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PGMA's Speech during the Meeting with the Filipino Community Leaders in Korea (Convention Hall, Lotte Hotel, Seoul Korea - 02 June 2003)
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Maraming salamat Secretary, Pat Sto. Tomas. Alam n'yo si Secretary Pat Sto.Tomas simbolo ng dakilang manggagawang Pilipino. Kasi hindi lamang siya Secretary of Labor ng ating bansa na nag-aalaga ng Pilipino sa ating bansasiya ang nag-aalaga ng manggagawa sa buong mundo kasi siya ang pangulong International Labor Organization.

Espesyal na espesyal kayong mga Pilipino dito napaka-highpowered ang ating Philippine delegation. Tignan n'yo nandito si Kabayan Noli de Castro; mula naman sa Negros Occidental si Charlie Cojuangco, Congressman; mula sa Marikina nandiyan si Del de Guzman, Congressman; meron tayong Bulacan Association, 'di ba? Tinuro namin lahat siya, si Secretary Blas Ople ng Foreign Affairs; 'yung tinawag ni President Bush na Great Heir to a Great Political Tradition, si Secretary Mar Roxas; ah eto, kailangan n'ya kayo kasi ang Korean market ang isa sa pinakamalaking umaangat na palengke ng ating turismo, si Secretary Dick gGordon. Tulungan n'yo siya; alam n'yo dito sa Korea maraming mga investors na nag-iinvest sa Pilipinas kasama na dito sa ating power sector, sa kuryente, sa enerhiya. Kaya kasama ko ngayon si Secretary Vince Perez ng Energy.

At dito sa aking biyahe hihingiin natin sa Korea na -- alam n'yo naman yung mga saging dito galing sa atin, 'di ba? -- hihingin ko sa kanila na ibaba pa nila yung buwis ng saging na pumapasok dito. Kaya nandito si Cito Lorenzo para ipaglaban iyon; at ang Korea isa sa pinaka-mapagbigay ng Official Development Assistance kaya nandito si ODA Secretary Mai Jimenez para ayusin 'yon; at malaki ang tinutulong nila dagidiay kakailyan tayo ti bangir nimamang ko nga Ilocano ken Cordillera. Issu nga addad toy met ti maysa nga anak ti Ilocandia ni Presidential Adviser Chavit Singson of the North Quad; adda paymaysa nga anak ti Cordillera, 'yung aking head ng Presidential Management Staff si Secretary Yongyong Afable; and of course, let me greet... Ay, let me greet Ambassador Jarasa and Mrs. Jarasa, our Ambassador to Korea but Korea's Ambassador to the Philippines is also here, Ambassador Son Sang-ha, Korean Ambassador to the Philippines.

At kayong mga oldtimer dito, meron kayong kilalang dala ko,inimbita ko siya kasi siya ang simbolo ng ating pagtulong sa Korea nung siya ay bago pang demokrasya, si Former Ambassador to Korea at saka isa sa mga kawal na Pilipino na lumaban para sa kalayaan ng Korea si General and Ambassador Ernesto Gidaya.

'Yung iba't-ibang mga organization na narito: binati ko na'yung Bulacan group, 'yung Ilocano, ti Cordillera; caring Cabalen kong Capampangan maayapagat panapon; narinig ko may... Ay, a bengin na pala. Okay; at narinig ko rin may mga Bicolano, dios marhay na bangi sa indo gabos; at 'yung iba't-ibang mga church groups natin. Nakikita ko ay'yung sumisigla pala ang Filipino community dito sa Korea dahil sa napakasigla ng ating iba't-ibang mga church organizations; our Korean friends; sa inyong lahat mga mahal na dakilang manggagawang Pilipino sa Korea, magandang gabi at salamat sa inyong pagkabayani.

Kasi dahil sa husay, sipag at galing ng ating OFW at mga manggagawa sa loob ng bansa pati, gusto kong ikwento sa inyo na 'yung ating GNP ay tumaas ng 5.6 percent at 'yung GDP ay 4.5 percent. Ano ang kaibahan nung dalawa?' yung 5.6 na GNP kasama ang OFW remittances, 'yung 4.5 wala. kaya ang diperensya ng dalawa, 'yon nga, 'yung GDP hindi kasama ang remittances ninyo, 'yung GNP ay kasama. Ibig sabihin, ang diperensya between 5.6 and 4.5 ay 'yung nanggagaling sa kontribusyon ng ating mga overseas Filipinos kagaya ninyo. Kaya maraming salamat sa inyong remittances.

