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Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
Rop presentation yeb  final   3 march 2012-1
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Rop presentation yeb final 3 march 2012-1

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  1. Good Governance for a Better Tomorrow Philippine Economic Briefing Policy Agenda, Fiscal and Macroeconomic Updates Philippine International Convention Center Pasay City, Philippines 6 March 2012
  2. Agenda I. Executive Summary 3 II. Government’s Focus on Governance and Near Term Goals 4 III. Economic and Fiscal Updates Healthy, Sustained and Inclusive Economic Growth 5 Rapidly Improving Public Finances 7 Prudent Debt Management 10 Strong External Payments Position 14 Credible Monetary Policy with Strong Track Record 18 Resilient Banking System 19 Governance Reforms Have Yielded Positive Results 20 IV. Economic and Fiscal Outlook 23 V. Key Investment Areas 33 VI. Profiles of Government Officials and Speakers from the Private Sector 47 VII. Investor Relations Office Brochure 66 22
  3. The Philippines: Pushing Forward on All FrontsStrong macroeconomic fundamentals and governance reforms enabled the economy to sustainits positive momentum in 2011 •Resilient and stable economic growth driven by strong domestic consumer base and growing investment •Prudent fiscal management focused on fiscal consolidation and medium-term debt sustainability •Strong external payments position supported by large foreign exchange reserves, robust overseas foreign remittances and a net external creditor balance •Credible and effective monetary policy that has ensured price stability through its proactive stance and independent approach to policy implementation •Stable banking system, which is resilient to external shocks due to low NPLs, strong prudential ratios and stable domestic funding sources •Reform-minded Administration with a growing track record of good governance, prudent fiscal and budgetary management and sustained popular support from the Filipino people Growing third-party recognition with several credit rating upgrades over the past two years and ongoing market appetite 33
  4. An Administration Focused on Good Governance and Near-Term GoalsThe Aquino administration has made significant achievements and has set clear goals for the future “From the beginning of my campaign, I have maintained that the job of the President is composed of three things…first is the efficient allocation of resources – that as a country with a sizable debt and limited resources, we must be able to utilize these resources to the maximum benefit of our people. Second is to make certain that, as we walk the path to progress, no one is left behind… it is the government’s job to promote inclusive growth and the third is the bedrock on which the first two are built on — the idea that by curbing corruption we can reduce poverty.” - - President Benigno S. Aquino III, Feb. 21, 2012 The President’s Social Contract Priority Areas • Rapid, inclusive, and sustained economic growth • A re-awakened sense of right and  Stable macroeconomic environment, low inflation and sustainable wrong, through the living examples of our fiscal position; GDP growth of 7% to 8% for at least 6 yrs highest leaders;  Public private partnership; integrated and multimodal national transport • An organized and widely-shared rapid and logistics system expansion of our economy through a  Adequate and responsive formal education structure and program  National Health Insurance Coverage Program government dedicated to honing and mobilizing our people’s skills and energies  Communication, education and advocacy program for population as well as the responsible harnessing of our development natural resources; • Anti-corruption/transparent, accountable and participatory governance  Government Integrated Financial Management Information System • A collective belief that doing the right thing and procurement reforms; does not only make sense morally, but also translates into economic value as well; and  Enhance role of Local Government Units in the anti-corruption drive • Poverty reduction and empowerment of the poor and vulnerable • Public institutions rebuilt on the strong  Focus on comparative advantage in more labor-intensive activities; solidarity of our society and its communities  Credit access for poor;  Regional savings generation  Conditional cash transfers • Just and lasting peace and the Rule of Law; and • Integrity of the environment and climate change mitigation and adaptation  Measure to mitigate potential negative impact of environmental factors 44
  5. Economy: Healthy and StableA healthy economy supported b y sustained improvements across credit metrics 2005 vs. 2010 2011 2005 2010 Difference Real GDP Grow th1 (%) 4.8 7.6 +58% 3.7 GDP Per Capita2 (USD) 1,159.1 2,131.0 +84% 2,346.8 Investm ent (% of GDP) 14.6 20.8 +42% 21.8 General Government Debt (% of GDP) 59.2 42.2 -29% 40.13 External Debt (% of GDP) 52.7 30.1 -43% 28.44 OF Rem ittances (USD bn) 10.7 18.8 +76% 20.1 Current Account (% of GDP) 1.9 4.5 +137% 3.14 Gross International Reserves (USD bn) 18.5 62.4 +237% 77.45 Source: Bangko Sentral ng Pilipinas (“BSP”), National Economic and Development Authority (“NEDA”), Department of Finance (“DOF”) 1/ At constant 2000 prices 3/ Preliminary Q1 2011 data 2/ At current prices 4/ For Jan – Sep 2011 5/ As of Jan 2012 55
  6. Economy: Healthy and Stable A stab le economy highlighted b y continued positive growth 52 consecutive quarters of positive GDP grow th since 1999 Relative stability m easured by GDP volatility (2000 – 2010) 8 2.6 Real GDP growth ranked by mean 7.6 16.0% 7 6.7 2.4 6.6 12.0% 6 2.2 5.2 5 5 4.8 2 8.0% 4.4 4.2 4 3.7 1.8 3.6 4.0% 3.1 2.9 3 1.6 0.0% 2 1.4 1.1 (4.0%) 1 1.2 (8.0%) 0 1 China Malaysia Turkey Brazil Indonesia Thailand Philippines 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Real GDP Growth Rate (LHS) Nominal GDP Per Capita (Rebased to 1999=1, RHS) Hi / Low Real GDP Growth Mean Real GDP GrowthSource: National Statistical Coordination Board (“NSCB”),IMF World Economic Outlook (“WEO”) Database for 2000-2010 GDP data for other countries 66
  7. Government Reforms: The Focus on Good Governance Good governance agenda with emphasis on fiscal discipline, transparency and accountability Key Reforms Instituted by the Administration  Prudent fiscal controls coupled w ith intensified revenue collection efforts over the past year have laid the framew ork for efficient budgetary allocation in 2012  Tax reform m easures including the indexation of sin taxes (alcohol and tobacco product taxes) and the rationalization of fiscal incentives aim to further improve the fiscal position  Tighter prioritization of expenditures through the Zero Based Budgeting approach, improved composition of expenditures and quality of government services  Rigorous im plementation of RATE, RATS, RIPS programs to go after evaders, smugglers, corrupt officials, respectively, have improved tax collection  Contracts and public tenders are now posted on public w ebsites to instill transparency in the procurement process  Set-up BIR key performance indicators and publish actual results; establish appropriate performance standards and evaluations  Enacted the GOCC Governance Act of 2011 w hich lays the groundw ork for enhanced discipline in GOCCs  Set up the Debt Managem ent Office at the Department of Finance w hich is tasked to formulate and oversee the implementation of the Republic’s debt management strategy Transparency and Fiscal Discipline AccountabilitySource: BSP 77
  8. Fiscal Reform Under the Aquino Administration Getting on a sustainab le fiscal path with improving fiscal metrics Strict im plementation of adm inistrative reform measures Actual at the BIR and BOC to im prove revenue generation Run After the Tax Evaders Program (“RATE”) 2008 2009 2010 2011  RATE is a program initiated by the Department of Finance (“DOF”) and Bureau of Internal Revenue (“BIR”) to investigate and prosecute individuals or entities engaged in tax evasion Rev enues (% of GDP) 15.6 14.0 13.4 14.0  RATE is enhancing voluntary compliance and promoting the confidence of the public in the tax system  87 tax evasion cases filed as of Jan 31, 2012 with total tax liabilities of P36.1 billion Rev enue Grow th (%) 5.8 (6.6) 7.5 12.6 Run After the Sm ugglers Program (“RATS”)  RATS is a vigorous campaign against smugglers that was launched in 2005 Expenditures (% of GDP) 16.5 17.7 16.9 16.0  Revitalized RATS program zeroes in not only on smugglers but even on Bureau of Customs (“BOC”) officers and personnel who may be involved in illegal operations Fiscal Balance (% of GDP) (0.9) (3.7) (3.5) (2.0)  66 smuggling cases filed as February 15, 2012 with total dutiable value of P59.7 billion Revenue Integrity Protection Service (“RIPS”) General Gov ernment Debt 44.2 44.3 42.2 40.1 1  RIPS was created to address persistent reports of corruption in (% of GDP) revenue generating agencies of the government that lead to collection shortfalls  29 cases filed with the Office of the Ombudsman involving 31Source: NSCB, Bureau of the Treasury (“BTr”)1/Preliminary Q1 2011 data government personnel 88
  9. National Government’s Fiscal Consolidation Efforts on Track Fiscal performance further solidifies under the Aquino Administration National Governm ent’s P197.8 billion deficit in 2011 w as 37.1% low er than last year Revenues Expenditures Surplus/(Deficit) 2,000 (3.7%) of GDP 1,522 1,558 1,600 1,360 1,422 1,123 1,208 1,200 (3.5%) of GDP PHP Billions 800 (2.0%) of GDP 400 0 (400) (299) (198) 2009 2010 2011 (315)Source: BTr 99
  10. Prudent Debt Management Domestic / foreign b orrowing mix effectively managed Prudent strategies to finance the annual funding requirement m inimize foreign exchange risk and increase funding self-sufficiency National Government Gross Financing 5.9% 10.9% 100% 14.2% 34.2% 26.6% 80% 35.5% 28.5% 45.3% 43.4% 43.8% 22.4% 60% 40% 85.8% 73.4% 65.8% 64.5% 65.6% 66.7% 54.7% 56.6% 56.2% 20% 0% 2003 2004 2005 2006 2007 2008 2009 2010 Jan-Nov 2011 Global-Peso Notes Foreign Domestic External com ponent of National Governm ent debt has been gradually declining over the years 2003 2006 2010 44.1% 42.4% 49.2% 50.8% 55.9% 57.6% Foreign DomesticSource: DOF, BTr 10 10
  11. Improving Debt Sustainability Proactively managing the liability profile The National Government’s foreign and domestic debts have grown longer dated over time Domestic Debt 2003 2005 2010 Jan – Nov 2011 10%  Reduced rollover risk 29% 19% 27% 29% 29% and increased debt carrying capacity over 20% the past ten years 27% 70%  Debt portfolio has 54% become significantly 44% 42% longer in tenor Foreign Debt  New issue yields 2003 2005 2010 Jan – Nov 2011 decreasing and 10% 4% foreign currency- denominated bonds are receiving a substantial bid from onshore investors 90% 96% 100% 100% Short term – 1 y ear or less Medium term – bey ond 1 y ear but less than 10 y ears Long-term – bey ond 10 y earsSource: DOF, BTr 11 11
  12. Demonstrated Ability to Service Debt Comb ination of improving debt metrics and external b alance sheet strength External debt is supported by growing current account receipts Am ple reserves to cover debt service burden Improving external debt ratios underpin the country’s strengthening external payments position 140% 14 11 5.5% 1 13 .6 % 1 09.6 % 102 .8% 120% 12 98.3% 9 3.4% 9 0.7% 8 9.9% 100% 10 77 .0 % 76 .1 % 7 0.0% 68.1% 67.7 % 80% 8 60% 6 40% 4 20% 2 0% 0 Jan- Nov 2 010 Jan- Nov 2 011 Ja n- Sep 201 0 Ja n- Sep 201 1 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 External Debt / Current Account Receipts GIR / Debt Service BurdenSource: BSP, BTr 12 12
  13. Demonstrated Ability to Service Debt (cont’d) Comb ination of improving debt metrics and external b alance sheet strength External debt ratios have declined significantly over the last 6 years Revenue allocated to debt service has declined drastically 90  40%   80 35%      70  30%   60    25%   50  20% 40      15% 30 20 10% 10 5% 0 0% Jan-Sep 2010 Jan-Sep 2011 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010 2011 External Debt / GDP NG Interest Payments / NG RevenueSource: BSP, BTrDebt servicing costs are for national government data and cover interest payments 13 13
