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PGMA's departure statement (On her visit to Japan, May 22-25, 2007)

Philippine democracy has been renewed after a vigorous by-election. Now it is time to come together to forge a common path forward together among all parties and all political leaders here at home. Even as the national election is still being canvassed, the outcome of the local elections strengthens our nation's collective resolve to create a modern, booming society through pro-growth, pro-poor, and pro-modernization policies.

Our foreign relations play a vital role in a strong Philippines. An essential component of a modern vision for the Philippines is our continued open engagement with the region and the world. We need to be competitive at home. We need to compete for investments abroad if we are to succeed.

Our trip to Japan is another step in our quest to further cement our ties and bring more investments, economic growth and peace and stability to our nation.

Just a few weeks ago, we announced that after a lot of hard work on the part of our government, Texas Instruments will make a billion-dollar investment in the Philippines. Tokyo Electric and Marubeni are also making a four-billion dollar investment, the largest Japanese investment in Philippine history. Their investment in the Philippines is no mistake: the world is sitting up and taking notice that the Philippines is back and open for business. Our economy and gains against poverty are proof the plan is working.

On this trip to Japan, we will be meeting with business and financial leaders from around the region to again tell the Philippine story and encourage them that the Philippine turnaround is here to stay, that our politics has stabilities and that we are the best value in Asia.

Japan plays a pivotal role in bringing peace, stability and economic opportunity to the conflict in Mindanao. Prime Minister Abe is playing an instrumental role in nurturing the peace process. One aim of my trip is to advance peace in Mindanao by engaging with our regional partners in the peace process.

No trip abroad to meet with foreign leaders is complete without continuing vigilance in the pursuit of regional security, stability and peace. The ongoing concerns about North Korea's nuclear capability and the existing danger of global terrorism remain front and center. Plans for improved coordination and cooperation will be discussed along with our shared economic agenda.

Finally, we want to send a clear message to our Japanese friends and hosts that relations between the Philippines and Japan have never been stronger. We hope we make advances on closer economic ties and continue to build on the warm ties that bind our relations with Japan, not just in the Philippines but in the ASEAN region and the world.

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PGMA's Speech during the Japan Business Seminar
Kaikan Tokyo Hotel, Tokyo, Hotel
May 23, 2007

Thank you. Thank you Ambassador Siazon.

Other officials of the Philippine government; Chairman (Tohru) Tsuji; Chairman of the Marubeni and Chairman of the JPECC; Chairman Laurel of PHILJECC; ladies and gentlemen.

First of all, I'd like to begin by thanking and congratulating the organizers and co-organizers of this event. And to say that we are elated to see all of you in this business seminar.

Japanese-Philippine relations have never been stronger: there has been a welcome influx in Japanese tourists, an impressive upswing in Japanese direct investment, and in another notable area, Japan has made a major contribution to peace and stability in Mindanao in Southern Philippines.

The strengthening of economic ties between our two nations has been based in part on the growing strength of the Philippine economy which our two speakers have already discussed. It is providing more and better investment opportunities for Japanese companies.

The Philippines is a competitive location for all companies looking to establish or expand their operations in the Asia-Pacific region. We are right in the middle of this region. We offer a strategic location in a fast-growing region. Our workforce is well educated, productive and English speaking. Our strength lies in education and training of our people and the package of reforms that we have done.

Through hard-fought economic reform battles we have led, the Philippine economy has finally broken loose of its lethargic economic legacy. New revenues, better collection and a crackdown on tax evaders along with fiscal discipline has put the Philippines on a path to permanent economic growth and stability.

There has been a sea change in the Philippines in the past few years. We have broken the back of fiscal irresponsibility. With our revenue, fiscal and investment policies we are charting a new economic course. Our fiscal performance in the past few years is a reflection of the significant progress we have made in putting our fiscal house in order. We have lowered our budget deficit. We have raised unprecedented amounts of revenue. We demonstrated that we have the ability to keep our budget under control. We have delivered 25 consecutive quarters of economic growth. And if you will remember, some of the quarters of this years 2001 to 2007, some of our neighbors experience recession during that period but our economic growth was consistent quarter after quarter. Our commitment to make the difficult decisions to reform our economy has been a major contributor to these achievements.

Our economy has reached a new level of maturity and stability with some of the strongest macroeconomic fundamentals in more of a decade. UBS recently said in a research report that the Philippines is one of the few countries that will experience stronger growth this year than in 2006.

To instill permanent change because we want this growth and development to be permanent, we will continue the reforms. The short answer to continuing the economic growth is summed in three words: invest, invest, invest. We are committed to raising the revenues needed to balance our budget and to invest in our country and our people. We are following up the pain of tax raising measures with the gain that come from significant investments in people and projects. We are continuing a balanced path of targeted investment and overall restraint while enhancing our revenues. That way we will truly ensure that the progress cannot be reversed.

We are committed to consolidating the gains in new revenue by making investments in human and physical infrastructure. This includes billions of pesos in human capital like education, healthcare, social services and training along with billions in new bridges, roads and ports to upgrade the competitiveness of the Philippines. This, we hope in turn, will in turn will attract more foreign investments such as yours and create more jobs, ultimately improving the lives of our people.

Our strategy for the Philippines is to improve and strengthen global competitiveness. That's why we emphasize investment in physical infrastructure and in human capital, also in efficient access to financing, and in lower transaction flows and cost of doing business by cutting down red tape and minimizing corruption.

We have undertaken a strong and steady effort to curb graft and corruption through criminal justice, administrative controls and procedural reforms. This effort is focused on the tax and customs collection agencies, which as a result have improved their performance in recent years; also agencies that are in the frontline of day-to-day public services; and of day-to-day dealings with businessmen; and local governments. We take this issue very seriously. And we are pleased that progress is being made.

We take great pride in the discipline of our administration to focus on the economy and our overall economic health. We are proud of the fact that external debt is being prepaid. We are attempting to balance the budget in 2008, two years ahead of schedule based on our Medium-Term Philippine Development Plan. And we are making sure as I've said earlier to use the gains to invest in vital social and economic needs. We will not sacrifice long term gains for short term political expediency.

