rop presentation yeb final 3 march 2012-1

6 March 2012

Policy Agenda, Fiscal and Macroeconomic Updates

Philippine International Convention CenterPasay City, Philippines

Philippine Economic Briefing

Good Governance for a Better Tomorrow

22

Agenda

Executive SummaryI.

Government’s Focus on Governance and Near Term GoalsII.

Economic and Fiscal Updates III.

Healthy, Sustained and Inclusive Economic Growth

Rapidly Improving Public Finances

Prudent Debt Management

Strong External Payments Position

Credible Monetary Policy with Strong Track Record

Resilient Banking System

5

Governance Reforms Have Yielded Positive Results

7

10

14

18

19

20

4

3

Economic and Fiscal OutlookIV.

Key Investment AreasV.

23

33

Profiles of Government Officials and Speakers from the Private Sector

Investor Relations Office Brochure

VI.

VII.

47

66

33

•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

The Philippines: Pushing Forward on All FrontsStrong macroeconomic fundamentals and governance reforms enabled the economy to sustain its positive momentum in 2011

44

• Rapid, inclusive, and sustained economic growth Stable macroeconomic environment, low inflation and sustainable

fiscal position; GDP growth of 7% to 8% for at least 6 yrs Public private partnership; integrated and multimodal national transport

and logistics system Adequate and responsive formal education structure and program National Health Insurance Coverage Program Communication, education and advocacy program for population

development• Anti-corruption/transparent, accountable and participatory governance

Government Integrated Financial Management Information System and procurement reforms;

Enhance role of Local Government Units in the anti-corruption drive• Poverty reduction and empowerment of the poor and vulnerable

Focus on comparative advantage in more labor-intensive activities; 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

Priority Areas

An Administration Focused on Good Governance and Near-Term GoalsThe Aquino administration has made significant achievements and has set clear goals for the future

The President’s Social Contract

• A re-awakened sense of right and wrong, through the living examples of our highest leaders;

• An organized and widely-shared rapid expansion of our economy through a government dedicated to honing and mobilizing our people’s skills and energies as well as the responsible harnessing of our natural resources;

• A collective belief that doing the right thing does not only make sense morally, but also translates into economic value as well; and

• Public institutions rebuilt on the strong solidarity of our society and its communities

“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

55

Economy: Healthy and StableA healthy economy supported by sustained improvements across credit metrics

2005 vs. 20102011

2005 2010 Difference

Real GDP Growth1 (%) 4.8 7.6 +58% 3.7

GDP Per Capita2 (USD) 1,159.1 2,131.0 +84% 2,346.8

Investment (% 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 Remittances (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 prices2/ At current prices

3/ Preliminary Q1 2011 data4/ For Jan – Sep 20115/ As of Jan 2012

66

52 consecutive quarters of positive GDP growth since 1999 Relative stability measured by GDP volatility (2000 – 2010)

Hi / Low Real GDP Growth Mean Real GDP Growth

Real GDP growth ranked by mean

Source: National Statistical Coordination Board (“NSCB”), IMF World Economic Outlook (“WEO”) Database for 2000-2010 GDP data for other countries

(8.0%)

(4.0%)

0.0%

4.0%

8.0%

12.0%

16.0%

Chi

na

Indo

nesi

a

Mal

aysi

a

Phili

ppin

es

Thai

land

Turk

ey

Braz

il

3.1

4.4

2.9

3.6

5

6.7

4.85.2

6.6

4.2

1.1

7.6

3.7

1

1.2

1.4

1.6

1.8

2

2.2

2.4

2.6

0

1

2

3

4

5

6

7

8

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)

Economy: Healthy and StableA stab le economy highlighted by continued positive growth

77Source: BSP

Prudent fiscal controls coupled w ith intensif ied revenue collection efforts over the past year have laid the framew ork for efficient budgetary allocation in 2012

Tax reform measures including the indexation of sin taxes (alcohol and tobacco product taxes) and the rationalization of f iscal incentives aim to further improve the f iscal position

Tighter prioritization of expenditures through the Zero Based Budgeting approach, improved composition of expenditures and quality of government services

Rigorous implementation of RATE, RATS, RIPS programs to go after evaders, smugglers, corrupt off icials, 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 Management Office at the Department of Finance w hich is tasked to formulate and oversee the implementation of the

Republic’s debt management strategy

Key Reforms Instituted by the Administration

Fiscal Discipline Transparency and Accountability

Government Reforms: The Focus on Good GovernanceGood governance agenda with emphasis on fiscal discipline, transparency and accountability