  14. Strong External Payments Position BOP supported b y rob ust growth of remittances and BPO revenues Rem ittances have tripled in a decade 24 7 consecutive years of balance of paym ents surplus 22 20.1 20 18 .8 17.3 18 16.4 USD Billions 20,000 16 14.5 14 12.8 14,308 12 10.7 10 8 .6 15,000 7.6 8 6.9 6.0 10,179 6 8,557 4 USD Millions 10,000 6,421 2 0 2001 2002 2003 2004 2 005 20 06 2007 20 08 200 9 2010 2011 3,769 5,000 OFW Remittances 2,410 89 BPO revenues continue to grow rapidly -202 810 115 0 14 12 10.9 -280 10 8.9 USD Billions -5,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 8 7.1 6.1 6 4.9 Current Account Capital + Financ. Account Other BOP Position 4 3.3 2.4 2 1.5 0 2004 2005 2006 2007 2008 2009 2010 2011E BPO Rev enuesSource: BSP 14 14
  15. Growing Foreign Exchange ReservesThe growing stock of FX reserves shields the economy from external shocks Foreign exchange reserves continue to grow at a record high  The Philippines is now a net external creditor; foreign exchange reserves of US$77.4 billion more than covers the country’s total external debt as of September 2011 of US$62.4billion  As of end-January 2012, the country’s foreign exchange reserves could cover 11.4 months worth of imports of goods and payments of services and income  At this level, reserves are equal to 10.8 times the country’s short-term external debt based on original maturity  Foreign exchange reserves continue to provide a healthy buffer from external shocks 11.1 11.4 80 12 70 9.6 10 8.7 60 USD Billions 8 50 6.0 5.8 40 77.4 6 75.3 4.2 62.4 x 30 4.0 3.8 4.0 3.6 4 20 44.2 37.6 33.8 2 10 23.0 16.4 17.1 16.2 18.5 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan-12 FX Resrves (LHS) Import Cover (RHS) Source: BSP 15 15
  16. Strong External Position is Supportive of the Peso The Philippine Peso is stab le relative to currencies of other emerging market economies The Peso has remained stable in recent years Peso m ore stable than peers’ currencies 3 Months Realized Volatility 55 160 53 140 51 120 49 47 100 45 80 2010 Av g: 43 PHP45.1/USD 60 2011 Av g: PHP43.3/USD 41 40 39 20 37 35 0 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Philippine Peso Turkish Lira Indonesian Rupiah South African Rand Thai BahtSource: BSP, Bloomberg 29 December 2011 16 16
  17. External Position is Supported by Moderate Exposure to EU Headwinds Limited reliance on EU markets shelters the economy from external b oom-bust cycles Financial sector risk from EU exposure is limited Lim ited trade and financial dependence on EU  The banking sector continues to fund itself primarily 2010 2011 2011 Actual Value through domestic deposits eliminating the need for Exports to EU / Total Exports 14.4% 12.3% US$5.89bn external financing Imports f rom EU / Total Imports 7.2% 7.4% US$4.45bn  Domestic banks have limited exposure to EU assets, mitigating the potential impact from NPLs or Net EU FDI / Total FDI 1 -9.1% -39.2% -US$0.31bn financial instrument contagion OF Remittances from Europe / 17.0% 16.6% US$3.3bn Total Remittances 2  Local banking system’s consistently improving asset 1/ Period covers Jan-Nov quality, good liquidity and favorable capital profile serve 2/ 53.0% of all remittances come from the Americas, 16.6% from Europe, 16.0% as a buffer to external and domestic shock from the Middle East ,12.8% from Asia, and 1.6% from other regions The econom y is less susceptible to Lim ited im pact of global economic shock on real economy trade shock than other EMs Trade Openness 2010: Higher number indicates more vulnerability 2009 GDP Growth Shock to trade shock ST DEV 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Malaysia Turkey 7.5 Taiwan Malaysia 5.3 Thailand Thailand 5.3 Philippines Taiwan 4.5 China Philippines 3.1 Indonesia China 1.5 Turkey Indonesia 0.7 0 20 40 60 80 100 Growth Shock: Standard deviation seen in 2009 GDP growth Trade Openness: Sum of US dollar value of current account transactions as % of GDP compared with the preceding five-year average growth rateSource: BSP, IMF WEO Apr 2011 release, Fitch Sovereign Data Comparator Dec 2011 17 17
  18. Credible Monetary Policy Refinements in the inflation targeting framework has allowed the BSP to meet its inflation target for 3 consecutive years The Republic has achieved the right policy balance between containing inflation and supporting economic growth 14 Global inflationary cycle 12 10 8 January 2012 6 4 3.9 2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Headline Lower Bound of Target Upper Bound of Target Liquidity and dom estic interest rates remain supportive Dec 2011: 5,000 P4,674bn 14 4,500 4,000 12 3,500 10 PHP billion 3,000 2,500 8 % 6.1% 2,000 1,500 6 1,000 4 500 4.5% 0 2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 M3 (LHS) Bank Lending Rates (RHS) Reverse Repurchase Rate (RHS)Source: BSP 18 18
  19. Resilient Banking System Improving asset quality and strong prudential ratios underpin soundness of the b anking system Strong capitalization above international norms  Improving asset quality has minimized the risk of a potential Capital Adequacy Ratio (“CAR”) (%) banking-system led crisis 20% 17.4%  The resilience demonstrated by the Philippine banking system 18% is highlighted by the decrease in system-wide Non-Performing 16% Loans (“NPL”) and Non-Performing Assets (“NPA”) levels 14% 16.5% even at the heart of the global financial crisis 12%  NPL coverage ratios have strengthened as insurance against 10% potential future asset deterioration, and underpin the 8% conservative nature of the banking system 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 End- Jun CAR, Solo CAR, Cons olidated 2011 System -wide NPL level has show n sustained im provement While NPLs have shrunk, NPL coverage ratios have even through the global financial crisis strengthened 4,000 20 3,500.6 3,500 120 16 102.6% 3,000 100 2,500 12 80 2,000 8 60 1,500 1,000 3.1% 40 4 500 20 0 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 end- 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 end- Sept Sept 2011 2011 Total Loan Portfolio, Gross NPL Ratio NPL Coverag e Rati oSource: BSPNPA Ratio is equal to the percentage of assets that are no longer paying interest or principal as a percentage of total assets 19 19
  20. Governance Reforms Have Yielded Positive Results ROP is showing improvement on several governance and competitiveness indicators 2009/2010 2010/2011* Change World Bank Governm ent Effectiveness Indicator 51 52 1 percentile Transparency International – Corruption Perceptions Index 139 134 5 places World Econom ic Forum (“WEF”) Com petitiveness Rankings Overall 85 75 10 places Institutions 125 117 8 places Macro environment 68 54 14 places Higher Education and Training 73 71 2 places Goods and Market Efficiency 97 88 9 places Technological Readiness 95 83 12 places Financial Market Development 75 71 4 places Business Sophistication 60 57 3 places Innovation 111 108 3 placesSource: World Bank , Transparency International and WEF*World Bank Governance Indicators and Transparency International values are for the year 2010 / World Economic Forum Rankings values are from the 2011/2012 report data 20 20
  21. Governance Reforms Have Yielded Positive Results Progress has b een recognized by the rating agencies “The national government recorded a “The strength of the Philippines’ external “The upgrade in June reflects progress small fiscal surplus, building upon the balance sheet and fav orable grow th on fiscal consolidation against a track notable turnaround in fiscal traj ectory support the sovereign credit record of macro stability, broadly management seen during 2H 2010. Much ratings on the country. Structural fav orable economic prospects and of the improvement has been attributed to strengths of the current account strengthening external finances” the progress made in fiscal appear sufficiently w ell entrenched” consolidation by the new Aquino administration” Moo dys S&P Fi tch Baa3 BBB- BBB- Last upgraded to BB+ (June 23, 2011) Ba1 BB+ BB+ Last upgraded to Ba2 Last upgraded to BB (June 15, 2011) (November 12, 2010) Ba2 BB BB Ba3 BB- BB- S&P: Positive Outlook (December 16, 2011) B1 B+ B+ B B B B- B- B- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011Source: Moody’s, S&P, Fitch 21 21
  22. Governance Reforms Have Yielded Positive ResultsLow CDS spreads and record high performance of the PSE are proofs of positive investor sentiment on the Philippines Philippines’ CDS levels are tighter than some higher rated peers 1400 Ratings CDS level as of Country (Moody’s/S&P/Fitch) 1 March 2012 1200 Brazil Baa2/BBB/BBB 135.1 Peru Baa3/BBB/BBB 140.3 1000 Philippines Ba2/BB/BB+ 155.5 800 Indonesia Baa3/BB+/BBB- 166.2 Turkey Ba2/BB/BB+ 232.2 600 India Baa3/BBB-/BBB- 283.5 400 200 0 Philippines India Brazil Peru Indonesia Turkey Philippine Stock Exchange index sustains its bullish trend 5500 4500 3500 5,016.3 pts 2 Mar 2012 2500 1500 PSE indexSource: Bloomberg, Data 22 22
  23. Economic OutlookBetter economic performance expected in 2012 with all sectors contrib uting 2012 Growth Outlook 2012 Macroeconomic Assumptions (growth rate, in %, at constant prices) Actual 2012 Assumption* Parameter 2012 2010 2011 Low High GDP 7.6 3.7 5.0 6.0 Inflation Target (1) 3% - 5% GNI 8.2 2.6 4.0 5.0 FX rate (1) P42 – P45Demand Side Crude oil (1) $90 - $110 / barrel HH Cons. 3.35 6.1 4.6 5.6 Merchandise Export Growth (1) 10% Govt. Cons. 4.0 (0.7) 4.0 4.6 Merchandise Import Growth (1) 15% Investment 31.61 11.1 8.9 10.2 External Accounts Total Exports 21.0 -3.8 8.4 9.3 Balance of Payments (2) $2.8 bn Total Imports 22.5 1.9 9.7 10.4 Current Account (2) $4.3 bn Supply Side Gross International Reserves (2) $79.0 bn Agriculture (0.2) 2.6 4.1 5.0 Industry 11.6 1.9 5.6 6.6 Remittances (2) $21.1 bn Services 7.2 5.0 4.9 5.9 Remittance growth (2) 5%*DBCC approved only the GDP growth rate. Assumption details may still change. (1) DBCC approved as of Jan 25,2012; (2) Based on BSP projections as approved by the Monetary Board on 2 December 2011 23 23
  24. Economic Outlook Better economic performance expected in 2012 with all sectors contrib uting Near-term Policy Directions Accelerated government spending to support domestic demand • Stimulating domestic demand • Early release of funds for infrastructure projects  Sustaining domestic consumption  72.1% or P150.2 billion allocation for capital outlays in  Securing investments 2012 has already been released to agencies like • Accelerating fiscal spending and infrastructure outlays DPWH, DA, DepEd • Diversifying domestic and external trade  Sixteen (16) projects under PPP are already in the pipeline • Strengthening economic relations with fast-growing ASEAN  Estimated cost P140.8 billion economies; seizing the opportunity from China rebalancing • More efficient and faster process due to the implementation of bureaucratic reforms in budget management and administration initiated in 2011. • Accelerated budget execution process Global and Domestic Risks to Growth  99.6% of the budget for PS and 90.4% for MOOE have already been released 1/ • External Risks  Balance sheet issues and weak consumption in the US  Fiscal problems and sluggish output in the Eurozone • Internal Risks  Weak industry output  Damages in agriculture and infrastructure due to natural calamities  Timely and effective implementation of Disbursements  Acceleration Program1/ as of January 17, 2012 24 24
  25. Domestic Demand Will Continue to Support Growth Young and growing population to support domestic consumption A promising future lies ahead  The median age in the Philippines is only 22.2 years, w ell below other “young” countries in Asia, such as Malaysia (25), India (25.1), Indonesia (27.8) and Vietnam (28.2)  According to United Nations’ population projections, the Philippines w ill enter its Demographic Window in 2015, w hen the proportion of the population that is of w orking age is particularly prominent  The Philippines is the last major Asian economy to benefit from this demographic dividend, w hich is typically associated w ith accelerated economic grow th  Extended periods of high GDP grow th in Asia’s fastest-growing economies have coincided w ith countries entering their Demographic Window s*  On average, grow th over the 10-year period follow ing the beginning of the Demographic Window has been 7.3% Dem ographic Window s* in Asia Average GDP Grow th, First 10 Years of Dem ographic Window (%) Japan 1965 1995 12 10.3 Hong Kong 1980 2015 10 9.0 Singapore 1980 2015 8.2 8.1 7.8 8 7.4 Korea 1985 2020 7.0 6.2 China 1990 2025 6 5.4 Thailand 1995 2030 4 3.3 Indonesia 2005 2040 Vietnam 2005 2040 2 Malay sia 2010 2045 0 India 2010 2050 Vietnam Singapore China Korea India Thailand** Hong Kong Indonesia Japan Malaysia Philippines 2015 2050 1960 1980 2000 2020 2040 2060 *Defined as the period when population under 15 years old drops below 30% and **Thailand is an exception, as its Demographic Window began in 1995, and thus its high- population over 65 years old is less than 15%. growth period was interrupted by the Asia Financial Crisis of 1997-98Sources: UN World Population to 2030, UN World Population Prospects (2010 Revision), IMF World Economic Outlook, Japan Cabinet Office 25 25
