PGMA's Speech during the Philippine Forum 2002

Conservatory, Manila Peninsula Hotel, Makati City (12 Jan 2002)
THANK YOU.

THANK YOU MAR.

AND TO ALL OF YOU. I'M VERY HAPPY TO HAVE THIS CHANCE TO ADDRESS YOU BECAUSE THE LAST TIME YOU INVITED ME, THE SCHEDULE GOT MIXED UP. SOMEWHERE ALONG THE WAY THE TIME SLOT I ACCEPTED, OVERLAPPED WITH THE TIME SLOT THAT PRESIDENT ESTRADA ACCEPTED. SO YOU HAD TO CHOSE WHICH SPEAKER YOU WANTED TO LISTEN TO. ANYWAY, I'M GLAD THAT I MADE IT AT LAST THIS TIME BECAUSE SINCE HE REPLACED ME AS THE SPEAKER THEN IT HAD TO TAKE EDSA 2 FOR ME TO REPLACE HIM AS THE SPEAKER IN FRONT OF YOU TODAY.

AND INDEED I APPRECIATE THIS OPPORTUNITY TO ADDRESS YOU ON THE EVE OF THE FIRST ANNIVERSARY OF EDSA DOS. THIS PAST YEAR WE ARE DEDICATED TO RESTORING MORAL AUTHORITY IN OUR GOVERNMENT BECAUSE WE OWE THIS RESTORATION TO THE
FILIPINO YOUTH, BECAUSE THE FILIPINO YOUTH WAS THE MAJOR INSTRUMENT OF PEOPLE POWER II.

I THINK IF THERE WAS ONE DIFFERENCE BETWEEN PEOPLE POWER 1 AND PEOPLE POWER 2, IT WAS THE DOMINANCE OF THE YOUNG PEOPLE IN EDSA DURING EDSA DOS.

BUT I BELIEVE MOST OF YOU IF NOT ALL OF YOU WERE IN EDSA DOS. AFTER ALL YOU ARE ALSO YOUNG, YOU ARE THE NEW GENERATION OF LEADERS. THAT'S WHY YOUR NICKNAME IN FACT IS BETTER KNOWN NOT AS WHAT'S THIS PHILIPPINE FOUNDATION -- WHATEVER IT IS -- BUT YOU'RE KNOWN AS THE SUCCESSOR GENERATION, THAT'S YOUR FAMOUS NAME. WELL, I THINK I'M SLIGHTLY OLDER THAN YOU BECAUSE I'M A PART OF THE BABY BOOMER GENERATION. BUT MANY OF YOU WERE MARTIAL LAW BABIES OR MARTIAL LAW TODDLERS. AND ALL OVER THE WORLD, WE -- MY GENERATION AND YOURS, THE POSTWAR BABIES, INCLUDING BOTH THE BABY BOOMERS AND THE MARTIAL LAW CHILDREN -- CONTINUE TO HAVE THE GREATEST VOICE, THE BEST IDEAS AND THE MOST ENERGETIC DRIVE FOR CHANGE. THIS SUCCESSOR GENERATION HAS STARTED TO RULE THE 21st CENTURY.

AND I KNOW, AS I SAID, WE OWE IT TO YOU THE LEADERS THAT CAME IN THE AFTERMATH OF EDSA DOS. WE OWE IT TO THE YOUNG -- TO THE SUCCESSOR GENERATION -- TO PROVIDE MORAL AUTHORITY.

MORAL AUTHORITY STARTS WITH THE PERSONAL INTEGRITY AND WORK ETHIC OF THE PRESIDENT HERSELF, AND IT RADIATES TO THE PRESIDENTIAL FAMILY. WHICH IS WHY MY FIRST ADMINISTRATIVE ORDER PROHIBITED GOVERNMENT AGENCIES FROM
DEALING WITH MY RELATIVES ON MATTERS OF CONTRACTS, SUPPLIES, AND APPOINTMENTS TO POSITIONS. THAT IS WHY NO MATTER HOW HARD THEY TRY TO DESTROY ME BY TRYING TO DESTROY MY HUSBAND, HARD AS THEY TRY TO COME UP
WITH CONCRETE EVIDENCE THEY CAN'T FIND ANY BECAUSE THERE IS NONE AND MY FAMILY DOES NOT INDULGE IN GRAFT AND CORRUPTION.

