PGMA's Speech during the 28th Annual Conference of the Financial Executives Institute of the Philippines (FINEX)

PGMA's Speech during the 28th Annual Conference of the Financial Executives Institute of the Philippines (FINEX)

Garden Ballroom, EDSA Shangri-la Hotel, Mandaluyong City (11 Oct 2002)

THANK YOU VERY MUCH SECRETARY LITO CAMACHO, THE HEAD OF MY ECONOMIC TEAM.

CHIEF MANABAT, PRESIDENT OF FINEX; MAYOR ABALOS; EDGAR LIMON, EXECUTIVE
VICE PRESIDENT OF FINEX; BENITO SOLIVEN, MY STUDENT; RONNIE ALCANTARA,
GRACE TIONGCO, SENEN MATOTO, ESTHER MAGLEO, OTHER MEMBERS AND OFFICERS OF
FINEX, EXCELLENCIES OF THE DIPLOMATIC CORPS, OTHER GOVERNMENT OFFICIALS,
DISTINGUISHED MEMBERS OF THE FINANCIAL SECTOR, LADIES AND GENTLEMEN.

I HAVE ALWAYS CONSIDERED FINEX AS ONE OF THE MOST IMPORTANT FORA FOR GIVING
POLICY PRONOUNCEMENTS. I HAVE BEEN SPEAKING BEFORE FINEX SINCE I WAS
UNDERSECRETARY OF TRADE AND INDUSTRY.

AND TODAY, THIS IS AN ESPECIALLY IMPORTANT CONFERENCE ESPECIALLY IN THESE
TIMES WHEN BUSINESS AND INVESTMENT MUST WEAVE AROUND FLUID SCENARIOS OF
UNCERTAINTY.

AND SO, THE FINANCIAL COMMUNITY MUST GO BEYOND YOURSELVES AS YOU HAVE
RECOGNIZED, AND CLOSE RANKS AND SHARE SOLUTIONS AND RESOURCES.

WE MUST IDENTIFY AND FOCUS ON KEY MILESTONE ACCOMPLISHMENTS, SO WE HAVE A
ROADMAP.

THE U.S. ECONOMY IS STILL SLOW THOUGH OUR EXPORTS HAVE BEEN JUMPING. IF
YOU LOOK AT THE VOLUMES IN THE PORTS, THEY HAVE BEEN MORE ACTIVE IN THIS
LAST FIVE MONTHS THAN IN THE LAST SEVEN YEARS. NONETHELESS, BECAUSE THE
U.S. ECONOMY IS STILL SLOW WE CAN'T RELY, WE CAN'T DEPEND ON EXPORTS FOR
OUR SUSTAINABLE GROWTH IN THE FEW YEARS TO COME. IT IS NOW UP TO THE
DOMESTIC ECONOMY.

I BELIEVE THE MODEL WE SHOULD FOLLOW SHOULD ENCOURAGE THE SHIFT TO NEW
SOURCES OF DOMESTIC DEMAND RATHER THAN RELY ON EXPORTS FOR OUR SURVIVAL.
AND THIS NEW SOURCES THOUGH THEY ARE NOT NEW IN THE SENSE THAT THEY'VE BEEN
AROUND FOR A LONG TIME BUT THEY ARE NEW IN THE SENSE THAT WE MUST GIVE THEM
GREAT PRIORITY. I WOULD CONSIDER MOST NOTABLE AMONG THEM THE CAPITAL-
EFFICIENT SMALL AND MEDIUM ENTERPRISES.

I UNDERSTAND THAT FINEX HAS A PROGRAM TO ASSIST THESE SMALL AND MEDIUM
ENTERPRISES, DO THE DOCUMENTARY REQUIREMENTS TO ACCESS CREDIT AND,
THEREFORE, THIS IS A SPECIAL CALL TO YOU.

ON THE PART OF A GOVERNMENT, THIS MODEL CALLED MANAGED ASSET REFLATION
INVOLVES PRUDENT MONETARY POLICY, A GRADUAL REDUCTION IN PUBLIC-SECTOR
DEBT, AND A BALANCED BUDGET IN THREE TO FOUR YEARS.

