia | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1.
Memorandum of Understanding between the Government of the Republic o the
Philippines and the Government of Malaysia on Tourism Cooperation, Done in Malaysia, 7 August 2001 2. Memorandum of Agreement between the Government of the Philippines and the Government of Malaysia on the Establishment of the Turtle Island Heritage Protected Area Done in Manila, Philippines on 31 May 1996 3. Memorandum of Understanding on Defense Cooperation between the Government of the Philippines and the Government of Malaysia Done in Quezon City, Philippines on 26 September 1994 4. Memorandum of Understanding on the Establishment of a Joint Commission for Bilateral Cooperation between the Government of the Philippines and the Government of Malaysia Done in Kuala Lumpur, Malaysia on 22 July 1993 5. Agreement between the Government of the Philippines and the Government of Malaysia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income Done in Manila, Philippines on 27 April 1982 6. Second Protocol (1994) to the 1976 Agreement on Anti-smuggling Cooperation between the Government of the Philippines and the Government of Malaysia Done in Kuala Lumpur, Malaysia on 29 March 1995 7. Protocol to the Agreement on Anti-smuggling Cooperation between the Government of the Philippines and the Government of Malaysia Done in Kuala Lumpur, Malaysia on 1 September 1967 8. Air Services Agreement
between the Government of the Philippines and the Government of Malaysia |
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| Country Profile: Malaysia | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COUNTRY PROFILE: MALAYSIA
Official Name :
Federation of Malaysia
Capital : Kuala
Lumpur
Head of State :
Paramount Ruler Tuanku Syed Sirajuddin Ibni Almarhum Tuanku Syed Putra Jamalullail,
The Raja of Perlis (since 12
December 2001)
Head of Government : Prime
Minister Abdullah bin Ahmad Badawi
(since 30 October 2003)
Location : Southeastern Asia, peninsula and northern one-third of the island of Borneo, bordering Indonesia and the South China Sea, south of Vietnam Total Area : 329,750 sq. km. Land Area : 98,190 sq. km.Major Industries : rubber and oil palm processing and manufacturing, light manufacturing industry, electronics, tin mining and smelting, processing timber, agriculture processing, petroleum production, refining and logging Population : 23,953,136 (July 2005 est.)Ethnic Groups : Malay and other indigenous 58%, Chinese 24%, Indian 8%, others 10% (2000) Official Languages : Bahasa Melayu (official), English, Chinese dialects (Cantonese, Mandarin, Hokkein, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai: note – in addition, in East Malaysia several indigenous languages are spoken, the largest are Iban and Kadazan Major Religions : Muslim, Buddhist, Daoist, Hindu, Christian, Sikh: note -–in addition, Shamanism is practiced in East Malaysia Export : US$ 123.5 billion f.o.b. (2004 est.)Export Commodities : Electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles and chemicals Export Partners : US 19.5%, Singapore 16.1%, China 10.4%, Japan 9.4%, and Hong Kong 4.3% (2003) Imports : US$ 99.3 billion f.o.b. (2004 est.)Import Commodities : Electronics, machinery, petroleum products, plastics, vehicles, iron and steel products and chemicals Import Partners : Singapore 25.3%, Japan 12.5%, US 12.1%, China 6.8%, Taiwan 5.4%, South Korea 5.2%, Thailand 5.3%, and Germany 4% (2003) Monetary Unit : Malaysian ringgit, 3.8 ringgit per US dollar in 2004) GDP (PPP) : US$ 229.3 billion (2004 est.) GDP Real Growth Rate : 7.1% (2004 est.) GDP per Capita : US$ 9,700 (2004 est.) |
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| Country Profile: Philippines | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LOCATION The Philippines is an archipelago of 7,107 islands. It is bounded by the South China Sea in the West, the Pacific Ocean in the east, the Sulu and Celebes Sea in the south, and the Bashi Channel in the north. The northernmost tip of the country is 241 kilometers south of Taiwan while the southernmost tip is just 14.4 kilometers north of Borneo. AREA The total land area of the archipelago is approximately 300,000 square kilometers. The three largest island groups are Luzon with an area of 141,395 square kilometers, Visayas with 56,606 kilometers, and Mindanao with 101,999 square kilometers. The archipelago is further subdivided into regions, provinces, cities, municipalities and barangays. There are 16 regions, including the National Capital Region (NCR), the Cordillera Administrative Region (CAR), CARAGA and the Autonomous Region In Muslim Mindanao (ARMM). Metropolitan Manila has been designated as the National Capital Region and is composed of the cities of Manila, Quezon, Pasay, Mandaluyong, Caloocan, Makati, Pasig, Muntinlupa, Las Pinas, Marikina, Valenzuela, Paranaque and Malabon, and the municipalities of Navotas, Pateros, San Juan, and Taguig. There are 79 provinces, 117 cities, 1,500 municipalities and 41,945 barangays. CAPITAL Manila CLIMATE The climate is tropical. The rainy season is from June to October, the cool dry season is from November to February, and the hot dry season is from March to May. Temperatures range from 21°C to 32°C, with the average at 27°C. Average humidity year round is 77%. All regions are exposed to typhoons, which are prevalent during the rainy season. POPULATION The Philippines has total population of 76.5M as of May 2000. Population density is 255 persons per square kilometer. LANGUAGE The national language is Pilipino, derived mostly from Tagalog. There are about 70 other local languages and dialects spoken. The major ones are Cebuano, Ilocano, Hiligaynon, Bicol, Waray, Pangasinense, Pampango and Maranao. English is widely spoken and understood. Spanish and Chinese are still spoken by a minority. BRIEF HISTORY Filipino society and culture were fairly well developed prior to contacts with other countries as documented from archeological artifacts recovered. Some 500 years before Ferdinand Magellan set foot in the Philippines, the Filipinos had commercial relations with China, Indo-China, Malaysia, India and Arabian countries. Chinese silk, porcelain, jars, gold, ivory, and beads were traded for wax, bird’s nest, teakwood, rattan, pearls, precious stones and other marine and forest products. On March 16, 1521, Ferdinand Magellan claimed the Philippines for the Spanish crown and brought great changes in the political, social and cultural life of the