Chairman (Tohru) Tsuji said that about ten days ago, Filipinos demonstrated our political stability through peaceful, fair and free elections. The message of our elections was that the Philippine economy is stable and strong. And as Chairman (Tohru) Tsuji said, even as the national elections are still being canvassed, in the congressional and local elections, the results are already very clear, an overwhelming majority of candidates sympathetic to the administration has emerged victorious. Some of them are here with us today the justly elected congressman from Batangas, Congressman Mandanas; the justly elected congressman from Bicol, Congressman Lagman and in fact, the wife of our chairman of the Technical and Education Skills Development Authority who's also here today has just been reelected in her constituency and our foreign minister has given us a new member of Congress in his son. And they are here, I suppose as a way of demonstrating, the path we have set for economic reform has not been upset by partisan politics. Politics will not undo our economic progress.

We can continue on the path we have set for putting people ahead of politics by focusing relentlessly on the economy. Our administration will focus on pro-growth, pro-trade and pro-investment strategies that help lift up our people from poverty and help the Philippines be in contention as a real investment destination. We are a good business environment getting even better.

The world is taking notice; we know that our Japanese friends and investors are. In fact, late last year, the company of Chairman Suji, Marubeni and Tokyo Electric Power purchased power plants in the Philippines for some $3.5 billion and announced another $500 million dollars expansion, the biggest single investment package by a Japanese group in the Philippines. Earlier this year, as mentioned by our chairman of PHILJEC, Mr. Francis Laurel, we attended the groundbreaking of a new Toyota transmission production facility in south of Manila.

The strong increase in investment has also recently been anchored by the announcement of an American company Texas Instruments to invest $1 billion to build a chip plant in the Philippines, which they chose over other locations including china. Korea's Hanjin is constructing a billion dollar shipyard north of Manila similar to Tsuneishi's $600 million shipyard in the Philippine island of Cebu. This is happening across the board in a number of industries. We are working to ensure that this will be sustained.

The Philippines has arrived. It is one of the best values for money in Asia for investors. The Marubeni-Tokyo electric investment, the Texas Instruments investment, the Hanjin investment, the Tsuneishi investment, the Toyota investment and many more across the board in a number of industries are the validation that our strategy is working.

We also like to think that the Texas Instruments investment is a validation of the quality of the Filipino worker and the quality of the infrastructure and facilities at the Clark Freeport Zone in my home province where the new plant will be located. And we worked hard to present them and other investors like you with an incentive package that is very competitive.

The Japanese businesses and the Japanese government through aid, trade and investment, have been longstanding partners of the Philippines.

Japan is indeed an important partner. And as mentioned by Chairman Suji, the Japan-Philippines Economic Partnership Agreement is a milestone in our relationship. And we have here also in our delegation the Chairman of the foreign relations committee of the Senate, Senator Miriam Defensor-Santiago, who will shepherd and sponsor the ratification of the agreement in the Senate. The Japan-Philippine Economic Partnership Agreement is about bringing advantages to both nations while eliminating disadvantages. The implementation of any free trade agreement requires adjustment for both parties, but this agreement will benefit both of our economies.

The agreement will bring about liberalization of trade and services between our two countries, facilitation and greater liberalization of investment, and enhanced technical cooperation and capacity building. It will promote an increased flow of resources and help create a bigger market that will provide greater opportunities and larger economies of scale for both Philippine and Japanese businesses.

It will improve access of Philippine products and services for the Japanese market. It will immediately have a positive impact on Filipino farmers, fishermen and food processors because bananas, pineapples, crabs, shrimps, and chicken and tuna from the Philippines will have better access in Japan. Japanese industries on the other hand will be able to supply the Philippine manufacturing sector with critical inputs like Japanese specialty steel products, auto and auto parts, and electrical and electronic appliances and parts. Textiles and apparel will enjoy market access mutually in both countries, and with limited exceptions, the agreement enhances Philippine service providers' access to the Japanese market and guarantees non-discriminatory treatment. And for the first time, a historic first, Japan will accept foreign health workers -- Filipino nurses and caregivers who are in great demand all over the world. On top of this, we hope to see more trade in business outsourcing which was mentioned by Mr. Laurel, and tourism, in maritime and air transport, in banking and telecommunications.

In sum, to summarized what I have said, Japan is a valued development, trade and investment partner of the Philippines. And we Filipinos would like to see a further intensification and deepening of these cooperative links. More investment, more trade and trade agreements, more cooperation on peace in Mindanao, more visits and exchanges are all welcome.

And so we urge you, participants in this business seminar and leaders of the Japanese business community to come to the Philippines and explore all that the country has to offer you and your business.

Once again we thank the organizers and participants of this event for showing your interest in our country. Hope to see you there in the Philippines.

Arigato, thank you.

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PGMA's Brief Remarks during the dinner with Japanese Parliamentarians hosted by Ambassador Domingo L. Siazon, Jr.
Sakura Room, Imperial Hotel
Tokyo, Japan
May 23, 2007


Congressman Nakayama, Chair of the Japan-Philippine Parliamentarians Friendship League; other leaders of the DIET and the LDP.

Thank you very much for taking the time from your very busy schedule in the diet to honor us with your presence this evening.

I'm happy to be back in Tokyo and indeed to be with friends like you. It's so nice to see so many of you all over again.

We want to take this opportunity, my whole delegation -- Philippine delegation and I -- to thank you personally for the continued support and assistance of Japan for the development programs of our administration. And we consider the signing of the Japan-Philippines Economic Partnership Agreement as a milestone in the history of our friendship with such a valued partner as Japan.

We'll be working very closely with the Senate for the ratification of the JPEPA. And with the support of Senator Miriam Defensor-Santiago, who is the chairman of the senate committee on foreign relations which is the chamber that ratifies treaties, we are confident we can move the process of ratification forward.

Japan and the Philippines share basic democratic values and I hope that together we will be able to pursue our common vision of a progressive, peaceful and prosperous East Asian community.

I look forward to our next 50 years of bilateral relations. And thank you very much for being here tonight and being such friends to the Philippines.

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PGMA's Speech during the 13th Nikkei International Conference on the "Future of Asia" Deepening Cooperation Toward a True Community
Fuji Room, Imperial Hotel, Tokyo, Japan
24 May 2007

Thank you. Thank you very much.