ON THE PART OF YOU, THE FINANCIAL EXECUTIVES, I AM ASKING THE BANKING
SYSTEM TO AVOID EXTENDING CREDIT TO UNPRODUCTIVE ASSET SECTORS SUCH AS
LUXURY PROPERTIES AND INDUSTRIES ALREADY SADDLED WITH EXCESS CAPACITY.
INSTEAD, I AM ASKING YOU TO ALLOCATE MORE OF YOUR PORTFOLIO TO THE
CAPITAL-EFFICIENT SMALL AND MEDIUM ENTERPRISES.

ON MY PART, I AM FOCUSING MY ENERGIES ON THIS MODEL, AND I AM LEADING BY
EXAMPLE. THOUGH IT WOULD BE A SMALL PORTION OF THE ENTIRE RESOURCES
AVAILABLE IN THE BANKING SYSTEM, I HAVE STARTED THE "ONE TOWN, ONE PRODUCT,
ONE MILLION-PESO" PROJECT AS A PUMP PRIMER TO JUMPSTART THE ATTENTION TO
SMALL AND MEDIUM ENTERPRISES. UNDER THIS PROGRAM, A LOAN OF ONE MILLION
PESOS SHALL BE LENT TO SMEs IN EACH OF THE 1,610 MUNICIPALITIES AND CITIES
IN THE COUNTRY. THE LOAN SHALL BE UTILIZED FOR A NICHE PRODUCT THAT HAS A
PROVEN MARKET OR THE EXPANSION OF AN EXISTING ENTERPRISE.

ASIDE FROM SMEs, THE MAIN MULTIPLIER SHOULD BE HOUSING. THE GOVERNMENT DOES
NOT HAVE THE MONEY. SO I WANT TO LET THE PRIVATE SECTOR, THE FINANCIAL
EXECUTIVES DRIVE THE DOMESTIC ECONOMY.

IN KEY AREAS, I WANT TO FREE UP THE PRIVATE SECTOR FROM THE TRADITIONAL
THINKING OF BUREAUCRACY AT LEAST FOR A WINDOW OF 12 MONTHS. THUS, IN MY
PERSONAL WORK PROGRAM FOR THE NEXT 6 MONTHS THE FOLLOWING ARE INCLUDED :

FIRST, SMEs, AS I HAVE ALREADY EXPLAINED.

SECOND, JUMPSTART HOUSING. HOW? BANKS ARE VERY LIQUID. EVEN MEDIUM-SIZED
BANKS HAVE BILLIONS IN T-BILLS. WE WILL LET THE PRIVATE SECTOR JUMPSTART
THE HOUSING SECTOR BY GIVING BANKS POLICY SIGNAL INCENTIVES TO FUND
DEVELOPERS ON THEIR OWN THEN GET BUREAUCRACY OUT OF THEIR WAY.

THE MIDDLE-INCOME SUB-SECTOR, FOR INSTANCE, FIVE HUNDRED THOUSAND PESOS TO
2 MILLION PESOS IS BANKABLE EVEN IF THE MARKET IS NOT AS LARGE AS THE
SOCIALIZED SUB-SECTOR, BUT WE MUST START SOMEWHERE. THE CENTRAL BANK'S
MONETARY BOARD IS THE KEY TO LIBERATE THE BANKS. AND I AM GRATIFIED THAT
THE BSP HAS NOW AGREED TO INCREASE THE LOAN COLLATERAL VALUE FOR HOUSING
ACCOUNTS TO 80 - 90 PERCENT OF THE LOAN VALUE. I HAVE ALSO ASKED THE BSP
TO GRANT THE AGRI-AGRA RESERVE ELIGIBILITY FOR NEW HOUSING LOANS UP TO 2
MILLION PESOS. AND THEY HAVE BEEN QUITE SYMPATHETIC WITH THIS REQUEST.
TO FOLLOW-UP AND MAKE SURE THAT THESE CIRCULARS ARE BROUGHT OUT AND CARRIED
OUT IS THE MANDATE OF SECRETARY MAR ROXAS, THE GOVERNMENT REPRESENTATIVE IN
THE MONETARY BOARD. IT IS HIS MANDATE TO OVERCOME TRADITIONAL THINKING IN
THE BUREAUCRACY.