  26. Overcoming the Challenges in Pursuit of Inclusive GrowthEnab ling the industry and services sectors to contrib ute significantly to economic growth and employment Trade and investments Agenda • Goal 1: Improve country’s competitiveness; Land in the top one-third ranking in major international surveys. Sectoral Goals • Goal 2: Generate 4.6M employment from industry and services sectors, of which 2M from MSME sector • Goal 3: Increase level of awareness of consumers on their rights and responsibilities, from 50% to 80% • Create an Enabling Business Environment to Increase Investments 2011 - 2013 • Sustainable Employment through Enterprise Development and Strong Private Sector Partnership DTI Roadmap • Double Exports: Move Up the Value Chain • Advocate for Reasonable Prices and Product Safety • Anti-Trust/Competition Law • Rationalization of Fiscal Incentives • Amendments to Intellectual Property Code • Amendments to Standards Law Legislative Agenda • Lemon Law • Amendments to the Consumer Act of the Philippines • Amendments to the Export Development Act • Data privacy/protection 26 26
  27. Overcoming the Challenges in Pursuit of Inclusive GrowthTowards realizing the country’s goal of glob ally competitive and innovative industry and services sectors Sustainable Employment Through Enterprise Development Double Exports: Move Up the Value Chain and Strong Private Sector Partnership• The Philippine Export Development Plan (PEDP) 2011-2013 • SME Unified Lending Opportunities for National Grow th (SULONG) has approved in July 2011 released P229 billion to SMEs and supported an estimated 3.3 million jobs• One Country One Voice launched, a nationw ide public consultation since its inception in 2004. program that seeks to institutionalize an effective mechanism to • In 2011, the SULONG program released P26.78 billion benefiting 32,807 enhance and sustain stakeholder engagement in formulating trade SMEs and supporting 356,112 jobs. policies. • In the first three quarters of 2011, total number of micro enterprises served• The Doing Business in Free Trade Areas Phase II w as launched in reached 14,186 or 95% of the Rural Microenterprise Promotion Program March 2011 to continue to build know ledge of exporters on FTA (RuMEPP) target of 15,000 until 2013. opportunities. To date 68 sessions have been conducted • Conducted 936 training programs and seminars benefiting 38,850 MSMEs for• Total sales generated through overseas trade promotion reached the period January to September 2011 USD158.52 million • Provided 1,254 MSMEs w ith design services and technical assistance• From January to November 2011, Philippine Trade and Investment • Series of SME caravans attended by 13,157 participants in 16 provinces. Centers w ere able to develop 622 new importers for Philippine products, served 2,425 export opportunities, assisted 9,106 Philippine • Trainings w ere provided for overseas Filipino w orkers to encourage them to exporters and businesses and sent 972 buyers to the country become entrepreneurs and exporters • SME Development Plan 2011-2016 crafted Better business environment to increase investments• 2011 Investments Priorities Plan (IPP) approved in July 2011 w ith the theme “A New Day for Investments: Coherent, Consistent, Creative”• Conducted four outbound missions in Europe, Middle East and Asia  Tw enty companies visited during the Europe/Middle East roadshow have conveyed plans to visit the country  Six companies during the HongKong SAR roadshow expressed interested in PPP projects, manufacturing of bags, garments, textiles, hotel and pow er  One company visited in China is now in the process of registering its project w ith PEZA• BOI assisted a total of 61 inbound mission for the first semester of 2011• Processing time for business name registration nationw ide w as reduced to 15 minutes from an average of 4-8 hours. From Jan – Oct 2011, a total of 287,492 business names w ere registered, 86% w ere new and 14% w ere renew als.• National Single Window (NSW) at the Bureau of Customs (BOC) now facilitates trade transactions and is operational in 30 government agencies.• PEZA implemented the enhanced automated cargo transfer system for all import shipments of PEZA registered enterprises unloaded at the NAI and the DMIA beginning April 2011.• The IPO and PEZA inked an agreement that w ill promote the use of IP among PEZA locators and facilitate IP registration in special ecozones. 27 27
  28. Overcoming the Challenges in Pursuit of Inclusive GrowthEnab ling the industry and services sectors to contrib ute significantly to economic growth and employment Better business environment to increase investments 2012 - 2013 Targets and Goals Programs Actual Targets • Streamline business processes. Pursue intensive promotion and industry development Outcome 2010 2011 2012 2013 • Regularly review National investment incentives BOI-PEZA total • Consolidate and disseminate investment related approved 506.49 657.24 456.79 548.15 information, conduct Business Perception Surveys, and undertake investments Country Promotion Strategy. • Address barriers of entry of capital. • Fast-track deployment of PPP programs and projects to the private sector. • Attract investments and boost confidence of the international business community. • Give priority to key concerns, namely: labor, telecoms, transport (aviation and domestic shipping), energy, peace and order, and • Ensure that initiatives relative to indicators in the disaster risk reduction. Develop a positive, innovative, and creative competitiveness ranking surveys are being undertaken. mindset conforming to global quality management • Initiate major interventions on streamlining business standards, excellence, and continuous improvement. processes. • Undertake needs assessment study to determine current and • Address disparity problem between skills demand by industry projected demand for labor in ecozones and elsewhere. and available labor supply. 28 28
  29. Overcoming the Challenges in Pursuit of Inclusive GrowthEnab ling the industry and services sectors to contrib ute significantly to economic growth and employment Sustainable employment through enterprise development and strong private sector partnership 2011 - 2013 Targets and Goals Programs • One Town, One Product-Philippines Program Targets • Industry Clustering Program Outcome 2011 2012 2013 • Export Pathways Program (EPP)/Regional Interactive Platform for Philippine Exporters (RIPPLES) MSMEs 117,855 129,640 142,605 • Rural Micro Enterprise Promotion Programme (RuMEPP) assisted • SME Star Awards – a three-level awards system based on Jobs created 340T 374T 411T SME Development Framework • Doing Business in FTAs (DBFTAs) • Global Marketing and Intelligence System (GMIS) • Steer economic activities to the countryside • Strengthen SME Assistance Centers • Develop industry clusters • Increase firm-level assistance to improve productivity • Tap Overseas Filipinos (OFs) as source of capital • Create sustainable livelihood and Micro-enterprise inter- agency development programs. 29 29
  30. Overcoming the challenges in pursuit of inclusive growthEnab ling the industry and services sectors to contrib ute significantly to economic growth and employment Double Exports: Move Up the Value Chain 2012 - 2014 Targets and Goals Programs Actual Targets Product: • Move Up the Value Chain Outcome 2011 2012 2013 2014 • Participate in the Global Supply and Value Chain Merchandise US$47.97B US$62.20B US$68.40B US$75.59B • Develop Organic and Natural Product Linkages exports Growth - 6.9% Growth 30% Growth 10% Growth 10% • Implement Trade Remedies to Sustain Competitiveness increased of Domestic Industries Service US$15.50B US$17.97B US$20.74B US22.89B Market: exports Growth 17% Growth 16% Growth 15% Growth 10% increased • Develop Philippine Trade Strategy (Estimate) • Maximize FTAs Total US$63.47B US$80.23B US$89.22B US$98.49B Exports Growth - 2% Growth 26% Growth 11% Growth 10% • Target Emerging Markets with High Economic Growth and Prospects • Participate in Global Supply Chains with China, ASEAN, and India • Channel PHL-US Partnership through Trade and Investment Facilitation Agreement Promotion: • Focus on Quality Rather than Quantity • Launch Inbound Fairs Linked with Investment and Tourism Opportunities • Creating a Total Experience • Embark on Country Branding • Doing Business in Real Time 30 30
  31. FY2012 Fiscal ProgramThe new b udget keeps the ROP on track to achieve a deficit of 2.0% of GDP b y 2013 2011 2012 Outlook 1 Actual Program2 PARTICULARS Rev enues (PHP billions) 1,357.3 1,359.9 1,560.6 % of GDP 13.7 14.0 14.4 BIR 935.5 924.1 1,066.1 BOC 276.4 265.1 347.1 BTr 70.0 75.2 61.8 Others 75.4 95.5 85.6 Disbursements (PHP billions) 1,617.9 1,557.7 1,839.7 % of GDP 16.4 16.0 17.0 Surplus/(Deficit) (PHP billions) (260.6) (197.8) (279.1) % of GDP (2.6) (2.0) (2.6) GDP 9,872.3 9,734.8 10,824.0 1 Development Budget Coordination Committee (DBCC) approved as of 12 Oct 2011 2 DBCC approved as of 25 Jan 2012 31 31
  32. Funding For Good Governance Efforts to enhance governance are reflected in the 2012 Budget Adm inistration continues to allocate funds to social services Significant com m itment to capital outlays for infrastructure 2012 Budget allocation by sector 2012 Budget allocation by expense class 6.3% 1.3% 17.9% 18.6% 31.3% 32.7% 19.6% 31.5% 16.6% 24.2% Soci al Services Eco nomic Serv ices Personal Services Maintenance & Other Expenditures Debt Burden General Publi c Service Other Current Operating Expenditures* Capital Outlays Defense Net Lending  Reforms in governance are at the core of economic policy making and budget allocation  The Social Services sector will continue to receive the bulk of the budget allocation at 31.3% of the total budget  The administration is aware that long-term growth is dependent on continued improvement in infrastructure. Therefore allocation to capital outlays has been increased 24.3% over 2011, with specific allocation to infrastructure expenditure up 40.6% over 2011Source: Department of Budget Management*Other current operating expenditures include allotment to LGUs, subsidies and interest payments 32 32
  33. Key Investment AreasDeveloping and promoting rapid-growth sectors that have unlimited investment opportunities Investment opportunities in champion industry sectors Agribusiness BPO/Call Centers/IT Creative Industries Infrastructure Tourism 33 33
  34. Key Investment Area: Agribusiness Competitive, sustainable and technology-based agriculture and fisheries sector Recent Performance / Accomplishments • PH is 47% Agricultural Land; estimated 17,460km of coastline; World’s 8th largest fish producer • 15.9% growth in production volume for palay (10.75 million metric tons) and corn (5.49 million metric tons • Rice importation reduced to 860,000 metric tons in 2011 • 10,907 jobs generated through farm-to-market roads program from Jan to Oct 2011 • Generated a total of 12,988 has. of new areas; restored 10,061 has; rehabilitated 42,423 has under the National Irrigation Administration’s Irrigation Development Plan; 47 small scale irrigation projects installed • 12 Corn Post-harvest Processing and Trading Centers established and generated 3,668 jobs Goals and Targets • Sufficiency in food staples by 2013 under the DA Food Staples Sufficiency Program (FSSP) • 2012 budget for agriculture, agrarian reform increased by 51% to P99.6 billion from last year’s Projected Philippine Exports P65.97-billion allocation; The 2012 Budget will be used among others to : of Processed Fruits &  At least P24.5 billion of total allocation will support irrigation infrastructure projects, including Vegetables the construction and rehabilitation of irrigation systems across the country; Another P5 billionYear Value (US$ Million) to be used to construct and repair 1,718 kilometers of farm-to-market roads, enabling local communities to expand their commercial reach to other cities and localities2012 442.80  Generate 87,405 hectares of new areas, rehabilitate 79,246 hectares of degraded irrigation systems, and restore 57,199 hectares2013 473.80  Install/construct around 4,584 small-scale irrigation projects2014 506.97  Distribute about 4,526 units of post-harvest equipment and machineries such as dryers, storage and milling equipment, and dairy equipment and machineries2015 542.46  Construct close to 2,777 post-harvest facilities for drying, storage, processing and transport; construct/rehabilitate 1,284 kilometers of farm-to-market roads  Establish strategically located trading centers such as Benguet, Urdaneta, Pangasinan, San Jose, Camarines Sur and Argao Cebu  Implement Aqua-silviculture Program.Sources: Arangkada Philippines 2010: A Business Perspective; 2011 Value Propositions, Board of Investments 34 34