Taun-taon nagpapadala kayo hindi bumababa sa anim nabilyong dollar. Kung minsan pa nga seven billion, kung minsan eight billion.at dahil sa pinapadala n'yong pera sa mga anak, magulang at kapatid, milyun-milyong kabataan tuloy ang nakakapag-aral o nakakatapos sa edukasyon. Dahil sa pinapadala n'yong pera o kaya iyung binibili n'yong bahay dito para sa kanila doon, libu-libong bagong bahay ang napapatayo. In fact, nung isang araw, nagkaroon ako ng meeting sa developers, housing developers, sabi nila majority sa middle-class housing ngayon ay OFW ang bumibili. Kaya kayo ang nagbibigay ng tahanan sa mga kamag-anak ninyo. Pero dahil 'yung housing ang pinakamalaking multiplier na nagbibigay ng trabaho at iba pang negosyo sa ating bansa pati 'yon nanggagaling sa inyong tulong. Kaya maraming salamat doon. Dahil sa... Ano, Dick? O sabi ni Dick nagpapadala kayo ng pera pang-aral, pang-bahay... Pambili ng bahay o kaya nagpapadala kayo ng bahay na binibili ninyo mula rito ang bayad, magpadala na rin kayo ng turista, sabi ni Dick. Sabi ko nga kay Kabayan Noli, 'yung turismo maging sa ating bansa o sa ibang bansa sa asia kapag umaangat nakinabang tayo. Kasi lahat ng mga lugar kung saan malakas ang turismo, Pilipino ang mga musicians. Kaya congratulations sa inyo. Pag napapadala kayo ng pera sa inyong mga kamag-anak na nagiging puhunan din nila sa negosyo nila ay nagpapalunsad kayo ng mararaming negosyong small and medium enterprises. Ang dami pakinabang ng ating ekonomiya. At sa ibabaw pa nitong lahat, nagbibigay kayo ng magandang reputasyon sa ating bansa kung ganito kayo kagaling sabi nila siguro ganoon din sa Pilipinas. Ang Pilipinas nga siguro ay tahanan ng dakilang manggagawang Pilipino.

Itong ginagawa n'yo nagpapa-aral kayo ng kamag-anak, binibilhan n'yo ng bahay, binibigyan n'yo ng puhunan. Ang inyong kontribusyon sa ating ekonomiya ay tugmang-tugma sa hangaring ipinahayag ko para sa ating bansa mula pa noong aking unang ulat sa bayan bilang pangulo noong 2001. Sabi ko noon: trabaho, edukasyon, sariling tahanan, idagdag na rin: pagkain sa bawat mesa -- ito ang mithiin ng masa. And I told the Congressmen and Senators then, and this in common sense and plain talk, is the core of my vision.

Pagkatapos ng isang taong sinisikap ko ito, namulatan ako na ito ay mga layunin. Pero 'yung vision dapat, the vision for our nation must be: to rebuild and strengthen the Philippine republic, gaya ng sabi ni Ambassador Jarasa. Dahil ang malakas na republika lamang ang makakasiguro ng trabaho, edukasyon, tahanan at pagkain sa bawat mesa ng ating mamamayan.

Itong malakas na republika na sinasabi kong aking vision, dalawa ang katangian na gumuguhit sa malakas na republika: una, ay kalayaan mula sa uri at sektor upang itong republika ay titindig para sa interes ng taumbayan, kaysa sa interest ng makapangyarihang minoridad; at pangalawa ay kapasidad, kinakatawan ng malakas na institusyon at malakas na burokrasya, para matupad ang mabuting patakaran at maghatid ng batayang serbisyo.

Dito sa Korea, isa sa sinasabi nilang malakas na republika. Itong taon, kasi 'yung ating 5 percent growth rate mas mataas kaysa sa kanila, kaya lamang mas malaki na, malayo ang ating hahabulin sa kanila. Malaki ang lamang nila sa atin kasi matagal na silang umuunlad. Hahabulin natin ang kaunlaran nila kasi ang kanilang per capita income ay 10,000 dollars, 'yung atin 1,000 dollars. Nung araw, nung panahon ng tatay ko, mas malaki 'yung ating per capita income kaysa sa kanila. Pero nung nagkaroon ng... Nung tayo nagkaroon ng Martial Law, sila naman ay nagkaroon ng export oriented industrialization. In the 1970's nag-iba, naghiwalay 'yung landas natin. Kaya nakamit nila itong 10,000 dollars per capita nila sa loob ng nakaraang tatlumpung taon. Sayang, 'no? 'Yung panahon nung tatay ko, tayo ay pangalawang pinaka maunlad na bansa sa Asya. Kaya ang Korea hindi pa kagaya natin noon. Kaya 'yung Korea, 'yung ginawa nila 'yung industrialization export oriented, 'yon ang nagpa-angat sa kanila. Eh hindi tayo nakagawa noon nung panahon ng Martial Law. Hindi tayo nakasabay sa mga bansang, you know, ibang mga ekonomiya kagaya ng Malaysia, 'yung ekonomiya ng Taiwan. Hindi tayo nakasabay sa kanila dahil nagkagulo 'yung ating bansa sa mga problema ng Martial Law. Kaya noon lampas na lampas ng Korea ang ating growth rate. Kung tayo ay maliit lang ang growth rate natin, 'yung Korea ay nagte ten percent, nine, eight, seven, ganun. Kaya kung tayo ay naging five ngayon at Korea ay three, eh mahaba pa ang hahabulin natin muli.

Kaya makikita natin, ang leksyon doon ay ang nangyari sa Korea ay hindi bunga ng isang milagro. Bunga ito ng walang humpay na pagsisikap ng bansa pati na rin ang mga ordinaryong mamamayan upang paunlarin ang kanilang mga buhay. At kayo nakatira kayo dito, saksi kayo sa bagay na ito. Nakikita naman ninyo araw-araw ang disiplina at sipag nila. At naalala natin nung nagkaron ng krisis, 'yung Korea nung 1998, '99 mismo 'yung mga mayayaman nila nagbigay ng alahas para mabayaran 'yung mga utang ng bansang Korea. So 'yung malakas ang diwa ng pag sakripisyo. Ngunit kung sa sipag hindi naman nagkukulang ang disiplina at sipag ng ating manggagawang Pilipino. Kaya naman kayo hinahanap saan mang sulok ng mundo.

