Estrada's rating dips to 1%

President Estrada's net approval rating has dipped further to one percent, or down by four percentage points from a five percent rating in December last year, according to the latest survey by the Social Weather Stations Inc. (SWS).

However, a government official who requested anonymity expressed belief that Mr. Estrada will be able to bounce back in the next survey.

"As far as we see it, that's already bottoming out of the President's popularity rating and it will recover in the next period of survey," the official said.

The survey, which was commissioned by Malacañang, was conducted at the height of controversies surrounding Dante Tan and the Philippine Stock Exchange, the pardon of convicted priest-killer Norberto Manero and the oil price increase.

In the December poll, the glaring issues were the Charter change campaign, the delayed implementation of a Cabinet revamp and yet another oil price increase.

The government official said Mr. Estrada will be able to regain his popularity through reforms in the economy.

However, most of these reforms are not being reported by media, the official lamented.

This made the President complain that there appears to be some gaps in the go-vernment's information efforts.

"Why does the government, with all its information agencies, appear helpless to counter these lies and black propaganda?" the official quoted the President as asking.

Press Secretary Rodolfo Reyes said he empathizes with the President, but he also explained to the Chief Executive that the government information machinery cannot force private media organizations to use press releases from the Palace.

Reyes explained that the Office of the Press Secretary comes out with an average of 20 press releases a day.

"But not all of these get to be printed, and we simply have to explain to the President this fact," he said.

Meanwhile, President Estrada clarified certain mis-impressions created by an editorial in The Asian Wall Street Journal.

The newspaper wrote that "the Philippines is yet again a contender for title of sick man of East Asia" because of an insider trading scandal involving presidential friend Dante Tan.

The scandal dragged down share prices in the stock market, and it appears that Mr. Estrada is going the way of cronyism, the paper said.

"We don't detect that he is lining his own pockets a la the Suharto family, but he does seem to be willing to use the power of his office to lend a helping hand to his friends -- even when they are in trouble with the law," the newspaper's editorial said.

Mr. Estrada, in a letter to Journal editor Reginald Chua, said the decline in the stock market since Dec. 31 is 23.5 percent, which is "marginally worse that the 20 percent drop in Thailand."

"Neighboring countries which are supposed to be growing faster economically than the Philippines have been doing as badly in their stock market," Mr. Estrada said.

He cited Singapore's market, which went down by 16.4 percent despite a 7.1 percent growth on their fourth quarter's gross domestic product (GDP); Indonesia's 15.8 percent dip despite a GDP of 5.8 percent during the same period; and South Korea's 10.9 percent despite a GDP of 12.3 percent during the third quarter.

He said the Philippine GDP grew by 4.6 percent in the fourth quarter.

"So a drop of 23.5 percent in stock market value is not that alarming though we must admit it is a cause for concern," the President said.

The anxiety, he said, was the reason why he ordered Congress to approve the proposed Securities Act before April 14.

Mr. Estrada explained that the draft law aims to demutualize the PSE so that it will no longer be wholly owned or controlled by stockbrokers but owned up to 70 percent by the public.

"Brokers will own 30 percent of the PSE. This should minimize, if not eliminate, the old-boy network ... that has contributed to insider trading, conflict of interest, manipulation and cover-up," the President said.

He also said that the law also seeks to impose stiffer penalties such as fines and imprisonment on such criminal practices.

The President then turned his ire on SEC Chairman Perfecto Yasay Jr.

"If there is one person who completely lost his credibility, it is the chief regulator himself ... he has overstayed at the SEC, having served beyond the normal seven-year limit for a SEC commissioner or chief," he said.

"The SEC was Yasay's first government job and his lack of experience has contributed to the mess that the SEC and the PSE are now in," he added.

Mr. Estrada said "the stock market is only one small measure of investors' confidence in a country."

"The Philippines' record as an investment destination (we have never expropriated any foreign investment) and its long-term outlook are the better measures of investors' confidence," he said.

He cited the $700-million investment of the Development Bank of Singapore in the Bank of the Philippine Islands, Deutsche Telecom's $350-million investment with the Globe Telecommunications and Isla Communications, and Shell group's $4-billion investment on a natural gas project.

"These are the type of investors (that) the Philippines attracts under the liberal, open market and investor-friendly climate created under the Estrada administration, not short-term stock market investors who run at the first sign of rain," the President said. --