GMA pitches RP to US investors

NEW YORK (via PLDT) – The Philippines’ capability to withstand the global economic slowdown as well as its efforts to stamp out corruption and increase political stability make it an attractive place for long-term investments, President Arroyo told US business leaders here Friday.

Mrs. Arroyo also assured the investor community the government is on track in wiping out the deficit by 2010 and cited improved revenue collections in her speech following the Philippine Economic Overview and Infrastructure Projects for Financing and Privatization conducted by economic managers at the Waldorf Astoria Hotel.

“At a time when the world economy is in upheaval due to high prices for food and fuel and a global slowdown, investors such as yourselves need to be assured and reassured about the viability of your investments. And rightfully so. The surge in prices on food and fuel has certainly had an impact in our nation,” she said.

“We are here to tell you in plain and simple terms: The Philippines is the best value in Asia. We are committed to fiscal prudence, long-term economic growth and political stability,” she said.

She said the Philippines remains poised for growth this year even if the “global clouds are clearly on the horizon and will have an impact on most nations.”

Despite the global economic slowdown, the country has maintained a healthy pace of growth with Gross Domestic Product coming in at 5.2 percent in the first quarter, she said, adding that an increase in construction in the second quarter is expected to sustain the growth momentum.

The President said if the Gross National Product would be factored in, the country grew around seven percent despite the global economic downturn due to the remittances from overseas Filipino workers.

However, while a slowdown in the US economy could dampen the growth of emerging markets, Mrs. Arroyo said she remains confident that the Philippines will withstand most of the adverse effects of such a development largely because of its improving economic fundamentals and the increasing diversity of the economy.

By boosting investment in infrastructure, the government has been effectively creating a springboard for further growth to ensure the country is able to sustain its economic momentum through public investments.

She said the investments include, among other things, P200 billion from the national government, government corporations and local government for 10,000 kilometers of roads and 10,000 school buildings.

“A nation growing at more than seven percent during normal times and managing to grow more than five percent during bad times and recording major investments by international firms such as Hanjin, Exxon Mobil, Texas Instruments, Marubeni and other multinational companies must be doing something right,” she said.

She however conceded there are many things the country should do to fulfill its reform agenda.

“We will work to fix the corruption that has, unfortunately, long plagued our nation. We have been working to take control of the situation. Our efforts will include passing a comprehensive anti-corruption reform act in 2008,” Mrs. Arroyo said.

From here, the President is scheduled to fly to Washington D.C. Saturday to meet with Republican presidential candidate John McCain.

While in New York City, she met with Vikas Kapoor of IQor, and witnessed the signing of an agreement between Clark Freeport Zone and Berthaphil, and the memorandum of agreement between the New York Stock Exchange and the Philippine Stock Exchange.

She also held separate meetings with officials of Libby’s Fruits, Rotec, Target Sourcing, APAC and Citi Group.

Trade and Industry Secretary Peter Favila said Berthaphil, a business process outsourcing (BPO) company located at the Clark Freeport, agreed to support efforts to create the secondary development of the information technology after the primary infrastructures are in place.

IQor, also a BPO firm, would be expanding its 1,400 seats with another 800 seats while Libby’s Fruits would be in the market for pineapples from Camarines Sur.

Libby’s Fruits specializes in canned tropical fruits such as pineapple juice, canned guavas, red and yellow papaya, sliced mangoes and mandarin orange, among others.

Target Sourcing, a provider of high-quality, trend-right merchandise at an outstanding value for more than a thousand outlets, would want to get Philippine products for their outlets.

Rotec, on the other hand, is an Australian-based company but has a design center at Silicon Valley. It is a world leader in the design and development of highly efficient diesel engine technology.

Favila said the Philippines is also inviting Rotec to put up their facilities in the country.