THIRD ITEM IN MY WORK PROGRAM IS TO REDUCE TRANSPORT COSTS FROM MINDANAO TO
LUZON. PRESIDENTIAL ADVISER CITO LORENZO AND AL CUSI, GENERAL MANAGER OF
THE PHILIPPINE PORTS AUTHORITY, HAVE STARTED DOING SOMETHING ABOUT THESE
RATES BY PROMOTING COMPETITION AT THE PORTS, ADDRESSING REPORTED
OVERCHARGING IN CARGO-HANDLING TARIFF, REDUCING THE GOVERNMENT SHARE OF
PORT FEES TO 10 PERCENT, AMENDING THE BIDDING TERMS OF REFERENCE FOR
CARGO-HANDLING SERVICES. THIS REFORM IS NOW INCORPORATED IN THE BIDDING
TERMS TO FOCUS ON LOWER RATES FOR THE BIDDERS SERVICES AND NOT HOW MUCH
WILL BE THE SHARE THEY'LL GIVE THE GOVERNMENT, AND SUSPENDING PREVIOUSLY
APPROVED INCREASES IN WHARFAGE AND USAGE FEES. THIS POLICY BOTTLENECKS NOW
OUT OF THE WAY, I HAVE NOW INSTRUCTED DBP TO LEAD FOR THE OTHER MEASURES TO
BRING DOWN CARGO RATES. DBP HAS PUT IN PLACE A 30 BILLION-PESO CREDIT
FACILITY TO FUND ALL OF THESE THINGS THAT ARE NOT VERY CLEAR IN THE SCREEN
BUT DBP SHOULD HAVE A PROSPECTUS TO SHOW THIS IN A VERY, VERY BIG MAP.
BECAUSE WHEN THEY GAVE IT TO ME IN A SMALL MAP, I COULDN'T READ ANYTHING.
SO I HAVE THIS NOW IN MY OFFICE OF THE PRESIDENT, AND I LOOK AT IT EVERYDAY
AND I HAVE IT MEMORIZED.

ANYWAY, THIS IS DBP's LOGISTICS HIGHWAY. AND TO FINANCE THIS, DBP HAS PUT
TOGETHER THIS PROJECT, COMPLEX OF PROJECTS. THEY ARE WORTH 30 BILLION
PESOS AND DBP HAS A FINANCING FACILITY FOR LOANS UP TO 15 YEARS FOR
FINANCING EQUIPMENT AND INFRASTRUCTURE PROJECTS FOR A SUSTAINABLE
DISTRIBUTION SYSTEM INHERENT TO MARITIME TRANSPORT AND RELATED LAND
TRANSPORT.

THIS PROJECT IS GEARED TOWARDS THE DEVELOPMENT OF PROGRESSIVE LONG-HAUL
SHIPPING TO CONSTITUTE THE COUNTRY'S NATIONAL BACKBONE IN THE TRANSPORT OF
BULK PRODUCTS AND THE DEVELOPMENT OF A RO-RO FERRY AND ROAD NETWORK TO LINK
THE ISLANDS TO THE GROWTH CENTERS OF THE COUNTRY.

I HAVE INSTRUCTED LIANI NAÑAGAS TO GO FULL BLAST AND CONCENTRATE DBP ON
THIS. EXAMPLES WOULD BE FOR DBP TO FINANCE LOGISTICS, STORAGE AND PORT
FACILITIES IN MINDANAO. ALSO SHIPYARDS, POST-HARVEST FACILITIES AND
INSTITUTIONAL SUPPORT SERVICES LIKE MARITIME SCHOOLS AND TECHNICAL AND
VOCATIONAL TRAINING INSTITUTES ARE INCLUDED IN THE PROGRAM. SO WITH RO-RO
SHIPS AND PORTS.

