PGMA's Speech during the Philippines-Thailand Business Luncheon |
Chaophya and Ta-jeen Ballrooms, Oriental Hotel Bangkok, Thailand (08 May 2002) |
| THANK YOU VERY
MUCH, SECRETARY ROXAS. CHAIRMAN CHARTSIRI SOPHONPANICH -- I WOULD LIKE TO GREET YOU AND ALSO TO CONVEY TO YOU OUR CONDOLENCE ON THE PASSING AWAY OF YOUR MOTHER TWO WEEKS AGO; DR. AYSPAT THAONALONDA, CHAIRMAN OF THE BOARD OF TRADE OF THAILAND; MR. PRAKASPESAT, VICE CHAIR OF THE FEDERATION OF THAI INDUSTRIES; DR. WENG PITTAYA, CHAIRMAN OF THE THAI-RP BUSINESS COUNCIL; OTHER MEMBERS OF THE ORGANIZATIONS COMPRISING THE JOINT STANDING COMMITTEE ON COMMERCE, INDUSTRY AND BANKING; MEMBERS OF THE FILIPINO COMMUNITY IN THAILAND; AMBASSADOR BRADY; MEMBERS OF THE PHILIPPINE DELEGATION; DISTINGUISHED GUESTS, LADIES AND GENTLEMEN: I THANK THE JOINT STANDING COMMITTEE FOR COMMERCE, INDUSTRY AND BANKING COMPOSED OF THE THAI CHAMBER OF COMMERCE, THE FEDERATION OF THAI INDUSTRIES AND THE THAI BANKERS ASSOCIATION, AND THE THAILAND- PHILIPPINES BUSINESS COUNCIL FOR ORGANIZING THIS LUNCHEON IN COOPERATION WITH OUR EMBASSY IN BANGKOK. THIS IS THE SECOND DAY OF MY OFFICIAL VISIT TO YOUR BEAUTIFUL COUNTRY. AND INDEED, I SEE AN AMAZING THAILAND, NOT JUST YOUR WARM HOSPITALITY BUT ALSO IN THE STEADY PACE OF YOUR ECONOMIC RECOVERY. IT IS AN OPPORTUNE TIME TO PUSH FORWARD THE PARTNERSHIP WHICH OUR TWO COUNTRIES BEGAN FORMALLY MORE THAN 50 YEARS AGO, BUT WHICH HAS BEEN THERE FOR CENTURIES NOW. SOME 40 YEARS AGO, MY FATHER, THEN PRESIDENT DIOSDADO MACAPAGAL, WAS HOST TO THE STATE VISIT TO THE PHILIPPINES OF THEIR MAJESTIES THE KING AND QUEEN OF THAILAND. AND SOME 35 YEARS AGO, THAILAND AND THE PHILIPPINES HELPED CREATE ASEAN, AN INSTITUTION THAT SUSTAINS OUR TIME-HONORED PARTNERSHIP IN PROMOTING PEACE AND PROSPERITY IN THE REGION. THERE IS MUCH WE CAN DO TOGETHER AS ASEAN BRETHREN AND AS BILATERAL PARTNERS. I HOPE THAT THIS BUSINESS FORUM HAS BEEN CATALYZING OUR COLLABORATION IN TRADE AND BUSINESS. WE DERIVE STRENGTH FROM THE COMMON EXPERIENCE OF HURDLING THE ASIAN FINANCIAL CRISIS. AND I AM HAPPY THAT LAST APRIL 4th, 2002, STANDARD AND POOR'S -- THE LAST TO DO SO BECAUSE MANY OTHER HAD DONE IT BEFORE STANDARD AND POOR'S -- REVISED THE RATING OF THE PHILIPPINE ECONOMY FROM NEGATIVE TO STABLE. ACCORDING TO STANDARD AND POOR'S, IMPROVED ECONOMIC MANAGEMENT UNDER MY ADMINISTRATION HAS BROUGHT ECONOMIC COHERENCE AND URGENCY TO ECONOMIC POLICIES, AND HAS LED TO HIGHER INVESTOR CONFIDENCE AND HIGHER GDP GROWTH PROSPECTS. INDEED, I WOULD LIKE TO SAY IN ALL CANDOR, THAT UNDER MY ADMINISTRATION, OUR COUNTRY'S POLITICAL AND ECONOMIC PRIORITIES HAVE BEEN CLEARLY DEFINED. WHEN I BECAME PRESIDENT LAST YEAR, I DECLARED