Mr. Sugita, members of the Philippine delegation, other special guests, ladies and gentlemen:

I thank Nikkei for inviting me once again to this prestigious forum. It's my honor to be able to speak for the third time. I was here, as our moderator said, in 2002 and 2003. At that time, in those two times, the topics were: "Emerging China" and then "ASEAN's Role in the Genesis of a New Asian Order." Now, I return as current chair of ASEAN and I'm very happy to hear that the theme: "deepening cooperation toward a true community" was inspired by the events in the ASEAN Summit and East Asian Summit in Cebu that we hosted last January.

It is not only the ten years after the Asian financial crisis that we are commemorating this year. We're also commemorating 40 years of ASEAN.

ASEAN had a vital first 40 years of existence. We are proud of what ASEAN has contributed to world peace, security and economic growth. ASEAN has kept the peace, expanded our economies and drawn closer together through trade, diplomacy and cultural exchange. Last January, at the summit in Cebu, we put down a marker to draft an ASEAN charter. This is a down payment on an E.U. style union.

We took a bold step forward in forging a more unified ASEAN. Bold because of the times and bold because we are a very diverse, multi-ethnic, multi-religious region at different levels of social and economic development. It's remarkable that ASEAN has resisted the temptation to drift apart. Instead, we remain on a steady arc of community, of comity, of cooperation.

Yet, for all that ASEAN has accomplished, this latest bold step doesn't mean we have won the race. We are in a marathon, not a sprint. Our eye is not just on ASEAN at age 40. Our eye is also on ASEAN at age 80 -- 40 years from now.

We must ask -- because we're talking about the future of Asia -- we must ask: what will ASEAN look like 40 years from today? If today, we are a market of 500 million people, 40 years from today, we will be a billion people in ASEAN. If today, we are the fastest growing region, in 40 years, we will likely be a more mature, modest growth region. And if today, we are unsure of global security and the threat of upstart nations getting nuclear weapons -- what will we face in 40 years?

Each question begs an answer. We need to make sure our answer is consistent with our social needs. We need to make sure our answer embraces a sustainable economic model. We need to make sure our answer ensures regional and global peace.

When we think ahead and ponder the next 40 years, we see increasing prosperity and the possibility of greater income disparity. We see a more peaceful world and nations, more nations with nuclear capability. We see a cleaner environment and the challenge of global warming affecting government policies and our economic model and having a decisive impact on our lives.

All of the hope and anxiety about the future leads us to one conclusion: we must all press for ever closer cooperation in ASEAN and, indeed, in all of Asia if we are to collectively benefit from the good and collectively tackle the big challenges together.

The number of truly globe-size issues we will face in the 21st century will require truly globe-size cooperation. The place to start is building stronger regional entities like ASEAN and expanding their political, economic and security influence to other partners around the world.

This is also true of other pacts, other arrangements, other organizations, other associations. The WTO comes to mind, particularly at this time when the Doha round is on the ropes. We hope the Doha round is successful, because it was designed to be the round that would focus on development, to be the round that would bring the benefits of the global trading system to less developed nations.

As an economist and leader of a nation of 85 million, I believe in the value of trade to alleviate poverty and free people to live a better life. Our policy to aggressively engage the regional and global marketplace is perhaps part of the reason why our Philippine economy now has achieved 25 successive quarters of economic growth. And if we are to remember what those 25 quarters were, starting from 2001 up to now 2007, we should recall that in some of those years, some of the neighboring countries of the Philippines, some of the neighboring economies were experiencing recession but not in the Philippines. Today, exports and imports are booming even as the peso strengthens. We had our best year ever in foreign direct investment and with our stock market. Not only two days ago, not only did our stock market surpass the free financial crisis levels, it was the highest in the entire 80-year history of our stock exchange. And we have created six million new jobs under our administration.

But that doesn't mean we believe trade is free from pain. It is not free from pain, not for many people, not for certain industries, not for a number of nations. But in the main, it is the wave of the future.

Yet, on this road to globalization, the developed nations have let many of the developing nations down. When trade served their interests, it was a green light. Now that they might have to give up certain subsidies or markets, the yellow light of caution is up. And there are fears that light may turn to red before this is over.

So, while we want a successful trade round, we will not just wait around. We aim to go full speed ahead in the Philippines and in ASEAN to strengthen our economic ties regardless of what Doha does or does not bring.

As president of the Philippines, I have been aggressive in seeking multilateral and bilateral trade relationships. As current chair of ASEAN, we helped to lead the call for the revival of the Doha round. We helped in our decision to move forward with free trade negotiations. The free trade agreement between ASEAN and China, as well as the FTA between ASEAN and South Korea, are moving into their final stages. It's now up to the ASEAN member-countries to individually ratify these two FTAs. We are also moving forward with our plans to pursue an ASEAN-E.U. FTA. Negotiations on the FTA with Japan also hold out a lot of promise. We hope that those involved in the negotiations would find the resolve to agree on the finer points of the draft FTA, for instance, on the rules of origin. So that by the November meeting, we could have a signing of that agreement.

These agreements demonstrate our collective voice in ASEAN. But more importantly, they reflect our commitment to expanding global trade and investment for the benefit of all.

Because the future will belong to those nations that seek common ground to resolve common problems. This is true in virtually every aspect of our lives: economy, social justice, energy diversification, security. ASEAN is the most tested viable and mature entity at our disposal to propel our relatively smaller ASEAN nations to compete with China, India, the E.U. and the U.S.

At the same time, for ASEAN to become a true expanding union, it must continue to nurture its relations with key partners: Japan, China and South Korea.

President Sugita was talking about our East Asian Summit in Cebu with 16 nations, at a time when the world is experiencing strains on alliances from the WTO to Iraq, vital alliances must be forged new ones to keep the world stable and strong. Some sort of Asian community will be a bold step in that direction.

We look at the experience of the E.U. historically, the E.U. has shown how a region beset by conflict can become a force for peace and security. The same way in our region that has faced many of the same historic divisions, a more united region will also achieve the same.

But of course we must recognize that community building is a long process. The E.U. took 50 years to reach its present stage of integration. So even if they say that we are very diverse, too much has been made of our region's diversity as a barrier. We believe our diversity is a strength not a barrier to an Asian union. And we learned that from ASEAN.

Over the 40 years, ASEAN has proven that it can make a difference for peace and prosperity in Asia despite the diversity of the nations in ASEAN. And it will continue to do more as we build towards an ASEAN community by 2015.