THIS IS OPEN TO INVESTORS WITH PROJECT FEASIBILITY STUDIES, OF COURSE, AND
WITH THE CAPACITY TO PUT UP 50 PERCENT EQUITY AND WITH THE PROJECT
EQUIPMENT AS COLLATERAL COVER. THE RATES ARE NEGOTIABLE AND CAN BE AS LOW
AS 11 PERCENT IN PESO TERMS, FIXED FOR THE DURATION OF THE LOAN.

SO I ASKED FINEX TO PROMOTE INVESTMENTS IN THESE AREAS. THERE'S THIS WHOLE
LIST OF PROJECTS WHICH YOU CAN'T READ. BUT THIS IS TO WHET YOUR APPETITE
TO GET THE PROSPECTUS FROM THE DBP. AND IF YOU HAVE INVESTORS IN ANY OF
THESE AREAS THAT ARE ENUMERATED THEN PLEASE GET A CREDIT FACILITY FROM THE
DBP WITHIN THE NEXT SIX MONTHS.

FOURTH ITEM IN MY WORK PROGRAM -- INFRASTRUCTURE TO DECONGEST METRO
MANILA. WE WILL FOCUS ON BEGINNING CONSTRUCTION OF THE COMMUTER LINKS
BETWEEN METRO MANILA NORTH TO CLARK SUCH AS NORTHRAIL, AND SOUTH TO
BATANGAS PORT SUCH AS COMPLETING THE TOLLROAD ALL THE WAY TO BATANGAS PORT.
THIS WILL MAKE HOUSING PROJECTS OUTSIDE OF METRO MANILA, WHERE LAND IS
CHEAPER AND THE LIFESTYLE MORE CONDUCIVE TO FAMILY VIABLE. ONCE THE
DEVELOPER SEE THE CONSTRUCTION OF THE TRANSPORT LINKS BREAKING GROUND,
HOPEFULLY THEY, WITH YOUR SUPPORT WILL BEGIN WORK ON THE ANCILLARY HOUSING
PROJECTS.

INCIDENTALLY AGAIN, TO LEAD BY EXAMPLE AND TO JUMPSTART -- THOUGH WE WANT
THIS TO BE PRIMARILY A PRIVATE SECTOR ENDEAVOR -- I HAVE ASKED SONNY
VISTAN TO BE A SPECIAL ASSISTANT FOR PRIVATE SECTOR HOUSING BY PUTTING
TOGETHER A PACKAGE WHEREBY HE WILL MAKE AVAILABLE THE INVENTORY OF LANDS
OWNED BY THE GOVERNMENT INSTITUTIONS WHICH WILL SERVE AS THE GOVERNMENT
EQUITY FOR HOUSING FOR GOVERNMENT EMPLOYEES. BUT THESE LANDS WILL BE MADE
AVAILABLE FOR THE PRIVATE DEVELOPERS TO PUT UP. WITH GOVERNMENT LAND
BEING THE EQUITY THAT SHOULD MAKE HOUSING TRULY AFFORDABLE.

WITHIN METRO MANILA, WE WILL MONITOR THE SMOOTH START OF THE MRT FINAL
LINKAGE WITH LRT. ALSO WITHIN METRO MANILA, I HAVE INSTRUCTED MMDA's BF
FERNANDO TO SIT DOWN WITH DPWH's DATUMANONG (SIM DATUMANONG) AND PAGCOR's
EFREN GENUINO. SINCE PAGCOR FINANCED THE LIGHTING OF C-5, WHICH HAS DRAWN
PRAISES FROM THE PUBLIC, I HAVE ASKED THE THREE OF THEM TO REVIEW MMDA's
INFRASTRUCTURE PROGRAM FOR METRO MANILA. OH! NO, NOT MMDA's PROGRAM,
DPWH's PROGRAM FOR METRO MANILA. THE MISSION IS TO ENSURE THAT THE PROGRAM
MAKES SENSE, AND WILL PRODUCE VISIBLE RESULTS QUICKLY.