Hinahalaga kayo ng ating bansa. Dahil dito, ating mga congressmen, ating mga senador, administrasyon, bilang administration urgent measure pinasa natin ang Overseas Absentee Voting Law. At sinusuportahan rin kayo ng lipunan at pamahalaang pilipino sa pamamagitan ng tax free 'yung inyong income dito sa korea. At kabilang rin ang Korea kung saan nagpadala ang pamahalaan ng doktor at social worker para gamutin at bigyan ng payo ang mga OFW. At tinaas ko na rin ang benepisyo ninyo mula sa OWW. Doble na ang death benefits, nung araw 50,000 ngayon 100,000. Eh lahat naman mamamatay, 'di ba? Nung araw walang disability benefits, ngayon binibigyan natin ng disability hanggang 50,000 pesos, depende kung ano 'yung inyong naging sakuna. At taun-taon may isang daang anak ng ofw na bibigyan ng scholarship.

At dito naman sa korea ipinaglalaban din natin na sana mapasa 'yung work permit bill. Hindi ito pangako, ha? Kasi hindi naman kapangyarihan ko 'yon ngunit trinatrabaho rin natin 'yon kasama ninyo.

At ngayon na nagbago ang mundo mula nang ang koalisyong pinuno ng Amerika ay kumilos kontra sa Iraq, at kailangan ng bagong pananaw ng Asya sa seguridad ng pulitika at kabuhayan, kailangan kasama ang mga Pilipino sa ibayong dagat sa konsiderasyon ng ating bagong pananaw.

Ano ba itong bagong pananaw na nanggaling sa nagkaroon ng giyera sa iraq mula sa koalisyon, Coalition of the Willing. Itong bagong pananaw ay dapat kinikilala natin na dito sa Asya higit na kailangan responsable tayo para sa ating sariling seguridad sa pulitika at pangkabuhayan. At kung sinasabi ko seguridad natin kasama na rito ang ating mga mamamayan hindi lamang sa Pilipinas kung hindi na rin ang ating Pilipino sa ibayong dagat.

Dito sa nagbagong mundo, mundong nagbago mula nung March 20, 2003 kinikilala natin na tuloy-tuloy pa rin ang banta ng terorismo, at dinadagdagan pa ng posibilidad na ang pangmundong kaguluhan ay umabot hanggang sa north korea. Kaya ito ang hamon ng ating rehiyon. At kinukwento ko ito sa inyo dahil nandito kayo sa Korea, sa South Korea, at dahil nga 'yung mga bantang umabot sa North Korea ang gulo ng ating mundo sa nagbagong mundong ito gusto kong sabihin sa inyo na gagawin nating lahat ang kailangan para ligtas ang Pilipino. Hindi lamang sa Pilipinas kundi na rin sa iba't ibang bahagi ng mundo, lalo na ngayon ang ating mga Filipino dito sa Korea. Kasi mula nang lumala ang problema ng pangmundong istabilidad, laging patakaran ng ating pamahalaan na ang ating pinaka-tungkulin ay ang kaligtasan at kapakanan ng mga Pilipino maging sa Pilipinas o sa ibayong dagat. Ang ating pangunahing pinag-aabala ay manatili kayong ligtas at wala sa panganib. Kailangan abala ako sa kapayapaan at seguridad ng walong milyong Pilipinong nakatira at nagtatrabaho sa higit sandaan at apatnapu't bansa sa buong mundo, kasama na 'yung tatlumpung-libong Pilipinong nakatira dito sa Korea.

Eto ang ating kailangan: kapayapaan, seguridad, trabaho, edukasyon, tahanan, pagkain sa bawat mesa. At ako'y nagpapasalamat sa inyo, dakilang manggagawang Pilipino dahil napakalaking kontribusyon ninyo dito sa ating hangarin ng ating bayan. Sana tuloy ang inyong tagumpay. At sana tuloy din ang inyong tulong para sa ganun maging malakas na rin ang ating republika gaya ng bansang pinagtatrabahuan ninyo.

Maraming salamat at mabuhay ang manggagawang Pilipino.

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PGMA's Speech during the Luncheon co-hosted by the Four Major Korean Business Associations (Grand Ballroom, Seoul Hilton Hotel Seoul Korea - 03 June 2003)
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Thank you very much, Secretary Roxas.

Mr. Chairman, Keil Cheng Son, thank you for your kind words; Mr. President of the KCCI, Mr. Lee So Yong; Mr. Chairman and CEO of the Korea International Trading Association, Mr. Jil Chul Kim and Mr. Chairman of the Korean Federation of Small Industries Mr. Yung So Kim; Ambassador Sang-ha Son and Madame Son.

