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PGMA's Speech during the Asian-African Business Summit 2005 "Managing for Global Competitiveness: Philippine Perspective
Mulia Hotel, Jakarta, Indonesia (22 April 2005)

Thank you, Mr. Ong.

Prime Minister Lee; movers and shakers of the business communities of Asia and Africa; ladies and gentlemen: good morning.

I'm honored to be here with you today and to be among the keynote speakers at this Asia-Africa business summit of 2005. And I congratulate the Indonesian Chamber of Commerce and everyone involved, in particular, the President of the Indonesian Chamber, Mr. Hidayat, for organizing this historic event.

In a period when the global economic order is transforming the economic, political and social landscape, this summit is a significant move by developing and least developed nations to move forward in confronting the challenges of the period. In the case of the business sectors of Asia and Africa, the most important response to these challenges is to manage for global competitiveness.

We can draw our inspiration from the "Bandung spirit" of the first Asian-African Summit of 1955, the spirit of striving to attain a just, peaceful, progressive and prosperous world order.

We can also draw inspiration from what happened forty-five years after the Bandung conference, when on November 6th to 7th in the year 2000, the Asian-African Business Association Summit was inaugurated in Kuala Lumpur, with the aim of building bridges among the private sectors of both nations. In that summit was emphasized the role of the private sector and its efficiency in promoting economic development.

Now, 50 years after the Bandung conference and five years after the first Asian-African Business Summit, this golden jubilee of the Bandung conference is a golden opportunity to rekindle the Bandung spirit and to work together to face the challenges of today's realities, including the challenge of managing for global competitiveness.

Managing for global competitiveness requires dealing with various factors such as the protection of natural resources and varied environmental issues, the flow of international capital, foreign exchange, interest rates, trade barriers, training and education, and now the steep increase in the world price of oil.

There's no question that the high price of oil today has the potential to put the brakes on economic expansion. And we all know that the poorest among us suffer the most as a result of high prices in food, energy and transportation. That's why we must do everything in our power to manage our way through these rough seas by protecting economic growth while minimizing the impact on rising prices.

I therefore take the opportunity of this summit to call for unity between Asia and Africa for stronger collective action toward preventing a full- blown economic crisis that could be triggered by an unsustainable level of crude oil prices. While there's been some softening of oil prices in the past few days, the trend could worsen to levels that could halt economic growth or even prompt a global recession. It is certainly stripping oil-importing countries of Asia and Africa of our ability to manage for global competitiveness. It's preventing us from pursuing our economic development programs with a rigor that we want to have. It's requiring us to face the specter of economic decline. Restricting our respective governments' ability to provide much needed social programs for the marginalized sectors in our economies. It's increasing poverty and further widening the gap between rich and poor countries. This is a toxic formula that could increase global terrorism.

Therefore, in behalf of the Philippines, I take this opportunity to call on the Asia-Africa Summit to do its share in pushing for greater stability in oil prices. I call on the world leaders, including the petroleum exporting countries of Asia and Africa, to offer solutions that will temper the volatility of crude oil prices. Most of the demand for oil and most of the supply of oil come from Asia and Africa. Thus, it's especially important to strengthen cooperation between Asia and Africa at this time, but even without this crisis for the strategic future.

We in the Philippines trade extensively with our neighbors in Asia. But we are eager to expand our meager trade with Africa. South Africa is our largest African trading partner, followed by Mauritius as our second largest African export market. We sell cement, garments, gear boxes of motor vehicles and aircraft parts, and we buy tobacco, iron and steel, smart cards, cotton, sardines and copper. We're willing like to buy more from Africa. We have the balance of trade in our favor but we'd also like to add Africa to our growing list of automobile export markets. And we invite the African mining industry to invest in our rich but still largely untapped mineral resources.

It's you, the businessmen. It's the free, open and competitive markets that must ultimately drive the engine of job creation and the eventual elimination of poverty in many countries of our two regions.