people. Christianity was introduced and centralized government was established. By the beginning of the 17th century, Spain’s sovereignty over the Philippines had been fully established. Spain’s rule for over three centuries was marked by sporadic revolts. The first Filipino revolt was led by Lakandula, the last King of Manila, in 1574 to castigate the Spaniards because of their reneged promise to exempt the Filipinos from tribute and forced labor. The revolt was terminated when the Filipinos were promised better treatment. Many of the revolts were caused by the people’s desire to win back their freedom and others were prompted by Spanish oppression. The bloody climax of Filipino struggle for freedom was the Revolution of 1896, which was also the culmination of revolts against Spanish rule. The national hero Dr. Jose Rizal led a reform movement in the 1880s which eventually led to the 1896 revolution. Dr. Rizal was tried in Manila and was sentenced to die by musketry. His death fuelled the fires of revolution and on June 12, 1898, leaders of the revolution declared the country a sovereign state and proclaimed the first Republic of the Philippines. While the revolution embroiled the country, Spain declared war against the United States because of the latter’s intervention over Cuba’s fight for independence. Cuba was then a colony of Spain. Spain was defeated and on December 10, 1898, the Philippines was formally ceded to the United States by virtue of the Treaty of Paris. The occupation of the American was resented by the Filipinos and the outcome was the Filipino-American War which lasted for three years. After several attempts of Filipino patriots to secure an act to grant independence from the United States, the Philippines was able to obtain the approval of the Tydings-McDuffie Independence Act, which provided for the establishment of a Commonwealth government to end after a ten-year period, and the adoption of a Constitution. A Constitutional Convention drafted the Constitution which was ratified on May 14, 1935. The election of Commonwealth officials followed, with Manuel L. Quezon as President, and Sergio Osmena as Vice President. On November 15, 1935, the new officials assumed office and thus began the ten-year period of self-government. This was interrupted when the Philippines was drawn into a war in the Pacific as an ally of the Americans against the Japanese. Japanese troops occupied Manila in 1942 and for three years, the Filipinos suffered the ravages of war. The liberation of the country was fully attained in February 1945, marking the start of the country’s massive rehabilitation and rebuilding out of the devastation brought about by the war. On July 4, 1946, a year after the end of the war, the American flag was lowered and the Philippine flag was hoisted, signaling the recognition of Philippine Independence from the U.S. GOVERNMENT The Republic of the Philippines, a democratic and republican state, has a presidential form of government under a new Constitution promulgated in 1986 and ratified by the people on February 2, 1987 The 1986 Constitution provided for a tripartite system: the Executive, represented by a President elected by direct vote of the people for a six-year term; the Legislative, represented by a bicameral Congress, composed of the Senate and the House of Representatives; and a Judiciary, with the power of judicial review. Executive power is vested in the President, who is assisted by the Cabinet. The President is the head of the Cabinet, which is responsible for formulating key policies and carrying out executive functions. The President is the Commander-in-Chief of the Armed Forces. The Congress has exclusive lawmaking powers. The Senate has 24 Senators elected at large and the House of Representatives has 226 Congressmen elected by district and by party list. The Judiciary is composed of the Supreme Court, the Court of Appeals and other inferior courts. The Supreme Court has a Chief Justice and 14 Associate Justices appointed by the President. RELIGION The predominant religion is Roman Catholicism. Roman Catholics make up nearly 85 percent of the population. The other religions are Protestantism and Islam. ECONOMY During the first quarter of 2004, the robust expansion in gross domestic product (GDP) by 6.4 percent and gross national product (GNP) by 6.2 percent indicated that the economy’s engines of growth remain generally healthy, with all economic sectors - agriculture (7.7%) , industry (5.5%) , and services (6.4%) – expanding. Underpinning the strong growth were factors whose impact countered the adverse effects from developments such as the rising price of oil and the uncertainty arising from the election. Domestic demand, led by consumer spending, has held up well. Personal consumer spending grew a robust 5.9 percent, helped by a combination of the strong growth in agriculture, election-related spending, and overseas remittances. The strong growth in agriculture is not only due to favorable weather but also to the vigorous support of the government which led to an expansion in irrigated areas and the use of hybrid seeds and other essential farm inputs. Manufacturing has also benefited from the expansion in exports (10%) to main trading partners such as the US, Japan, Southeast Asian economies, and the increasing trade with China. Boosting this was the 15.8 percent growth in exports of non-factor services which includes earnings from call centers and business process outsourcing centers. Meanwhile, notwithstanding the uncertainty arising from elections, investments in construction and durable equipment rose 4.8 percent. Investments in durables were mostly investments in agriculture, telecommunications, office and data processing, and in industries that are investing to improve competitiveness such as textiles, sugar milling, and pulp and paper. The increase in the price of oil presents a downside risk in the coming quarters. However, the economy has enough bright spots to mitigate the increase in oil prices and possible hike in interest rates. These include support for agriculture, the continued expansion of the telecommunications and IT-related businesses, public sector spending for key infrastructure projects of government owned and controlled corporations--the North Luzon Expressway, LRT Line 2, port development, and inflow from overseas workers. Currency: Philippine Peso Exchange rate: P54.2220 = US$1 (as of December 6, 2005) |
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