AND BEYOND THE PRESIDENTIAL PERSONAL FAMILY, THE MORAL AUTHORITY ALSO RADIATES TO THE OFFICIAL FAMILY, ESPECIALLY THE CABINET. AND YOU KNOW THAT I HAVE A STRONG TEAM BECAUSE MANY OF YOU BELONG TO THAT TEAM. MY CABINET IS IMPRESSIVE, HONEST AND VERY PROFESSIONAL. IT IS A BLEND OF YOUTH AND EXPERIENCE BECAUSE YOUTH DOES NOT HAVE MEAN INEXPERIENCE. IN FACT MANY OF YOU ARE YOUNG BUT MANY OF YOU HAVE EXTENSIVE PROFESSIONAL EXPERIENCE. AND MY CABINET CONSIST OF MEN AND WOMEN OF INTEGRITY AND COMPETENCE BECAUSE THEY WERE RECRUITED ON THE BASIS OF TRACK RECORD, REPUTATION, AND DEDICATION.

AS I SAID MANY OF THEM COME FROM YOU, I WAS READING YOUR LIST AND I SAW THE OFFICE OF THE PRESIDENT, DEPARTMENT OF THIS, DEPARTMENT OF THAT -- WE HAVE OF COURSE NOTABLY, THE FOUNDER OF THE PHILIPPINE FORUM FOUNDATION, MAR
ROXAS WHO'S SECRETARY OF TRADE AND INDUSTRY. WE HAVE CITO LORENZO, MY PRESIDENTIAL ADVISER FOR THE MILLION JOBS. THEN THERE IS CERGE REMONDE WHO IS THE HEAD OF CHANNEL 13. THEN THERE IS ALEX MAGNO, DIRECTOR OF THE DEVELOPMENT BANK OF THE PHILIPPINES. AND I'M ONLY LOOKING AT THE FIRST ROW. WELL, THE REST ARE HIDING. AND I ALWAYS LIKE TO SAY THAT IN THIS GROUP I THAT THERE'S SO MANY OF YOU IN THIS GROUP WHO ARE LIKE THAT IT'S PROBABLY NOT AS IMPRESSIVE YOU. BUT ITS CERTAINLY IMPRESSIVE TO THE WORLD INTERNATIONAL COMMUNITY WHEN I SAY THAT I HAVE SEVEN HARVARD GRADUATES, THREE WHARTON ALUMNI, AND TWO OF THEM ARE CITO AND MAR; AND FOUR VETERANS OF WALL STREET. THAT'S THE TWO OF THEM AGAIN CITO AND MAR. AND I HAVE ALWAYS SAID, I DOUBT IF ANY OTHER GOVERNMENT IN THE WORLD CAN BOAST OF A MORE ACADEMICALLY AND PROFESSIONALLY PREPARED TEAM.

WE, MY TEAM AND I, ARE FIGHTING WASTE AND GRAFT SO THAT THE POOR WILL BELIEVE IN THE GOVERNMENT AND SO THAT OUR SMALL ENTREPRENEURS WILL NOT WASTE THEIR HARD-EARNED INCOME, NOT TO MENTION OUR LARGE ENTREPRENEURS ON PAY-OFFS AND CORRUPTION. WE ARE TAKING DECISIVE STEPS TO FIGHT CORRUPTION. FOR INSTANCE, WE TOOK AN IMPORTANT STEP IN THE PROMOTION OF GOOD GOVERNANCE BY PASSING A LAW TO PENALIZE MONEY LAUNDERING, BY CRACKING DOWN ON AND MOVING TO JAIL CORRUPT OFFICIALS, SUCH AS THOSE ALLEGEDLY INVOLVED IN THE SMUGGLING OF RICE AND THE GREAT ESCAPE -- THERE IS AN ONGOING INVESTIGATION IN FACT OF THAT UNDER THE CHARGE OF FINANCE UNDERSECRETARY CORNELIO HIZON UPON THE INSTRUCTION I GAVE TO SECRETARY CAMACHO; WE ARE MOVING FOR GREATER TRANSPARENCY IN CONTRACTS, NOW CONTRACTS HAVE TO BE BIDDED RATHER THAN NEGOTIATED; AND WE WORK FOR IMPROVEMENTS IN THE JUDICIAL SYSTEM, FOR THIS ONE IS BEING DONE UNDER THE LEAD OF THE SUPREME COURT WITH CHIEF JUSTICE HILARIO DAVIDE BEING IN CHARGE OF THAT -- THAT IS HIS AREA AND WE'LL JUST SUPPORT WHERE WE CAN SUPPORT. ALSO, WE HAVE COMPUTERIZED BIDDING IN PUBLIC WORKS TO SUBSTITUTE THE HUMAN ELEMENT WITH A FAIRLY INCORRUPTIBLE ELECTRONIC ELEMENT. THE RESULT HAS BEEN HONEST AND FASTER CONTRACT AWARDS.