  35. Key Investment Area: Agribusiness Competitive, sustainable and technology-based agriculture and fisheries sector Challenges and Market Opportunities Challenges: • Financing is always a critical issue for agribusiness • Agriculture has become less attractive to young Filipinos and to entrepreneurs • Long-standing farm infrastructure requirements needing continuing new investment: farm-to-market roads, post-harvest processing facilities, irrigation, phytosanitary inspection facilities, food terminals, cold storage, and food processing factories • Too little investment in irrigation since 1994 • Little formal central planning seeking to create economies of scale for competitive agricultural export products Market Opportunities: • Global demand for processed Philippine fruits and vegetables • Projected global demand for processed tropical fruits and beverages • For the dairy industry: increase in local production and consumption; presence of a demand-supply gap Strategies and Programs • Front load investments in irrigation, agricultural mechanization, and post-harvest systems, and increased investment in research, development and extension • Finalize FSSP-Credit Component which will include loan guarantee and crop insurance • Strengthen irrigators’ associations and other groups and establish close collaboration with LGUs and other organizations • Expand local and global markets for livestock and poultry industry by building on the RP’s reputation as FMD-free status without vaccination and an Avian Flu-Free status. • Work on convergence with the DENR, DA, DPWH and DSWD • Adopt triple strategy of regeneration, nurseries, protection and sustain production to address decline in fisheries as well as establishment of mariculture parks, nurseries and hatcheries • Fully integrate climate change (CC) adaptation measures in all programs and projects to increase sector resilience to CC risks • Promote coastal resource management together with the replanting of mangroves under the Integrated Community-Based Multi-Species Hatchery and Aquasilvi Farming program • Revitalize production of traditional export commodities like coconut, sugar, abaca, banana and pineapple • Open new markets for organic vegetables- form linkage between farmers with prospective buyers from SingaporeSources: Arangkada Philippines 2010: A Business Perspective; 2011 Value Propositions, Board of Investments 35 35
  36. Key Investment Area: Business Process Outsourcing Towards glob al leadership Recent Performance / Accomplishments • Philippines is the call center capital of the world; We are #1 in Voice and can be #1 in Non-Voice (finance, accounting, health care, IT, creative, engineering) • About US$11B in revenues in 2011 and full time employees of 640,000 • Philippines is currently among the most cost-competitive destinations for IT-BPO services Goals and Targets • 20% revenue growth in 2012 and has potential to reach US$25 B in revenues in 2016 • Additional revenues expected from high-value non-voice services • Can potentially employ 1.3 million workforce by 2016 • Targets by 2016: industry generated- jobs of 4.5 million and cumulative exports of US$92 billionChallenges and Market OpportunitiesChallenges:• Talent supply is a huge constraint: both quality and quantity; Demand growing 20+% p.a. but supply of graduates growing 3% and only 5-8% of applicants are hirable• Significantly more competitive environment for voice and non-voice from India and emerging destinations; voice-centric perception• Lack of distinguishing branding against India and near-shore geographies• Lots of untapped demand: UK, Australia, Europe, Non-Voice• Limited growth capital for scale-up of small-to medium firmsStrategies and Programs• Continue TESDA Industry Training for Work Scholarship Program for near-hire training and trainers’ training• Implement CHED-BPA P MOA on improving employability of State University graduates through the Service Management Specialization Trace, Global Competitiveness Assessment Tool and faculty development• Implement DepED K-12 program• Market BPO as a viable career option• Provide consistent policy agenda; enforce incentives law s and regulations• Assure safety and security of employees and investors by effectively implementing disaster and risk management programs and services.• Improve main cost competitiveness vis-à-vis India and other competitors• Improve aw areness of Philippine value proposition and capabilities in and beyond voice BPO in target markets’; Government initiatives include the creation of industry roadmap and conduct of roadshow s in target countries 36 36
  37. Key Investment Area: Creative Industries Developing the Filipino’s rich and varied b ase of creative talent Recent Performance / Accomplishments • Remarkable growth in the trade of creative goods and services in the last decade: 1,459.5% from 2002 to 2008 1 • Creative Industries • Globally competitive in the handicrafts and cultural segments; active but not globally competitive in the art segment2 • Creative Industries Council established to formulate a master plan that will lay the framework for sustained development of the industry Challenges and Market Opportunity Challenges: • There is a lack of understanding and appreciation of these creative industries as a w hole • There are also several Philippine constitutional prohibitions that w ork against full development of the sector Market Opportunity: • Rich and varied base of creative talent • There is room to expand the export of creative services and export of creative and other goods categories such as jew elry, digital records, paperw are, etc. Strategies and Programs • DOST-Information and Communications Technology Office (DOST-ICTO) in the process of preparing a Roadmap particularly for digital content including animation and game development • Create an environment conduct to creation of creative content such as protecting intellectual property from piracy and enforcing stricter payment of royalty for such content. • Homestyle products: Integrate promotional efforts; build brands based on green approach; maximize benefits from free trade agreements; simplify shipment document procedures; continue to develop designs using mixed media; link up furniture and furnishings/decor industries w ith the tourism industry • Garments/Textile/Wearables: Campaign for the approval of the SAVE ACT in US Congress; expand and improve market access; w ork for preferential regimes; intensify market access; implement industry accreditation and tracking of social compliance program; synchronize efforts in skills training; integrate promotional efforts; promote via international media; mount show rooms in Philippine embassies and airports; subsidize participation in trade fairs abroad; upgrade technology; intensify gathering of commercial intelligence in US, EU, HK and Japan1/ Creative Economy Report 2010, UNCTAD.20102/ Creative Economy Report 2008. UNCTAD 20083/ Department of Labor and Employment DOLE 2020 Vision Source: Arangkada Philippines 2010: A Business Perspective and DTI 37 37
  38. Key Investment Area: TourismDeveloping and promoting rapid-growth sectors that have unlimited investment opportunities Recent Performance / Accomplishments • Efforts in promoting tourism resulted in an increase of tourist arrivals by 11.28% or a total of 3.9M visitors in 2011, surpassing the national target of 3.7M • Puerto Princesa Underground River voted as one of the new 7 w onders of nature; Tourist receipts in 2011 expected to reach P9.8 billion • Cluster approach: 77 tourist development areas clustered into 21 thematic destinations • New opportunities for development under Tourism Law (RA 9593) and EO 29 w hich provide for the declaration of pocket open skies for secondary international airports Goals and Targets • Publish/Release Philippine National Tourism Development Plan, 2011-2016 • Expansion of priority markets to achieve DOT’s target of 4.1 million foreign visitors in 2012 and 10 million a year starting 2016Challenges and Market OpportunitiesChallenges:• Image of country as unsafe• Limited international air access to potential source markets• Inadequate infrastructure and domestic connectivity• Urban problems including traffic, pollution, dirty environment and petty crimes• Comparatively low marketing and promotions budget• Lack of foreign speaking guides (Chinese, Korean and Russian)• Relatively high priced packaged toursMarket Opportunities:• Continued grow th in w orld tourism arrivals specially to Asia Pacific• Strong grow th in outbound travel movement and spending by China and Russia• Pocket Open Skies policy and increasing number of LCCs• Increased room capacity due to foreign investments• Huge population of OFWs w ho can be tourism ambassadors, advocates and promoters• Increasing utilization of the internet and social media for tourism information and promotions• Expansion and diversification of products and activities offered to tourists• Development of new destinations 38 38
  39. Key Investment Area: Tourism Developing and promoting rapid-growth sectors that have unlimited investment opportunities Strategies and Programs • Integrate and anchor tourism development and promotion on the National Tourism Development Plan • Focus marketing and promotions on selected markets with the potential to bring numbers and revenues • Pursue private-public sector partnership • Improve market access and connectivity - Expand capacity of secondary international airports - Expand connectivity to key growth markets - Implement strategic access infrastructure between secondary airports and tourist destinations • Develop and market competitive tourist destinations and products - Implement destination infrastructure program - Develop diversified products - Implement mandatory accreditation - Implement market strategy • Improve tourism institutions, governance and human resources - Institutionalize roles of DOT and LGUs - Develop competence of tourism workforce - Improve safety and security measures for touristsSources: Arangkada Philippines 2010: A Business Perspective; DPWH, PPP Center 39 39
  40. Key Investment Area: Infrastructure Accelerating the provision of safe, efficient, reliab le, cost-effective, and sustainab le infrastructure Recent Performance / Accomplishments Public Works and Highw ays • Emphasis on Right Project, Right Cost, Right Quality, Right People and Right on Time • Simplified bidding process- from 20 to 5 documents • 24/7 DPWH Call Center to address queries and complaints • Enhance Information Technology in public disclosure and project implementation (eNGAS) • Collusion in bidding being addressed and generating savings of P5.533 billion from 5,197 projects from July 2010 to Nov 2011 for DPWH. Total savings for 2011 expected to reach P6B-P7B. • Cluster approach to ensure better w ork quality and more cost effective indirect cost/margins • Strategic convergence w ith DOT, DA/DAR/NIA/DENR, DOTC/MMDA, DSWD, DND/AFP • 85% OF 2,139 DPWH infrastructure projects already bid out • P3.8B for road upkeep released; Fund release comprises 95 percent of the P4-billion DPWH allocation for routine maintenance activities • New open and competitive bidding process resulted to P2 Billion savings from CY 2012 allocation • Daang-Hari successfully bid out in December 2011 Transportation and Com munications • Several airport projects are in various stages of implementation and construction.  The Laguindingan Airport project is ongoing and set for completion in December 2012; O&M contract to be bid out by mid this year and expected to be aw arded to the w inning bidder in the 4Q 2012.  Project studies for the Daraga Albay airport have been completed and w ill soon be submitted to government for review .Sources: DPWH, DOTC 40 40