To go back to the Asian community where the East Asian community that had the second East Asian Summit in Cebu. There is general consensus that the idea of an East Ssian community has a more political rather than geographical definition. In the process of establishing the East Asian community, we look to the engagement of all the parties that have a stake in East Asia especially a stake in ASEAN because it is in the framework of ASEAN that we have developed the concept of the East Asian community. For instance, geographically, India is not part of East Asia, it's part of South Asia, but it is participating in our East Asian Summit. Russia has an East Asian component because Asian Russia is on the pacific ocean, but it is still as of now not part of the East Asian Summit. That is because economic engagement is a more compelling criterion in the minds of our ASEAN brothers than a geographic location.

The East Asian community, we cannot deny is made especially important because of the emergence of china. We view the rise of China as an opportunity, not a threat. ASEAN 's relations, the Philippines' relations with China are now more confident, mature and comprehensive. They are punctuated with substantial and important projects aimed at deepening exchanges on a number of areas, especially trade and investment.

Because the region certainly comprises at least China, South Korea and Japan -- aside from ASEAN and perhaps Australia and New Zealand -- cordial and stable relations among China, South Korea and Japan are essential elements of a stable and prosperous East Asia community. And we have faith that relations among them will continue to warm. We are very pleased that ASEAN is able to provide in the plus three summits regular opportunities for Japan, China and South Korea to engage each other in dialogue and consultation. We in the Philippines are pleased to have hosted such a plus three meeting on the margins of the summit in Cebu last January.

The relationship between Japan and China is especially important. It has especially important implications for regional stability in Asia. And we are happy, very happy to hear all the news all over the world about the increasingly cordial relationship between these two Asian economic giants. We are happy to read even from the editorials of the newspapers in china that one of the reasons for the increasing relationship of trust between Prime Minister Abe and Premier Wen Jiabao of China was their meeting in Cebu last January.

In East Asia, we must forge deeper international cooperation, for one thing, on the initial ideas for a regional security framework. And we hope that the forthcoming ASEAN regional forum hosted by the Philippines in manila this coming august will be a venue for that. We must also forge some kind of cooperation on the mobility of human resources and we must forge understanding on a regional cooperation framework on environment and energy security. This will make the Asian community "One Caring and Sharing Community." The Asian region must be committed also to the role innovation will play if we are to succeed in a truly sustainable economic model of development. In doing this, innovation led by countries like Japan, which is still the leader in technology, is as valuable as political will.

Speaking of Japan, where the population is aging, we must also realize that we must rationalize age and demography within the Asian region to increase the flow of services, talent and knowledge. And in accordance with this principle of rationalizing within the Asian region, more Filipino nurses and caregivers will come to Japan when our economic partnership agreement, the Japan-Philippines economic partnership agreement will enter into force.

The Japan-Philippines economic partnership agreement, or JPEPA as we call it, will bring about greater liberalization of trade and services between our two countries. It will bring about facilitation and liberalization of investment. It will bring about enhanced technical cooperation and capacity-building. All these will promote an increased flow of resources, not just capital resources but human resources. And all these will create a bigger market that will provide greater opportunities and larger economies of scale for both Japanese and Philippine businesses.

Japan is the second largest economy in the world -- let's not forget that. Japan is the largest economy in Asia -- let's not forget that. Therefore, Japan is a valued partner of the developing ASEAN community and it is a major member of the broader East Asian community.

Japan has the political, economic and cultural power to help the world choose the right path in the crossroad of the 21st century in the future of Asia. It has the power to help the world stick to that path for the harmony and prosperity of mankind especially in Asia.

Japan's values of peace with strength, innovative enterprise, green energy and enviro-technology can help save the world especially Asia from a scenario of strife and hunger, ignorance and disease.

We in ASEAN, we in the Philippines, are proud of the fact that Japan has become such an economic powerhouse these last 40 years, the last 40 years of ASEAN existence. So we in ASEAN like to think that we helped play a nurturing role in Japan's becoming such an economic powerhouse.

Japan has been our economic anchor for a generation now. I would like to be a little personal at this point. I, of course, I was not born yet during the war, second world war. But although Japan and the Philippines established diplomatic relations in 1956, the people-to-people relationship was not yet so cordial in the beginning. But when my father, President Diosdado Macapagal, invited then, the then crown prince and crown princess of Japan who are now their imperial majesties to visit the Philippines, they charmed the Filipino so much that our relationship became warm, the ice was broken. And ever since then Japan has played an important role in the Philippines.

Japan plays an important role not only in the Philippines, it's a partner of ASEAN, it plays an important role in regional diplomacy, and it is by far our largest source of official development assistance. With these role that Japan has been playing over the last 40 years, with the rise of china and the influence of India, Japan's role will become even more central to maintaining stability and balance in the region.

For instance, in the southern Philippine island of Mindanao, Japan has joined the international monitoring team to help nurture the peace talks there to a successful conclusion. Perhaps more important, Japan has been making significant economic investments to build up the economy of that southern region in Mindanao. The role of "soft" power -- that is non-military activities -- has been the most significant development in the Mindanao peace process and Japan has been leading in that. Therefore, I would like to thank Japan for helping the Philippines forged a new paradigm for peace in Mindanao. This new paradigm offers more soft than hard power. It relies on interfaith dialogue and an expanding cast of international players to keep the peace.

Aside from Japan, aside from the OIC countries, aside from our ASEAN brothers, we now have E.U., Sweden, U.S. and other countries joining us in this peace process. The Philippines therefore joins well-meaning allies in strongly encouraging Japan to expand her present concept of exercise of collective security.

We would like to see Japan playing a leading role in contributing to community building in the region. And that means also including maintaining and pursuing international peace and security as we try to forge the East Asia community of our dreams.

Indeed, on every other major front, we see Japan being an integral player if not an outright catalyst for change and progress. Japan will provide in the years to come the necessary leadership to the important arena of sustainable development.

For the Philippines we can say that Japan-Philippine relations have never been stronger: there has been a welcome influx of Japanese tourists. There has been an impressive upswing in Japanese direct investment.

