PGMA's Speech during the 33rd National Marketing Conference of the Philippine Marketing Association, Inc.

PGMA's Speech during the 33rd National Marketing Conference of the Philippine Marketing Association, Inc.

Grand Ballroom, Westin Philippine Plaza (04 July 2002)

THANK YOU VERY MUCH SECRETARY GORDON, OUR COUNTRY'S CHIEF CHEER LEADER;
PRESIDENT ANOÑUEVO; OTHER OFFICERS AND MEMBERS OF THE PMA
(PHILIPPINE MARKETING ASSOCIATION), LADIES AND GENTLEMEN.

I AM HAPPY TO CELEBRATE THIS MARKETING CONFERENCE WITH YOU. IN OUR FREE
ENTERPRISE SYSTEM, MARKETING IS CRUCIAL FOR INCREASING PRODUCTION AND
CREATING JOBS. THUS, I AM HAPPY ALSO TO ANNOUNCE TO YOU TODAY THAT I HAVE
PROCLAIMED JULY AS NATIONAL MARKETING MONTH.

MARKETING IS ABOUT COMPETITIVENESS, AND OUR QUEST FOR JOBS IN A FREE
ENTERPRISE SOCIETY IS ABOUT MAKING OUR COUNTRY COMPETITIVE. THUS, WE HAVE
LOWERED THE COST OF CAPITAL BY DISCIPLINING OUR BUDGET DEFICIT, AND WE WILL
CONTINUE TO DISCIPLINE OUR BUDGET DEFICIT. WHILE WE STARTED THIS YEAR WITH
A BIG DEFICIT, IT IS SMALLER THAN THE ONE THAT WE HAD AT THIS TIME LAST
YEAR. AND YET AT YEAR END -- EVEN THOUGH LAST YEAR AT THIS TIME, WE HAD
A BIGGER DEFICIT THAN NOW -- WE WERE ABLE TO ATTAIN AT YEAREND OUR TARGET
DEFICIT CEILING. AND THE INTERNATIONAL CREDIT AGENCIES, THEREFORE,
ADJUDGED US AS STABLE.

NOW FOR THE DEFICIT THIS YEAR. LET ME QUOTE WHAT BLOOMBERG REPORTED
YESTERDAY. THE TITLE OF ITS REPORT WAS "BUDGET CONCERN COOLS ON REPORT."
AND THE TEXT OF THE ARTICLE SAID, AND I QUOTE: "THE NATION'S DEFICIT
NARROWED IN MAY, SUGGESTING GOVERNMENT EFFORTS TO INCREASE TAX REVENUE AND
REIN IN SPENDING ARE NOW WORKING. THE DEFICITS FELL 19 PERCENT IN MAY FROM
A YEAR EARLIER TO 24.6 BILLION PESOS. WHILE THE DEFICIT GREW FASTER THAN
THE GOVERNMENT PROJECTED IN THE FIRST FIVE MONTHS OF 2002, FINANCE
SECRETARY JOSE ISIDRO CAMACHO SAID THE NATION IS STILL COMMITTED TO MEETING
ITS FULL-YEAR DEFICIT TARGET."

SO, THAT IS ONE WAY BY WHICH WE CONTINUE TO WORK TO MAKE OUR COUNTRY
COMPETITIVE. BECAUSE BY KEEPING OUR DEFICIT IN CHECK, WE KEEP OUR INTEREST
RATES LOW. AND THE INTEREST RATES IN MY ADMINISTRATION HAD BEEN THE LOWEST
THAT THEY HAVE BEEN IN SO MANY DECADES.

ALSO, TO MAKE OUR COUNTRY MORE COMPETITIVE, WE HAVE TAKEN MEASURES TO
REDUCE THE COST OF POWER, AND I BELIEVE THOSE AMONG YOU WHO MIGHT HAVE
RECEIVED YOUR JULY BILL ARE NOW SEEING MUCH LOWER ELECTRICITY RATES. WHAT
YOU ARE SEEING IS THE FRUIT OF OUR ADMINISTRATION'S WORK IN THE ENERGY
SECTOR.

