PGMA's Opening Statement during a Press Conference at the Japan National Press Club |
Nippon Press Center, Tokyo, Japan (04 Dec 2002) |
| THANK YOU VERY
MUCH, CHAIRMAN SUGITA. MANAGING DIRECTOR NABE; ESTEEMED MEMBERS OF THE JAPAN NATIONAL PRESS CLUB; MY FRIENDS: GOOD AFTERNOON. I AM GRATEFUL FOR THE CHANCE TO ADDRESS THE JAPAN NATIONAL PRESS CLUB AGAIN. SINCE I WAS HERE LAST YEAR, SEVERAL KEY EVENTS HAVE OCCURRED: THE GLOBAL WAR AGAINST TERRORISM, PARTICULARLY GIVEN RECENT ATTACKS IN THE REGION; THE U.N. RESOLUTION AND IMPENDING WAR WITH IRAQ; AND THE EMERGENCE OF CHINA AS A WILLING PLAYER WITH ASEAN. THE FIGHT AGAINST TERRORISM IS A GLOBAL ONE AND NOT THE CHALLENGE OF A SINGLE NATION OR REGION. WE HAVE SEEN FROM TRAGIC EVENTS THAT TERRORISTS KNOW NO GEOGRAPHICAL BOUNDARIES AND ARE NOT GUIDED BY MORAL OR RELIGIOUS CONVICTIONS. THEY ARE NOTHING MORE THAN MURDERERS OF INNOCENT PEOPLE. THEY'RE DRIVEN BY AN IDEOLOGY OF MAYHEM THAT'S WHY WE MUST WORK TOGETHER AS NATIONS AROUND THE WORLD TO FIGHT TERRORISM. WE UNDERSTAND THE CHALLENGE TERRORISM POSES FOR ALL COUNTRIES THAT VALUE PEACE AND ORDER. FROM THE MOMENT I TOOK OFFICE, I DECLARED WAR ON TERRORISM IN THE PHILIPPINES. THAT'S WHY I IMMEDIATELY DECLARED MY SOLIDARITY WITH THE GLOBAL COALITION AND HAVE JOINED THE FAMILY OF NATIONS IN THE FIGHT AGAINST TERRORISM. A FEW OF MY OPPONENTS HAVE CRITICIZED MY DECISION. BUT I HAVE TO TELL YOU: I MAKE NO APOLOGIES FOR AGGRESSIVELY SEEKING TO ROOT OUT TERRORISM IN THE PHILIPPINES AND TO PUTTING CONSIDERABLE EFFORT INTO SEEKING REGIONAL CONSENSUS ON FIGHTING TERRORISM. TERRORISM DRAINS HUMAN CAPITAL AND ECONOMIC RESOURCES, POVERTY FUELS SUPPORT FOR TERRORIST ACTIVITIES, AND RESTORING SECURITY ASSISTS IN ENHANCING THE ENVIRONMENT FOR BUSINESS AND THE PROMOTION OF FOREIGN DIRECT INVESTMENT. THOUGH THE ABU SAYYAF REMAIN A THREAT, THEY ARE A DIMINISHED THREAT. WE HAVE WORKED TO CRUSH THEIR ARMED SOLDIERS AND BREAK UP THEIR INTELLIGENCE CELLS. REMEMBER, THOUGH SOLITARY ACTS OF DESTRUCTION ARE STILL POSSIBLE, WHAT IS INCREASINGLY MORE DIFFICULT FOR ABU SAYYAF IS EXTENSIVE, COORDINATED MILITARY ATTACKS. MY GOVERNMENT IS DOING ITS BEST TO RESTORE LASTING PEACE IN MINDANAO. MY OVERALL PLATFORM LINKS THE GLOBAL WAR AGAINST TERRORISM WITH MY VISION OF ELIMINATING POVERTY. THUS, I APPRECIATE JAPAN'S FIELDING OF AN APPRAISAL MISSION FOR THE SOCIAL FUND PROJECT OF THE AUTONOMOUS REGION OF MUSLIM MINDANAO, WHICH IS A SIGNIFICANT