LET US REVIEW WHAT ELSE WE HAVE ALREADY DONE, AND WHERE WE ARE.

IN 2001, WE BEGAN A NEW A WAR AGAINST POVERTY WHICH WE HOPE THE COUNTRY WILL WIN WITHIN THE DECADE.

THE PHILIPPINES IS BACK. WHEN I TOOK OFFICE I SAID I WOULD FOCUS MY ENERGY ON MAKING THE ECONOMY GROW DESPITE THE HARSH ECONOMIC ENVIRONMENT OF 2001. MY TEAM AND I CREATED A PLAN AND WE HAVE MADE A SUBSTANTIAL DOWN PAYMENT TO ACHIEVE THAT RESULT OF BEING BACK IN THE RADAR SCREEN IN THE FIRST 12 MONTHS.

THE PHILIPPINES RESOLUTELY AND RESILIENTLY BATTLED THE GLOBAL CRISIS. OUR ECONOMIC SURVIVAL PROVIDED THE MUCH-NEEDED MOMENTUM TO PRESS ON NOW TO PRESS ON WITH OUR BATTLE TO WIN AGAINST POVERTY. WE HAVE FIRMLY STABILIZED THE DOMESTIC POLITICAL SITUATION WHILE CONTINUING TO MOP UP RESIDUAL PROBLEMS OF LAW AND ORDER, AND THE MOPPING UP THAT WE ARE DONNING IS BY CARRYING OUT THE FOLLOWING RECOMMENDATIONS OF THE FILIPINO-CHINESE COMMUNITY:

ONE, IMPLEMENT THE DEATH PENALTY TO CONVICTED KIDNAPPERS TO STRIKE FEAR TO KIDNAP FOR RANSOM SYNDICATES AND SHOW THE GOVERNMENT'S RESOLVE TO DEAL WITH THE KIDNAPPING MENACE.

TWO, WORK WITH THE CHINESE GOVERNMENT TO FIGHT KIDNAPPING SYNDICATES COMPOSED OF CHINESE NATIONALS.

THREE, RID THE UNIFORMED SERVICES OF SCALAWAGS AND REORGANIZE THE POLICE.

FOUR, RESURRECT THE COMMUNITY-ORIENTED POLICE SYSTEM THAT USED TO BE THERE. AND WE DID THAT BY HIRING 1,700 NEW POLICEMEN TO BE ABLE TO HAVE A PRESENCE IN THE COMMUNITY. IT WAS KIND A COMMONSENSICAL THOUGH I DID SPEND SOME TIME STUDYING HOW FORMERLY CRIME-RIDDEN CITIES LIKE NEW YORK AND HOUSTON WERE ABLE TO TURN AROUND THEIR REPUTATION AND ONE VERY, VERY SIMPLE SOLUTION WAS TO INCREASE THE NUMBER OF POLICEMEN. WELL, SIMPLE FOR THEM NOT SO SIMPLE FOR US BECAUSE WE HAVE TO LOOK FOR THE FUNDS. BUT BECAUSE OF POLITICAL WILL AND BECAUSE I HAVE A GREAT BALANCER IN DBM SECRETARY EMY BONCODIN WE FOUND A BILLION PESOS TO BE ABLE TO FINANCE THE ADDITIONAL REQUIREMENTS OF THE PHILIPPINE NATIONAL POLICE.

ALSO NOT JUST THE PHILIPPINE NATIONAL POLICE THE NATIONAL ANTI-CRIME COMMISSION WERE PROVIDING THEM WITH THE NECESSARY EQUIPMENT, INCLUDING HELICOPTERS AND SURVEILLANCE FACILITIES, AND GIVING THEM THE BUDGET TO ENABLE THEM TO FUNCTION EFFECTIVELY. AS I SAID ONE BILLION PESOS MAINLY FOR THE PHILIPPINE NATIONAL POLICE WHICH LARGELY IS THE IMPLEMENTING AGENCY OF THE DIRECTIVES OF THE NACC AGAINST CRIMINAL SYNDICATES.