  41. Key Investment Area: Infrastructure Accelerating the provision of safe, efficient, reliab le, cost-effective, and sustainab le infrastructure Challenges and Market Opportunities Challenges: • Polls of businessmen repeatedly show poor infrastructure as one of the top challenges facing the Philippine economy, second only to corruption • A major cause of delayed implementation is the slow release of funds by DBM to implementing agencies • Transparency is a problem in almost all types of government infrastructure projects – whether JV, BOT, or government funded – and at all levels of government Market Opportunities: • Investor confidence through the Philippine PPP program • Adequate, safe, efficient, reliable and reasonably-priced infrastructure and development facilities while giving the private sector level playing field, reasonably returns and appropriate sharing of risksSources: Arangkada Philippines 2010: A Business Perspective 41 41
  42. Key Investment Area: Infrastructure Accelerating the provision of safe, efficient, reliab le, cost-effective, and sustainab le infrastructure Target outcomes over the medium-term: 2011-2016 Baseline 2011 2012 2013 2014 2015 2016 REQUIREM ENT (2010) National 90.9% 93.6% 96.5% 99.0% 100.0%  Paving of 1,443 km Arterial Paved Paved Paved Paved Paved  Rehab/ widening/ Roads 14,429 km 14,864 km 15,315 km 15,709 km 15,872 km upgrading/ (15,872 km) construction of 2,828 kms. National 70.6% 71.9% 74.6% 78.6% 85.4% 94.0% 100%  Paving of 4,518 Secondary Paved Paved Paved Paved Paved Paved Pav ed kms Roads 10,852 km 11,052 km 11,463 km 12,088 km 13,130 km 14,445 km 15,370 km  Rehabilitation of (15,370 km) 1,798 kms. (To include newly identified national roads)  Replacement of National 96.0% 96.8% 97.5% 98.5% 99.0% 99% 100% 10,935 lm of Bridges permanent permanent permanent permanent permanent permanent permanent temporary bridges (345,978 lm) 332,139 lm 335,043 lm 337,329 lm 340,788 lm 342,518 lm 344,248 lm 345,978 lm  Reconstruction of (7,958 bridges) 7,321 br 7,440 br 7,560 br 7,679 br 7,799 br 7,878 br 7,958 br 10,594 lm of existing permanent bridges  Repair/rehab. of 40,675 lm of bridgesSource: DPWH 42 42
  43. Key Investment Area: Infrastructure Accelerating the provision of safe, efficient, reliab le, cost-effective, and sustainab le infrastructure Strategies and Programs Public Works and Highw ays •Push governance reform and anti-corruption programs • Upgrade quality and safety of national roads and bridges program • Promote Public-Private Partnership Program • Establish strategic convergence  Tourism Convergence Program with Department of Tourism (DOT): • Support to designated strategic Tourism Destinations is included in the DPWH FY 2012 Budget • Memorandum of Agreement (MOA) betw een DPWH, DOT and REID Foundation signed last January 20, 2012 • Objective selection of projects based on Tourism Road Infrastructure Project Prioritization Criteria  Water Convergence Program with Department of Agriculture (DA), Departm ent of Agrarian Reform (DAR), National Irrigation Adm inistration (NIA), Department of Environm ent and Natural Resources (DENR): • Coordinate development of Flood Control, Small Water Impounding Projects (SWIPs) & Watershed Protection for more effective use of w ater resources and flood management • Integrated River Basin Management Plan  Integrated Transport System with Department of Transportation and Com munications (DOTC): • Support for access to major airports and RORO ports is included in the DPWH FY 2012 Budget  Flood Managem ent Program with Metropolitan Manila Development Authority (MMDA): • Coordinate flood control measures and needed infrastructure in flood prone areas of Metro Manila  Com m unity Based Em ploym ent Program with Department of Social Welfare and Developm ent (DSWD): • Prioritize CCT Beneficiaries for Labor Employment on DPWH projects  Peace and Prosperity Program w ith Department of National Defense and Armed Forces of the Philippines (AFP): • Peace and Prosperity Program in Mindanao and other Conflict-Affected Areas • Support for infrastructure development in Mindanao is included in the DPWH FY 2012 Budget Transportation and Com munications •Fast-track construction of a modern international airport in Puerto Princesa, Palaw an; The P4.46B project has been approved by NEDA and w ill be funded under the Economic Development Cooperation Fund financing by the Korean government; It w ill be open for bidding in 3Q 2012 w ith construction expected to commence before the end of the year. •P500 million has been allocated to construct and upgrade existing berthing facilities in key ports in the country – Sasa, Davao, Iloilo, Ormoc and TabacoSource: DPWH, DOTC 43 43
  44. Key Investment Area: InfrastructureAccelerating the provision of safe, efficient, reliab le, cost-effective, and sustainab le infrastructure Participating in the Philippine PPP Program allows investors to do b usiness in a stab le economic environment b olstered b y sound and consistent policies and processes as well as an improved governance that has reduced the time and cost of doing b usiness. PPP Projects for 2012 Rollout Est. Project Cost (PhP Millions) Operation and Maintenance of the Puerto Princesa Airport (Department of Transportation and Com munications) TBD The project involves the privatization of the operation and maintenance of the airport. The existing Puerto Princesa Airport will be upgraded / improved into an international gateway meeting standards of the International Civil Aviation Organization (ICAO) PPP for School Infrastructure (Department of Education) 10,500.00 The project will involve the design, financing and construction of about 9,300 one-storey and two-storey classrooms, including furniture and fixtures, in various sites in Regions I, III & IV-A. The project aims to supplement the current program of the Department of Education in reducing classroom backlog. Vaccine Self-Sufficiency Project (Phase II) (Department of Health) 453.00 The project is envisioned to accelerate progress in vaccine production in the Philippines and ensure vaccine sufficiency in the country. VSSP II is expected to reduce overall vaccine procurement costs of finished vaccines through local formulation, filling, labeling and packaging of the following vaccines: Pentavalent (DPT-HepB-Hib, Diphtheria, Pertussis, Tetanus-Hepatitis B and Hemphylus Influenza B), Tetanus Toxoid (TT), Single HepB Modernization of the Philippine Orthopedic Center (Department of Health) TBD The project will involve the construction and upgrade of hospital buildings and facilities, purchase and supply of modern hospital equipment, furniture and fixtures and the installation of a comprehensive hospital IT system that will link medical and administrative operations and other stakeholders NLEX-SLEX Connector (Department of Public Works and Highw ays) 20,181.00 The project involves the construction of a 13.4 km. 4-lane elevated expressway over the Philippine National Railway (PNR) right of way which starts at Caloocan City and ends in Buendia, Makati City. The project will connect North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX) to decongest traffic in Metro Manila LRT Line 2 East Extension and Operation & Maintenance Privatization (Department of Transportation and 11,900.00 Com m unications) The project will extend the elevated tracks of the existing LRT Line 2 by 4 km from Santolan, Pasig to Masinag, Antipolo. The existing 13.8 km Line 2 runs along the Recto Station in Manila to the Santolan Station in Pasig, along Recto Avenue, Magsaysay Boulevard and Marcos Highway. Total 43,034.00 Source: Public-Private Partnerships (PPP) Center 44 44
  45. Key Investment Area: InfrastructureAccelerating the provision of safe, efficient, reliab le, cost-effective, and sustainab le infrastructure PPP Projects for 2012 Rollout Est. Project Cost (PhP Millions) Grains Central Project (Department of Agriculture) 1,250.00 The project will establish grains bulk handling systems with corn grains processing centers and transshipment stations in major corn producing areas and selected sea ports by upgrading, expanding and enhancing the existing operations in at least fifteen (15) corn post harvest processing and trading centers Operation and Maintenance of the Laguindingan Airport (Department of Transportation and Com munications) 1,800.00 The project will involve the operation and maintenance of the newly constructed international-standard airport in Laguindingan, Misamis Oriental New Bohol (Panglao) Airport (Departm ent of Transportation and Com munications) 8,000.00 The project will involve the construction of an international-standard airport to replace the existing Tagbilaran Airport within a 230-hectare spread Mactan Cebu International Airport Passenger Terminal Building (Departm ent of Transportation and Com munications) 10,150.00 The project will involve the construction and upgrade of a new world-class passenger terminal building in Mactan, Cebu International Airport with a capacity of about 8 million passengers/year. CALA Expressw ay (Cavite & Laguna Side) (Department of Public Works and Highw ays) 19,690.00 The project will involve the construction of two expressways. One is on the Cavite Side which is a 27.5 km, 4-lane highway from the terminus of R-1 Expressway in Kawit, Cavite to Aguinaldo Highway at Silang, Cavite. For the Laguna Side, this will involve the construction of a 14.3 km, 4-lane at grade expressway. The CALA Expressway will be connected to SLEX near Sta. Rosa, Laguna Autom atic Fare Collection System (Department of Transportation and Com munications) 1,800.00 The project will involve the decommissioning of the old magnetic-based ticketing system and replacing the same with contactless-based smart card technology on LRT Lines 1 and 2 and MRT 3, with the introduction of a centralized back office that will perform apportionment of revenues New Water Supply Source Project (Metropolitan Waterworks & Sew erage System) 25,000.00 The project will involve the construction of a dam, a water treatment plant and an associated main pipeline to deliver water from the project location to metro Manila. This project will provide water supply security in the metropolis Total 67,690.00 Source: Public-Private Partnerships (PPP) Center 45 45
  46. Key Investment Area: InfrastructureAccelerating the provision of safe, efficient, reliab le, cost-effective, and sustainab le infrastructure 17 PPP Projects for 2012 Rollout Est. Project Cost (PhP Millions) Operation & Maintenance of Angat Hydro Electric Pow er Plant (AHEPP) Auxiliary Turbines 4& 5 1,600.00 (Metropolitan Waterworks & Sew erage System) The project will involve the rehabilitation, operation and maintenance of the MWSS-owned auxiliary turbines 4 and 5 installed in Angat Hydro-Electric Power Plant Balara Water Hub (Metropolitan Waterworks & Sew erage System) 20,000.00 The project will involve the construction and operationalization of an international center for water excellence located within the MWSS Balara Compound situated along Katipunan Avenue opposite UP Diliman Campus in Quezon City The proposed 75-hectare modern hub is envisioned to showcase existing eco-efficient water technology and be developed as a mixed-style popular destination for education, sports, business, recreation. The area will be equipped with entertainment facilities as well as open areas for large/special events, convention center, commercial development (i.e., hotels, retail shops, restaurants). It will also house residential condominium units. LRT Line 1 South Extension (Departm ent of Transportation and Com munications) 59,200.00 The proposed alignment for the LRT 1 South Extension has an approximate length of 11.7 km from its point at the terminus of LRT Line 1 at the Baclaran Terminal, to the Niyog Station at Bacoor, Cavite, of which approximately 10.5 km will be elevated and 1.2 km will be at-grade. The total length of the integrated LRT Line 1 will be approximately 32.4 km. Establishm ent of Cold Chain System s Covering Strategic Areas in the Philippines (Department of Agriculture) 5,300.00 The project will involve the construction and operationalization of Cold Chain Centers to be located in major production and consolidation areas of agri-fishery products. The Centers will be equipped with the required facilities and machineries for minimal processing of livestock, fisheries and high value crops Total 86,100.00 Overall Total of 15 projects 196,824.00 Source: Public-Private Partnerships (PPP) Center 46 46