FIFTH ITEM IN THE WORK PROGRAM, TO HELP LITO CAMACHO, WILL BE PCGG
CONTRIBUTION TO FISCAL RESOURCES. I HAVE INSTRUCTED MY LEGAL COUNSEL
NONONG CRUZ TO WORK WITH PCGG CHAIR HAYDEE YORAC TO EXPEDITE THE RELEASE OF
THE 600 MILLION-DOLLAR MARCOS DEPOSIT WITH THE PNB. I AM ALSO ASKING
HAYDEE TO ALREADY WORK TO LIQUIFY THE COCO LEVY'S REMAINING 27 PERCENT OF
SMC, WHICH IF SOLD THRU BIDDING, WILL GENERATE SUBSTANTIAL DOLLARS AND
FUNDING FOR OUR SYSTEM.

SIX ITEM IN MY WORK PROGRAM -- MAKE MAKATI A SPECIFIC URBAN TOURIST
DESTINATION. THE D.O.T.-McKINSEY STUDY SAYS THAT ALONG WITH CEBU-BOHOL,
THE MOST POPULAR TOURIST DESTINATION IN THE PHILIPPINES IS STILL METRO
MANILA. WE CAN COMBINE THIS FINDING WITH THE FACT THAT THE BIGGEST
SPENDING JAPANESE TOURIST IS THE SINGLE WORKING FEMALE. WHEN I WENT TO
MALAMPAYA TO INSPECT THE FACILITIES THERE, AND MAR ROXAS WAITED FOR ME IN
EL NIDO, WHILE HE WAS WAITING FOR ME TO PICK HIM UP IN THE HELICOPTER, HE
CAME ACROSS A GROUP OF YOUNG JAPANESE WORKING FEMALES. AND NATURALLY, THEY
BONDED IMMEDIATELY AND CHATTED -- THAT'S MAR ROXAS FOR YOU. (LAUGHTER)
BUT WHAT HE FOUND OUT IS THAT THEY WERE SPENDING 1,800 DOLLARS EACH FOR
FOUR DAYS. THAT IS THE KIND OF TOURIST WE WANT.

THIS KIND OF TOURIST, THE JAPANESE WORKING FEMALE, PREFERS URBANIZED
DESTINATIONS LIKE HONGKONG AND HONOLULU, WHERE THEY TRAVEL IN SMALL GROUPS
OF FRIENDS FOR SHOPPING AND R & R. GIVEN THESE TWO FINDINGS, METRO MANILA'S
CONTINUING RELATIVE ATTRACTIVENESS AND THE SPENDING HABITS OF THE BIGGEST
TOURISM SPENDER MARKET SEGMENT, MAKATI, WITH ITS COMPACT, EASY TO SECURE
LOCATION, WORLD-CLASS MALLS, ENTERTAINMENT FACILITIES, AND CHEAP SHOPPING
CAN BE PROMOTED AS AN ATTRACTIVE DESTINATION, PERHAPS WITH A SIDE TRIP TO
BORACAY OR SIMILAR RESORT AS PART OF A PACKAGE. I CAN READ BENHUR ABALOS'
MIND. MANDALUYONG CAN ALSO QUALIFY FOR THAT. (LAUGHTER) WELL, BENHUR YOU
ARE WELCOME TO PUT TOGETHER A SIMILAR PACKAGE.

A HAWAII-BASED EXPERT WHO WORKS WITH AN INTERNATIONAL CONSULTANCY FIRM
SPECIALIZING IN TOURISM RECENTLY OBSERVED THAT WITH PROPER PACKAGING,
MAKATI OFFERS MORE THAN HONOLULU DOES. SO I HAVE INSTRUCTED THE D.O.T. TO
SPECIFICALLY PROMOTE THIS CONCEPT TO THE JAPAN'S TOURIST AGENCIES AND
BUREAUS BY HOSTING GROUPS OF OFFICIALS OF SUCH AGENCIES AND BUREAUS TO COME
TO THE PHILIPPINES TO SEE FOR THEMSELVES. ONCE THESE ARE ON BOARD, THE
JAPANESE MENTALITY OF GOING BY GROUPS AND THE WORD OF MOUTH WILL TAKE CARE
OF THE REST.