88

Fiscal Reform Under the Aquino AdministrationGetting on a sustainable fiscal path with improving fiscal metrics

Strict implementation of administrative reform measures at the BIR and BOC to improve revenue generationActual

2008 2009 2010 2011

Rev enues (% of GDP) 15.6 14.0 13.4 14.0

Rev enue Growth (%) 5.8 (6.6) 7.5 12.6

Expenditures (% of GDP) 16.5 17.7 16.9 16.0

Fiscal Balance (% of GDP) (0.9) (3.7) (3.5) (2.0)

General Gov ernment Debt (% of GDP) 44.2 44.3 42.2 40.11

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

RATE is enhancing voluntary compliance and promoting the confidence of the public in the tax system

87 tax evasion cases fi led as of Jan 31, 2012 with total tax l iabilities of P36.1 billion

Run After the Tax Evaders Program (“RATE”)

RATS is a vigorous campaign against smugglers that was launched in 2005

Revitalized RATS program zeroes in not only on smugglers but even on Bureau of Customs (“BOC”) officers and personnel who may be involved in i l legal operations

66 smuggling cases fi led as February 15, 2012 with total dutiable value of P59.7 bil lion

Run After the Smugglers Program (“RATS”)

RIPS was created to address persistent reports of corruption in revenue generating agencies of the government that lead to collection shortfalls

29 cases fi led with the Office of the Ombudsman involving 31 government personnel

Revenue Integrity Protection Service (“RIPS”)

Source: NSCB, Bureau of the Treasury (“BTr”)1/Preliminary Q1 2011 data

99

National Government’s Fiscal Consolidation Efforts on TrackFiscal performance further solidifies under the Aquino Administration

Source: BTr

1,123 1,422

(299)

1,2081,522

(315)

1,360 1,558

(198)(400)

0

400

800

1,200 1,600

2,000

2009 2010 2011

Revenues Expenditures Surplus/(Deficit)

(3.7%) of GDP

(3.5%) of GDP

PHP

Billi

ons

National Government’s P197.8 billion deficit in 2011 was 37.1% lower than last year

(2.0%) of GDP

1010

54.7%65.8% 64.5% 56.6%

73.4%85.8%

56.2%65.6% 66.7%

45.3%34.2% 35.5% 43.4%

26.6%14.2%

43.8% 28.5% 22.4%

5.9% 10.9%

0%

20%

40%

60%

80%

100%

2003 2004 2005 2006 2007 2008 2009 2010 Jan-Nov 2011

Global-Peso Notes Foreign Domestic

50.8%49.2%

2003

Prudent Debt ManagementDomestic / foreign borrowing mix effectively managed

National Government Gross Financing

57.6%

42.4%

2010

55.9%

44.1%

2006

Prudent strategies to finance the annual funding requirement minimize foreign exchange risk and increase funding self-sufficiency

External component of National Government debt has been gradually declining over the years

Foreign DomesticSource: DOF, BTr

1111

Improving Debt SustainabilityProactively managing the liability profile

The National Government’s foreign and domestic debts have grown longer dated over time

Reduced rollover risk and increased debt carrying capacity over the past ten years

Debt portfolio has become significantly longer in tenor

New issue yields decreasing and foreign currency-denominated bonds are receiving a substantial bid from onshore investors

Source: DOF, BTr

Foreign Debt

Domestic Debt20102003 Jan – Nov 20112005

20052003 2010

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 ears

Jan – Nov 2011

29%

44%

27% 29%

42%

29%19%

27%54%

90%

10%

96%

4%

10%

20%

70%

100% 100%

1212

0

2

4

6

8

10

12

14

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Jan-

Nov

201

0

Jan-

Nov

201

1

102.

8% 115.

5%

109.

6%

113.

