Friday, February 17, 2006

Philippines' Economic Managers And Central Bank Governor Visit Tokyo

High-Level Officials to Highlight Progress in Economic Reforms and Promote Investment Opportunities

Tokyo (Lowell Vallecer / 17 Feb) Senior members of the Philippine government's economic team and the Central Bank governor will visit Tokyo this week to promote the country's improving economic climate and investment appeal following a year of economic reform.

The government's economic performance has increased investor confidence in the Philippines as demonstrated by the stronger stock market, the peso at its highest level in three years, the decision by Fitch and Standard & Poor's to revise their outlook on the country's sovereign rating to stable from negative and the positive assessment from Wilshire Associates, the consulting body for the California Public Employees Retirement System (CALPERS).

Finance Secretary Margarito B. Teves and Trade and Industry Secretary Peter B. Favila will meet with government officials, investors and the financial community to communicate the country's progress and prospects in reducing the fiscal deficit, stimulating economic growth and promoting investment opportunities in the priority sectors.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. will brief investors on the outlook for the Philippines' monetary policy, external position and banking sector.
"We implemented a number of fiscal and economic reforms in 2005," Secretary Teves said. "Our efforts to improve tax compliance delivered a double-digit increase in revenues, enabling us to achieve our lowest fiscal deficit in four years."

According to Secretary Teves, additional revenues generated by the VAT Reform Law will be used to improve critical infrastructure.
"Better infrastructure will help improve productivity, reduce the costs of doing business and improve the international competitiveness of goods and services made in the Philippines," he said.

Secretary Favila said he would focus on economic growth performance and highlighting the opportunities for investors in key sectors of the Philippine economy, particularly information and communications technology (ICT) services and the mining industry.

"The Philippines has the fifth richest mineral resources in the world, estimated to be worth US$840 billion. The lifting of foreign ownership restrictions in the mining sector has triggered strong investor interest with over US$350 million invested in 24 priority mining projects since late 2004.

This visit is an important part of our efforts to highlight very specific opportunities in this industry." Secretary Favila added that much focus is also being given to lowering the cost of doing business, simplifying investment procedures and strengthening services to investors to increase their confidence in the Philippines.

According to Secretary Favila, economic growth in the Philippines remained resilient during 2005, with an annual growth rate of 5.1 per cent, despite the challenges of high global oil prices and bad weather.

"The outlook for growth in 2006 is also promising with steady growth expected in agriculture, industry, with continued investment in the mining sector, and ongoing expansion of the ICT sector to fuel growth in the services sector."

Reporting on the outlook of the country's monetary policy, external position and banking sector, Governor Amando Tetangco Jr, said, "The Philippines ended 2005 with a Balance of Payments surplus of US$ 2.4 billion, on the back of robust OFW remittances and strong investment inflows. For 2006, the BSP is committed to ongoing banking sector reforms and achieving its inflation targets."

The Government will continue to implement a range of other reforms in 2006, Secretary Teves added. "The Government will work to improve the reliability and lower the price of electricity, public sector performance and tax administration and collection efficiency," he said.

For more information, please contact:
Mr. Renato G. Pizarro
Executive Director
Investor Relations Office, RP
Tel: (632)-523-77-92 E-mail: rpizarro@bsp.gov.ph

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