LAST MAY, I TOLD NAPOCOR TO BRING DOWN THE PURCHASED POWER COST ADJUSTMENT
OR PPCA -- WHICH IS A PART OF YOUR PPA -- TO 40 CENTAVOS PER KILOWATT-HOUR.
AND THIS IS NOW REFLECTED IN THE JULY BILLINGS OF THE CONSUMERS. WITH
THESE JULY BILLINGS, THE PHILIPPINES IS NOW NO LONGER THE NUMBER TWO MOST
EXPENSIVE COUNTRY IN ASIA IN TERMS OF ELECTRICITY RATES. NOW IT IS JUST
NUMBER 6, BECAUSE WITH THE JULY BILLINGS, WE HAVE OVERTAKEN SINGAPORE,
HONGKONG, BRUNEI AND CAMBODIA.

TO CONTINUE THE EFFORT TO MAKE OUR POWER RATES COMPETITIVE BEYOND THIS
IMMEDIATE TERM AND INTO THE SHORT, MEDIUM AND LONG TERM, WE HAVE PUT A
COMPREHENSIVE TEN-POINT PROGRAM IN PLACE TO REDUCE POWER COST FURTHER. AND
I ASK YOUR ASSOCIATION TO SUPPORT ME IN THIS EFFORT.

ONE OF THE TEN POINTS FOR REDUCING POWER RATES SOME MORE IS THE REVIEW AND
RENEGOTIATION OF THE INDEPENDENT POWER PRODUCTION CONTRACTS.

YESTERDAY, THE IPP INTERAGENCY REVIEW COMMITTEE HEADED BY SECRETARY CAMACHO
AND INCLUDING THE SECRETARY OF JUSTICE, PRESENTED TO ME THE RESULTS OF
THEIR REVIEW OF ALL THE 35 IPP CONTRACTS. NOW, THIS IS THE REASON WHY
THE MALACAÑANG PRESS CORPS IS HERE WITH ME TODAY. SO, LET ME GIVE YOU THE
HIGHLIGHTS OF THEIR COMMITTEE REPORT. OF THE 35 IPP CONTRACTS, THE
COMMITTEE FOUND THAT:

FIRST, SIX CONTRACTS PASSED THE REVIEW WITH NO LEGAL OR FINANCIAL ISSUES.
SO, THEY GO ON AND OPERATE, AND THE RATES ARE MORE OR LESS FAIR;

ELEVEN CONTRACTS, WHILE PASSING THE LEGAL REVIEW, HAVE SOME FINANCIAL
ISSUES THAT NEED TO BE ADDRESSED TO ASSURE THAT THE GOVERNMENT AND THE
PUBLIC ARE NOT BEING FINANCIALLY PREJUDICED. AND MAYBE, IN THIS REVIEW IN ORDER TO MAKE THE PUBLIC LESS PREJUDICED WE MIGHT BE ABLE TO FIND
ROOM FOR SOME MORE CENTAVOS DECREASE;

TWO OF THE CONTRACTS, WHILE HAVING SOME REMEDIAL POLICY ISSUES, HOWEVER,
WERE FOUND TO BE FINANCIALLY SOUND. SO, PROBABLY, YOU CAN'T SQUEEZE ANY
BLOOD ANYMORE FROM THOSE STONES;

ELEVEN CONTRACTS HAVE SOME FINANCIAL ISSUES THAT MAY REQUIRE RENEGOTIATION
OF THE FINANCIAL TERMS. MORE SERIOUS THAN THE FIRST ELEVEN CONTRACTS I
TOLD YOU ABOUT. AND MAYBE THIS RENEGOTIATION MIGHT BRING ABOUT SOME BIGGER
DECREASES IN POWER THAN THE PREVIOUS ELEVEN;

AND LASTLY, FIVE CONTRACTS WERE FOUND TO HAVE BOTH LEGAL AND FINANCIAL
ISSUES THAT NEED TO BE REFERRED FOR APPROPRIATE STUDY, WHETHER
RENEGOTIATION OR POSSIBLE LEGAL ACTION OR BOTH.