Late last year, Marubeni and Tokyo Electric Power Purchased Power Plants in the Philippines for 3.5 billion U.S. Dollars and announced a 500 million-dollar additional expansion. A few months later, the American electronics giant, Texas Instruments awarded the Philippines an investment of one billion U.S. dollars to build a world class manufacturing facility. For this Texas Instruments' investment, we beat out China and a number of other nations for the privilege to be the investment destination. For us in the Philippines, greater economic integration leads to improved competition and performance that helps our people. Combined with our tight fiscal policies and our investments in infrastructure, the Philippines has finally arrived as a premier investment destination in Asia. And we thank ASEAN, we thank Japan, we thank the entire robust economy of the region in helping our economic comeback.

Our economy has reached a new level of maturity and stability with some of the strongest macroeconomic fundamentals in decades.

Last week, Filipinos demonstrated our political stability through peaceful, fair and free elections. Our elections have sent investors the message of political stability which ensures continuing economic reform. The message was that the Philippine economy is stable and strong. And even as the senatorial elections are still being canvassed, in the congressional and local elections, Filipinos have voted overwhelmingly for administration allies. Therefore, the path we have set for economic reforms has not been upset by partisan elections. The elections will not undo our economic progress.

Earlier this month, in another expression of confidence, the Ohilippines won reelection as a member of the United Nations Human Rights Council. This important development underscores the fundamental commitment of the Philippine government to uphold human rights.

The result of all these political developments will be a focus by our administration on continued economic reform -- pro-growth, pro-trade and pro-investment strategies -- that will help lift up our people out of poverty.

We are investing aggressively in our I.T. backbone. We are bringing the internet to every high school and spending more pesos for education. This is because we have found a niche in the business process outsourcing and I.T. sector. When i was a new president in 2001, there were only 2,000 employed in the business process outsourcing industry. Today, there are over 250,000 and we have a two billion-dollar industry.

We are also bringing incentives to start micro and small businesses to build an entrepreneurial class. And we continue to develop a larger manufacturing base along with our booming service economy to create good jobs. At the same time, we realize we must also become more self-sufficient and cost-effective in our energy consumption. There is no reason we cannot do both -- develop our manufacturing and be energy efficient. There's no reason why we cannot have a win-win solution through innovation, proper policy planning and united political and civic leadership.

For instance, we have launched a biofuels program. This program will rely on investment and innovation to create jobs, skills and self-reliance while keeping our environment clean. In this case our model is Brazil, which has pioneered in biofuels. Indeed, we must continue to learn around the world and in our region.

In conclusion, as our economic engines drive us all up to first-world status -- and we hope to achieve that for the Philippines in the next 20 years -- we must not do so on the backs of the poor nor at the expense of our environment. I am optimistic about the current approaches to economic growth. The approaches mentioned by President Sugita were with the rise of China, the awakening of India and the reemergence of Japan, growth is now more domestically-driven within Asia rather than export-oriented. I believe this approach to growth can transform our economies and lift up the poor.

As a region, as an ASEAN region, as an Asian region, we have a chance to get it right. We can emulate the best practices of development while avoiding the mistakes of modernization that have plagued other nations before. We must use every tool available -- education, technology, microfinance -- to lift up our poor, if we are to achieve equitable, sustainable growth.

In sum, I am optimistic about our ability to work together as a region, ASEAN and East Asia, and to solve our own problems and in the process create a new asian paradigm for progress that will be a model for the rest of the world as other regions and other nations continue on their own path to progress. For our region, for Asia, I firmly believe that comity, cooperation and community will define our collective future.

Thank you.

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PGMA's Speech during a Meeting with the Filipino Community Leaders in Japan
Botan Room, Imperial Hotel Tokyo, Japan
May 24, 2007

Maraming salamat. Maraming salamat, Ambassador Jun Siazon.

Gusto kong batiin ang ating mga narito sa ating entablado, siguro kilala niyo yung iba diyaan, yung iba ay ipinapakilala natin.

Unang-una, mula sa aking kanan, ang ating Secretary of Foreign Affairs, si Bert Romulo; sa kanyang kanan naman, yung kilalang-kilala ninyo, ang palangga ng mga Ilonggo, si Senador Miriam Defensor-Santiago; at sa kanyang kanan ay ang anak ng katagalugan, ang Congressman mula sa Batangas, si Dodo Mandanas; doon naman sa kaliwa ni Ambassador Siazon ay yung anak ng Bicol, si Congressman Edcel Lagman ng Albay; at siyempre kasama ng ating mga taga-Osaka na nag-bus para pumunta rito ay si Consul General Melody Lopez; narito rin ang ating iba't-ibang mga cabinet members at economic managers at silang lahat ay nagpupugay sa inyo, binabati ang mga pinuno ng ating Philippine community dito sa Hapon. Philippine community na land-based pati na rin ang Philippine community marine-based na kinakatawan ni Captain Dean Baes, maraming salamat sa iyong mga pahayag.

Mga mimamahal kong lider ng Filipino community, maraming salamat na kayo'y pumunta sa kabila ng ito ay working day. Talagang alam ko ilan diyan sa inyo ay nagsakripisyo -- nag-bus mula sa Osaka, nag-eroplano mula sa Hokaido. Kaya maraming salamat kahit na ito ay mahirap na araw para magkita-kita tayo. Talagang nagpapasalamat ako dito sa pagkakataong magkasama na naman tayo.

At una sa lahat, ibig kong muling ipahayag ang malaking respeto sa inyo sa inyong sakripisyo at malasakit, malasakit sa inyong trabaho, malasakit sa inyong pamilya, malasakit sa ating bansa.

Ilang beses na akong napunta rito, at ilang beses na tayong nagkita. Naalala ko noong 2001, walong milyong Pilipino ang nasa ibayong dagat. Ngayon 2007, walong milyong Pilipino pa rin dahil habang may lumalabas, mayroon ding umuuwi. Ngunit kung ang pag-uusapan natin ang remittances, noong 2001, ang remittances ng mga Pilipino sa ibayong dagat ay seven billion dollars habang ngayon ay halos nagdoble na at naging 13 billion U.S. dollars kahit na pareho ang numero.