And may I also greet the leaders of the Philippine Business community, the heads of the Philippine business delegation: Mr. Sergio Ortiz Luis, Jr of the Philippine Chamber of Commerce and Industry; Mike Varela, President of the Philippines Incorporated; Mr. David Balangit, President of the Philippine-Korea Economic Council; distinguished leaders of the business community in Korea and the Philippines; honorable members of the Philippine delegation; ladies and gentlemen:

It's always an honor to be in Korea. And I am honored to be among you today -- men and women of Korea's leading business organizations. The Koreans have individually and collectively shown the world how a nation can sustain its leadership in the developed world. In times of crisis, you have defined the true meaning of nationhood. We remember that in 1997, during the Asian crisis, Koreans lined up before the banks to donate to your government your precious gold and silver heirlooms to help the government. The people of the world congratulate the people of Korea. In particular, the warmth between Korea and the Philippine people is central to our relationship.

I've been to Korea many times before -- I can't count how many times I'd been to Korea -- but its great to be back here to meet with your new president and the many friends I have here. Anytime the leaders of Korea and the Philippines meet, it's an important event. Our relations run deep and remain very strong. It's crucial to get to know President Roh given the importance he will play in Korea's future for the next five years as well as in the region. My trip underscores the deepening ties between Seoul and Manila.

As mentioned by Chairman Keil Cheng Son, the Philippines and Korea share a deep and abiding history. We've fought side by side on the Korean peninsula for freedom and liberty. In the 1950s as chairman said, the Philippines sent 7,000 soldiers to the Korean war. I'd like to reveal something to you that President Roxas is not very well-known here in Korea. The author of the law in Congress, in the Philippine Congress that sent Philippine soldiers to fight side by side with you was no other than my father when he was congressman, Congressman Diosdado Macapagal. But the older generation knows my father later became President of the Philippines. But when he retired from the presidency, your government invited him here to Korea to be an official visitor so that the government of Korea could give him a special award for authoring that law way back in 1951. One of the soldiers who fought by your side -- and this is better known -- also became President of the Philippines, Fidel Ramos. His son-in-law is in our business delegation -- but I'm looking for him, I don't see him now -- he'll be in the meeting tomorrow. Another of the soldiers became Philippine Ambassador to Korea, and I invited him to join us today, General and Ambassador Ernesto Gidaya. Ambassador Gidaya is an example of how the Philippines and Korea have worked side by side to defend freedom.

The Philippines and Korea have also worked side by side to build prosperous Asian economies. In fact, in our own development -- again, as mentioned by his... The honorable Chairman of the Federation -- we've seen Korean businesses increase their investments. In fact last year, we had... I inaugurated KEPCO's 1,000-megawatt power plant worth almost a billion U.S. dollars. We have seen Korean tourists to our shores grow. In 2002, Philippine exports to Korea grew by almost 28 percent and KEPCO's example shows that Korean investments went to such important areas -- aside from the industries mentioned by the honorable chairman of the federation -- important areas as electric power generation. We are particularly pleased that visitor arrivals from Korea in the first three months of this year increased by 22 percent, they represent 17 percent of all our tourist coming in. And that was after having grown by 39 percent for the entire year in 2002. That's as far as our temporary visitors are concerned. But as far as our permanent visitors are concerned, while there are 30,000 Filipinos living in Korea, there are 40,000 Koreans living in the Philippines.

Having said this though, I now have come to Seoul to say that we hope to see more of you outsourcing your imports from the Philippines, and more of you establishing production bases and regional headquarters in our country. Yes, our exports have grown by 28 percent. But the range of our exports to Korea consists of only about 20 product categories, 11 of them related to electronics and only two items, bananas and prawns, related to agriculture. Yes, trade has been fourfold to 4 billion dollars but our total imports from your country exceeds our exports by 1.2 billion dollars. What a big gap, and we hope therefore that you can help us address this gap. For instance, the Philippines is a world class exporter of fresh and processed tropical fruits like mango, Philippine lemon that we call calamansi, coconut; it exports world class processed food like ice cream, biscuits, noodles; it exports marine products, garments and furniture; it exports world class foundry materials like nickel slag, chromite sand, silica sand.

I also believe that a significant potential exists for expanding Korean investments in the Philippines. We seek investments, as I said earlier, in energy and power. We also seek investments in the field of animation, regional I.T.-serviced 24 hours a day, 7 days a week customer relations management call centers, global revenue accounting and other business process outsourcing, software development including online game development.

Our country's strengths are well-recognized: a 29 million strong labor force, made up of talented, skilled and design oriented Filipinos, with a literacy rate of 94 percent, with a fast learning curve and low attrition rate; our country is accessible by air within four hours from any Asian capital; 100 percent foreign equity is allowed; there is free and unrestricted repatriation of capital; there is a fully liberalized foreign exchange system; there is a range of financial and administrative incentives, including up to 8 years income tax holiday and duty-free importation of capital equipment in the economic zones; we have an expatriate-friendly environment, including value-for-money housing, modern recreational and golf facilities, and first rate educational institutions.

And of course, on top of all that, our friendship provides a firm foundation for the times in which we live. A firm foundation for doing business together. A firm foundation for keeping our region secure together.

In the new geopolitical environment post-Iraq war, there is a realignment of relations in Asia marked by several trends including greater national self-reliance and national sovereignty bolstered by strengthened regional cooperation and more strategic global engagement.

