PGMA's Speech during the Awarding Ceremonies of the 16th Golden Shell Awards

Ceremonial Hall, Malacanang (29 Nov 2002)

THANK YOU VERY MUCH, SECRETARY MAR ROXAS FOR YOUR INTRODUCTION. AND I WOULD ALSO LIKE TO THANK SECRETARY ROXAS FOR BEING A CHAMPION NOT ONLY OF EXPORTS BUT ALSO OF DOMESTIC DEMAND PARTICULARLY THE REFORMS IN MALL AND MEDIUM ENTERPRISES THAT THE ECONOMY HAS BEEN SEEING.

CONGRESSMAN HARRY ANGPIN AND MRS. ANGPIN. THANK FOR BEING HERE. CONGRESSMAN ANGPIN HAS BEEN A CHAMPION OF PHILIPPINE BUSINESS AND EXPORTS IN THE HOUSE OF REPRESENTATIVES; I'D LIKE TO THANK PHILIPPINE EXPORT PRESIDENT JUN ORTIZ LUIS FOR HIS CONTINUING LEADERSHIP OF THE EXPORT SECTOR EVEN DURING THE ESPECIALLY TRYING TIMES OF LAST YEAR; AND I'D LIKE TO GREET NOT ONLY MAR BUT ALL THE OTHER OFFICIALS OF THE DEPARTMENT OF TRADE AND INDUSTRY, MY FORMER COLLEAGUES AND STILL MY FRIENDS EVEN UP TO TODAY; EXCELLENCIES OF THE DIPLOMATIC CORPS; MEMBERS OF THE BOARD OF JUDGES; AND OF COURSE, OUR AWARDEES AND OTHER LEADERS OF THE BUSINESS COMMUNITY:

TODAY, WE ARE HONORING EXCEPTIONAL FILIPINO MEN AND WOMEN AND FILIPINO RESIDENT COMPANIES WHO HAVE PRODUCED STAR QUALITY EXPORTS. IT'S A GOOD TIME TO REMIND OURSELVES THAT DESPITE THE HARSH DOMESTIC AND GLOBAL CONDITIONS, OUR COUNTRY IS MOVING FORWARD. OUR EXPORTS HAVE RESUMED GROWING. AS OF SEPTEMBER, EXPORTS GREW AT 8.8 PERCENT, NOT BECAUSE THE INTERNATIONAL MARKET IS RECOVERING, BUT BECAUSE WE ARE GETTING MARKET SHARE.

FOR INSTANCE, SILICON VALLEY GROWTH IS FLAT BUT PHILIPPINE ELECTRONICS EXPORTS ARE GROWING. AND THAT'S WHY WE HAVE AWARDEES FROM THAT SECTOR TODAY. FOR INSTANCE, WE HAVE TOSHIBA MOVING ITS COMPUTER MANUFACTURING FROM UNITED STATES PLANTS TO THE PHILIPPINES. AND THAT IS WHY SOME OF ITS COMPONENT MANUFACTURERS AND SUPPLIERS ARE AMONG OUR AWARDEES TODAY.

TOYOTA FOR THE FIRST TIME WILL BE EXPORTING TO JAPAN FROM THE PHILIPPINES THE TRANSMISSION COMPONENT. AND AGAIN, THE SAME THING WITH HONDA, WHICH HAS EXPANDED ITS MARKETS FOR ITS TRANSMISSION NOT ONLY FROM... NOT ONLY TO ASIAN BUT NOW TO THE WHOLE WORLD, AND AGAIN THAT IS WHY SOME OF THEIR COMPONENT SUPPLIERS ARE OUR AWARDEES TODAY.