ALSO WE HAVE MODERNIZED THE POLICE ORGANIZATION. NOT ONLY DID WE HIRE 1,700 POLICEMEN BUT WE HAVE IMPROVED THE SCREENING PROCESS FOR POLICEMEN APPLICANTS SO THAT NOW ALL THOSE 1,700 HAD TO BE COLLEGE GRADUATES. NOW ONLY COLLEGE GRADUATES CAN BE ADMITTED TO THE POLICE FORCE. WE INTRODUCED THEM TO THE GENERAL PUBLIC LAST, I THINK, IT WAS THE FIRST SHOPPING DAY OF CHRISTMAS, EARLY DECEMBER AND IN FACT THE LAUNCHING WAS IN ONE OF THE SHOPPING MALLS SO THAT OUR PEOPLE WOULD FEEL SECURE WHEN THEY GO SHOPPING FOR THEIR CHRISTMAS GIFTS. AND AS FAR AS THESE POLICEMEN ARE CONCERNED AS WELL AS THE PRESENT CROP OF POLICEMEN, THE OLDER CROP OF POLICEMEN, WE'RE EXPANDING THE TRAINING PROGRAMS WITH HONG KONG POLICE AND THE U.S.A. TO HIRE EXPERTS TO TRAIN THE POLICE FORCE.

WHEN I GO TO THE U.K. AT THE END OF THIS MONTH I WILL ALSO WORK OUT WITH PRIME MINISTER TONY BLAIR, THE ASSISTANT OF SCOTLAND YARD, FOR ADDITIONAL TRAINING FOR OUR POLICEMEN.

WE HAVE SET UP EMERGENCY RESPONSE CENTERS TO ASSIST VICTIMS AND THEIR RELATIVES ESPECIALLY A NERVE CENTER WHICH THE ANTI-KIDNAPPING TASK FORCE HAS PUT UP RIGHT IN BINONDO.

AND WE HAVE IMPLEMENTED A REWARD SYSTEM FOR PEOPLE WHO GIVE INFORMATION ABOUT KIDNAPPING. JUST AS I SET UP A REWARD FOR ABU SAYYAF LEADERS, WHICH HAS RESULTED IN MANY CAPTURES, CONGRESS HAS NOW MADE, AND I THANK CONGRESS, NERY, I DIDN'T MENTION YOU AMONG MY OFFICIAL FAMILY BECAUSE YOU'RE CONSTITUTIONALLY INDEPENDENT. BUT I'D LIKE TO THANK NERY SACOSTA AND HIS FELLOW CONGRESSMEN BECAUSE THEY MADE NOW A TOTAL OF 250 MILLION PESOS
AVAILABLE AS A REWARD POOL FOR THE CAPTURE OF KIDNAPPERS AND OTHER MAJOR CRIMINALS.

WE HAVE ALSO MOBILIZED THE PEACE AND ORDER COUNCILS MORE ACTIVELY. EVEN AS WE SPEAK JOEY LINA RIGHT NOW IS PRESIDING OVER A NATIONAL PEACE AND ORDER COUNCIL CONFERENCE. AND WE HAVE ORGANIZED COMMUNITY-BASED SELF-DEFENSE UNITS WHICH ARE AUTHORIZED TO CARRY FIREARMS AND EFFECT CITIZENS' ARREST BY ACCREDITING THEM AS SPECIAL POLICE DEPUTIES.

AND WE HAVE ASKED MEDIA NOT TO REPORT NEWS ABOUT LIVE KIDNAPPING CASES AND TO ENSURE THAT NO LEAK COMES OUT OF THE PNP SO AS NOT TO JEOPARDIZE THE SAFETY OF VICTIMS THAT ARE STILL IN THE HANDS OF KIDNAPPERS.

USING THE NATIONAL ANTI-CRIME COMMISSION AS THE CENTER, WE HAVE ESTABLISHED CLOSER COORDINATION AMONG ALL INTELLIGENCE AGENCIES SO THAT WE CAN MAXIMIZE ALL MECHANISMS OF THE STATE TO IDENTIFY AND LOCATE KIDNAP-FOR-RANSOM GROUPS AS WELL AS OTHER SYNDICATES. I THINK IT'S A TRIBUTE TO HOW GOOD OUR INTELLIGENCE IS THAT WE WERE ABLE TO FOIL ANY DREAMS OF ANYBODY TO DO A REMAKE OF THE DECEMBER 30, 2000 TERRORIST BOMBING.