Open markets and free enterprise are the centerpiece of my philosophy and drive the policies of my government. I believe a strong, growing economy is the best hope to alleviate the crushing pain of poverty. But many of the poor pay the highest price for free markets, and it's my moral obligation to ensure that the poor are protected as we transition to a global economy.

I hope that globalization will be a rising tide and lift all boats, but I fear that too many boats will have holes in the bottom. As business and political leaders, we must not only work to integrate our economies and create wealth and opportunity, but we must also make sure the poor have a strong, seaworthy vessel that includes a decent wage, access to health care, a sound education and social justice.

We've seen the globalization of terrorism, but we've also witnessed the globalization of peace. In the Philippines, I'm inspired by a peace process in our island of Mindanao that includes an Asian-African cast of friends -- friend from Asia, Africa and the middle east -- helping us in our quest for peace and stability.

The continuing success of our peace talks is driven by a firmly entrenched ground level cease fire supported by an international monitoring team led by Malaysia, with participating contingents from Brunei and Libya. I'd like to take this opportunity to thank Malaysian Prime Minister Abdullah not only for supporting the cease fire process but for hosting this week and facilitating the substantive negotiations. The forward impetus of the peace talks will continue to jack up confidence and investments, spur agri-business, and provide a wider swath of jobs and livelihood in the conflict- affected areas and throughout Mindanao.

The lesson of Mindanao for the Philippines is a lesson for our two continents. As we integrate our economies in Asia, Africa and the world, we must also integrate the basic human values of compassion, tolerance and social justice. Economic development must always go hand in hand with the development of the human spirit and the liberation of the poor.

Corruption remains a barrier in many of our countries, and we must face this squarely if we are to develop our economies, attract investment and provide equality of opportunity to all our citizens. I'm committed to transparency and openness in government for a very simple reason: the bright sunshine of day is a great disinfectant to the dark recession of corruption.

I aim to eliminate red tape to encourage business, both domestic and foreign, to invest in the Philippines. But I will not give a green light to unfettered exploitation of workers, the laws or the environment in the pursuit of cut and run economic exploitation. I want to encourage full, lifetime partnerships with businesses. We must always provide balance and think about the long-term well-being of the entire nation.

We must have an energy program that creates genuine energy independence and harnesses the creative forces of the marketplace to bring in a range of new, clean and cost-effective alternative sources of energy in the Philippines.

We need a strong united nations, but we also need nations, strong nations that are united to solve problems regionally as well as on a global basis. I believe we're at a tipping point in the evolution of globalization where individual nations, in ones and twos, and regional blocs, must take greater control of challenges closer to home. Not every challenge needs to be first made into a global problem before being solved.

Finally, I hope all nations of Africa, Asia and the world never lose sight of the promise of democracy and the democratic form of government. For those of us who live under it, we sometimes complain, but democracy is the best system in the world. And for those who only dream of it, I'm convinced that history is on your side and you will bear witness to democracy's promise within the coming generation.

Thank you.

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PGMA's Speech during the Plenary Session II of the Asian-African Summit "New Asian-African Strategic Partnership: The Philippine Perspective"
Plenary Hall, Jakarta Convention Center Jakarta, Indonesia (22 April 2005)

Thank you, Mr. Chairman.

I would be very brief. I'd like to begin by gratefully acknowledging and congratulating you Mr. President for the excellent preparations and warm hospitality accorded to our delegation.

I would also like to congratulate you Mr. Chairman and President Mbeki, the co-chair, for bringing together so many leaders of Asia and Africa.

The presence of such a large number demonstrates that the value of Asian-African strategic partnership remains today even if the cold war that was the backdrop of the Bandung conference 50 years ago is no longer there.

Mr. Chairman, Mr. President in your keynote statement this morning you said, that the Asian-African strategic relationship based on the new realities should cover three areas -- political solidarity, economic cooperation and socio-cultural relations. I would like to use this brief period allowed to me to share some specific thoughts on these three areas from the Philippine perspective:

First, on political stability. I'm inspired by a peace process in the southern Philippine island of Mindanao that includes an Asian-African cast of friends helping us in our quest for peace and political stability. The continuing success of the peace talks is driven by a firmly entrenched ground level ceasefire supported by an international monitoring team led by Malaysia with participating contingents from Libya and Brunei.