From our relations with China, the United States and North Korea, to regional issues like SARS, the nations of Asia are coming of age and dealing more transparently and pragmatically with one another.

The fact that President Roh and I met within days in Washington with President Bush is a testament to the growing geopolitical importance of our region to global power centers.

As Asian leaders, we owe it to our people to impart a new Asian perspective that demonstrates to the world that we are whole and equal partners in global affairs consistent with our mutual self-interest.

We are proud of our strong democratic tradition and the people of our country have made many sacrifices to protect these principles. First and foremost, however, the most basic human right anyone in any country should expect is a quality of life that provides access to education, health and opportunity. We believe that democracy, human rights and economic development go hand in hand.

Politically, the Philippines also represents the closest Asean border to Korea. We remain deeply concerned about peace on the Korean peninsula, particularly a nuclear-free peninsula. We are prepared to do our part to resolve this issue which has great importance not only for the region but also for the world. In my meeting with President Roh this morning, I assured him that the Philippine supports President Roh and the Republic of Korea in your efforts to find a peaceful solution to the North Korean crisis.

We owe it to our peoples to keep the torch of our principled friendship burning, and to show the world that we are fair and equal partners in the search for peace, security and prosperity. Let us continue that partnership. Korean businessmen, lets do more business with each other.

Kamsa hamida and Mabuhay!

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PGMA's Speech during the 19th Joint Meeting of the Korea-Philippines Economic Council (KORPHILEC) and Philippines-Korea Economic Council (PHILKOREC) (Dynasty Ballroom, Shilla Hotel Seoul, Korea - 04 June 2003)
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Thank you very much, Secretary Roxas.

Chairman Hi Yong Kiem, Chairman Balange, Vice Minister Shil Dou Kiem, Jun Ortiz-Luis, Professor Teh, Ambassador Son Sang Ha and Ambassador Jarasa, friends both from the Philippines and Korea.

Thank you for inviting me to your 19th meeting. I'm glad that businessmen from both councils have been continuing your dialogue and interaction since 1976 when the protocol of cooperation between your mother chambers - the Korea Chamber of Commerce and Industry and the Philippine Chamber of Commerce and Industry -- was signed in Manila. And by the way, though I am speaking with you for the first time as President of the Philippines, I'm not a stranger to the Korean-Philippine Economic Council and to PHILKOREC because when I was the equivalent of Vice Minister Chil Do Kim in the Philippine government as assistant secretary and then Undersecretary of Trade and Industry in the Aquino administration, I used to be in-charge of facilitating your dialogue, remember, Robert? And I even attended and organized one of those meetings in a state visit that Vice President Doy Laurel made here in Korea. So, I'm quite familiar with your work. I've done the background work in the latter part of the 1980's. I'm honored to be now at the center stage rather than in the background, and I hope our relationship is even better today.

I remember in that trip, it was the time when I negotiated for the opening of the Korean market to our Philippine bananas. Prior to that you are accepting our bananas on counter trade -- we have to buy something so that you could buy bananas from us. And I remember when I was negotiating for better access not tied up to counter trade and better tariff terms I said, you know in the 1950's when my father was Congressman, he filed a law to send soldiers to the Korean war. And our soldiers came and gave their blood and their lives for the freedom and prosperity of the Republic of Korea.

Now, we are not asking for your blood and your lives. We're only asking for your market and your investments. In any case I'm glad that since then the Philippine bananas have been very, very welcome by the market of Korea. And I hope that with our continuing negotiations for more tariff reduction that will improve even more. But as Secretary Roxas said, that will only add 50 million more dollars to cover our trading balance of 1.2 billion dollars.

So, there are many other things that we feel could be sold by the Philippine businessmen to Korea. And because many of you were already here yesterday, I don't have to mention them again, except to say that it's not only agricultural products but world class manufactured product as well. Not to mention the world class tourism sites that have become a favorite also of the Korean citizens.

It's not only the strong institutional relations, but the close personal friendships that have infused your two organizations, that feeds the many opportunities like this event -- opportunities for our businessmen to congregate, interact among yourselves, and look forward to a positive future.

My meeting with President Roh was very successful. We met twice yesterday -- in the bilateral and also in the dinner. And we recognize that our relations run deep and remain very strong. The Philippines and Korea indeed share a deep and abiding history. We have been reminded meeting after meeting, and we should continue to be reminded how we fought side by side on the Korean peninsula for freedom and liberty, and how we worked side by side after that to build prosperous Asian economies.

I'd like to take a moment to touch on this latter point -- building on prosperous Asian economies. I apologize for my delay in arriving here but that's because I wanted to add to the report I will give you today. Because in the economic development of the Philippines, we've seen Korean businesses increase their investments and we've seen Korean tourists on our shores grow. Last year, Korean tourism to the Philippines grew by 39 percent. This year, because of SARS, it grew by only 22 percent so far. But after only ten people with SARS -- the Philippines has been declared SARS free -- and we hope that that 39 percent growth will again be achieved or even surpassed.