AND IN GOVERNMENT IN GENERAL WE HAVE INFUSED, TO A GREAT DEGREE, COMMON SENSE, DISCIPLINE, AND ACCOUNTABILITY IN MANAGEMENT AND PUBLIC SERVICE. AND WE ARE VERY FORTUNATE THAT LEADERS FROM GOVERNMENT, THE PRIVATE SECTOR AND CIVIL SOCIETY HAVE COMMITTED TO UNDERTAKE A CONCERTED EFFORT TO COMBAT POVERTY AND ACCELERATE ECONOMIC DEVELOPMENT. AND MANY OF THOSE WHO HAVE GONE TOGETHER AND MADE THE DECISION TOGETHER ARE HERE IN THIS HALL THIS AFTERNOON. MANY OF YOU WERE THERE WHEN WE FORGED A SOCIO-ECONOMIC PACT DURING THE NATIONAL SOCIO-ECONOMIC SUMMIT LAST DECEMBER.

WE ARE VERY GRATEFUL -- I THINK WE SHOULD BE VERY GRATEFUL -- THAT OUR GNP GROWTH RATE WAS 3.7 PERCENT FOR THE FIRST THREE QUARTERS OF 2001 DESPITE TOUGH GLOBAL ECONOMIC TIMES AND THE POLITICAL TURMOIL THAT WE INHERITED,
THEREBY SURPASSING THE PREDICTIONS OF THE PRIVATE SECTOR, MAYBE SOME OF YOU HERE. AND THIS 3.7 PERCENT GNP GROWTH RATE, IN THE SETTING OF OUR RECESSION IN MANY OF OUR NEIGHBORS AND TRADING PARTNERS, IS INDEED A SIGNIFICANT TURNAROUND, CONSIDERING THAT LESS THAN A YEAR AGO, OUR ECONOMY WAS ABOUT TO GO INTO A TAILSPIN IN THE WAKE OF POLITICAL INSTABILITY.

AND TODAY, FOREIGN DIRECT INVESTMENT LEVELS HAVE ALSO EXCEEDED TARGETS DESPITE THE GLOBAL SLOWDOWN. INVESTMENTS REACHED A 132 BILLION BY THE END OF NOVEMBER AGAINST A PROJECTION OF A 100 BILLION FOR THE ENTIRE YEAR.
THESE INVESTMENTS WENT MOSTLY TO TELECOMMUNICATIONS AND MANUFACTURING.

IN ADDITION, LEADING INTERNATIONAL CREDIT RATING AGENCIES AND MULTILATERAL BODIES SUCH AS NEXI, JBIC, FITCH, THE WORLD BANK, AND THE ASIAN DEVELOPMENT BANK HAVE ENDORSED OUR CREDIT WORTHINESS. J.P. MORGAN REPORTS THAT THE PREVAILING DECLINE IN RISK AVERSION HAS ALLOWED THE CONTINUOUS IMPROVEMENT IN ECONOMIC FUNDAMENTALS IN THE PHILIPPINES TO FINALLY SHINE THROUGH.

AND WHAT BETTER SEAL OF GOOD HOUSEKEEPING CAN THERE BE THAN THETWO-AND-A-HALF-POUND OVERSUBSCRIPTION OF OUR LATEST BOND FLOATATION,BRINGING DOWN THE SPURGE TO ALMOST NOTHING AS INTERNATIONAL FINANCING GOES. AND TOMORROW YOU'LL PROBABLY SEE A BANNER HEADLINE IN ONE OR TWO NEWSPAPERS ABOUT LAYMAN BROTHERS SIGNING AN MOU WITH THE DEPARTMENT OF FINANCE TO BRING IN A HUNDRED BILLION DOLLARS OF SPECIAL PURPOSE FUNDS INTO THE PHILIPPINES.

I JUST READ AN ARTICLE TODAY, I THINK ITS EITHER IN THE WALL STREET JOURNAL OR THE FINANCIAL TIMES THAT SAID THAT OUR STRONG STAND AGAINST INTERNATIONAL TERRORISM HAS MADE MANY OF THESE INTERNATIONAL FINANCIAL INSTITUTIONS LINE UP TO HELP OUR BANKING INDUSTRY. WELL, I TOLD SOME OF THIS BANKERS, IT ALSO HELPS THAT WE ARE NOT IN DISTRESS LIKE THE OTHER COUNTRIES WITH THEIR VERY, VERY HIGH 40 PERCENT, 50 PERCENT PERCENTAGE OF NPLs -- WE'RE CERTAINLY NOT ANYWHERE NEAR THAT. SO WE ARE GOOD RISK FOR THESE SPECIAL PURPOSES FUNDS.