BEFORE THE FILIPINO PEOPLE AND BEFORE THE WORLD OUR DETERMINATION TO WIN THE WAR AGAINST POVERTY WITHIN THE DECADE. TO WIN OUR WAR AGAINST POVERTY, WE HAVE STEERED OUR NATIONAL AGENDA ALONG FOUR PATHS: FIRST, AN ECONOMIC PHILOSOPHY OF TRANSPARENCY AND FREE ENTERPRISE; SECOND, A MODERN AGRICULTURAL SECTOR FOUNDED ON SOCIAL EQUITY TO EXTEND OPPORTUNITIES TO THE RURAL COUNTRYSIDE; THIRD, A SOCIAL BIAS TOWARDS THE DISADVANTAGED TO BALANCE OUR ECONOMIC DEVELOPMENT PLAN; AND FOURTH, HIGHER MORAL STANDARDS IN GOVERNMENT AND IN SOCIETY. OUR DEPARTMENT OF TRADE AND INDUSTRY HAS IDENTIFIED, THROUGH ITS ANNUAL INVESTMENT PRIORITIES PLAN, A FAIRLY EXTENSIVE LIST OF GROWTH AREAS AND PRIORITIES OPEN TO INVESTORS AND ELIGIBLE FOR INCENTIVES. AMONG THE MOST PROMISING IS THE INFORMATION AND COMMUNICATIONS TECHNOLOGY SECTOR. AND I'M GLAD THAT TODAY, WE SIGNED TWO AGREEMENTS REGARDING THAT. THERE ARE INDEED NEW OPPORTUNITIES IN THIS FIELD, COMBINED WITH OUR READY POOL OF HIGHLY-SKILLED ENGLISH-SPEAKING ICT PROFESSIONALS HAVING GAINED GROUND FOR US AS A CHOICE LOCATION FOR I-T AND E-COMMERCE VENTURES INCLUDING SPECIALIZED OPERATIONS SUCH AS BACKROOM FACILITIES AND CALL CENTERS. WE HAVE ALSO OPENED UP THE RETAIL TRADE SECTOR TO ALLOW 100 PERCENT FOREIGN OWNERSHIP DEPENDING ON PAID-UP CAPITAL. SOME OF OUR BIGGER LOCAL RETAILERS ARE ALSO OPEN TO ENTERING INTO JOINT VENTURES WITH FOREIGN PARTNERS. INFRASTRUCTURE PROJECTS UNDER OUR LIBERALIZED BUILD-OPERATE-AND-TRANSFER SCHEME AND ITS VARIATIONS, AND THE PRIVATIZATION OF GOVERNMENT CORPORATIONS, ALSO PROVIDE NEW OPPORTUNITIES FOR INVESTORS TO TAKE PART IN THE PHILIPPINES' GROWTH. OUR AGRICULTURAL MODERNIZATION PLANS OFFER ANOTHER INVESTMENT AREA FOR THAI BUSINESSMEN WHO HAVE BEEN MODERNIZING THAILAND'S AGRICULTURE FOR MANY YEARS NOW. BUSINESS PARTNERSHIPS IN TOURISM ARE ALSO VERY MUCH WELCOME, AS WE KNOW THAT THAILAND IS THE UNDISPUTED LEADER IN TOURISM IN ASIA. EQUALLY IMPORTANT TO US IS THE NEED TO FURTHER ENHANCE OUR TRADE RELATIONS. ONE OF THE PILLARS OF FOREIGN POLICY IN MY ADMINISTRATION IS THAT MORE AND MORE FOREIGN POLICY DECISIONS HAVE TO BE MADE IN THE CONTEXT OF ASEAN. LOGICALLY, THEREFORE, THIS LEADS TO MORE AND MORE BUSINESS ACTIVITIES AND DECISIONS BEING DONE IN THE CONTEXT OF AFTA. AFTA PROVIDES THE IMPETUS TO GROWING INTRA-ASEAN TRADE. AND I AM IMPRESSED AT THE PACE OF BUREAUCRATIC REFORMS UNDER AFTA AND ALSO UNDER THE VARIOUS PARTNERS WITHIN AFTA INCLUDING AND ESPECIALLY THE ADMINISTRATION OF PRIME MINISTER THAKSIN. WE HAVE A PROGRAM OF BUREAUCRATIC REFORMS SIMILAR TO THAT BEING UNDERTAKEN BY HIS EXCELLENCY THE PRIME MINISTER OF THAILAND. THESE REFORMS STRICTLY DEFINE THE ROLE OF GOVERNMENT WHERE