Balita ng mga nagsusubaybay sa ekonomiya na kayong mga OFW ay nagsisimula nang mag-invest ng inyong kita sa ating bansa keysa ginagamit lamang itong mga remittances para suportahan ang inyong mga pamilya. Kaya gaya nang sabi ko noon at natutupad na yata ngayon, dapat ang tawag sa inyo ay hindi na Overseas Filipino Workers o OFW kung hindi OFI or Overseas Filipino Investors. maraming salamat sa inyong pamumuhunan sa ating bansa.

Salamat din sa ating mga pilipinong marino sa hapon na nagsusuporta sa ating mga marino sa Pilipinas. At sana nga sa inyong pagsusuporta, gaya nang sabi ni Captain Baes, itong ating mga marinerong Pilipino ay magiging mga marinerong opisyal o managers ng mga barko sa ganun ay lalong aangat pa ang kita para sa pamilya.

Itong ginagawa ngayon ng ating mga Pilipino sa ibayong dagat na dumoble ang ipinapauwi sa ating bansa, ito ang tinatawag na financial freedom. Ibig sabihin noon hindi tumitigil sa nagpapadala ng sapat na pondo para isustento ang batayang mga pangangailangan ng isang pamilya.

Nakikita natin na tinatanaw ninyo na kasing importante ang nagkakaipon ng sapat na savings at ginagamit itong salaping katas ng inyong sikap bilang solid working capital. At ito na nga ang financial freedom ng OFW na maging OFIat gamitin ang inyong iniipon bilang puhunan sa paghahanda sa kinabukasan ninyo at inyong mga pamilya.

Napag-alaman ko, na ngayon, lumalaki ang remittances na ginagamit patungo sa human resource capital sa pamamagitan ng edukasyon, at kasama na dito yung mga kontribusyon ninyo sa programang classroom galing sa mamamayan abroad. Maraming salamat doon sa mga nagbibigay ng classroom.

Yung remittances din ninyo ay namumuhunan sa health care. Ito ay bahagi ng human capital, health care ng inyong mga alaga. Pero isang malaking pagbabago, ginagamit din ninyo ang remittances, ayon sa mga nagsusubaybay, sa pamumuhunan sa real estate kasama ang pagbili ng lupa at pagtayo ng tahanan. Alam ba ninyo na ang ating real estate market na napakamasigasig ngayon, kwarenta porsiyento ay nanggagaling sa ating overseas Filipino workers or overseas Filipino investors. Kayo ang nagpabuhay muli ng ating housing at real estate industry.

Nasubaybayan din ng mga tumitingin kung saan niyo dinadala yung inyong mga remittances na kayo rin ay naglalagay ng financial at capital investments. Meron nga akong mga nakilalang mga overseas Filipinos na naglalagay ng pera sa stock market, meron ding mga bumibili ng government bonds at treasury bills. Ano pa yun, Governor Tetangco ng Central Bank, saan pa sila naglalagay? Mutual funds.

Kaya ito ay isang malaking ginagawa ninyo at sabi nga ni Captain Baes, sana makahanap pa ng mga magandang paglalagay ninyo ng financial instruments.

Kahapon ay nagpunta sa akin yung isang securities company, yung Aizawa, at siya ay nagtayo ng Philippine fund para yung mga may puhunan -- of course, yung kanyang main market yata ay yung mga matatanda ng mga Hapon na meron silang savings, meron silang pension or lump sum at hindi na sila puwedeng magtrabaho, hindi na sila puwedeng magnegosyo dahil matanda na sila -- passive investment. Ito ay puwedeng ilagay sa pondong ito.

At isa pang nakikita natin na humihigit ang mga remittances na pinapadala sa mga business ventures gaya ng mga maliliit or medium-scale enterprises. Kaya itong dumodoble ang remittances kahit na hindi nagpapalit ang bilang ng mga overseas filipino, nakikita na nagpapalit ang kultura ng mga remittances.

Ngunit dito sa Hapon, habang binabati natin na pinagdidiriwang natin na dumodoble ang dinadala ng karaniwang Pilipino sa Pilipinas, alam natin naman na maraming nawalan ng trabaho noong naghigpit ang hapon sa mga entertainer. Kaya naman, gaya nang sabi ni Captain Baes, binuksan ng pamahalaan noong Marso doon sa Intramuros yung National Reintegration Center para sa mga OFW, at nilagay natin ito sa Intramuros. Sana kayo dahil kayo ay mga lider kung meron kayong mga kilala na i-stranded tuloy at umuwi, sana ipaabot ninyo kung meron pa kayong contact sa kanila, yung mga kaibigan nawalan ng trabaho na gamitin itong reintegration center sa intramuros upang mapadali ang pagsisimula ng panibagong buhay pagbalik sa Pilipinas.

Kung tutuusin natin, ang ninanais natin naman talaga ay yung araw when going abroad for a job is a career option, not the only choice for a hardworking Filipino.

Kaya naman ang ating mga plano sa ekonomiya ay nakatukoy na payagan ang Pilipinas na lumaya na dito sa sistemang kailangan pang mag-abroad upang magkaroon ng disenteng hanapbuhay. Kaya nakatutok tayo sa ekonomiya at pinapaasenso ang mga rehiyon ng ating bansa. Doon sa Luzon urban beltway mula sa Subic hanggang Metro Manila hanggang Batangas port, doon natin inaalok na pumunta yung mga industriya.

Doon naman sa North Luzon -- dagidiay anak ti amyanan, dagidiay kakailyan ni Ambassador Siazon ken kailyan ni mamang ko nga Ilokano -- doon naman ay nilalagay natin ang puhunan para magkaroon ng magandang agri-business, ganun din sa Mindanao.

At doon naman sa Central Philippines, doon sa lugar ni Senator Miriam Defensor-Santiago ay doon naman natin dini-develop yung turismo ng ating bansa. Kaya naman tuloy doon sa lugar ni Senator Miriam Defensor-Santiago, doon sa Iloilo ay naglagay tayo -- nakabukas na, ready to operate anytime -- ang isang bagong international airport. Ganun ang ating mga ginawang puhunan. Dahil kailangang imudmod natin ang kayamanan upang makahanap ng trabaho ang ating taumbayan sa sariling bayan. Naglilikha tayo ng mga trabaho sa pamamagitan ng pagtukoy sa mga preyoridad na sektor.