WHY? BECAUSE OF FISCAL DISCIPLINE. WE HAVE STOOD BY FISCAL DISCIPLINE. THOUGH THE FINAL ACCOUNTING HAS NOT YET BEEN COMPLETED, WE WILL PROBABLY MEET OUR BUDGET DEFICIT GOAL OF SOME A 145 BILLION PESOS INSTEAD OF THE PROJECTED 225 BILLION THAT WE STARTED WITH A YEAR AGO. AND WE ARE SET TOBALANCE THE BUDGET BY YEAR 2006 -- A BALANCED BUDGET THAT IS THE KEY TO OUR GOAL OF REDUCING POVERTY AND PROMOTING ECONOMIC DEVELOPMENT.

A FACTOR IN THIS EQUATION, THE STAINING OF THE BUDGET DEFICIT, IS THE FACT THAT THE BUREAU OF INTERNAL REVENUE EXCEEDED ITS TARGETS FROM JANUARY TO NOVEMBER BY 400 MILLION PESOS COMPARED TO BEING WAY BELOW TARGET IN THE
MIDDLE OF THE YEAR. WHY? AS A RESULT OF ITS ANTI-CORRUPTION REFORMS. THAT'S HOW IT WAS ABLE TO CATCH UP.

OUR EFFORTS TO ACHIEVE A BALANCED BUDGET ALSO INCLUDES NEW APPROACHES TO REVENUE COLLECTION, SUCH AS DOCUMENTARY STAMP METERING AND TAX AUDIT ACCELERATION.

AND ON MY PART PERSONALLY, I AM DEDICATED TO GIVING BACK TO OUR COUNTRY THE HONOR THAT IT BESTOWED UPON ME LAST JANUARY 20, AND HELPING EASE THE POVERTY THAT AFFLICTS SO MANY.

OUR MACROECONOMIC POLICIES ARE PAYING OFF: PESO STABILITY, LOW INFLATION -- YES, 3.9 PERCENT LAST DECEMBER, THE LOWEST IN THE LAST 16 MONTHS -- AND OF COURSE JOB CREATION -- FROM AN 11.6 UNEMPLOYMENT RATE A YEAR AGO, THE
LATEST UNEMPLOYMENT FIGURE HAS GONE DOWN TO 9.8 PERCENT.

AND I SAID I HOPE THAT WE HAVE MILLION JOBS CREATED IN AGRICULTURE. WELL, THE NSO STATISTICS SHOW THAT BETWEEN OCTOBER IN YEAR 2000 AND OCTOBER LAST YEAR WHEN WE WERE NINE MONTHS IN THE GOVERNMENT ACTUALLY THERE HAS ALREADY BEEN ABOUT 800,000 JOBS CREATED IN AGRICULTURE.

WE HAVE REVITALIZED TIES WITH OUR GLOBAL PARTNERS. WE HAVE INFORMED THE   INTERNATIONAL COMMUNITY OF OUR STEADY GAINS, OF THE STABILITY AND VIABILITY OF OUR POLITICAL, SOCIAL AND ECONOMIC REFORMS. WE HAVE SECURED COMMITMENTS OF BILATERAL AND MULTILATERAL SUPPORT FOR OUR DOMESTIC EFFORTS.

GIVEN ALL THAT, I THINK WE CAN APPROACH THE NEW YEAR WITH A SOLID EXPECTATION THAT, AS I SAID YESTERDAY IN FOCAP, WE ARE SAILING INTO CALMER WATERS.

NONETHELESS, MUCH WORK REMAINS TO BE DONE:

ROOT OUT TERRORISM; WORK WITH THE INTERNATIONAL COMMUNITY.

AND THAT IS WHY WE HAVE 27 U.S. OFFICERS IN ZAMBOANGA TODAY AND MAYBE WE'LL HAVE ANOTHER HUNDRED COMING IN THE MIDDLE OF JANUARY.

RETURN THE REPUTATION OF MANILA AND THE PHILIPPINES AS A WELCOMING AND SAFE PLACE IN WHICH TO LIVE AND DO BUSINESS.

INCREASE THE BENEFITS FROM OUR NEW GLOBAL RELEVANCE AND ENGAGEMENT AFTER YEARS OF BEING ISOLATED AND ADRIFT.