BUSINESS IS CONCERNED. TO SPUR ENTERPRISE, WE FOLLOW A PRINCIPLE OF FACILITATION RATHER THAN INTERVENTION, ENABLING RATHER THAN INTERFERING. WE HAVE TAKEN CONCRETE STEPS TO INCREASE TRANSPARENCY AND REDUCE, IF NOT ELIMINATE, RED TAPE WITHIN GOVERNMENT. I HAVE TASKED ALL GOVERNMENT AGENCIES TO UNDERTAKE INSTITUTIONAL AND PROCEDURAL REFORMS TO SPEED UP THE DELIVERY OF ESSENTIAL FRONTLINE PUBLIC SERVICES. GRAFT AND CORRUPTION IN HIGH PLACES CERTAINLY HAVE NO ROOM IN OUR GOVERNMENT, AND WE SEEK TO SPREAD THE ETHIC OF PUBLIC MORALITY IN ALL LEVELS OF GOVERNMENT. WITH SYSTEMATIC RESOLVE, WE ARE MEETING THE CHALLENGE OF IMPROVING PEACE AND ORDER. WE ARE DETERMINED TO PROVIDE A SAFE ENVIRONMENT NOT ONLY FOR OUR CITIZENS BUT ALSO FOR INVESTORS, TOURISTS AND ALL VISITORS. WE ARE CARRYING ON OUR FIGHT AGAINST TERRORISM AND ARE WORKING CLOSELY WITH FOREIGN GOVERNMENTS IN THIS CAMPAIGN. THIS IS COUPLED WITH AN AGGRESSIVE PROGRAM TO UPLIFT ECONOMIC CONDITIONS IN CONFLICT-AFFECTED AREAS. I WOULD LIKE YOU TO KNOW THAT UNDER MY ADMINISTRATION, WE WILL CONTINUE TO JOIN THAILAND IN MAXIMIZING THE OPPORTUNITIES THAT ABOUND WITHIN THE ASEAN INVESTMENT AREA AND THE ASEAN FREE TRADE AREA. THAILAND IS AN IMPORTANT PARTICIPANT IN OUR COUNTRY'S ECONOMY. IN THE YEAR 2001, THAILAND WAS SECOND ONLY TO SINGAPORE AMONG ASEAN COUNTRIES AS A TRADING PARTNER OF THE PHILIPPINES. WE BUY THE BULK OF OUR SUGAR AND RICE FROM THAILAND WHENEVER THERE IS A NEED TO IMPORT THESE PRODUCE. AND I AM VERY HAPPY THAT I WITNESSED TODAY A MEMORANDUM OF AGREEMENT WHEREBY THERE WILL BE A JOINT VENTURE OR A THAI INVESTMENT IN SUGAR CORPORATION IN THE CENTRAL PART OF THE PHILIPPINES, IN NEGROS ORIENTAL. OVER THE PAST SEVERAL YEARS, WE HAVE SEEN TREMENDOUS GROWTH IN OUR TRADE COMING FROM THE ELECTRONICS SECTOR, OF WHICH WE ARE BOTH PART OF THE INTERNATIONAL SUPPLY CHAIN. A NEW SOURCE OF GROWTH IS THE AUTOMOTIVE SECTOR, WHERE ALLIANCES AND COLLABORATION CAN BE EXPANDED. IN FACT, PRIME MINISTER THAKSIN AND I TALKED ABOUT THIS LAST NIGHT BECAUSE WE HAVE THE AICO-FORD SCHEME, BUT PRIME MINISTER THAKSIN SAID THAT THERE ARE MANY OTHER OPPORTUNITIES IN THE AUTOMOTIVE SECTOR WHERE WE CAN DO THIS KIND OF JOINT VENTURE. WE MUST CONTINUE TO SUSTAIN OUR COMPETITIVE EDGE THROUGH ASEAN VALUE-ADDED COMPLEMENTATION -- WELL, THAT'S A MORE ACCURATE TERM, COMPLEMENTATION, RATHER THAN JOINT VENTURE IN THIS CASE. ABUNDANT OPPORTUNITIES EXIST IN A DIVERSE RANGE OF TRADE ARRANGEMENTS, MARKETING TIE-UPS, JOINT VENTURES, INTEGRATED PRODUCTION AND AS I SAID EARLIER, AICO SCHEMES, AND CROSS INVESTMENTS. LET US TAKE A CLOSER LOOK AT THE FUTURE FOCUS OF OUR PARTNERSHIPS. ONE IS AGRICULTURE AND FOOD PRODUCTION, WHERE