  47.  Ferdinand K. Constantino Senior Vice President/CFO and Treasurer San Miguel Corporation Ferdinand K. Constantino is the Senior Vice President/Chief Finance Officer and Treasurer of San Miguel Corporation (SMC)since 2001. He also serves as Director of SMC since 2010. He holds directorships in San Miguel Brewery Inc., PetronCorporation, San Miguel Yamamura Packaging Corp., Magnolia Inc., SMC Global Power Corp., and other subsidiaries of the SanMiguel Group. He is also the President of Anchor Insurance Brokerage Corporation. Mr. Constantino joined SMC in 1974 and has held various positions in the company and its subsidiaries. He was previously ChiefFinance Officer of San Miguel Brewery Inc., from 2007 to March 2009 and San Miguel Beer Division from 1999 until2005, Comptroller of SMC (1997-1999), and Finance Director of San Miguel Brewing Group (1994-1997). He also became the ChiefFinance Officer of Manila Electric Company in 2009. He has held directorships in various subsidiaries of SMC, local andoffshore, during the last five years. Mr. Constantino holds a Bachelor of Arts degree in Economics from the University of the Philippines and took graduate courses ineconomics and business in the same university. 47 47
  48. Maulik ParekhPresident and CEOSPi GlobalMr. Maulik Parekh is the President and CEO of SPi Global, a leading Knowledge Process Outsourcing (KPO) and CustomerRelationship Management (CRM) service provider with more than 18,000 employees in 30 facilities in NorthAmerica, Europe, Australia, and Asia. SPi Global is the world’s largest Filipino-owned BPO company.Since joining SPi Global in late 2009, Mr. Parekh has successfully integrated PLDT’s BPO businesses under oneumbrella, assembled a strong leadership team that operates three distinct business units with one corporate supportgroup, jumpstarted the growth of the combined entity, and set a bold target of growing the company to double its size in the nextthree years. Mr. Parekh also steered the company toward becoming the “BPO Company of the Year” in the 2011 International ICTAwards.Recently, he was also recognized as the Philippines’ 2011 Expatriate Executive of the Year during the Asia CEO Awards, aprestigious event organized by Asia’s leading business people. The award recognizes non-Filipino citizens who have led theirorganizations in achieving measurable success and in making a strong contribution to the economic development of the Philippines.Prior to joining SPi Global, Mr. Parekh was the Executive Vice President of Asia Operations for TeleTech Holdings, where heorchestrated an ambitious growth strategy that grew the companys Asian presence from 6,000 employees to over 22,000employees across 14 sites. He also worked for Dish Network, USA’s leading satellite TV provider, where he initiated the companysoffshoring strategy in India and the Philippines, led the Direct Sales division, and managed an operational team of more than 4,000employees.Mr. Parekh earned an International MBA from the Thunderbird School of Global Management, USA and holds a Bachelor ofEngineering degree from Gujarat University, India. 48 48
  49. Aileen C. ClementePresidentPhilippine Travel Agencies Association and Rajah Travel CorporationMs. Aileen C. Clemente is currently the President of the Philippine Travel Agencies Association (PTAA). The PTAAis the biggesttravel agents association in the Philippines with more than 500 members nationwide.Ms. Clemente is also the President of Rajah Travel Corporation having assumed the position in February 2007. She has been apart of the company since 2000. She oversees the operations of all Rajah Travel Corporation offices namely, Manila which is theHead Office, Makati Branch and the Implant Offices. She also serves as officer and director in the Rajah Group of Companiesincluding their overseas offices. Under her leadership, she was able to expand the company to its current manpowercomplement of over 200 employees.Ms. Clemente has held various positions in the travel industry associations / organizations in the Philippines. She served asPresident of the Philippine IATA Agents Travel Association (PIATA) from 2004 – 2005 and held various positions in Federation ofASEAN Tra vel Agencies (FATA) and SKAL, a worldwide professional organization of tourism leaders. With her extensiveexperience in the Tourism Industry, Ms. Clemente has served as guest speaker, panelist or resource person in local andinternational activities such as the Arangkada Philippines Forum (by the Joint Foreign Chambers), various Department ofTourism projects, Web In Travel and The Asset Magazine Philippine Forum.Ms. Clemente holds a Bachelor of Science Degree of Economics and Business Management. Apart from this, she also finishedher special studies in International Air Transport Association (IATA) and Airline Reporting Corporation (ARC) courses, CarlsonWagonlit Travel trainings, and specialist exams of Outrigger, Marriott, Tourism Australia, etc. In her spare time, she also is acontributor to publications like TTG Asia magazine and Travel Update. 49 49
  50. Stephen P. GroffVice PresidentAsian Development BankStephen P. Groff is the Vice-President for Operations 2 of the Asian Development Bank (ADB) since October 2011. He isresponsible for the full range of ADB’s operations in East Asia, Southeast Asia, and the Pacific as well as the Central OperationsServices Office. His mandate includes establishing strategic and operational priorities in his areas of responsibility, producinginvestment and technical assistance operations amounting to $4-5 billion annually, managing an existing portfolio of about $23billion, and leading about 700 staff.Prior to joining ADB, Mr. Groff was the Deputy Director for Development Cooperation at the Paris-based Organisation for EconomicCo-operation and Development (OECD) where he led a wide range of development-related economic and political issues. He alsoserved as OECDs envoy to the G20 Working Group on Development and was a member of the World Economic Forums GlobalAgenda Council. Prior to this, he was the Deputy Vice-President for Operations at the Washington-based Millennium ChallengeCorporation (MCC), where he helped set up the agency and led MCC programs while advising the CEO on developmentissues, strategy and policy. Prior to MCC, Mr. Groff held several staff positions at the ADB. Mr. Groff has also held severalpositions such as deputy director and chief economist on a large USAID project in the southern Philippines and as Program Directorfor the U.S. Refugee Program. He has worked across Asia, Africa and Latin America and writes regularly on developmentissues. He also serves on a number of advisoryboards for development-related organizations.Mr. Groff holds a Master’s degree in Public Administration from Harvard University and a Bachelor of Science degree inEnvironmental Biologyfrom Yale University. 50 50
  51. John Eric T. FranciaManaging DirectorAyala CorporationMr. John Eric T. Francia is a Managing Director and a member of the Management Committee of Ayala Corporation since January2009. He is the Head of Ayala’s Corporate Strategy and Development Group, which is responsible for overseeing Ayala’s portfoliostrategy and new business development. He is also the President of AC Energy Holdings, Inc., which is Ayala’s holding company forits investments in the power sector. Mr. Francia is also a director of Manila Water Company, Integrated Micro-Electronics, Inc., LiveItInvestments Ltd., Integreon, and AC Energy Holdings, Inc.Prior to joining Ayala, Mr. Francia was a senior consultant and member of the management team of Monitor Group, a strategyconsulting firm based in Cambridge, Massachusetts, USA. Prior to consulting, he spent a few years in the field of academe andmedia.Mr. Francia completed his Masters Degree in Management Studies at the University of Cambridge in the United Kingdom, graduatingwith First Class Honors. He received his undergraduate degree in Humanities and Political Economy from the University of Asia & thePacific, graduating magna cum laude. 51 51
  52. Lance Y. GokongweiPresident and Chief Operating OfficerJG Summit Holdings, Inc.Mr. Lance Y Gokongwei is the President and Chief Operating Officer of JG Summit Holdings, Inc. (JGSHI). He also holds several .positions in JGSHI’s core businesses namely President and Chief Operating Officer of Universal Robina Corporation (URC) and JGSummit Petrochemical Corporation; President and Chief Executive Officer of Cebu Air, Inc.; Chairman of Robinsons BankCorporation; and Vice Chairman and DeputyChief Executive Officer of Robinsons Land Corporation.He is a recipient of several recognitions among them Entrepreneur of the Year (Philippines) in 2005 and Ten Outstanding YoungMen in 2000. He is affiliated with Young President’s Organization and World Economic Forum, Global Leaders for TomorrowProgram.Mr. Gokongwei holds a Bachelor of Science in Finance and Applied Science degree from the University of Pennsylvania where hegraduated Summa Cum Laude. 52 52
  53. Nicolaas K. De LangeVice President and Corporate SecretaryChamber of Furniture Industries of the PhilippinesMr. Nicolaas K. De Lange is the Vice President for Policy Advocacy and Corporate Secretary of the Chamber of Furniture Industriesof the Philippines (CFIP). He is the President and Chief Executive Officer of Designs Ligna, Inc. since 1994. He was instrumental inre-establishing the company’s presence in the domestic market, and transformed it from being an Original Equipment Manufacturer(OEM) to an Original Design Manufacturer (ODM). Currently, he o versees the company’s facilities that supply Design Ligna’sdomestic stores and independent retail customers worldwide.Prior to his current position in CFIP, Mr. De Lange was President of CFIP in 2003-2005 and 1995-1997. He also became a Trusteefor the Furniture Sector of the Philippine Export Confederation (Philexport). He was a two-time Chairman of the ASEAN FurnitureIndustries Council. He also became the Chairman of the Furniture IndustryBoard Foundation, Inc.Mr. De Lange holds a Bachelor of Arts in InterdisciplinaryStudies from the Ateneo de Manila University. 53 53
  54. Eduardo V. FranciscoPresident/DirectorManagement Association of the Philippines and BDO Capital & Investment CorporationEduardo V. Francisco is President/Director of the Management Association of the Philippines (MAP) and BDO Capital & InvestmentCorporation, the investment house of Banco de Oro (BD) Universal Bank. He is Co-Chairman of the Capital Market DevelopmentCouncil (CMDC) of the Philippines, Treasurer/Director/Trading Nominee of BDO Securities Corporation and Treasurer/Director ofthe Foundation for Filipino Entrepreneurs (FFE).He also sits on the boards of the Investment Houses Association of the Philippines (IHAP), Wharton-Penn Club of the Philippines,UP-Development Center for Finance, Credit Information Bureau, Inc. (CIBI) Foundation, LGU Guarantee Corp. and InternationalSchool of Manila. He is a fellow of the Institute of Corporate Directors (ICD) and a member of Rotary Makati West and PLDTTriathlon Team.He was formerly the President of BDO Securities Corporation, Financial Executives Institute of the Philippines (FINEX) andWharton-Penn Club. He is a former member of the Capital Markets Committee of the Bankers Association of the Philippines andthe Strategic Ad visory Committee of the Philippine Stock Exchange and the Makati Business Development Council. He has workedwith other financial institutions in New York and Hong Kong.Mr. Francisco holds a Master’s degree in Business Administration from the Wharton School of the University of Pennsylvania andBachelor’s degree in Business Administration from the University of the Philippines. He is also a recipient of the DistinguishedAlumnus Award from the U.P. College of Business Administration. 54 54