SEVENTH ITEM IN MY WORK PROGRAM FOR THE NEXT SIX MONTHS IS TO STIMULATE
PRIVATE INVESTMENT IN AGRICULTURE. THIS MAY REQUIRE LEGISLATION BUT IT IS
WORTH PURSUING. THE BIGGEST OBSTACLE TO THE FREE FLOW OF PRIVATE SECTOR
INVESTMENTS INTO AGRICULTURE IS THE RIGIDITY OF SECOND-ROUND LAND TRANSFERS
UNDER CARP, THAT IS AGRI-BUSINESS' ENTREPRENEURS ARE NOT PERMITTED TO
CONSOLIDATELAND THAT HAS BEEN CARPed IN ORDER TO CREATE ECONOMIC-SIZED
ESTATES. THIS ALSO DISCOURAGES YOU, THE BANKS FROM ACCEPTING SUCH LAND AS
COLLATERAL. SO I HAVE TASKED LITO SARMIENTO AND CITO LORENZO TO WORK WITH
D.A. AND DAR ON THIS PROBLEM. SERGIO OSMENA, I BELIEVE LAST YEAR, FILED A
BILL TO ADDRESS THIS ISSUE. AND I HAVE COUNTED IT AS ONE OF MY FIVE TOP
PRIORITY LEGISLATION WHEN I MADE MY STATE OF THE NATION ADDRESS THIS YEAR.

EVEN AS I BELIEVE THAT THIS WORK PROGRAM WHICH HAD SEVEN POINTS FOR THE
NEXT SIX MONTHS WILL CREATE ECONOMIC IMPACT, I AM ALSO KEEPING WATCH OVER
POTENTIAL LAND MINES IN THE NEAR TERM. AND THAT GIVES ME AN EIGHT ITEM IN
THE WORK PROGRAM.

THE UPWARD TREND IN OIL PRICES IS A KEY POINT OF FOCUS. WHILE IMPORTED
CRUDE OIL NOW ACCOUNTS FOR A MERE 11.75 PERCENT OF THE POWER GENERATION MIX
-- UNLIKE IN THE LAST GULF WAR WHEN IT WAS THE MAJORITY OF OUR REQUIREMENTS
-- THE TRANSPORTATION SECTOR IS HEAVILY DEPENDENT ON OIL IMPORTS.

THE SOCIAL IMPACT OF TRANSPORT COST CANNOT BE OVERSTATED. I AM DETERMINED
TO UNDERTAKE ALL REASONABLE MEANS TO KEEP TRANSPORT COSTS DOWN.

I HAVE INSTRUCTED TRANSPORTATION SECRETARY LARRY MENDOZA -- AND LITO
CAMACHO KNOWS ABOUT SOME OF THESE BECAUSE HE WOULD BE INVOLVED -- TO
EXPLORE WAYS AND MEANS TO STEM THE UPWARD PRESSURE ON FARES. LARRY IS IN
CONSTANT DIALOGUE WITH VARIOUS GROUPS IN THE TRANSPORT SECTOR TO EXPLORE
OTHER FORMS OF REASONABLE RELIEF FROM RISING COSTS OTHER THAN JUST MERELY
RAISING TRANSPORT FARES. THE GOOD NEWS IS THAT MRT 3, LRT 1 AND THE
PHILIPPINE NATIONAL RAILWAYS ARE NOT GOING TO HIKE TICKET CHARGES.