CHINA HAS ENTERED THE WTO, BUT PHILIPPINE EXPORTS TO CHINA HAVE GROWN BY 80 PERCENT. AND FROM A TRADE DEFICIT WITH CHINA LAST YEAR OF 300 MILLION DOLLARS, NOW WE HAVE A TRADE SURPLUS OF 700 MILLION DOLLARS. AND I AM VERY HAPPY THAT ONE OF OUR AWARDEES -- IN FACT, THE GENTLEMAN WHO SPOKE IN BEHALF OF THE AWARDEES -- FUJITSU HAS JUST EXPANDED 2.2 BILLION PESOS APPROVED LAST WEEK. THANK YOU VERY MUCH FOR YOUR CONTINUING FAITH IN THE PHILIPPINE ECONOMY.

YOU, THE EXPORTERS DESERVE CREDIT FOR ALL THESE, FOR OUR 8.8 PERCENT GROWTH IN EXPORTS DESPITE A FAIRLY FLAT OVERALL GROWTH IN EXPORTS AROUND THE WORLD. YOUR ACCOMPLISHMENT, I WOULD SAY IS THE TRIUMPH OF FILIPINO EXPERTISE IN MANAGEMENT, DESIGN AND PRODUCTION.

YOUR EXPERTISE IS THE REASON WHY OUR DESIGNS AND PRODUCTS ARE IN SUCH DEMAND ABROAD. THIS IS WHY FOREIGN BUYERS COME HERE FOR SOURCING. OUR AWARDEES WERE ABLE TO ACHIEVE THEIR OUTSTANDING ACCOMPLISHMENTS INSPITE OF THE LONG-DRAWN CHALLENGES WE ARE CONFRONTING HERE AND AROUND THE WORLD.

THEIR SUCCESS IN THE FACE OF ADVERSITY MAY BE ATTRIBUTED NOT ONLY TO THEIR RESILIENCE AND VERSATILITY, BUT TO THEIR INDIVIDUAL COMPETENCE, AND I WOULD LIKE TO THINK THE MARKET-FRIENDLY POLICIES THAT OUR NATIONAL GOVERNMENT IS PUTTING IN PLACE TO CUSHION THE IMPACT OF RECURRENT CRISIS.

THUS, IN THE FIRST THREE QUARTERS OF THIS YEAR, PHILIPPINE GDP GREW BY 4.1 PERCENT AND GNP BY 5 PERCENT, POWERED BY THE RECOVERY OF INDUSTRY ESPECIALLY EXPORTS AND CONTINUING STRENGTHENING OF SERVICES. INDUSTRY GREW BY 3.8 PERCENT AS I SAID EARLIER FUELED BY THE 8 PERCENT GROWTH IN EXPORTS. SERVICES GREW BY 5.1 PERCENT. OUR ECONOMIC GROWTH IS SURPASSED ONLY BY THE INDUSTRIAL GIANTS -- CHINA AND KOREA -- AND BY VIETNAM WHICH STARTED FROM A MUCH LOWER BASE.

OUR INFLATION IS LOW AT 2.7 PERCENT. OUR INTEREST RATES ARE LOW, WITH THE 91-DAY TREASURY BILL STEADY AT AROUND 5 PERCENT. THESE RATES ARE AT THEIR LOWEST IN MORE THAN A DECADE.

DEMAND FOR THE TALENTS AND SKILLS OF THE GREAT FILIPINO WORKER REMAINS AS STRONG AS EVER, PARTICULARLY IN SECTORS LIKE INFORMATION AND COMMUNICATIONS TECHNOLOGY, TOURISM AND NURSING ASIDE FROM THE SURGENT GROWTH IN EXPORT DEMAND.

AND WHILE THE DEFICIT IS A CONCERN, WE HAVE BROUGHT IN A NEW TEAM HEADED BY THE LIKES OF BIR COMMISSIONER PARAYNO. AND I AM FORMING AN ANTI-SMUGGLING INTELLIGENCE AND INVESTIGATION CENTER TO HANDLE THE SMUGGLING THAT TAKES PLACE OUTSIDE THE CUSTOMS AREA. AND THIS IS TO BE HEADED BY A VERY REPUTABLE MAN WITH A STERLING REPUTATION FOR INTEGRITY, FORMER POLICE GENERAL MIGUEL CORONEL. HE WILL BE THE HEAD OF THE NEW ANTI-SMUGGLING INTELLIGENCE AND INVESTIGATION CENTER. AND WITH THEIR COMBINED EFFORTS, THE GOAL IS TO INCREASE TAX AND CUSTOMS REVENUES TO REDUCE THE DEFICIT AND REDUCE THE INTEREST RATES THAT YOU, THE EXPORTERS HAVE TO PAY.