6%

98.3

%

89.9

%

76.1

%

70.0

%

68.1

% 77.0

%

67.7

%

90.7

%

93.4

%

0%

20%

40%

60%

80%

100%

120%

140%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Jan-

Sep

2010

Jan-

Sep

2011

Improving external debt ratios underpin the country’s strengthening external payments position

External Debt / Current Account Receipts GIR / Debt Service Burden

Source: BSP, BTr

External debt is supported by growing current account receipts Ample reserves to cover debt service burden

Demonstrated Ability to Service DebtCombination of improving debt metrics and external balance sheet strength

1313

0

10

20

30

40

50

60

70

80

90

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Jan-

Sep

2010

Jan-

Sep

2011

0%

5%

10%

15%

20%

25%

30%

35%

40%

2003 2004 2005 2006 2007 2008 2009 2010 2011

External Debt / GDP

External debt ratios have declined significantly over the last 6 years Revenue allocated to debt service has declined drastically

Source: BSP, BTr Debt servicing costs are for national government data and cover interest payments

NG Interest Payments / NG Revenue

Demonstrated Ability to Service Debt (cont’d)Combination of improving debt metrics and external balance sheet strength

1414

Strong External Payments Position BOP supported by robust growth of remittances and BPO revenues

Remittances have tripled in a decade

6.06.9 7.6

8.610.7

12.814.5

16.417.3

18.820.1

02468

1012141618202224

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

OFW Remittances

USD

Bill

ions

Source: BSP

BPO revenues continue to grow rapidly

1.52.4

3.34.9

6.17.1

8.9

10.9

0

2

4

6

8

10

12

14

2004 2005 2006 2007 2008 2009 2010 2011E

USD

Bill

ions

BPO Rev enues

115

6,421

10,179

14,308

89

8,557

3,7692,410

-280

810-202

-5,000

0

5,000

10,000

15,000

20,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Current Account Capital + Financ. AccountOther BOP Position

7 consecutive years of balance of payments surplus

USD

Mill

ions

1515

16.4 17.1 16.2 18.5 23.033.8 37.6 44.2

62.475.3 77.4

11.411.1

9.68.7

6.05.8

4.23.83.64.04.0

0

10

20

30

40

50

60

70

80

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan-120

2

4

6

8

10

12

FX Resrves (LHS) Import Cover (RHS)

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

USD

Billi

ons

x

Growing Foreign Exchange ReservesThe growing stock of FX reserves shields the economy from external shocks

Source: BSP

Foreign exchange reserves continue to grow at a record high

1616

Strong External Position is Supportive of the PesoThe Philippine Peso is stab le relative to currencies of other emerging market economies

2010 Av g:PHP45.1/USD

3 Months Realized Volatility

2011 Av g:PHP43.3/USD

The Peso has remained stable in recent years Peso more stable than peers’ currencies

Source: BSP, Bloomberg 29 December 2011

0

20

40

60

80

100

120

140

160

Jul-9

7Ja

n-98

Jul-9

8Ja

n-99

Jul-9

9Ja

n-00

Jul-0

0Ja

n-01

Jul-0

1Ja

n-02

Jul-0

2Ja

n-03

Jul-0

3Ja

n-04

Jul-0

4Ja

n-05

Jul-0

5Ja

n-06

Jul-0

6Ja

n-07

Jul-0

7Ja

n-08

Jul-0

8Ja

n-09

Jul-0

9Ja

n-10

Jul-1

0Ja

n-11

Jul-1

1Ja

n-12

Philippine Peso Turkish Lira Indonesian Rupiah

South African Rand Thai Baht

35

37

39

41

43

45

47

49

51

53

55

1717

0 20 40 60 80 100

Turkey

Indonesia

China

Philippines

Thailand

Taiwan

Malaysia 7.5

5.3

5.3

4.5

3.1

1.5

0.7

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

Turkey

Malaysia

Thailand

Taiwan

Philippines

China

Indonesia

External Position is Supported by Moderate Exposure to EU HeadwindsLimited reliance on EU markets shelters the economy from external boom-bust cycles

The banking sector continues to fund itself primarily through domestic deposits eliminating the need for external financing

Domestic banks have limited exposure to EU assets, mitigating the potential impact from NPLs or financial instrument contagion

Local banking system’s consistently improving asset quality, good liquidity and favorable capital profile serve as a buffer to external and domestic shock

Limited trade and financial dependence on EU

The economy is less susceptible to trade shock than other EMs

Trade Openness: Sum of US dollar value of current account transactions as % of GDPGrowth Shock: Standard deviation seen in 2009 GDP growth compared with the preceding five-year average growth rate

Limited impact of global economic shock on real economy

Financial sector risk from EU exposure is limited

2010 2011 2011 Actual Value

Exports to EU / Total Exports 14.4% 12.3% US$5.89bn

Imports f rom EU / Total Imports 7.2% 7.4% US$4.45bn

Net EU FDI / Total FDI1 -9.1% -39.2% -US$0.31bn

OF Remittances from Europe / Total Remittances2 17.0% 16.6% US$3.3bn

1/ Period covers Jan-Nov

ST DEV

2/ 53.0% of all remittances come from the Americas, 16.6% from Europe, 16.0% from the Middle East ,12.8% from Asia, and 1.6% from other regions