LET ME TAKE THIS OPPORTUNITY TO ASSURE EVERYONE THAT THE SUPPLY OF OIL AND
OIL PRODUCTS IN THE COUNTRY IS MORE THAN SUFFICIENT AND ADEQUATE. WE HAVE
A HIGHLY DIVERSIFIED SOURCE OF OIL PRODUCTS. THUS, ANY POSSIBILITY OF A
SUPPLY SHORTAGE IS NEGLIGIBLE.

UPON MY INSTRUCTION, ENERGY SECRETARY VINCE PEREZ HAS BEEN MONITORING EVEN
MORE CLOSELY THE INVENTORY LEVELS OF OIL AND OIL PRODUCTS IN THE COUNTRY.
OUR COUNTRY'S OIL INVENTORY LEVELS REMAIN WITHIN THE NORMAL RANGE OF
BETWEEN 50 TO 65 DAYS SUPPLY, WHICH IN ITSELF IS SUFFICIENT TO SEE THE
COUNTRY THROUGH ANY OF THE FORESEEABLE SCENARIOS IN THE CASE OF A WAR
AGAINST IRAQ.

THERE HAS NOT BEEN IN THE LAST TWENTY YEARS, AN INCIDENCE OF SERIOUS SUPPLY
INTERRUPTION TO WORLD'S OIL SUPPLY EVEN DURING THE DESERT STORM OF 1991.

WE CAN ALSO TAKE COMFORT IN THE FACT THAT TODAY THE PHILIPPINES CURRENTLY
SOURCES ITS OIL PRODUCTS FROM 15 DIFFERENT COUNTRIES, OF WHICH ONLY THREE
ARE IN THE MIDDLE EAST. THIS WILL GIVE US ALTERNATIVE SOURCES. FOLLOWING
A SERIES OF MEETINGS WITH VINCE, THE LOCAL DOWNSTREAM OIL PLAYERS
CONTINUOUSLY AND UNANIMOUSLY REASSURED US THAT THEY HAVE ARRANGEMENTS IN
PLACE TO ENSURE A STEADY AND SUFFICIENT SUPPLY.

THE GOVERNMENT HAS AND WILL CONTINUE TO PURSUE ARRANGEMENTS WITH OIL
SUPPLIES INCLUDING RUSSIA FOR ALTERNATIVE DELIVERIES OF PRODUCTS THAT WILL
PROVIDE US AN UNINTERRUPTED SUPPLY IN THE LIKELY EVENT THAT THE
CONTINGENCIES WILL BE NEEDED.

THE GOVERNMENT WILL ALSO EXHAUST ALL POSSIBLE AVENUES TO PROVIDE EVEN MORE
SUPPLY SECURITY TO THE FILIPINO PEOPLE WITHIN THE LIMITS OF PRACTICALITY
AND ECONOMIC GOOD SENSE. I HAVE INSTRUCTED VINCE TO CONTINUE TO EXAMINE
STOCKPILING MEASURES AND DEMAND-SIDE MANAGEMENT CONTINGENCY PLANS. THESE
WILL BE IMPLEMENTED IF THEY EVER BECOME NECESSARY AND FOR AS LONG AS THEY
WILL NOT NEEDLESSLY INCREASE THE PRICE OF OUR OIL PRODUCTS.

FINANCIAL EXECUTIVES, THESE ARE SOME OF THE THINGS THAT WILL OCCUPY... OH,
THESE ARE MOST OF THE THINGS THAT WILL OCCUPY MY MIND FOR THE NEXT SIX
MONTHS. BE WITH ME IN CARRYING OUT THESE INITIATIVES.

LET US JOIN HANDS IN MEETING FORMIDABLE CHALLENGES. OUR COUNTRY DESERVES
OUR BEST WORKING TOGETHER. OUR COUNTRY DESERVES OUR LOOKING BEYOND
OURSELVES IN ORDER TO MAKE SURE THAT OUR ECONOMY MAKES IT THROUGH THIS
TRYING TIMES. AND THAT WE ALL BUILD A STRONG REPUBLIC TO WIN THE BATTLE
AGAINST POVERTY WITHIN THE DECADE.

THANK YOU.

[HOME]