FIRST STEP. I CONSIDER MY STATE VISIT AS AN OPPORTUNITY TO HIGHLIGHT THE IMPORTANCE OF JAPAN AS THE PREEMINENT CONTRIBUTOR TO THE ECONOMIC SECURITY OF THE PHILIPPINES AND THE REGION. JAPAN PLAYS A CENTRAL ROLE IN HELPING THE PHILIPPINES ON BOTH THE ECONOMIC AND MILITARY SECURITY FRONTS. FOR THE PHILIPPINE-JAPANESE BILATERAL RELATIONSHIP, THIS MEANS THAT THE VITAL COMPONENT OF THE POLITICAL SECURITY OF THE PHILIPPINES DEPENDS ON THE ECONOMIC CONTRIBUTION OF JAPAN AS A SOURCE OF AID, TRADE AND INVESTMENT. WE VALUE THE INVESTMENTS THAT THE JAPANESE GOVERNMENT AND JAPAN BUSINESSES HAVE MADE IN THE PHILIPPINES. AS OUR PARTNERS, THE JAPANESE ARE WITNESSES TO THE CREATIVITY, INDUSTRIOUSNESS AND SKILL OF THE GREAT FILIPINO WORKERS WHO ARE MAKING IMPORTANT CONTRIBUTIONS IN JAPANESE BUSINESSES. WE AIM TO CONTINUE TO HARNESS THIS RESOURCE TO BRING CHANGE TO OUR LIVES IN THE PHILIPPINES AND INCREASE PROSPERITY TO THE REGION. FOR EXAMPLE, MARUBENI HAS BUILT THE MAJORITY OF THE POWER PLANTS OWNED BY THE PHILIPPINE NATIONAL POWER CORPORATION AND HAS JUST COMPLETED A 1.4 BILLION-DOLLAR MULTI-PURPOSE DAM. MATSUSHITA IS EXPANDING ITS AIRCONDITIONER PLANT IN THE PHILIPPINES, AND WE ARE ENCOURAGING IT TO RELOCATE ITS ENTIRE WINDOW-TYPE AIR CONDITION BUSINESS TO THE PHILIPPINES. THE PHILIPPINES CONTINUES TO WORK HARD TO STRENGTHEN OUR ECONOMIC ENVIRONMENT THROUGH CONTINUED ENHANCEMENT OF OUR INFRASTRUCTURE AND AN ONGOING REFORM PROCESS AND FOCUS ON GOOD GOVERNANCE. WE ARE MAKING IMPORTANT ECONOMIC PROGRESS. LET'S NOT FORGET THAT WHEN MY ADMINISTRATION TOOK OFFICE, WE HAD AN ECONOMY THAT WAS HEADING TOWARDS BANKRUPTCY, AND ECONOMIC AND POLITICAL CHAOS STRAINED OUR RELATIONS WITH THE INTERNATIONAL FINANCIAL COMMUNITY AND CREATED SIGNIFICANT MARKET INSTABILITY. TODAY, WE STILL FACE MANY CHALLENGES BUT HAVE THE STABILITY AND STRONG RELATIONS WITH OUR GLOBAL FINANCIAL AND ECONOMIC PARTNERS THAT SUPPORT IMPLEMENTATION OF THE PHILIPPINE ECONOMIC PLAN, OUR BLUEPRINT FOR SUSTAINABLE GROWTH AND POVERTY REDUCTION. THE ECONOMY IS ON TRACK TO ACHIEVE A GROWTH THIS YEAR OF FOUR TO FOUR-AND-A-HALF PERCENT GDP AS EVIDENCED BY THE BETTER-THAN-EXPECTED PERFORMANCE OF LEADING INDICATORS IN THE FIRST THREE QUARTERS OF THIS YEAR. INFLATION AND INTEREST RATES ARE STILL AT RECORD LOWS. EXPORT GROWTH IS AT NINE PERCENT VERSUS THE ORIGINAL PROJECTION OF ZERO GROWTH SO THAT INTERNATIONAL RESERVES ARE 1 BILLION DOLLARS MORE THAN THE