I'd like to thank prime minister of Malaysia Abdullah not only for supporting the Ceasefire process but also for hosting this week and facilitating the substantive negotiations.

I would also like to take this opportunity to thank the government of Indonesia in its role as chairman of the committee of the eight of the organization of the Islamic Conference monitoring the compliance of the 1996 peace agreement between the government of the Philippines and the Moro National Liberation Front.

Second, on economic cooperation. There is no question that the rising price of oil has the potential to put the brakes on economic expansion. And we all know that the poorest among us suffer the most as a result of higher prices in food, energy and transportation. That's why in the spirit of economic cooperation, we in this Asian-African Summit must do everything in our power to manage our way through these rough seas by protecting economic growth while minimizing the impact on rising prices.

I therefore call for unity between Asia and Africa for stronger collective action toward preventing a full-blown economic crisis that could be triggered by an unsustainable level of crude oil prices. Most of the demand for oil and most of the supply of oil come from Asia and Africa. Thus, it is fitting that we call on leaders of Asia and Africa to do their share in pushing for greater stability in oil prices and offering solutions that will temper the volatility of crude oil prices.

Third, on socio-cultural relations. Religion is an inherent aspect of culture. The Philippines seeks greater, broader inter-faith dialogues to engender peace and understanding between our two continents and indeed, throughout the world. Asia and Africa are cradles of civilization and our peoples have much to learn from each other's glorious past.

I congratulate also Indonesia for hosting the latest inter-faith dialogue and I look forward to the continuation of this effort.

Having made my three points, Mr. Chairman, let me end by reiterating that the Philippines stands shoulder to shoulder with all nations in our two continents in carving the new strategic Asian-African partnership.

Thank you.

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PGMA's Speech during a Meeting with the Filipino Community in Indonesia
Ballroom A, Shangri-la Hotel (21 April 2005)

Maraming Salamat, Secretary Romulo.

Gusto ko rin ipakilala si Secretary Toting Bunye, Press Secretary; maraming salamat din Ambassador Primavera; dacal a salamat, Cabalen cung ginoong lapid at lahat ng mga leaders at kasapi ng Philippine community dito, magandang gabi sa inyong lahat. Pwede na kayong umupo Thank you very much.

Marami sa inyo ay nakilala ko noong huling pagpunta ko rito sa Tsunami Summit at salamat at narito na naman kayo muli. Marami na ang naganap mula noong huli tayong magkasama sa Tsunami Summit sa loob ng bansa at sa labas ng bansa, maging dito mismo sa Indonesia. Ngayon, narito na naman tayo at gaya nang alam ninyo dahil sa Asian-African Summit. At dito maliit lamang ang aking official party kagaya ng dati ngunit ang ginawa ko ay nag-imbita ako ng mga pilipinong negosyante, mga CEO ng malalaking korporasyon, lalung-lalo na yung ating automotive industry, I'd like to acknowledge our business delegation.

Inimbita ko sila dito kasi malayo ang Africa at lalo yung ating automotive industry na kailangan ng economies of scale, kailangan maraming mga nabebentang kotse at kulang naman kung asean lamang ang pagbebentahan nila. Kaya pagkakataon na magbenta sa ibang bansa doon sa Africa. Pero para makilala yung mga negosyanteng Africano ang hirap naman kung pupunta pa sila muna doon, cold. Mabuting pagkakataong ito kaya inimbita ko sila, para pumunta doon sa business summit, Asian-African Business Summit, na magsisimula bukas sa ganun ay magkakaroon ng mga introductory meetings at pagkatapos nuon sana ay tuloy-tuloy ang mga ating... Ang ating mga relasyon sa africa dahil ngayon kunting-konti pa lang ang binebenta natin at binibili natin sa Africa. Pero, ah from Asia, every year 10 percent tumataas ang trade between Africa and Asia kaya dapat huwag tayo mahuli doon.