THE MARKET-FRIENDLY POLICIES OF THE GOVERNMENT INCLUDE TARIFF AND INCENTIVES RATIONALIZATION, AS I SAID THE LOWERING OF INTEREST RATES AND THE RELAXATION OF STRINGENT REQUIREMENTS TO ACCESS FINANCING PROGRAMS, AND ALSO LOAN RESTRUCTURING AMONG OTHERS.

THE REQUIREMENTS TO ACCESS FINANCING PROGRAMS WILL CONTINUE TO BE RELAXED PARTICULARLY FOR SMALL AND MEDIUM ENTERPRISES. WE HAVE GIVEN BANKS INCENTIVES AND POLICY SIGNALS TO FUND THE SMES. FOR INSTANCE, UPON MOTION FILED BY MY REPRESENTATIVE TO THE MONETARY BOARD, SECRETARY MAR ROXAS, THE CENTRAL BANK HAS DECREASED RESERVE REQUIREMENTS ON RURAL BANKS AND THRIFT BANKS TO 6 PERCENT. IT HAS REDUCED THE RISK-WEIGHING ON SME LOANS TO 75 PERCENT FROM 100 PERCENT. IT HAS REDUCED THE REDISCOUNT TO 91-DAY T-BILLS MINUS 1 PERCENT ON ALL LOANS. WE HOPE THAT THIS WILL HELP THE SMALL AND MEDIUM ENTERPRISE EXPORTERS AND ALSO YOUR SUB-CONTRACTORS WHO ARE SMALL AND MEDIUM ENTERPRISES.

WE ARE ALSO COMMITTED TO LONG-TERM STRUCTURAL REFORMS TO ENSURE CONTINUED STRENGTH IN DOMESTIC DEMAND, BOLSTERING THE DIVERSIFICATION OF THE GDP AND ENLIVENING THE CLIMATE FOR INVESTMENT. BOTH FOR THE INVESTMENT FOR THE DOMESTIC MARKET AND THE INVESTMENT FOR EXPORTS.

THE PASSAGE OF THE SPECIAL ASSET MANAGEMENT COMPANY BILL -- USED TO BE CALLED THE SPECIAL PURPOSE VEHICLE BILL. NOW IT'S ASSET NANAGEMENT COMPANY BILL, AND THAT'S A BETTER DESCRIPTION OF WHAT IT REALLY DOES -- THIS BILL IS NOW IN BICAMERAL CONFERENCE COMMITTEE IN CONGRESS. AND I THINK CONGRESSMAN ANGPIN WILL CONFIRM THAT BOTH HOUSES OF CONGRESS FIND THE SAILING QUITE SMOOTH IN THE BICAMERAL CONFERENCE COMMITTEE. THIS WILL FREE UP MORE BANK RESOURCES FOR EXPORT AND OTHER PROJECTS THAT THE GOVERNMENT IS NOT IN A FISCAL POSITION TO FUND.

THIS SPECIAL ASSET MANAGEMENT COMPANY BILL IS NOT MEANT TO JUST BAILOUT BANKS. IT IS MEANT, FIRST AND FOREMOST, TO LIQUIFY THEIR ASSETS SO AS TO EASE UP CREDIT AND HELP BORROWERS GET BACK INTO BUSINESS.