BUT THE STAGE HAS BEEN SET FOR THE TIMES TO GET BETTER.

TO CONTINUE TO CREATE JOBS, OF COURSE, WE WILL ATTRACT INVESTMENTS.

TO ENCOURAGE STRENGTH IN THE DOMESTIC ECONOMY, WE ARE LOOKING AT BRINGING NEW FINANCING VEHICLES TO SMALL AND MEDIUM-SCALE ENTERPRISES AND THE HOUSING SECTOR.

THERE ARE BIG-TICKET ITEMS WHERE WE ARE UNLOCKING BOTTLENECKS TO SPUR ADDITIONAL SOURCES OF DOMESTIC DEMAND: THE PNB, THE NATIONAL STEEL CORPORATION -- WHICH IS MAR'S SPECIAL ASSIGNMENT, IN FACT HE WILL BE LEAVING FOR SINGAPORE AND THEN ON KUALA LUMPUR TO TALK TO THE MAHARTA WHICH IS THE ATP OF MALAYSIA WHICH OWNS PART OF NATIONAL STEEL; AND I HAVE INSTRUCTED HIM THAT IT IS TIME, EITHER TO FORECLOSE OR FOR THE VARIOUS CREDITORS TO GET TOGETHER TO FORM A SPECIAL FOCUS VEHICLE TO TAKE OVER THE ASSETS AND MANAGE THE ASSETS OF THE NATIONAL STEEL CORPORATION. WE ARE
ALSO UNLOCKING THE BOTTLENECKS IN THE MRT. NOW THEY WILL BEGIN TO DO THE CONSTRUCTION, NO TO GET THE FINANCING, TO DO THE CONSTRUCTION TO CLOSE THE LOOP OF THE MRT IN METRO MANILA. AND THE BATANGAS PORT, WHERE ON THE FIESTA DAY OF BATANGAS WE WILL FINALLY BE BREAKING GROUND ON THE BATANGAS PORT AFTER SO MANY YEARS OF WAITING. FOR ME IT'S A SPECIAL OCCASION BECAUSE THE PROJECT STARTED IN MY PLANNING OFFICE WHEN I WAS UNDERSECRETARY OF TRADE AND INDUSTRY. I HAD TO BECOME SENATOR TWO TIMES, VICE PRESIDENT AND NOW PRESIDENT TO BE ABLE TO SEE IT START GETTING OFF THE GROUND.

AND AS I MENTIONED EARLIER OR ALLUDED TO EARLIER, WE ARE UNLOCKING THE BOTTLENECKS FOR THE ASSET MANAGEMENT SYSTEM FOR THE HOUSING SECTOR. WELL YOU ARE FINANCE MEN A LOT OF YOU SO I MIGHT AS WELL SHARE YOU WHAT'S THE
DILEMMA HERE. WELL, OF COURSE WHEN YOU HAVE AN ASSET MANAGEMENT COMPANY AND YOU BUY NON-PERFORMING ASSETS YOU DO IT WITH A DISCOUNT. QUESTION: HOW MUCH IS THE DISCOUNT? SINCE WE HAVE A NUMBER OF THOSE INTERESTED, LAYMAN BROTHERS, ... WELL, LET THE MARKET DETERMINE THE DISCOUNT. THE DISCOUNT, OF COURSE, MEANS THAT EVENTUALLY IN THE BOOKS OR THE PENSION FUNDS YOU WILL FINALLY FACE THE REALITY OF HOW MUCH THE ASSETS HAVE DEPRECIATED. AND BECAUSE OF THAT WHAT WILL HAPPEN IS THAT THERE ARE STATUTORY LIMITATIONS AND RATIOS ON HOW MUCH THE PENSION FUNDS CAN INVEST RELATED TO THEIR ASSETS THAT REDUCES THEIR FLEXIBILITY TO DO THEIR INVESTMENTS. WELL, ANYWAY IN ANY CASE THESE SPECIAL PURPOSE FUNDS WILL REQUIRE LEGISLATION FOR MANY OF THE INCENTIVES. SO I'M HOPING, ANYWAY NERY'S HERE, THAT SOON CONGRESS WILL PASS THE SECURITIZATION LAW; AND MAYBE, WHY NOT THROW IN FOR GOOD MEASURE, AN INCREASE IN THE FLEXIBILITY OF THE PENSION FUNDS WITH REGARD TO THE RATIOS AND WHAT THEY CAN INVEST SO THAT WE CAN LIQUEFY THE ASSETS FOR HOUSING AND AT THE SAME TIME STILL ALLOW THE PENSION FUNDS TO DO THEIR INVESTMENT SO THAT THEY CAN ASSURE OUR WORKERS WHO ARE PAYING THEIR PREMIUMS OF THEIR PENSIONS AND RETIREMENT BENEFITS AND SALARY LOANS FOR A LONG TIME TO COME.