Siyanga pala, meron pang isang rehiyon, ito naman yung cuts along the length of all these four super regions i talked about. Mula baguio hanggang Clark-Subic, hanggang Metro Manila, hanggang Cebu, hanggang Davao -- yan ang ating cyber corridor kung saan nagkakaroon tayo ng napakaraming mga call center at business process outsourcing. Yung mga kabataan nga na nagtratrabaho na doon, sinasabi nila sa akin, salamat at lumawak ang ating business process outsourcing industry dahil hindi na sila kailangan mag-abroad.

Noong 2001, noong ako ay bagong pangulo, dalawang libo pa lamang ang mga nagtratrabaho sa BPO. Ngayon 250,000 na sa loob ng anim na taon at naging two billion-dollar industry na.

Nabanggit ni Captain Baes yung halalan. Doon sa halalan noong isang linggo pinakita ng mga Pilipino ang katatagan ng ating pulitika sa pamamagitan ng mapayapa, patas at malayang halalan. Ang mensahe ay matatag at malakas ang ekonomiya. Hindi nasisira ng pulitika ang landas na itinakda natin para sa reporma sa ekonomiya. Hindi mabubura ang progreso ng ating ekonomiya. Mukhang nakaabot na ang ating ekonomiya sa bagong antas ng maturity at katatagan. Pinakamaganda nga ang sukat ng ating ekonomiya sa loob ng ilang dekada. Ngunit kailangan ipagpatuloy natin ito. At gaya nang sinasabi ni Captain Baes isang paraan kung papano natin ipagpapatuloy ito ay pagkakaisa. Sa ibabaw ng pagkakaisa, ang maikling sagot sa kung papano natin ipagpapatuloy ang paglago ng ekonomiya ay nasusuma sa tatlong salita: invest, invest, invest. Kayo, nag-iinvest na. Maraming salamat doon.

Itong mga ginawa naman ng gobyerno ay kahit na maraming nagalit, naglagay tayo ng mga bagong buwis. Kasi nung araw panay utang ang pinanggagalingan ng ating imprastruktura. Ngayon naglagay tayo ng mga bagong buwis, kailangang sundan natin ang sakit ng pagtaas ng buwis sa pakinabang na nanggagaling lamang sa makabuluhang investment sa tao at sa mga proyekto. Sa ganung paraan lamang natin masisiguro na ang kaunlaran ay hindi na mababaliktad.

Kaya habang ang ating ekonomiya ay nakaabot sa bagong antas ng maturity at katatagan na pinakamalalakas ang ating growth rate, ang ating interest rate, ang ating iba't-ibang mga measures sa loob ng ilang dekada, hindi tayo dapat magpahinga, kung hindi sumulong at isustento ang momentum. At upang maging permanente ang pagbabago, gagawa tayo ng matagal nang dapat ginawang investment sa human at physical infrastructure, gaya nang ginagawa ng ating mga overseas Filipino investors, kasama dito naman sa panig ng pamahalaan ang bilyung-bilyong pisong ginagastos na natin ngayon sa edukasyon, kalusugan at training. Kasama ng bilyung-bilyon sa mga bagong tulay, kalsada, pantalan upang i-angat ang kakayahan ng Pilipinas sa kumpetensiya.

Pag sinasabi natin naglalagay tayo ng bilyon sa training, hindi ibig sabihin na tayo ang nagti-train, na gobyerno ang nagti-train kasi maraming private sector training centers or maraming private sector vocational and technical schools, maraming private sector na marine academies. Ang ginagawa natin ay mga scholarship para mas lalong makapasok ang ating karaniwang pilipinong naghahanap ng mas magandang trabaho at mas magandang kita.

Ito naman, itong ating ginagawang investment sa tao at saka sa imprastruktura ay nag-aaliw naman ng mga investment ng private sector, foreign investment, Filipino investment at naglilikha ng higit na trabaho.

Yung halalan, hindi pa tapos ang bilangan para sa mga senador, ngunit sa mga kongresista at mga LGU, nakararaming di hamak sa mga nanalo ay kaalyado ng administrasyon. Kaya puwede talaga tayong manawagan ng pagkakaisa, at kaya rin makakapagpatuloy tayo sa landas kung saan inuuna natin ang taumbayan kaysa sa pulitika -- yan yata ang mensahe ni captain baes -- sa pamamagitan ng pagtukoy sa estratehiyang maka-kaunlaran, maka-kalakal at maka-investment na nakakatulong i-ahon ang ating taumbayan mula sa kahirapan at tinutulungan ang Pilipinas na sa wakas maging isa na tunay na pinupuntahan ng investment.

Itong mga investment na kailangan natin para magkaroon ng trabaho. Kamakailan lamang, nagdesisyon ang Marubeni at Tokyo Electric na mamuhunan sa Pilipinas ng four billion U.S. dollars sa ating bansa. Ito ay ang pinakamalaking investment ng hapon sa buong kasaysayan ng pilipinas. Ito ay malakas na endorso sa ating programang pang-ekonomiya.

At pagpasa ng Japan-Philippines Economic Partnership Agreement sa ating Senado, at si Senator Miriam ang magiging sponsor noon, higit... higit pang luluwag ang pintuan ng Hapon sa mga manggagawang Pilipino, lalo na yung mga nurse at caregiver. hihigit rin ang kalakal at serbisyo sa dalawang bansa, hihigit din maging mas madali at bukas ang investment, at dadagdagan ang tulong ng hapon sa technical cooperation at capability-building.

Kaya sinasabi mo Captain na sana makipag-ugnay dito sa mga host countries, yung kultura, yung lengguwahe kasama yuon doon sa ating Japan-Philipping Economic Partnership Agreement. Lalong makakakilos ang puhunang hapon, lalong makakakilos ang manggagawang Pilipino. Lalaki ang merkado, lalaki ang oportunidad para sa mga negosyante maging Pilipino o Hapon.

At para sa ating bansa, lalong bubukas ang pintuan ng Hapon sa mga produkto at serbisyo ng Pilipinas. Agad-agad magkakaroon ng positibong epekto sa ating mga magsasaka, mangingisda at food processor dahil ang mga saging, pinya, alimango, hipon, asukal, manok at tuna ay higit na makakaabot dahil ang customs duties ng Hapon ay tatanggalin pagpasok nung mga produktong yun dito. tama ba, Peter? Tama ba yun? Okay, kasi si Secretary Favila ang nag-negotiate noon.