BANKS ARE ONLY AS IMPORTANT AS THEY CONTRIBUTE TO THE ECONOMY. THE SPECIAL ASSET MANAGEMENT COMPANY IS NOT INTENDED TO HELP BANKS FOR THEMSELVES. THE ENTREPRENEUR REMAINS THE ENGINE OF THE ECONOMY, AND YOU, THE ENTREPRENEURS, I KNOW, YOU NEED TO BE FUELED UP AGAIN WITH LOANS TO GET THE ECONOMY MOVING.

THERE IS ANOTHER BILL -- AND I'M GLAD THAT WE HAVE AGRICULTURAL EXPORTERS AMONG OUR AWARDEES -- THE BILL TO MAKE AGRICULTURAL LAND ACCEPTABLE AS BANK COLLATERAL PASSED THE HOUSE ON THIRD AND FINAL READING YESTERDAY. AND TO CONGRESSMAN ANGPIN, LET US THANK THE CONGRESSMEN FOR THEIR QUICK RESPONSE TO THE CERTIFICATION AS URGENT. THIS WILL REDUCE... THIS WILL REMOVE, IN FACT, THE RIGIDITY OF THE SECOND-ROUND LAND TRANSFERS UNDER THE AGRARIAN REFORM PROGRAM. AND WHEN AGRICULTURAL LAND, EVEN LAND REFORMED LAND IS AVAILABLE AS COLLATERAL THEN THAT WILL BRING PRIVATE INVESTMENTS BACK TO AGRICULTURE.

INDEED, THE GOVERNMENT IS COMMITTED TO SUSTAINING ECONOMIC AND POLITICAL MEASURES TO COUNTER THE EFFECTS OF GLOBAL RECESSION AND TERRORISM.

NINE-ELEVEN, THE SUBSEQUENT WAR ON TERRORISM, AND THE LOOMING WAR IN IRAQ HAVE ALL COMBINED TO DAMPEN THE WORLD ECONOMY. THAT'S WHY OUR 8 PERCENT GROWTH IN EXPORTS IS TRULY REMARKABLE. BUT EVEN BEFORE 9-11, WE ALREADY HAD BEEN WAGING A WAR ON TERRORISM, LARGELY BY OURSELVES.

YOU WILL RECALL THAT THE ABU SAYYAF WAS ABLE TO GENERATE AT LEAST 20 MILLION DOLLARS IN RANSOM FROM SIPADAN, WHICH STRENGTHENED THEIR CAPABILITY FOR TERROR. BUT WITH OUR DECISIVE RESPONSE TO 9-11, WE GAINED FOREIGN ALLIES IN OUR WAR AGAINST TERROR. WE BROUGHT DOWN THE FIGHTING STRENGTH OF THE ABU SAYYAF FROM THE THOUSANDS TO THE HUNDREDS, AND WE TOOK DOWN THEIR LEADER IN JUNE OF THIS YEAR.

IN OUR WAR AGAINST TERROR, WE LOOK OUT PRIMARILY FOR OUR OWN INTERESTS. THIS INCLUDES MAKING COMMON CAUSE WITH FOREIGN COUNTRIES WHERE THOSE INTERESTS MATERIALLY OVERLAP.

WE DON'T KNOW WHEN OR WHERE IN THE WHOLE WORLD TERROR WILL STRIKE AGAIN, BUT WE ARE DOING EVERYTHING TO THWART ITS ATTEMPTS OR MITIGATE ITS EFFECTS. WE SHALL REMAIN ON ALERT.

THESE MEASURES -- ECONOMIC, POLITICAL, SECURITY -- ARE ALL DESIGNED TO MAKE THE PHILIPPINES A SAFE AND DESIRABLE PLACE FOR BUSINESS; A SAFE AND DESIRABLE PLACE FOR EXPORTS.

AND LET'S NOT FORGET THAT SOUND MACROECONOMIC MANAGEMENT GOES SIDE BY SIDE WITH GOOD GOVERNANCE PRACTICES INCLUDING LEADERSHIP BY EXAMPLE, TRANSPARENCY AND THE INTEGRITY OF TRANSACTIONS.