OF THESE FIVE CONTRACTS THAT ARE BOTH LEGALLY AND FINANCIALLY PROBLEMATIC,
TWO ARE NOT OPERATING. SO, EVEN IF WE RENEGOTIATE THEM OR FILE LEGAL
ACTION THEY WON'T RESULT IN LOWER RATES,. BUT THE OTHER THREE ARE THE ONES
WHERE I SAID, WE SHOULD PRIORITIZE BECAUSE LEGAL ACTION TAKES LONGER THAN
NEGOTIATION. HOWEVER, THE THREAT OF LEGAL ACTION ALSO MAKES NEGOTIATION
FASTER, HOPEFULLY. OF THE LATTER FIVE CONTRACTS, THEREFORE, THE ONES WITH
CLEAR LEGAL AND FINANCIAL ISSUES, I HAVE INSTRUCTED THE DEPARTMENT OF
JUSTICE AND THE POWER SECTOR ASSETS AND LIABILITIES MANAGER OR PSALM TO
WORK TOGETHER TO FORMULATE A PLAN OF ACTION FOR RENEGOTIATION AND/OR LEGAL
ACTION.

FOR THE TWENTY-TWO CONTRACTS REQUIRING THE STUDY OR RENEGOTIATION OF
CERTAIN FINANCIAL TERMS, IT'S JUST A MATTER OF DEGREE -- SOME ARE MORE
DISADVANTAGEOUS THAN OTHERS -- I HAVE INSTRUCTED THE DEPARTMENT OF ENERGY
AND PSALM TO INITIATE THE NECESSARY STEPS TO ARRIVE AT AN ACCEPTABLE
RENEGOTIATION OF THE ISSUES. BECAUSE THEY'RE LEGALLY OKAY BUT FINANCIALLY
THERE IS ROOM FOR NEGOTIATION.

FOR THE TWO CONTRACTS WITH SOME REMEDIAL POLICY ISSUES BUT WHICH ARE
FINANCIALLY SOUND AND THE RATES ARE PROBABLY AS BEST AS THEY CAN BE. I
HAVE INSTRUCTED NEDA TO COORDINATE WITH THE DOJ TO REVIEW THESE CONTRACTS.

I HAVE GIVEN THESE AGENCIES -- THESE ARE DOJ, DOE, NEDA AND PSALM -- THREE
MONTHS TO TAKE ACTION ON THESE CONTRACTS AND COME UP WITH THE RESULTS OF
RENEGOTIATION, POLICY REMEDY OR LEGAL ACTION. SO I HOPE THAT NOW THAT YOU
HAVE A BIG DECREASE IN YOUR ELECTRICITY BILLS, THIS ACTION WILL RESULT IN
SOME MORE DECREASES ALONG THE WAY. BUT YOU AS MARKETING MANAGERS KNOW
THAT NEGOTIATIONS DON'T HAPPEN OVERNIGHT. BUT AT LEAST THERE'S SOMETHING
TO LOOK FORWARD TO OVER THE SHORT OR MEDIUM-TERM DEPENDING ON HOW EASY OR
HOW DIFFICULT THE RENEGOTIATIONS WILL BE.

IN THIS, WE WILL SEE THAT WE SHALL ENDEAVOR TO FURTHER REDUCE THE COST OF
ELECTRICITY FOR THE CONSUMER WHILE RESPECTING THE RULE OF LAW AND THE
VALIDITY OF LEGAL CONTRACTS. IN OTHER WORDS, WE CANNOT UNILATERALLY JUST
CHANGE THE RATES. WHERE THERE IS A LEGAL ISSUE, WE MUST GO TO COURT. AND
WHEN THERE IS NO LEGAL ISSUE, WELL, YOU AS BUSINESS PERSONS KNOW THAT
NEGOTIATION IS A TWO-WAY STREET. AND THIS IS CONSISTENT WITH THE MANDATE
OF THE ELECTRIC POWER INDUSTRY REFORM ACT AND OUR GOAL OF RATIONALIZING THE
POWER INDUSTRY.

TO ENHANCE OUR COUNTRY'S COMPETITIVENESS, IT'S NOT JUST THE INTEREST RATE
WHICH IS VERY IMPORTANT. IT'S NOT JUST THE POWER COST WHICH IS VERY
IMPORTANT. THE OTHER HORIZON WE MUST ATTEND TO IS LAW AND ORDER.