Magkakaroon ng agaran at pangmatagalang benepisyo sa ating mga industriya naman sa Pilipinas, dahil ang Pilipinas ay makakasiguro sa regular na supply ng mga importanteng materyal gaya ng mga espesyal na steel products ng Hapon, sasakyan at auto parts, at mga gamit at parts na electrical at electronics sa sektor ng mga pabrika. Kaya kung mas madali sa kanilang mag-angkat nitong mga raw materials na ito, mas din sila makaka-produce, mas makakapagbigay ng trabaho sa mga pabrika.

At yung mga tela at damit ay kapwang tatanggalin ang customs duties sa isa't-isa. Di ba ang mamahal ng mga damit dito sa Hapon? Eh, puwede nang makapasok ng malaya at walang buwis din ano, Peter? -- pag na-ratify ng Senado -- ang mga damit na manggagaling sa Pilipinas.

Sinisiguro rin na maliban sa ilang mga hindi sinaling sektor, halimbawa, nga yung mga entertainers dati na nahigpitan, mananatiling mahigpit. Pero sa ibang mga sektor ay walang diskriminasyon sa mga serbisyong nagmumula sa Pilipinas. Inaasahang lalawak ang turismo, biyahe sa barko, biyahe sa eroplano, information technology at banking.

Sa anumang sukat, kasalukuyang pinakamalakas na relasyon sa pagitan ng Pilipinas at Hapon ngayon. Maraming turistang hapong nagbibisita sa Pilipinas. Kahanga-hanga ang pag-angat ng investment sa Pilipinas mula sa Hapon. Ah, binanggit ko nga yung Marubeni and Tokyo Electric, four billion dollars; yung Sumitomo maglalagay ng one billion dollars sa ating mining, at iba pa.

At sa isang pang kapansin-pansin na larangan, nakagawa ang Hapon ng importanteng kontribusyon sa kapayapaan at katatagan sa Mindanao. Kinsa taga-Mindanao diri? Okay. Ang Hapon, tulad ng Pilipinas, ay maka-kapayapaan, demokratiko, at may paggalang sa karapatang-tao. Kaya inaasahan ko na maganda ang pagtrato ng batas ng Hapon sa mga Pilipinong pinapayagan magtrabaho dito pati na rin sa mga barkong hapon.

Magkasama tayong tumindig at makipagbalikat, upang maitaguyod ang pilipinas bilang maunlad na bansa para sa lahat ng Pilipino. Ako ay nasisiyahan na makita kayong muli. Ito ay working day kaya hindi natin naimbita ang mas maraming Pilipino. Pero kayo ang mga liders, kayo na lamang ang magpadala ng ating patuloy na respeto sa mga manggagawa dito sa Hapon.

Maraming salamat sa inyong lahat.

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PGMA's Speech during the Conference Dinner with Asian Leaders
Peacock Room, Imperial Hotel Tokyo, Japan
May 24, 2007

Thank you very much.

Prime Minister Abe; Chairman Sugita; Prime Minister Badawi; Vice President Kalla of Indonesia; Deputy Prime Minister Kim of Vietnam; Minister of Commerce Nath of India; Former Prime Minister of Korea, Madame Han; Excellency, Former Prime Minister Lee Kuan Yew of Singapore; Mitarai San, Chairman of Keidanren; other officials of Japan and other leaders from all over the world; ladies and gentlemen:

We thank Nikkei Shimbun for the hospitality extended to all of us and we pay tribute to its abiding vision in the future of Asia.

We are also glad for the opportunity tonight to hear such an important and comprehensive message from Prime Minister Abe about global warming. As the new generation of leadership of the second largest economy in the world and the largest in Asia, Prime Minister Abe is a valued partner of the developing ASEAN community and major leader of the broader East Asian community. And now, following his initiatives in the Cebu Summit last January and its all important pronouncement tonight, a leader of sustainable development in the entire world.

The concept of an East Asian community, which has been the subject matter of our talks today, has become exciting because of the success of the launching of the East Asian Summit in Kuala Lumpur two years ago under the leadership of our first chairman, Prime Minister Abdullah Badawi.

Thus, it is our great honor tonight to have both Prime Minister Abe and Prime Minister Abdullah here with us. For us in the Philippines, these two gentlemen and the countries they lead are valuable allies in our quest for permanent peace in Mindanao.

In Mindanao, Japan has joined the international monitoring team led by Malaysia to help nurture the peace talks there to a successful conclusion. Malaysia has been facilitating the peace talks -- and I thank Prime Minister Badawi for that -- while Japan has been making significant economic investments to build up the economy of Mindanao -- and I thank Prime Minister Abe for that.

Through the valuable support of our two friends, Malaysia and Japan, the role of "soft power" -- that is non-military activities -- has been the most significant development in the Mindanao peace process. The Philippines with their help and with the help of other very important countries like Indonesia who heads the committee of the 8 of the OICc to monitor the peace agreement with the MNLF, we have truly been able to forge a new paradigm for peace in Mindanao. This paradigm offers more soft than hard power. It relies on interfaith dialogue and an expanding cast of international players to keep the peace.

Japan's involvement in keeping the peace in Mindanao inspires the Philippines to strongly encourage Japan to expand the present concept of collective security. We would like to see Japan playing a leading role in contributing to community building in the region, in leading us in the fight against global warming, and in maintaining and pursuing international peace and security as we try to forge the East Asia community of our dreams, a dream that gained momentum with the first East Asian Summit in Luala Lumpur.

Japan's values of peace with strength, innovative enterprise, green energy and enviro-technology can help save the world from a scenario of strife and hunger, ignorance and disease. And that is the framework and the vision and the strategy that Prime Minister Abe has shared with us tonight.

Japan has the political, economic and cultural power to help the region and the world choose the right path in the crossroad of the 21st century. It has the power to help the region and the world stick to that path for the harmony and prosperity of mankind especially Asia as well as its sustainable development.

Ladies and gentlemen, there is much work ahead for all of us in Asia. Events such as the Nikkei forum play an important role in bringing us even closer to the goal of "deepening cooperation towards a true community." I thank Nikkei and all of the attendees of this forum for your valuable contribution towards meeting this goal of deepening integration and deepening integration towards sustainable development.

Thank you.

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