TAKE FOR INSTANCE, THE ACCUSATION AGAINST SECRETARY OF JUSTICE HERNANDO PEREZ. YOU NOW KNOW, OF COURSE, THAT HE HAS GONE ON LEAVE. IT HAD BEEN HIS INTENTION EVEN BEFORE THE MATTER CAME TO A HEAD ON THE FLOOR OF CONGRESS. BUT NOW I APPEAL TO HIS ACCUSERS: RATHER THAN FILING YOU CHARGE IN THE MEDIA, FILE IT WITH THE OFFICE OF THE OMBUDSMAN. SUBMIT YOUR DOCUMENTS TO SPEED UP THE INVESTIGATION. IN THE MEANTIME, MY PRESIDENTIAL ANTI-GRAFT COMMISSION, WITH WHATEVER LITTLE IT HAS IN HIS HANDS AS EVIDENCE IS ALSO DOING ITS OWN INVESTIGATION.

TAKE NOW THE PIATCO ISSUE. THIS IS NOT JUST A SIMPLE PROBLEM, BUT A TEST CASE OF THE INTEGRITY AND EFFICIENCY OF THE REPUBLIC IN BUILDING THE INFRASTRUCTURE THE NATION REQUIRES. AN INTERNATIONAL AIRPORT IS ANY NATION'S GATEWAY TO THE WORLD, THE FIRST CONTACT OF FOREIGNERS WITH THE PHILIPPINE REPUBLIC, ESPECIALLY THOSE FOREIGNERS WHO HAVE NOT BEEN IN CONTACT WITH THE WONDERFUL EXPORTS OF THE PHILIPPINE ECONOMY; THOSE FOREIGNERS WHO HAVE NOT HAD THE BENEFIT OF ENJOYING PHILIPPINE EXPORT PRODUCTS. BECAUSE FOR THEM WHEN THEY SEE YOUR PRODUCTS, THAT'S THE FACE OF THE PHILIPPINES THEY SEE. BUT IF THEY ARE NOT EXPOSED TO YOUR PRODUCTS, THERE'S THE AIRPORT. THAT IS THE FIRST FACE OF THE PHILIPPINES THEY SEE. THEREFORE, IT'S NOT ONLY A MATTER OF OPENING IT BUT MAKING SURE THAT IT IS A WORLD-CLASS AIRPORT THAT OPERATES WITHOUT ANY HITCHES AT ALL AND WITHOUT THE SLIGHTEST RISK TO TRAVELLERS.

BUT IT'S ALSO EMERGING AS A TEST CASE OF MY ADMINISTRATION'S COMMITMENT TO FIGHT CORRUPTION, TO RID OUR STATE FROM THE HOLD OF ANY VESTED INTEREST.

THE SOLICITOR GENERAL AND THE JUSTICE DEPARTMENT HAVE DETERMINED THAT ALL FIVE AGREEMENTS COVERING THE NAIA TERMINAL 3, MOST OF WHICH WERE CONTRACTED IN THE PREVIOUS ADMINISTRATION, ARE NULL AND VOID.

I CANNOT HONOR CONTRACTS WHICH THE EXECUTIVE BRANCH'S LEGAL OFFICES HAVE CONCLUDED ARE NULL AND VOID. I'M THEREFORE ORDERING THE DEPARTMENT OF JUSTICE AND THE PRESIDENTIAL ANTI-GRAFT COMMISSION TO INVESTIGATE ANY ANOMALIES AND PROSECUTE ALL THOSE FOUND CULPABLE IN CONNECTION WITH THE NAIA CONTRACT.

BUT DESPITE ALL OF THE PROBLEMS INVOLVING THE PIATCO CONTRACTS, I'M ASSURING OUR PEOPLE, OUR TRAVELLERS, OUR EXPORTERS: MY ADMINISTRATION WILL OPEN THE TERMINAL EVEN IF IT REQUIRES INVOKING THE FULL POWERS OF THE PRESIDENCY UNDER THE CONSTITUTION. AND WE WILL OPEN A SAFE, SECURE AND SMOOTHLY FUNCTIONING AIRPORT, A WORLD-CLASS AIRPORT, AS WORLD-CLASS AS THE EXPORTERS WE ARE HONORING TODAY.