THAILAND IS A GIANT. WE HAVE A HISTORY OF INTERDEPENDENCE IN AGRICULTURE. QUITE A NUMBER OF THAI AGRICULTURISTS HAVE STUDIED IN OUR AGRICULTURAL COLLEGES SUCH AS THE UNIVERSITY OF THE PHILIPPINES IN LOS BA„OS. AND AS I SAID EARLIER, IN THE LAST FEW YEARS, WE HAVE TURNED TO THAILAND FOR RICE AND SUGAR IMPORTS WHEN WE EXPERIENCE SHORTAGES IN DOMESTIC PRODUCTION. TODAY, I INVITE THAI AND PHILIPPINE BUSINESSMEN TO EXPLORE THE OPPORTUNITIES OF COMPLEMENTATION AND COOPERATION WITHIN THE ENTIRE FARM-TO-MARKET AGRICULTURAL CHAIN. AS MY ADVISER FOR ONE MILLION JOBS, SECRETARY LORENZO CALLS IT, THE CHAIN FROM SOIL-TO-SHELF. AS WE EXPLORE MORE COOPERATION IN THE FOOD SECTOR, I ENCOURAGE THE CONCERNED AGENCIES IN OUR TWO GOVERNMENTS TO WORK TOGETHER TOWARDS MUTUAL RECOGNITION OF STANDARDS AND REGULATIONS TO REDUCE NON-TARIFF OBSTACLES TO TRADE. ANOTHER AREA, IS FOR I HAVE MENTIONED, IS INDUSTRIAL COMPLEMENTATION. WE MUST EXAMINE HIGHER VALUE-ADDED ECONOMIC ACTIVITIES WHERE WE CAN BENEFIT FROM EACH OTHER'S COMPETITIVE ADVANTAGE AND OPTIMIZE WHAT EACH CAN OFFER. ALREADY, WE SEE THIS HAPPENING IN THE ELECTRONICS AND, AS I SAID, AUTOMOTIVE SECTORS, WHICH HAVE BENEFITED LARGELY FROM THE AICO SCHEME. WE MUST ALSO STRENGTHEN PARTNERSHIPS IN ICT, AS WE HAVE DONE TODAY IN THE TWO AGREEMENTS. I URGE YOU TO LOOK AT THE PHILIPPINES FOR OUTSOURCING OPPORTUNITIES IN FIVE MAIN AREAS WHERE WE HAVE FOUND WE HAVE COMPETITIVE ADVANTAGE -- CALL CENTER SERVICES, SOFTWARE DEVELOPMENT, MEDICAL TRANSCRIPTION, BUSINESS PROCESS OUTSOURCING AND ANIMATION. FILIPINO EXPERTISE IN ANIMATION MAY BE TAPPED TO ADD VALUE TO YOUR FILMS, ADVERTISEMENTS AND EDUCATIONAL MATERIALS. WE MUST EXPLORE COLLABORATION TO MEET THE DRAMATIC SURGE IN THE POPULARITY OF ANIMATION OVER THE LAST DECADE, BOTH IN THE TRADITIONAL MEDIA AS WELL AS THROUGH THE INTERNET. I ALSO LOOK FORWARD TO EXPANDING OUR COOPERATION -- OF COURSE, IN THE AREA WHERE YOU ARE ALSO GIANT -- THE AREA OF TOURISM. THAILAND'S LEADERSHIP POSITION IN TOURISM IS GIVEN AND HIGHLY ADMIRABLE. AT THE GOVERNMENT LEVEL, I AM VERY PLEASED THAT THE PHILIPPINE DEPARTMENT OF TOURISM AND THE PHILIPPINE TOURISM AUTHORITY OF THAILAND HAVE BEGUN TO JOINTLY PRODUCE TOURISM PROMOTION MATERIALS. THE PARALLEL EFFORT BY OUR PRIVATE SECTORS -- AS SHOWN HERE THIS NOON -- TO UNDERTAKE JOINT MARKETING EFFORTS AND TO PROMOTE JOINT TOURISM PACKAGES, ARE CERTAINLY TIMELY AND APPROPRIATE. YEARS FROM NOW, MAYBE A DECADE FROM NOW WHEN JOINT TOURS TO
THAILAND AND THE PHILIPPINES HAVE BECOME PART OF THE REGULAR TOURISM SCENE, WE WILL
REMEMBER IT ALL STARTED WHEN OUR SECRETARY OF TOURISM NAMED HIS GRANDSON AFTER THE PRIME
MINISTER OF THAILAND, PRIME MINISTER THAKSIN. |