  55. Amando M. Tetangco, Jr.BSP Governor and Chairman of the Monetary BoardBangko Sentral ng PilipinasMr. Amando M. Tetangco, Jr. is the Governor of the Bangko Sentral ng Pilipinas (BSP). He has been reappointed for a second termcommencing 4 July 2011. As BSP Governor, he serves as Chairman of the Monetary Board, the BSP’s principal monetary policy-making body. He is also the Chairman of the Anti-Money Laundering Council (AMLC).A career central banker, Governor Tetangco has been in the service of the BSP for more than three decades. Prior to his firstappointment as Governor in July 2005, he was Deputy Go vernor in-charge of the Banking Services Sector, Economic Research andTreasury of the BSP. He also served as Alternate Executive Director of the International Monetary Fund in Washington, D.C. from1992 to 1994. He was reappointed as Governor in July 2011.Governor Tetangco is involved in various organizations in the Philippines and overseas. Domestically, he is, among other positionsheld, Chairman of the Philippine International Convention Center (PICC), Vice-Chairman of the Agriculture Credit PolicyCouncil, member of the Capital Markets Development Council (CMDC) and the Export Development Council (EDC). Overseas, herepresents the country in ASEAN Central Bank Forum, Executive Meeting of East Asia and Pacific (EMEAP) Central Banks, SouthEast Asia Central Banks (SEACEN), South East Asia, New Zealand and Australia (SEANZA), and Center for Latin AmericanMonetary Studies (CEMLA). In addition, he is the Governor for the Philippines in the International Monetary Fund (IMF) and theAlternate Governor in the World Bank (WB) and in the Asian Development Bank (ADB).Governor Tetangco studied economics and business administration at the Ateneo de Manila University. He finished his MAin PublicPolicy and Administration with a concentration in Development Economics at the University of Wisconsin-Madison in the UnitedStates. He has attended various training programs at different institutions including the Harvard Business School. 55 55
  56. Cesar V. PurisimaSecretaryDepartment of FinanceMr. Cesar V. Purisima was appointed as Finance Secretary by President Benigno Aquino III in Jul y 2010. He also briefly served asFinance Secretary in 2005 and as Trade and Industry Secretary in 2004 for the previous administration. Recently, SecretaryPurisima won the 2011 Emerging Markets Finance Minister of the Year Award for Asia for his strong policy track record andsteadfast commitment to maintaining economic stability o ver the past 12 months. He is also the Chairman of the Board ofGovernors for the 45th ADB Annual Meeting to be held in Manila in 2012.His government service experience include serving as Chair and Member of the Board of various government companies amongthem, the National Power Corporation, Land Bank of the Philippines and the Monetary Board (Bangko Sentral ng Pilipinas) in 2005.In July 13, 2010 he was appointed as government representative to the Monetary Board for the second time.Secretary Purisima has extensive work experience in public accounting both here and abroad. He was Area Managing Partner ashead of the Asia Pacific Assurance Practice of Andersen Worldwide from 2001-2002 and was Regional Managing Partner as head ofthe ASEAN operation from 2000-2001. He was member of the Global Board of Andersen Worldwide from 1999-2002 and the GlobalExecutive Board of Ernst & Young from 2002-2004.He was also Chairman and Managing Partner of SGV & Co until January 2004. Likewise, he has been a member of variousbusiness organizations including the Management Association of the Philippines, Philippine Institute of Certified PublicAccountants, Philippine-France Business Council, Philippine-Thailand Business Council and the Makati Business Club, amongothers.Secretary Purisima obtained his Bachelor of Science in Commerce, Major in Accounting and Management of Financial Institutionsfrom De La Salle University (1979) and his MBA from JL Kellogg Graduate School of Management, Northwestern University inChicago, Illinois (1983). In 1979, he was among the top placers in the Philippine Board Examinations for Certified PublicAccountants. 56 56
  57. Cayetano W. Paderanga, Jr.SecretaryNational Economic and Development AuthorityMr. Ca yetano W. Paderanga, Jr. is the Secretary of Socioeconomic Planning and Director-General of the National Economic andDevelopment Authority (NEDA). He has held the same post from 1990 to 1992 and has been a member of the Monetary Board ofthe Bangko Sentral ng Pilipinas from 1990 to 1992 and from 1993 to 1999.Until his recent Cabinet appointment, Secretary Paderanga served as Chairman of the Board of the Institute for Development andEconometric Analysis (IDEA) and Foundation for Integrative and Development Studies (FIDS). He was also the Chairman of thePhilippine Social Science Council (1999-2001) and President of the Philippine Economics Society (1998-1999). He was formerly theExecutive Director and Alternate Executive Director at the Asian Development Bank for the Philippines, Pakistan, Maldives, MarshallIslands, Mongolia and Kazakhstan from 2001 and 2001-2003 respectively. In 2004, Secretary Paderanga was President of thePhilippine Stock Exchange. He was the Vice-President of the Philippine Fulbright Scholars Association, Inc. (1997-2006). Aprofessor of economics at the University of the Philippines School of Economics, Secretary Paderanga is on leave while serving asa Cabinet official.He obtained his doctorate in Economics in 1979 from Stanford University, completed his graduate studies in Industrial Economics atthe Center for Research and Communication in 1972, and finished his bachelor’s degree in Commerce from De La Salle Universityin 1968.Secretary Paderanga’s recent publications include “ Private Sector Assessment: Philippines” published by the Asian DevelopmentBank, “Infrastructure Development in the Philippines”, published in Infrastructure Issues in the Asia Pacific, edited by A.Kohsaka, “The Philippines”, published in Fiscal Deficits in the Pacific Region, edited by A. Kohsaka, and “Dimensions ofGlobalization” published in Coming to Grips with Globalization, which he also edited, and “Globalization and the Limits to NationalEconomic Management.” He has also written on various topics like debt management, labor and employment, trade and financialissues. 57 57
  58. Florencio B. AbadSecretaryDepartment of Budget and ManagementMr. Florencio B. Abad was appointed by President Benigno Aquino III as Secretary of Budget and Management in July 2010. Healso served as Secretary of Agrarian Reform during the late President Corazon Aquino’s administration and served as Secretary ofEducation under the Arroyo administration.He was elected member of the House of Representatives in 1987 representing the Lone District of Batanes. He was subsequentlyre-elected in 1995, 1998 and 2001. He became president of the Liberal Party of the Philippines from 1999 to 2004 and is currentlythe Vice President for Policy and Platforms.Secretary Abad finished his Bachelor of Science in Business Management, and Bachelor of Laws at the Ateneo de ManilaUniversity and passed the Bar Examination in 1985. A fellow of the Edward Mason Program in Public Policy and Management atthe Kennedy School of Government in Harvard University in Cambridge, Massachusetts, he also holds a Masters in PublicAdministration degree.Previously, Secretary Abad was a union organizer/trainer, research director of the Ateneo Center for Social Policy and Public Affairs,and a legal and management consultant to different local and foreign foundations. 58 58
  59. Gregory L. DomingoSecretaryDepartment of Trade and IndustryMr. Gregory L. Domingo was appointed as Trade and Industry Secretary b y President Benigno Aquino III in July 2010. Hepreviously served as Department of Trade and Industry (DTI) Undersecretary for the Industry and Investments Group (IIG) andManaging Head of the Board of Investments (BOI) from May 2001 to April 2004.Prior to his stints with the government, he was President of Carmelray-JTCI Corp. (CJC) from July 1997 to November 2000. Heworked for Chase-Manhattan Bank in various capacities from July 1989 – July 1997 and with a number of financial institutions in theUnited States (First Boston, Drexel Burnham Lambert and Mellon Bank) from 1982 to 1989. Secretary Domingo also served as ViceChairman of Belle Corporation and director for SM Investments Corp., BDO Private Bank, PASUDECO, Manila Electric Corp., Picode Loro Beach and Country Club, Wharton-Penn Club, and Foreign Exchange Association of the Philippines. He was also amember of the Open Market Committee of the Bankers Association of the Philippines (BAP).Secretary Domingo obtained his Masters of Science in Operations Research at the Wharton School- University of Pennsylvania in1982, finished his MBA with distinction at the Asian Institute of Management in 1980, and graduated with a bachelor’s degree inManagement Engineering at the Ateneo de Manila Universityin 1976. 59 59
  60. Rogelio L. SingsonSecretaryDepartment of Public Works and HighwaysMr. Rogelio L. Singson, in leading the States engineering and construction arm as its 42nd head, advocates transformation andinnovation in governance through transparency and accountability, doing the right project, for the right price and the right quality,and undertaking more public-private partnership (PPP) projects.Mr. Singson has extensive experience in both government and private sector in the field of privatization and public-privatepartnership, management of tollroads and expressways, water and power utilities privatization, airports, seaports and resorts. Hewas President and Chief Executive Officer of Ma ynilad Water Services, Inc. after its re-privatization from July 1, 2007 to June 30,2010 under new owners, the DMCI-Metro Pacific Consortium. He also served in various senior positions such as Senior VicePresident for Business Development, Citadel Holdings, Inc. from July 2002 to May 2007; Chairman & President of BasesConversion & Development Authority from July 1998-February 2002; and Chairman of the Board of John Hay Poro PointDevelopment Corporation.His other past involvements in the public sector includes serving as Executive Director of the Coordinating Council of thePhilippine Assistance Program which coordinate and monitor the official development assistance project and programs from May1991 to November 1992; and Assistant Cabinet Secretary under the Office of the President Corazon C. Aquino from July 1987 toMay 1991.Mr. Singson obtained his Bachelor of Science Degree in Industrial Engineering from University of the Philippines in 1971 andattended Masters Program in Public & Business Management at the De La Salle University. He also attended various trainingsabroad on Public-Private Partnership, privatization and Build Operate Transfer (BOT) Schemes. 60 60
  61.  Jose Rene D. Almendras Secretary Department of Energy Mr. Jose Rene D. Almendras is the Secretary of the Department of Energy (DOE). Under his leadership, the DOE was ranked by the Management Association of the Philippines as one of the Top 10 Performers, out of 50 government agencies, in a survey on government performance specificallyon ensuring integrityin public service. He also became co-chair of the high level discussion on Long Term Strategy for the International Renewable Energy Agency (IRENA) held in Abu Dhabi in 2011. It was also on the same year that the Philippines became a rotating member of the Executi ve Board of the International Energy Forum (IEF) at the 4th Asian Energy Ministerial Roundtable on “Sustainable Growth and Energy Independence” held in Kuwait. Mr. Almendras assumed significant leadership roles in the top corporations in the country. He was previously President of Manila Water Company where he was instrumental in the expansion and growth of the company including the recognition it earned here and abroad; to name a few - Best Managed Companies in Asia, the Best in Corporate Governance, one of the Greenest Companies in the Philippines and most recently, hailed as the world’s Most Efficient Water Company. He started his corporate career at Citytrust Trust Banking Corporation and later moved to Citibank as Account Management Group Head in the Visayas in 1985. He became the Treasurer of Aboitiz Group for both the Aboitiz Company and Aboitiz Equity Ventures. He has also served as President of City Sa vings Bank, and was appointed CEO of Cebu Holdings Inc. and Cebu Property Ventures and Development Corporation and later assumed the role of Business Group Head for VISMIN (Ayala Land) and concurrentlyOperations Transformation Group Head of Ayala Land. Mr. Almendras is an acknowledged international resource person on Sustainable Development and leadership as evidenced by the long list of international speaking engagements in Asia, Europe, and the US. He is a staunch sustainability advocate and a leader in doing business at the base of the pyramid, as well as ensuring the triple bottom line of financial profits, social impact, and environmental protection. 61 61