TODAY, THE NATURAL INCLINATION TO TRADE NOURISHES THE ECONOMIC ENGINE OF OUR COUNTRY.

INDEED, GOVERNMENT SHOULD STEP BACK WHEN PRIVATE INITIATIVE OFFERS THE GREATEST CREATIVITY AND DYNAMISM AS IN THE CASE OF THE EXPORT SECTOR. EVEN AS GOVERNMENT SHOULD NOT HESITATE TO STEP IN WHEN PRIVATE GREED THREATENS THE GREATEST DAMAGE AND PARALYSIS TO SOCIETY AS IN THE CASE OF ONEROUS AND ILLEGAL CONTRACTS. THERE IS NO INALIENABLE RIGHT TO FLEECE THE PUBLIC. THERE IS ONLY AN INALIENABLE RIGHT TO DO PROFITS HONESTLY.

IT IS THERE IN THE HISTORY BOOKS. FROM THE UNITED STATES TO GERMANY AND JAPAN, RICH COUNTRIES ARE MADE BY STRONG GOVERNMENTS. THE PRIVATE PASSION FOR PROFITS IS INDISPENSABLE TO BOLD ENTERPRISE. THE PUBLIC CALL TO SERVICE IS NECESSARY FOR THE WIDER PUBLIC GOOD.

IN THE GLOBAL STRUGGLE FOR ECONOMIC SURVIVAL, PROGRESS AND EVEN PREEMINENCE, THE ENGINE OF GROWTH HAS ALWAYS BEEN THE PRIVATE SECTOR -- YOU, OUR EXPORTERS. BUT THE ULTIMATE GOAL HAS ALWAYS BEEN NATIONAL STRENGTH.

EVEN IN AN INCREASINGLY GLOBALIZED WORLD, WHERE THE WAYS OF DOING BUSINESS AND MAKING PROGRESS HAVE TOPPLED NATIONAL BOUNDARIES, EACH PEOPLE HAVE ONLY ONE PLACE WHERE THEY ARE TRULY WELCOME; ONE PLACE THEY CAN REALLY CALL HOME AND THAT IS THEIR COUNTRY. THEREFORE, PROFIT MUST BE TOPPED BY PATRIOTISM.

AND IT IS PATRIOTISM TO CAPITALIZE ON OUR RENOWNED ARTISTRY THAT WE ARE HONORING TODAY. OUR INNOVATIONS HAVE BEEN FOUND USEFUL AND EXCEPTIONAL EVEN IN FOREIGN LANDS. OUR DESIGNS HAVE ESTABLISHED STRONG FOOTHOLDS ESPECIALLY IN HIGH-END MARKETS.

OUR AWARDEES DO OUR COUNTRY PROUD. THEY ARE REKINDLING THE COLLECTIVE FILIPINO SPIRIT WITH THEIR COMMENDABLE DETERMINATION TO COMPETE AND PREVAIL.

THE WILL TO STRUGGLE AND PREVAIL IS A HALLMARK OF A COMPETITIVE EXPORTER. IT IS ALSO THE HALLMARK OF A STRONG NATION, IT IS ALSO THE HALLMARK OF A STRONG PHILIPPINE REPUBLIC. THUS, WE ALL HAVE THE SAME GOAL.

AND SO, IN MOVING TOWARDS THIS GOAL, LET ME SAY, THANK YOU AND CONGRATULATIONS TO OUR AWARDEES. MAY THIS AWARD INSPIRE YOU TO PURSUE GREATER SUCCESS NOT ONLY FOR YOURSELVES BUT MOST ESPECIALLY FOR THE GLORY OF OUR COUNTRY AND PEOPLE.

MABUHAY ANG ATING MGA EXPORTERS!

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