TARGET. WHILE THE BUDGET DEFICIT REMAINS A CHALLENGE, WE ARE TAKING CONCRETE STEPS TO ADDRESS IT. WE REMAIN FOCUSED ON RESPONSIBLY MANAGING EXPENDITURES AND MAXIMIZING REVENUES. WE ARE SPENDING WITHIN BUDGET BUT DISBURSING IT MORE EFFICIENTLY AND IMPLEMENTING PROJECTS FASTER. SEVERAL ENFORCEMENT MEASURES ARE ALREADY IN PLACE TO INCREASE REVENUE COLLECTIONS. WE HAVE PUT TOGETHER A GOOD TEAM TO INCREASE OUR TAX COLLECTIONS HEADED BY A NEW COMMISSIONER OF INTERNAL REVENUE, WHO IS PRECEDED BY HIS IMPRESSIVE RECORD AS A SUCCESSFUL COMMISSIONER OF CUSTOMS, AND COMPLEMENTED BY A NEW ANTI-SMUGGLING INTELLIGENCE AND INVESTIGATION COMMISSION. THE TEAM HAS BEEN REFORMING THE COLLECTION OF THE VALUE-ADDED TAX, INCLUDING CROSS-CHECKING OF IMPORTATION DATA FROM THE BUREAU OF CUSTOMS WITH THAT REPORTED TO THE BUREAU OF INTERNAL REVENUE. LAST 15th OF NOVEMBER, THEY CLOSED AND PROSECUTED 53 FIRMS FOR UNDERPAYMENT OF THE VALUE-ADDED AND OTHER TAXES. THEY ARE INTENSIFYING AUDIT FOR BOTH CORPORATES AND INDIVIDUALS EVEN AS THEY HAVE MADE THE OPTION TO PAY TAXES ON-LINE WIDELY AVAILABLE. ASIDE FROM THESE IMMEDIATE REFORMS, WE ARE COMMITTED TO LONG-TERM STRUCTURAL REFORMS. WE'VE PROPOSED LEGISLATION TO CORPORITIZE THE INTERNAL REVENUE AGENCY INTO A NATIONAL REVENUE AUTHORITY. MEANWHILE, I ISSUED AN EXECUTIVE ORDER TO RESTRUCTURE THE AGENCY. TO REFORM EXPENDITURE MANAGEMENT, THE PHILIPPINE SENATE HAS BEGUN DELIBERATING THE PROCUREMENT REFORM BILL WHICH WILL BRING ABOUT AN ESTIMATED SAVINGS OF 30 PERCENT ON THE BUDGET. MEANWHILE, I'M IMPLEMENTING E-GOVERNMENT TO ELECTRONICALLY RELEASE FUNDS TO AGENCIES AUTOMATICALLY FOR A MORE EFFICIENT UTILIZATION OF FUNDS. THE POWER SECTOR IS OUR KEY REFORM AREA IN ORDER TO ASSURE ADEQUATE AND RELIABLE POWER SUPPLY TO CONSUMERS AND TO INDUSTRY. THIS PROGRAM WAS INITIATED WITH THE PASSAGE OF THE ELECTRIC POWER INDUSTRY REFORM ACT LAST YEAR AFTER A DELAY OF 10 YEARS. THE ANSWER TO SOURCING THE HUGE CAPITAL REQUIREMENTS OF OUR POWER SECTOR IS PRIVATIZATION. THE FIRST KEY TO PRIVATIZATION IS TO CREATE AN INVESTMENT CLIMATE THAT'S ATTRACTIVE TO BOTH DOMESTIC AND FOREIGN INVESTORS. THE SECOND KEY TO CREATE A SUCCESSFUL PRIVATIZATION PROCESS IS ONE THAT IS TRANSPARENT AND FREE OF CORRUPTION. WITH THE REFORMS WE ARE IMPLEMENTING, AND WHICH WE HOPE CONGRESS WILL ENACT AS SOON AS POSSIBLE, WE ARE CONFIDENT WE WILL ACHIEVE HIGHER GROWTH IN 2003. THERE IS NO MORE IMPORTANT BENCHMARK OF A DEVELOPED