ANOTHER BOTTLENECK THAT WE ARE TRYING TO WORK OUT -- I SEE MANY CEBUANOS HERE -- CERGE AND ABOITIZES, WHO ELSE? TOMMY IS HERE, OH GREAT, WELL, HE KNOWS ABOUT THIS, THE WATER SYSTEM OF CEBU.

IN AGRICULTURE, CITO TAKE A BOW, THE RICE HYBRID COMING FROM CHINA, AND DEVELOPED FOR PHILIPPINE CONDITIONS BY PHILRICE, WILL, THROUGH THE LEADERSHIP OF CITO, HOPEFULLY INCREASE THE YIELD IN FARMS BY TWO-AND-A-HALF
TIMES. THAT IS CERTAINLY GOING TO HELP, THAT WILL HELP FEED OUR PEOPLE AND INCREASE THE INCOME OF OUR FARMERS.

THE PHILIPPINES IS ALSO BECOMING A HUB FOR INFORMATION AND COMMUNICATIONS TECHNOLOGY, THANKS TO OUR MILLIONS OF EDUCATED, ENGLISH-SPEAKING PEOPLE, AND SUCCESSOR GENERATION TYPES LIKE CYNTHIA NAMON. OUR STRATEGY FOR HUMAN CAPACITY BUILDING IS TO TRANSFORM OUR LABOR FORCE INTO THE NEW ECONOMY WORKFORCE. OUR COMPETITIVE ADVANTAGE IS OUR HUMAN RESOURCES. I LIKE TO SAY THAT THE PHILIPPINES IS THE HOME OF THE GREAT FILIPINO WORKER. THE WORLD KNOWS THIS AND WE ARE PROUD OF IT.

EVERY INITIATIVE, EVERY NEW MEASURE OR PROGRAM TO WHICH WE IN THE GOVERNMENT HAVE COMMITTED OURSELVES, IS A BUILDING BLOCK FOR THE BROADER PILLARS OF NATIONAL STRATEGIC CONSENSUS. THESE PILLARS, AS I HAVE MANY
TIMES ARTICULATED, ARE THE FOLLOWING:

THE FIRST IS AN ECONOMIC PHILOSOPHY OF FREE ENTERPRISE APPROPRIATE TO THE 21st CENTURY.

THE SECOND PILLAR IS A MODERNIZED AGRICULTURAL SECTOR, WITH THAT HYBRID AND OTHER THINGS, FOUNDED ON SOCIAL EQUITY.

THE THIRD PILLAR IS A SOCIAL BIAS TOWARD THE DISADVANTAGED TO BALANCE OUR ECONOMIC DEVELOPMENT PLAN. AND SO I'M SO KEEN ON LIQUEFYING THE FUNDS FOR HOUSING.

AND THE FOURTH PILLAR IS TO RAISE THE MORAL STANDARDS OF GOVERNMENT AND SOCIETY.

THE PROBLEMS WE CONFRONT ARE MANY AND DIVERSE BUT, AS WE SHOWED IN EDSA, OUR GREATEST STRENGTH IS OUR PEOPLE POWER. PEOPLE POWER TO REFORM GOVERNMENT. PEOPLE POWER TO MAKE THE ECONOMY MOVE FORWARD. AND AS WE SAW IN EDSA THAT PEOPLE POWER WAS POWERED BY THE YOUNG. AND EVEN IN THE BUSINESS SECTOR IT IS POWERED BY YOU, THE SUCCESSOR GENERATION.

AS THE THINKERS, ACHIEVERS, AND LEADERS WHO WILL NAVIGATE OUR COUNTRY IN THE NEW MILLENNIUM, I CALL ON YOU, THE SUCCESSOR GENERATION, TO STAY WITH US IN OUR BOLD ASPIRATION TO WIN THE BATTLE AGAINST POVERTY BY TAPPING THE
NEW OPPORTUNITIES OF THE NEW ECONOMY BECAUSE THAT IS WHAT YOU ARE: YOU, THE SUCCESSOR GENERATION ARE THE NEW ECONOMY.

THANK YOU.

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