Yesterday, I witnessed the signing of several agreements attesting to Korean participation. And I'm very happy among this participation in the Philippine economy are many of my strategic projects. Vice Minister today talked about KEPCO. And he talked about the power plant inaugurated last year -- and also chairman talked about it -- in Batangas City. I personally went to that inauguration. That was a 700 million dollar inauguration for a thousand megawatt power plant.

Last night, I was telling the president... The president knows about that and he said that the president of KEPCO is one of the most admired and respected businessman in Korea with a reputation very well-known for principled business practices. And I am very happy that yesterday he called on me to say that they're ready for their next power project and that is a 150 million dollar project in antique to cover the shortage in Panay island. Because in the Visayas, in Panay island, the demand for electricity today is 190 megawatts, the supply is only 135 megawatts. Panay imports the balance from Negros Oriental, which of course will soon be needing its own supply for its own expansion. So, the KEPCO investment will be 100 megawatts and therefore it will make up for the requirement, it will cover the shortage.

Yesterday also -- not in front of me but in a separate event -- there was the finalization of the Korean ODA which will fund a 100 million dollars worth of projects. That includes 49 million dollars for the Southrail commuter train from Manila to Calabarzon which will probably be implemented by Daewoo which is ready to put its own 49 million dollars counterpart as well for phase 2 of the project.

Part of the 100 million dollars was also committed to complete the 9 million dollars required for the Laguindingan Airport in Northern Mindanao. And this completes and complements the whole 107 million dollars required to put up the airport. It is the last 9 million of the total 107 million that we've been looking for. We could not access the previous funds already there because we lack the last 9 million. And now, it's there.

This last 9 million allows us to start the project with a 107 million. And I mention already that Daewoo will add its own 49 million dollars of B-O-T money for the second phase of that Southrail. But that's not the only project of Daewoo informed me about yesterday. They will also be spending 25 million dollars for an E-governance project, 20 million dollars to produce buses in the Philippines using compressed natural gas to comply with the Clean Air Act. And together with Andrew Tan -- who is not here I think but who is a property magnate in the Philippines -- they'll be putting up a 20 million-dollar housing joint venture in Cainta, Rizal. Also, 10 million dollars for a rice husk power co generation project. So, it was a very good day for me in my meeting with Daewoo and its various affiliates yesterday.

Still on energy, the Philippine National Oil Company-Energy Development Corporation together with PL global of Korea will develop hydropower again in Panay island at a cost of 70 million dollars. And also build transmission lines of 25 million dollars worth. In Clark -- that's Donald's project. Is that your project, Clark? Donald? Yeah. Okay -- together with Donald Dee, Tricom will put up a 20-million dollar golf course in Clark Economic Zone. And then last night, Dick Gordon just informed me of another golf course to be put up in the Zamboanga economic zone. The government of Korea is also donating 5 million dollars for a vocational training center and 5 million dollars for an I.T. training center.

The reason why I was delayed today was because I had a meeting with Hanjin in order to put together the package, the 107 million-dollar package that I told you about earlier. Not to mention other projects that they are involved in and will continue to be involved in. Specifically, one of my favorite projects that they're working on together with our Philippine government is the Metro Manila commuter train that will close a loop in Metro Manila. So that for that southern part of Metro Manila people can hop on any stop and get out of any other stop and therefore that will reduce the traffic and make life much easier for the businessmen who are doing business there.

We appreciate your contributions to our economy, we appreciate your participation in our economy. We look forward to continuing to welcome Korean businesses and people. This year, 2003 is the 50th anniversary of the end of the Korean war. And so therefore, as we celebrate half a century after freedom and peace was assured for the Republic of Korea, I hope that we continue our partnership and work towards continuing freedom, security and prosperity in our whole region. We have been friends now for more than 50 years, deep friends, blood brothers, not necessarily relatives but blood shed together for freedom and democracy.

May our blood ties now continue to work to bring about prosperity in our region, for the Korean business committee and the Philippine men and women who all need to have a job so that they can also build prosperity for our country.

Once again, leaders and members of the two associations, thank you for your enduring ties with each other that build for enduring ties between our two countries. Let's continue to do our work together.

Kamsa hamida and Mabuhay!

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PGMA's Speech during the Opening Program of the Nikkei 9th International Conference on "The Future of Asia" with the theme: "Genesis of a New Asian Order" (Fuji room, Imperial Hotel Main Bldg. Tokyo Japan - 05 June 2003)
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Thank you very much.

Mr. Sugita, President and CEO of Nikkei; Prime Minister Mahathir; Prime Minister Shinawatra; Former Prime Minister Hashimoto; distinguished participants to Nikkei's 9th International Conference; honored guests; ladies and gentlemen.

I would like to thank Nikkei for inviting me once again to this prestigious conference on "The Future of Asia."

I've always known it, but now I must perform the formidable task of having to speak next to my esteemed senior colleague, Prime Minister Mahathir and just before my dynamic peer, Prime Minister Shinawatra. Prime Mminister Mahathir's insights are always profound, but on the topic we are now grappling with his views set a defining tone, not just today, not only in the present conference, but many, many years ago, when EAEG or EAEC were disjoint letters in search of a meaning and vision. He provided the meaning; he pursued the vision. He transformed Asean plus three from a mere intriguing idea and inaugurated it in Kuala Lumpur as the most viable working process for Pan-East Asian cooperation that it is today.