THIS MORNING I PRESIDED OVER THE TURNOVER CEREMONY OF THE PHILIPPINE
NATIONAL POLICE. I CHALLENGED THE NEW PNP CHIEF GENERAL EBDANE, JUN
EBDANE, TO ELIMINATE KIDNAPPING IN ONE YEAR. AND THE BETTER NEWS IS THAT
HE ACCEPTED THE CHALLENGE. BUT HE WILL NOT BE WITHOUT EXPERT HELP. IN JUN
EBDANE'S BATTLE AGAINST KIDNAPPING SYNDICATES, HE WILL BE ASSISTED BY A
SPECIAL TASK FORCE HEADED BY THE MAYOR OF DAVAO CITY, MAYOR RUDY DUTERTE.

I DIRECTED JUN EBDANE TO CALL A SUMMIT ON DRUGS AND KIDNAPPING THIS COMING
MONDAY. WHERE HE SAID, "PATAWAD NAMAN, IT'S THURSDAY ALREADY TODAY."
"O, SO JUN EH 'DI KUNG TAWAD KAILAN MO GUSTO? "O SIGE PO, TUESDAY," SABI
N'YA. (LAUGHTER) SO, WE WILL HAVE A KIDNAPPING SUMMIT ON TUESDAY. AND I
EXPECT THIS SUMMIT TO CLEARLY DEFINE ONCE AND FOR ALL, ALL THE PARAMETERS OF COMMAND
RESPONSIBILITY IN THE POLICE INCLUDING THE APPLICATION OF DUE PROCESS,
WHICH THE WHOLE PNP ORGANIZATION MUST UNDERSTAND AND ACCEPT. AFTER THIS,
THERE WILL BE NO MORE EXCUSES.

TO MAKE OUR COUNTRY COMPETITIVE AND ATTRACTIVE TO INVESTORS, WE MUST ALSO
BE ON THE BALL IN WORLD AFFAIRS. WHY DID MALAYSIA BECOME COMPETITIVE?
BECAUSE MAHATHIR WAS THERE IN WORLD AFFAIRS AS WELL AS IN THE INTERNAL
REFORMS AND SO ON.

AND SO ON JULY 15th, I SHALL ASSUME IN CONCURRENT CAPACITY THE POST OF
SECRETARY OF FOREIGN AFFAIRS. I SHALL MAKE SURE WE STRENGTHEN THE
INTERNATIONAL LINKAGES THAT WOULD ENABLE US TO BE AT PAR ON CONVERSATIONAL
BASIS NOT ONLY FIGHT TERRORISM AND UPHOLD THE LAW EVERYWHERE BUT TO BE
ABLE TO SELL OUR GOODS AND SERVICES EVERYWHERE.

THERE ARE EIGHT REALITIES OF THE REGIONAL AND INTERNATIONAL ENVIRONMENT
WHICH WILL GUIDE MY FOREIGN POLICY:

FIRST, THE PARAMOUNT INFLUENCE OF CHINA, JAPAN AND THE UNITED STATES IN THE
SECURITY AND ECONOMIC EVOLUTION OF EAST ASIA;

SECOND, THE GROWING CONTEXT OF ASEAN IN WORLD AFFAIRS.

THIRD, THE ROLE OF THE INTERNATIONAL ISLAMIC COMMUNITY;

FOURTH, THE LOOMING IMPORTANCE OF INTER-REGIONAL ORGANIZATIONS;

FIFTH, THE PROTECTION OF OUR ENVIRONMENT, NATURAL RESOURCES AND OUR MARINE
TERRITORY;

SIXTH, THE DRIVE FOR FOREIGN MARKETS AND FOREIGN INVESTMENT, IN WHICH
EUROPE IS ALSO A MAJOR SOURCE ALONG WITH THE U.S., JAPAN, CHINA AND ASEAN;

SEVENTH, THE IMPORTANCE OF INTERNATIONAL TOURISM;

AND EIGHTH, THE CRUCIAL ROLE OF OVERSEAS FILIPINOS IN OUR SOCIOECONOMIC
STABILITY.

IN THE GREAT ENDEAVOR TO FIND JOBS FOR OUR PEOPLE IN ORDER TO WIN THE WAR
AGAINST POVERTY, EVERY LITTLE THING HELPS. AND I AM CONFIDENT THAT THE
PHILIPPINE MARKETING ASSOCIATION AND THE BUSINESS, CONSUMER AND RETAIL
COMMUNITIES WILL RESPOND TO THIS CALL.