Source: BSP, IMF WEO Apr 2011 release, Fitch Sovereign Data Comparator Dec 2011

2009 GDP Growth ShockTrade Openness 2010: Higher number indicates more vulnerabil ity to trade shock

1818

Credible Monetary PolicyRefinements 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

Liquidity and domestic interest rates remain supportive

Global inflationary cycle

Source: BSP

3.9

024

68

10

1214

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Headline Lower Bound of Target Upper Bound of Target

January 2012

Dec 2011:P4,674bn

2

4

6

8

10

12

14

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

%

PHP

billi

on

M3 (LHS) Bank Lending Rates (RHS) Reverse Repurchase Rate (RHS)

6.1%

4.5%

1919

16.5%

17.4%

8%

10%

12%

14%

16%

18%

20%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 End-Jun

2011CAR, Solo CAR, Consolidated

102.6%

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 end-Sept2011

NPL Coverage Ratio

3,500.6

3.1%

0500

1,0001,5002,0002,5003,0003,5004,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 end-Sept2011

0

4

8

12

16

20

Total Loan Portfolio, Gross NPL Ratio

Capital Adequacy Ratio (“CAR”) (%)

Strong capitalization above international norms

System-wide NPL level has shown sustained improvement even through the global financial crisis

While NPLs have shrunk, NPL coverage ratios have strengthened

Improving asset quality has minimized the risk of a potential banking-system led crisis

The resilience demonstrated by the Philippine banking system is highlighted by the decrease in system-wide Non-Performing Loans (“NPL”) and Non-Performing Assets (“NPA”) levels even at the heart of the global financial crisis

NPL coverage ratios have strengthened as insurance against potential future asset deterioration, and underpin the conservative nature of the banking system

Source: BSPNPA Ratio is equal to the percentage of assets that are no longer paying interest or principal as a percentage of total assets

Resilient Banking SystemImproving asset quality and strong prudential ratios underpin soundness of the banking system

2020

Governance Reforms Have Yielded Positive ResultsROP is showing improvement on several governance and competitiveness indicators

Source: 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

2009/2010 2010/2011* Change

World Bank Government Effectiveness Indicator 51 52 1 percentile

Transparency International – Corruption Perceptions Index 139 134 5 places

World Economic Forum (“WEF”) Competitiveness 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 places

212120

0020

0020

0120

0120

0220

0220

0320

0320

0420

0420

0520

0520

0620

0620

0720

0720

0820

0820

0920

0920

1020

1020

1120

11

Fi tch

2000

2000

2001

2001

2002

2002

2003

2003

2004

2004

2005

2005

2006

2006

2007

2007

2008

2008

2009

2009

2010

2010

2011

2011

Moo dy's S&PBaa3

Ba1

Ba2

Ba3

B1

B

B-

Last upgraded to BB+ (June 23, 2011)

Last upgraded to BB (November 12, 2010)

Last upgraded to Ba2 (June 15, 2011)

“The national government recorded a small fiscal surplus, building upon the notable turnaround in fiscal management seen during 2H 2010. Much of the improvement has been attributed to the progress made in fiscal consolidation by the new Aquino administration”

“The strength of the Philippines’ external balance sheet and fav orable growth trajectory support the sovereign credit ratings on the country. Structural strengths of the current account appear sufficiently well entrenched”

“The upgrade in June reflects progress on fiscal consolidation against a track record of macro stabil ity, broadly fav orable economic prospects and strengthening external finances”

BBB-

BB+

BB

BB-

B+

B

B-

BBB-

BB+

BB

BB-

B+

B

B-

S&P: Positive Outlook (December 16, 2011)

Source: Moody’s, S&P, Fitch

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

Governance Reforms Have Yielded Positive ResultsProgress has been recognized by the rating agencies

2222

0

200

400

600

800

1000

1200

1400

Philippines India Brazil Peru Indonesia Turkey

Philippines’ CDS levels are tighter than some higher rated peers

Country Ratings (Moody’s/S&P/Fitch)

CDS level as of 1 March 2012

Brazil Baa2/BBB/BBB 135.1Peru Baa3/BBB/BBB 140.3Philippines Ba2/BB/BB+ 155.5Indonesia Baa3/BB+/BBB- 166.2Turkey Ba2/BB/BB+ 232.2

India Baa3/BBB-/BBB- 283.5

Source: Bloomberg, Data

Governance Reforms Have Yielded Positive ResultsLow CDS spreads and record high performance of the PSE are proofs of positive investor sentiment on the Philippines

1500

2500

3500

4500

5500

PSE index

Philippine Stock Exchange index sustains its bullish trend

5,016.3 pts2 Mar 2012

2323

*DBCC approved only the GDP growth rate. Assumption details may still change.