As for Prime Minister Thaksin, I would like to say that the model I follow in my economic policy is his model. Professional economists call it "domestic consumption based managed asset reflation" and it has helped accelerate Thailand's growth. I call it Thaksinomics.

The conference this year is especially meaningful, not only because of the company of my distinguished fellow heads of government, but also because it is the opportunity to address the profound reality that the world changed on March 20th when the U.S.-led coalition took action against Iraq. The September 11 tragedy was historic, but Iraq affected the global order in a more fundamental manner.


Like all citizens of the world, we've come to see since 9-11 that no place is safe from terrorism, from Washington and New York, to Bali and Riyadh. We have also come to see that we cannot be deterred by terrorists, wherever they strike. This means that we cannot retreat from the world but rather we must engage it.

In the new geopolitical environment post-Iraq war, there is a realignment of relations in Asia marked by several trends including greater national self-reliance and national sovereignty bolstered by strengthened regional cooperation and more strategic global engagement. From our relations with China, with the U.S. and North Korea to regional issues like SARS, we are coming of age and dealing more transparently and pragmatically with one another. We must also impart a new Asian perspective that demonstrates to the world that we are full and equal partners in global affairs, consistent with our mutual self-interest.

March 20 signified a major blow to the power of the United Nations. Critics have long described the current set-up of the U.N. security council as patently undemocratic, grossly outmoded or mostly impotent. That unless its security mandate is updated, the United Nations will continue to limp forward, tasked to do much tedious peacekeeping but too feeble or hand-tied to be effective at peace making. It was for this reason that during the cold war, states resorted to regional and bilateral arrangements, such as NATO, the Warsaw Pact, and networks of security alliances.

Nonetheless, the United Nations and the multilateralism that it represents will never become irrelevant. One country by sheer might win a war, but it will take a concert of countries to win the peace. This was the case in Kosovo, in which the U.S. intervened as the leader of a coalition of the willing, but post-conflict reconstruction was implemented under U.N. auspices. In 1999, the security council was skipped because the U.S. knew that Russia would veto any resolution authorizing the use of force in Kosovo.however, negotiations with Russia produced an agreement that made the U.N. the immediate source of humanitarian aid and civil authority after the war.

Moreover, even if the U.N. did not exist, the world would have to invent it. The world would have to invent an international body just like it. For many developing countries, the United Nations is a supremely vital forum in addressing global economic, social, and cultural concerns. After all, many transnational threats to our societies, such as global warming, the spread of new diseases, and drugs and arms trafficking are global in scope and cannot be managed individually or even regionally.

Perhaps the greatest collateral benefit of the Iraq war that should not be squandered is the opportunity to reform the United Nations and make it a more effective development agent and peacemaker.

In the wake of recent threats to global peace, an important fact stands out: security, like our economic endeavors is increasingly become regionalized. The contributions of each country in East Asia, whether large or small, are vital to regional peace. Being ready to respond nationally to security threats is to us a prerequisite for the ability to contribute positively to the maintenance of regional security. It is under this light that we are looking at the new emergency legislation being considered in the Japanese diet.

As you may know, we have pockets of terrorism in the Southern Philippines that we are wiping out, and it is in our national interest to welcome assistance. The supporters of this terrorism are not confined within our borders. Because of this, we must work with our friends from the region and around the world to achieve lasting peace. We continue to rely on Malaysia's leading support to our peace process in the Southern Philippines. We thank Thailand for helping us build up our air battle capacity.

And as for the United States, the Philippines and the United States have a mutual defense treaty which covers our military cooperation. It has been in effect for 50 years and guides our mutual involvement. We've had regular and joint military exercises throughout that relationship and continue to do so. But it is also important to understand that the Philippine Constitution forbids foreign troops, U.S. or otherwise, from engaging in combat in the Philippines. There will be no U.S. combat activity in the Philippines, only training and security assistance.

The majority of the people of the Philippines support U.S. troops in the Philippines as long as they are under our command, as long as they comply with our constitution, and as long as their efforts help us wipe out terrorism. We need to protect the Philippine people from wanton terrorists and I welcome international assistance to root out terrorists and more importantly, bring renewed economic prosperity to our most impoverished areas.

Substantial progress has been made in eliminating Al Qaeda networks. However, in Asia, in the world, we must continue to be on alert.

The war on terrorism has many battlefronts and it is in everyone's interest to support efforts to win this war wherever and whenever these battles break out. Terrorism has many faces, but we should recognize its one result: a step backwards from humanity and progress to fear. We owe it to ourselves to move forward together to eradicate terrorism and rebuild those regions of the world affected by terrorism on a foundation of peace, goodwill and prosperity.

Like the fear on which it feeds, terrorism can be contagious and it will not be contained unless we agree on a comprehensive approach for defeating it in Asia. The early implementation of the road map to peace in the Middle East would help improve the situation. And by deepening our interdependence in Asia, by facilitating all kinds of interaction, and by raising the cost of conflict, regional economic integration can help us preserve the peace in East Asia, just as it has done in the case of Europe.

I'm an advocate for broad-based economic engagement with the world, for the Philippines as well as our neighbors. I believe more trade makes for less conflict and more interdependence as long as the trade expansion genuinely lifts all partners equally. But as developed and developing countries alike know to be true, the benefits of globalization are not all apparent, and they are not all positive.