NATION THAN ITS ENGAGEMENT IN THE WORLD TRADING SYSTEM. BUT AS DEVELOPED AND DEVELOPING COUNTRIES ALIKE KNOW TO BE TRUE, THE BENEFITS OF GLOBALIZATION AND TRADE ARE NOT ALL APPARENT OR ALL POSITIVE. AS THE 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. WE ARE COMMITTED TO LIFTING OUR PEOPLE OUT OF POVERTY. WE MUST PUT FOOD NOT PROMISES ON THE TABLE TODAY. OUR ECONOMIC PLAN WILL GET US THERE -- OUR TRADE POLICY IS AN INTEGRAL PART OF OUR GROWTH PLAN. BUT OUR PRICE IN ACHIEVING THIS VISION MUST BE SUSTAINABLE. THUS, WE COMMEND JAPAN'S EFFORTS TO FURTHER DEEPEN ITS TIES IN THE REGION THROUGH ECONOMIC PARTNERSHIP AGREEMENTS. IN OUR VIEW, AN IDEAL FOR THE PROPOSED AGREEMENT IS TO MAXIMIZE THE MANY AREAS OF COMPLEMENTARITY BETWEEN OUR TWO ECONOMIES. ONE SUCH AREA IS HUMAN RESOURCE DEVELOPMENT. ONE FACET OF OUR HRD COMPLEMENTARITY INVOLVES THE DEMOGRAPHIC REALITIES BETWEEN OUR TWO COUNTRIES. JAPAN HAS AN AGING POPULATION WHILE THE PHILIPPINES HAS A YOUNG POPULATION WHICH SUPPLIES SOME OF THE BEST-TRAINED AND COMPASSIONATE HEALTH CARE WORKERS IN THE WORLD. IN A SIMILAR VEIN, JAPAN IS THE ACKNOWLEDGED LEADER IN THE REGION IN THE FIELD OF ADVANCED TECHNOLOGY INCLUDING ICT AND CAPITAL-INTENSIVE INDUSTRY. THE PHILIPPINES, ON THE OTHER HAND, IS WELL-ACKNOWLEDGED INTERNATIONALLY FOR ITS TOP-QUALITY KNOWLEDGE WORKERS. WE CAN DEVISE THE RIGHT ARRANGEMENTS TO TAKE FULLER ADVANTAGE OF THESE REALITIES. JAPAN'S AID IS IMPORTANT AS A VITAL WEAPON FOR ENSURING REGIONAL STABILITY AND SECURITY. JAPANESE LEADERSHIP TO SUSTAIN AID TO THE PHILIPPINE GOVERNMENT IN MY EFFORTS TO REDUCE POVERTY AND SUSTAIN ECONOMIC RECOVERY IS EVERY BIT AS IMPORTANT AS MILITARY COOPERATION IN ENSURING REGIONAL SECURITY. ECONOMIC SECURITY IS THE GREATEST DEFENSE AGAINST POLITICAL INSTABILITY, POVERTY AND TERRORISM. MAKE NO MISTAKE: "THE YEN IS MIGHTIER THAN THE SWORD." THE ECONOMIC ROLE JAPAN HAS TO PLAY IN THE REGION CANNOT BE OVERSTATED. 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 NEIGHBORS COME TOGETHER SEEKING GREATER ECONOMIC COOPERATION AND INTEGRATION. JAPAN, AS AN IMPORTANT DEVELOPMENT PARTNER AND DONOR FOR THE PHILIPPINES AND ASEAN IS CRUCIAL IN THE REGIONAL FIGHT AGAINST POVERTY, THE RECRUITING GROUND FOR TERRORISM. IT'S ONLY THROUGH ECONOMIC PARTNERSHIP THAT AS A REGION WE WILL CHART THE SECURITY OF ASIA AND THE PROSPERITY OF OUR PEOPLE. WITH JAPAN LEADING THE WAY, I'M CONFIDENT THE REGION WILL FLOURISH. THANK YOU. |