So, pinakilala ko na yung members ng ating mga delegation, aside from the business community it's only Secretary Romulo and Secretary Bunye. At narito tayo ngayon sa Asian-African Summit dahil sa ilang darating na araw, a few days from now, we will commemorate the 50th anniversary of the Bandung conference that was held in April 24, 1955 here in Indonesia. Marami sa inyo hindi pa panganak noong panahong yon. That Bandung conference was historic because it enabled developing countries like the Philippines to chart an independent course during the cold war. That was the height of the cold war.

Ngayon, tapos na ang cold war, pero maganda muli itong pagtitipon ng mga bansa ng Asia at Africa dahil hanggang ngayon bagamat wala nang cold war mayroon tayong mga ibang pagkakatulad na mga problemang hinaharap sa Asia at Africa gaya ng kahirapan, malaking pagkakautang, kalamidad, terorismo, at ngayon yung lubhang pagkataas ng presyo ng langis. Noong 2002, yung presyo ng langis 20 dollars. Ngayon, three years only halos nagtriple na, 55 dollars na. Kaya talagang mahirap itong biglang pagtaas ng presyo ng langis para sa bansa kagaya ng Pilipinas na tayo nag-iimport ng langis.

So, I'm taking the opportunity of this Asian-African summit to call for unity between Asia and Africa and stronger collective action from every Asian and every African to take to heart the drive towards preventing a full- blown economic crisis. Pwede tayo magkaroon ng krisis kung tumaas nang tumaas ang presyo ng langis. A crisis can be triggered possibly by an unsustainable price level. Bakit tumataas ang presyo ng langis? There's a very strong demand for crude oil in the world market. Oil prices have already skyrocketed as I have told you, and it could worsen to levels that will strip us the developing countries of our ability to vigorously pursue our economic development programs. And then kapag ganun, we will have the specter of economic decline, we will have more poverty, and it will restrict our government, our respective governments' ability to provide the much needed social programs for the poorer sectors of our economies.

Nangyari na ito noon, 1974. 1991 naghihirap ang mundo kapag tumataas ang presyo ng langis. Lalo na tayo, hindi tayo kagaya ng Indonesia na malaki ang sariling langis, nag-eexport pa siya. Ang pilipinas mayroon na rin tayo pero konti pa lang, kaya malaki pa ang ating importasyon ng langis.

That's why, in behalf of the Philippines, I'm going to take this opportunity in the Asian-African summit to call on world leaders, including the oil exporting countries of Asia and Africa, to offer solutions that will temper the volatility of crude oil prices. Itong nangyayari sa presyo ng langis, bumaba ng konti this past weeks pero nowhere near what they were before they went up like this. The current trend in oil prices point toward a situation where global economic growth can stop again and further widen the gap between the rich and the poor countries, especially the countries that don't have their own oil. And that is a formula that could pave the way for increase global terrorism dahil napakalaki ang koneksyon ng kahirapan at terorismo. That's why the Philippines is proposing that the Asian-African summit push for greater stability in oil prices.

Yan ang aking mensahe na gusto kong dalhin sa ating summit. Ngunit kahit na nagkita na tayo nung huling summit na pinuntahan ko, yung tsunami, ay ako'y nasisiyahan at ako'y nagpapasalamat na narito kayong muli dahil gustong-gusto kong ipinagmamalaki yung ating mga kapatid dito sa Indonesia. Yung lahat nung TNT na sinabi ni Ambassador Primavera, talagang pinapakita ang kagalingan ng ating mga pilipino dito sa Indonesia.

Gaya nang sabi ni Ambassador Primavera, many of you are in management, ang I'm very proud of them. I'm also proud of the Filipinos who are in the Indonesian and the multilateral institutions. I'm very proud of our teachers and our musicians because you double as our cultural ambassadors. At gaya nang sabi ni Shulan, walong libo kayo dito, of the 8 million Filipinos who live in 150 countries in the world. Totoo yung sinabi ni Shulan, tipid nang tipid, tulong nang tulong.