This poses a problem in a democracy like the Philippines. As Philippines comes down on the side of trade, we understand that at the same time, we must manage the transition well with our poor in order to gain their political support for additional political and economic reforms down the road. Short-term necessities can then be offset in the longer term by a strong economy able to dismantle its non-competitive sectors and fully join a fair global trading system.

Japan, China and Asean form an economic sphere to rival Europe and North America. It is the dawn of a new age in Asia as Japan, China and Asean nations come together seeking greater economic cooperation and integration. The Philippines welcomes this development, particularly as we have seen our exports to our regional neighbors growing by leaps and bounds. We are brimming with confidence at the role we can play to assert the economic might of the region.

But, we will only be planting aspirations for economic integration and security cooperation on barren soil if we do not also collectively cooperate on human security, on basic human needs like shelter, food, education and employment, or on sustainable development.

In this regard, we commend Japan's active role in the reconstruction of countries that have experienced conflict, such as Afghanistan, East Timor, and Sri Lanka, and regions such as the Philippines' southernmost island of Mindanao and the Indonesian province of Aceh.

In many ways, we are still recovering from the effects of the Asian financial crisis. It's crucial, therefore, for the Japanese economy to recover its dynamism, and to act as an engine of global growth.

The challenges that we face necessitate greater interaction and cooperation among the countries of East Asia. Some of these challenges are completely new, such as the SARS epidemic, which in a very short period has become a really serious scourge to Asian economies. Not so much the sickness itself but the fear it engendered.

But, as the 1997 Asian financial crisis made us realize, when we face a challenge together, we can overcome it. At that time, Thailand and Indonesia were financially assisted by Japan and China, while Korea received assistance from Japan. In the current SARS crisis, the first donors have once again been Japan and China.

In 1997, the Asean plus three process was born, almost to the day the financial storm began wreaking havoc in the region. That was a most fortuitous conjunction, indeed, as the first achievement of this process was as quick as "quick response" must be. The network of currency swap arrangements established in Chiang Mai set the stage for Pan-East Asian financial cooperation. The spirit of Chiang Mai should live on; a common East Asian currency should be an active goal of our region.

East Asian economic integration is not good only for East Asians. In this global village, growth and development are like waves that can animate all shores. For the global race against poverty, marginalization and underdevelopment is not fought nor won by competing teams. It is rather like a relay where every economy is free to join the sole team pitted against the sole opponent, the clock. And in this relay, the more sprinters there are in the team, the greater is the prize to be shared by everyone.

For achieving development, non-participation or isolation is a losing option. For achieving peace and security, isolation is another name for failure.

Thus, the Korean peninsula has traditionally been a source of uncertainty in East Asia. The isolationist North Korea fired 'No Dong' and 'Taepo Dong' missiles in Japan's direction last 1993 and 1998, respectively. After launching a rocket over Japan in 1998, North Korea promised a year later that it would suspend missile tests after Washington agreed to ease trade sanctions.

Unfortunately, last January, North Korea announced that it was unilaterally pulling out of the nuclear nonproliferation treaty, which the cornerstone of global efforts to stop the spread of nuclear weapons. North Korea subsequently expelled IAEA inspectors and resumed operations at the nuclear facilities of Yongbyon, which may be linked to nuclear weapons development.

The world is united in trying to bring North Korea to a disarmament position. Aside from its destabilizing effects, an arms race is wasteful of resources, especially at a time when East Asia should prioritize its capacity for sustained economic growth in the region.

Politically, the Philippines represents the closest Asean border to Korea and Japan, and remains deeply concerned about peace on the peninsula, particularly a nuclear-free peninsula. That's my position and Ii believe it can be resolved peacefully, but it will require regional as well as international cooperation.

The current Korean crisis is both a challenge and a great opportunity for multilateral diplomacy. I fervently hope that the nuclear genie can be contained, as has been done in Ukraine and Belarus, which were persuaded to give up their nuclear weapons programs. We hope that Japan, South Korea, the U.S., China, Russia, and the European union will be able to convince North Korea to do the same and to dismantle its weapons of mass destruction. We therefore welcome the talks among North Korea, the U.S. and China.

These talks, while still in the initial stages, are beginning to heal the strains in the relationship between U.S. and Korea, and has strengthened the alliance between Japan and the U.S. they've also allowed china to be a major constructive player in the region's security. China's efforts at the start of the trilateral meeting were truly commendable, and we hope that it will continue to play an important role commensurate to its growing economic importance in resolving security and political issues in East Asia.

Given the largely undefined security relations among China, Japan and the U.S., their interaction will result in a decentralized and Multipolar regional order. The Asean Regional Forum (ARF) is now the necessary linchpin for security and political dialogue in the region, because the major individual country players still have to resolve important differences among themselves. Progress in the ARF may not be as fast as some quarters may want it, but with the consent of its members, ARF can evolve from mainly a confidence-building body into an institution that can handle conflict resolution.

Full engagement by all stakeholders is the foundation of the new Asian order. We should work together to seize the moment, define the opportunity, and move forward as modern nations finding common ground with our global neighbors while fighting for our own national interests.

Thank you.

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