WE NEED MARKETING TO FURTHER STRENGTHEN OUR BILATERAL RELATIONSHIPS WITH
OTHER COUNTRIES. WE NEED MARKETING TO EXPAND PRODUCTION, SUPPORT
CONSUMPTION, CREATE A BULLISH INVESTMENT SECTOR. AND NOT JUST INVESTMENT
SECTOR BUT TO CREATE A BULLISH ENVIRONMENT. WE NEED MARKETING TO HAVE
CHEER LEADERS WHO WILL TELL OUR COUNTRYMEN, "HEY! THERE ARE GOOD THINGS
HAPPENING IN OUR COUNTRY." WE NEED MARKETING TO PROMOTE THE NATURAL
WONDERS OF THE PHILIPINES TO THE INTERNATIONAL AND EVEN TO THE DOMESTIC
MARKET.

SEEING YOU ALL HERE GIVES ME CONFIDENCE THAT WE SHALL STAND OUT IN THE END.
I APPRECIATE YOUR FAITH IN THE PHILIPPINES BECAUSE IT IS YOU THE MARKETERS
OF THE PHILIPPINES WHO CAN SPREAD OUT THIS GOOD FAITH TO THE REST OF OUR
COUNTRYMEN.

AGAIN, I WANT TO TAKE THIS OPPORTUNITY TO TELL EVERYONE THAT WE SHOULD SET
ASIDE DIVISIVE POLITICS AND FOCUS OUR ENERGIES ON FREEING OUR PEOPLE FROM
THE BONDAGE OF UNEMPLOYMENT AND POVERTY.

I ALSO CALL ON OUR BUSINESS PEOPLE TO ADD A SOCIAL DIMENSION TO THE USUAL
BOTTOMLINE CONCERNS. I URGE YOU TO CREATE MORE JOBS AS YOU EXPAND. MORE
JOBS TRANSLATE TO MORE PURCHASING POWER IN THE ECONOMY. MORE PURCHASING
POWER WILL INCREASE EFFECTIVE DEMAND FOR GOODS AND SERVICES, WHICH WOULD
INCREASE SALES AND PROFITS. WE MUST SUSTAIN THIS CYCLE OF PROGRESS AND
STABILITY.

YOU CAN, OF COURSE, DIRECTLY OR INDIRECTLY INVOLVE YOUR COMPANIES AND
YOURSELVES PERSONALLY IN SOCIAL WELFARE ACTIVITIES AS WELL. AN ACT OF
KINDNESS INSPIRES RECIPROCITY. LET US FLOOD THE COUNTRY WITH ACTS OF
HUMANITARIANISM. AFTER ALL, WE ARE IN THIS TOGETHER. AS YOUR CONFERENCE
THEME PUTS IT, "STAND OUT OR LOSE OUT." THAT'S WHAT DICK GORDON SAID,
"YEAH! WE'RE LIKE THAT." BUT WE'RE NOT GOING TO LOSE OUT. DID WE LOSE OUT
LAST YEAR? OUR NEIGHBORING COUNTRIES, OUR TRADING PARTNERS HAVE NOT DONE
AS WELL AS WE HAVE, EVEN IF WE THINK WE HAVE NOT DONE AS WELL AS WE WOULD
WANT TO HAVE DONE. AND SO, WE DID NOT LOSE OUT LAST YEAR. WE DIDN'T LOSE
OUT THE FIRST PART OF THIS YEAR. AS THE BEST PERFORMING ECONOMY IN
SOUTHEAST ASIA AND THE THIRD BEST ECONOMY IN ASIA, WE ARE NOT LOSING OUT.
SO, LET US STAND OUT BECAUSE WE MUST NOT LOSE OUT.

WE MUST CLOSE RANKS AND RIDE ON OUR COLLECTIVE BOUYANCY TO FACE THE STEEP CHALLENGES IN THE HORIZON. I SHALL BE COUNTING ON YOU, THE
MARKETERS OF THE PHILIPPINES. KAILANGAN KO KAYO.

MARAMING SALAMAT SA INYONG LAHAT.

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