Last February, our commercial banks reported that our remittances have gone up by 19 percent. So, I'd like to thank all of you, dahil sa inyong malasakit, yung tipid nang tipid ninyo, tulong nang tulong kayo sa ating bansa -- 720 million dollars in February alone. Maraming salamat muli sa inyong malasakit sa ating bansa. Kayo'y nagpapakita na tayo ay talagang masigasig na mga taong-bayan.

We are an enterprising people geared towards excellence in all fields and you are the best advertisement for investing in the Philippines. Because i always tell the different countries where we want to invite investors, there are always many Filipinos there, and I say, that the Filipinos who are working with you, for you, you know how skilled they are, you know how honest they are, you know how caring they are, go to the Philippines, there's more where they come from. Kaya kayo ang pinakamagandang advertisement, because we need foreign investment in our country to create the 6 to 10 million jobs that we have to create in the next 6 years if we are going to, sabi ni Shulan at saka yung nagdasal kanina -- ah, si Ginoong Lapid na nga -- win finally the battle against poverty and achieve full prosperity.

So, like Indonesia, we welcome foreign investment to the Philippines. Doon nga sa... At nagbubukas nga tayo ng ating mga mining companies para maraming pupuntang investors doon. We are the number 5 mining power in the world as far as natural resources are concerned. At nung sinabi nung Supreme Court na pwede magkaroon ng foreign investment sa mining, ito ay dinadala natin sa ibang bansa. Yung mga bansa na nag-iinvest sa mining -- Canada, Australia, Japan, America, China. Yung dinig ko na doon sa Australia sabi nung ibang negosyante, pinasabi na yung presidente ng Indonesia ay nagpunta doon para sa mining din kasama ng tatlong daang negosyante, kaya kailangan gawin din natin yuon. Kung marami tayong mina, marami ring mina ang Indonesia, kaya talagang importante, lahat tayo naghahanapan ng foreign investments. And we need that for a better day for our children and the generations to come. Kaya yung ating mga musicians, mga teachers, kayo ay cultural ambassadors. Yung ating mga executives at mga bank managers at saka expats and professionals, kayo naman sana ay economic ambassadors. And I hope you will entice your companies to invest in the Philippines.

Meanwhile, I want to let you know that your national government in the Philippines is taking the lead in all fronts of good governance. Isa sa aking mga binibigay diin, especially up to December of this year, is to improve tax collection efficiency. So the BIR is hot on the trail of tax evaders, customs is hot on the trail of smugglers. In the meantime, more corrupt officials are falling from the towering heights of unexplained wealth.

Napakataas ng kredibilidad ng ating ombudsman ngunit kasama sa mas matinding pagkubra ng buwis, kailangan pa ring dagdagan ang buwis, yon ang hinihintay ko sa Kongreso ngayon. Dahil sa mga nakaraang taon, pinopondohan natin ang ating kaunlaran sa pamamagitan ng utang kaysa sariling buwis. Ang nangyari tuloy sa dami ng utang natin halos ang budget natin ay napupunta na lamang sa interes at hindi sa infrastructure na kailangan para magkaroon ng hanapbuhay ang taong-bayan.

And so, these are the challenges. Sabi nga ni Ginoong Lapid, difficult task. At kailangan nagdasal kayo para sa akin kanina dahil sa mga hamon na hinaharap natin, na hinaharap ko bilang lider ng ating bansa para makamit natin sa wakas ang buong prosperidad ng ating bansa.

And so, I thank you for your prayers. I thank you for your best wishes. I thank you for your tipid nang tipid at tulong nang tulong. And with your prayers and support, I know that our freedom from grinding poverty shall soon be a reality.

Sa inyong lahat mga Filipino sa Indonesia, mabuhay kayong lahat!

Thank you.

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