  62. Proceso J. AlcalaSecretaryDepartment of AgricultureA ci vil engineer by profession, Proceso J. Alcala was appointed as Secretary of the Department of Agriculture by President BenignoS. Aquino III in June 30, 2010. Prior to his appointment, he served as a Representative of the 2nd District of Quezon Province fortwo three-year terms (2004-07, 2007-10).As a lawmaker, Mr. Alcala authored the Organic Agricultural Act of 2010 (RA 10068), Mounts Banahaw-San Cristobal ProtectedLandscape Act (R A 2718), and co-authored the Climate Change Act (R A 9729) and the Expanded Senior Citizens Act (R A 9994).Among other projects, he led and supported the establishment of the Sentrong Pamilihan ng Produktong Agrikultura sa Quezon—atrading center in Sariaya town that allowed farmers to sell their produce directly to wholesale buyers resulting in increased incomesfor the producer families. This trading center now serves as a model throughout the country.At the D A, Sec. Alcala laid the Agrikulturang Pilipino or Agri-Pinoy framework as guide to the plans and goals of the department for aprogressive, sustainable and competitive national agriculture and fisheries sector. Through his leadership and management-by-going-around, he enjoined all stakeholders to put the farmers and fishers at the center of all programs and help restore trust ingovernment. In just more than a year, he has visited 58 provinces in all 16 regions of the country, meeting and feeling the pulse ofsmall farmers, fisherfolk and local officials and returned to office with field-based methods to deliver improved, effective and directassistance of the Aquino Government.Under his stewardship, the Philippines is no longer the number one rice importer in the world. He aims to achieve national sufficiencyin rice by end of 2013 through the Food Staples Sufficiency Program. The substantial increase in the DA’s 2012 budget by more than60% to over P60 billion signals the support that SecretaryAlcala and the new DA have gained under the Aquino administration.Mr. Alcala obtained his B.S. Civil Engineering from the Luzonian University Foundation in 1978 and is a lifetime member of thePhilippine Institute of Civil Engineers. 62 62
  63. Rene K. LimcaocoUndersecretaryDepartment of Transportation and CommunicationsMr. Rene K. Limcaoco was appointed Undersecretary of Planning and Infrastructure Projects of the Department of Transportationand Communications (DOTC) in 2011. He is also professor at the Ateneo de Manila Law School where he teaches EconomicAnalysis of Law and The Economics of Antitrust Law.Prior to his stint in government, he was President of Lica AutoNation Inc. Automotive Group from 1997-2011. He also previouslyworked as Senior Legal Manager at the Price Waterhouse, Office of Government Services from 1995-1997. Mr. Limcaoco alsoserved as Senior Associate of Hadiputranto Hadinoto Dermawan Law Office in Jakarta, Indonesia and specialized in financialproducts and Quisumbing Torres & Evangelista Law Office (Baker & McKenzie Manila) specializing in banking and finance law. Hehas also worked as Economic Analyst at SKR Managers and Advisors, Inc. Manila.Mr. Limcaoco obtained his Bachelor of Laws with distinction in 1990 at the Ateneo de Manila Law School where he was Editor-in-Chief of Ateneo Law Journal and Bulletin. He finished his bachelor’s degree in Economics with concentration on DevelopmentalEconomics at Stanford Universityin 1986. 63 63
  64. Guillermo M. LuzPrivate Sector Co-ChairmanNational Competitiveness CouncilGuillermo M. Luz is the Private Sector Co-Chairman of the National Competitiveness Council, a public-private sector body dedicatedto developing a strategy for the long-term competitiveness of the Philippines through policy reforms, projectimplementation, institution-building, and performance monitoring.He was Executive Vice President and Chief Operating Officer of Ayala Foundation from December 2006 to May 2011, a foundationwhich manages projects in education, environment, entrepreneurship, arts and culture, and community development. Heconcurrentlyserved as Director of Ayala Museum from January2010 to May 2011He was Executive Director of the Makati Business Club from 1987 to 2006, after joining its staff in 1983. While at MBC, heconcurrently served as executive director of Philippines-United States Business Council, Philippine-British BusinessCouncil, Philippines-France Business Council, Philippines-Singapore Business Council, and Philippines-Malaysia Business Council.Mr. Lu z was the Secretary-General of NAMFREL from 1992 to 2006, overseeing preparations for its Operation Quick Count andpollwatching in the 1992, 1995, 1998, 2001, and 2004 elections. 64 64
  65.  Claro P. Fernandez Executive Director Investor Relations Office Mr. Claro P. Fernandez became Executive Director of the Investor Relations Office in February 2009, bringing a wealth of experience as a communications professional with years of work in broadcast and print media reporting on business/financial news and recent jobs in the Office of the President, a major Philippine universal bank and a California-based startup BPO. Mr. Fernandez started out as a business reporter and had stints with the Manila Chronicle, Business Day, Financial Post and Daily Express from 1985 to 1991. He shifted to broadcast media in 1991 to 1996 where he moved on to become News Director and Associate Producer at GMA 7’s news and public affairs programs. Later on, Mr. Fernandez joined the banking industry as Vice-President of the Corporate Affairs and Investor Relations Office (CAIRO) of Philippine National Bank (PNB) in 1997. He transferred to and worked in the Information Technology Group (ITG) of PNB from 1999 to 2001. In 2002, he began his career in government service as Press Undersecretary and later on served as the Deputy Communications Director with the rank of Undersecretary at the Office of the President from 2004 to 2005. As Press Undersecretary, he oversaw the functional operations of the offices and agencies that handle the administration’s public information and news and information dissemination. Mr. Fernandez received his entire education from the University of the Philippines from grade school to college. He graduated with a BA Communications degree in 1985. 65 65
  66. INVESTOR RELATIONS OFFICEPromoting Excellence in Investor Relations. Enhancing Sovereign ValueTen Years of Com mitment to the Investor Community Serving Our Stakeholders in the Philippines and InternationallyThe effective implementation of the Government’s economic program and its The IRO provides services to a w ide range of stakeholders – thesuccess depends on regular tw o-way dialogue betw een economic policy Government’s economic agencies, financial institutions, credit ratingmakers and the investment community. agencies, bilateral and multilateral organizations, domestic and foreign investors, the diplomatic corps, business people, the mediaThe Investor Relations Office (IRO) w as established in July 2001 to and the general public. All services to its stakeholders arestrengthen the country’s relations w ith investors and other stakeholders by underpinned by a set of fundamental principles: transparency,promoting active channels of information flow and dialogue betw een accessibility, timeliness, consistency and feedback.economic policy makers and investors. The IRO adopts a multi-pronged approach to serving its stakeholdersBased in the Philippine central bank, the Bangko Sentral ng Pilipinas (BSP), through:the IRO has a dedicated staff comprised of trained economists and  Dissemination of key economic and financial information aboutcommunication specialists w ho w ork w ith colleagues in the BSP and the economic policy objectives and performanceeconomic agencies to implement a w ide-ranging program of investor relations  Seeking mar ket feedback on current and proposed policyactivities. measures  Providing feedback to economic policy-makers about investorAs the Government has implemented its economic reform program over the sentimentlast ten years, the IRO’s program of investor outreach has helped to ensure  Facilitating candid and constructive dialogue betw een policy-that investor decisions benefit from a comprehensive understanding of the makers and investorsprogress in reforms and what they mean for the economic fundamentals ofthe Philippines.In turn, the Government’s economic reform program has made the economyrelatively more resilient amid the global financial and economic crisis. Withstable macroeconomic fundamentals, the Philippines remains as one of themost viable economies for investments in theemerging market.The IRO is proud to have played a role in communicating the successes ofthe Government’s reform program in the last ten years and is committed tocontinuing its efforts to promote the Philippine economy. 66 66
  67. INVESTOR RELATIONS OFFICEPromoting the Philippine Economy at Home and Ab roadThe IRO undertakes a range of initiatives to build aw areness among domestic and international investment audiences around the Government’seconomic reform program, promote specific investment opportunities in the Philippines and facilitate information exchange and dialogue betw een keyeconomic policy decision-makers in the Government and domestic/international investors. These initiatives include:  Regular Economic Briefings to update the business community, media and industry organizations on the country’s economic performance  Investor Roadshow s to bring the Government’s resilient economic performance record, commitment to sound economic management and responsible reform to members of the international financial community  Media Briefings to raise aw areness of the Government’s progress in economic reforms and plans for ongoing reforms  Media Briefings to raise aw areness of the Government’s progress in economic reforms and plans for ongoing reforms  Government Policy Roadshows to increase the business community’s understanding of government policy measures to generate support for the policy implementation process  Investor Teleconferences to provide timely updates on key economic performance indicators  Publications and Reports including a daily Investor Brief to inform policy-makers about market developments and sentiment  E-mail service to keep investors and other investors abreast of data releases on a regular basis  An English Language w ebsite, www.iro.ph, to provide a w ide range of easily accessible information about the Philippines’ economic performance and the government’s economic policies  IRO has redesigned its website to allow easier browsing for investors and interested parties through its advance search engine. The w ebsite serves as a w arehouse of valuable information such as economic briefing presentations, press releases and economic and statistical data and provides users better updates on the general economy through its more personalized email function. Contact Information For further information about the Investor Relations Office, or about the Philippine economy, please contact: Claro P. Fernandez Investor Relations Office Bangko Sentral ng Pilipinas A. Mabini St. cor. P. Ocampo St. Malate Manila, Philippines 1004 Tel: (632) 708-7487 / (632) 336-7124 Email: FernandezCP@bsp.gov.ph Fax: (632) 708-7489 Website: w ww.iro.ph 67 67
  68. Good Governance for a Better Tomorrow Philippine Economic Briefing Policy Agenda, Fiscal and Macroeconomic Updates Philippine International Convention Center Pasay City, Philippines 6 March 2012

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