2012 Growth Outlook(growth rate, in %, at constant prices)

Actual 2012 Assumption*

2010 2011 Low High

GDP 7.6 3.7 5.0 6.0

GNI 8.2 2.6 4.0 5.0

Demand Side

HH Cons. 3.35 6.1 4.6 5.6

Govt. Cons. 4.0 (0.7) 4.0 4.6

Investment 31.61 11.1 8.9 10.2

Total Exports 21.0 -3.8 8.4 9.3

Total Imports 22.5 1.9 9.7 10.4

Supply Side

Agriculture (0.2) 2.6 4.1 5.0

Industry 11.6 1.9 5.6 6.6

Services 7.2 5.0 4.9 5.9

Economic OutlookBetter economic performance expected in 2012 with all sectors contributing

2012 Macroeconomic Assumptions

Parameter 2012

Inflation Target (1) 3% - 5%

FX rate (1) P42 – P45

Crude oil (1) $90 - $110 / barrel

Merchandise Export Growth (1) 10%

Merchandise Import Growth (1) 15%

External Accounts

Balance of Payments (2) $2.8 bn

Current Account (2) $4.3 bn

Gross International Reserves (2) $79.0 bn

Remittances (2) $21.1 bn

Remittance growth (2) 5%

(1) DBCC approved as of Jan 25,2012; (2) Based on BSP projections as approved by the Monetary Board on 2 December 2011

2424

• Early release of funds for infrastructure projects 72.1% or P150.2 billion allocation for capital outlays in

2012 has already been released to agencies like DPWH, DA, DepEd

Sixteen (16) projects under PPP are already in the pipelineEstimated cost P140.8 billion

• More efficient and faster process due to the implementation of bureaucratic reforms in budget management and administration initiated in 2011.

• Accelerated budget execution process 99.6% of the budget for PS and 90.4% for MOOE have

already been released 1/

Accelerated government spending to supportdomestic demand

1/ as of January 17, 2012

Economic OutlookBetter economic performance expected in 2012 with all sectors contributing

Global and Domestic Risks to Growth

• 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 Program

• Stimulating domestic demand Sustaining domestic consumption Securing investments

• Accelerating fiscal spending and infrastructure outlays• Diversifying domestic and external trade• Strengthening economic relations with fast-growing ASEAN

economies; seizing the opportunity from China rebalancing

Near-term Policy Directions

2525

Average GDP Growth, First 10 Years of Demographic Window (%)Demographic Windows* in Asia

*Defined as the period when population under 15 years old drops below 30% and population over 65 years old is less than 15%.

A promising future lies ahead

Sources: UN World Population to 2030, UN World Population Prospects (2010 Revision), IMF World Economic Outlook, Japan Cabinet Office

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%

Domestic Demand Will Continue to Support GrowthYoung and growing population to support domestic consumption

2050

2050

2045

2040

2040

2030

2025

2020

2015

2015

1995

2015

2010

2010

2005

2005

1995

1990

1985

1980

1980

1965

1960 1980 2000 2020 2040 2060

PhilippinesIndia

Malay siaVietnam

IndonesiaThailand

ChinaKorea

SingaporeHong Kong

Japan

**Thailand is an exception, as its Demographic Window began in 1995, and thus its high-growth period was interrupted by the Asia Financial Crisis of 1997-98

10.3

9.08.2 8.1 7.8 7.4 7.0

6.25.4

3.3

0

2

4

6

8

10

12

Chi

na

Kore

a

Indi

a

Japa

n

Sing

apor

e

Hon

g Ko

ng

Viet

nam

Indo

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Mal

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Thai

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**

2626

• Anti-Trust/Competition Law • Rationalization of Fiscal Incentives• Amendments to Intellectual Property Code• Amendments to Standards Law• Lemon Law• Amendments to the Consumer Act of the Philippines• Amendments to the Export Development Act• Data privacy/protection

Trade and investments Agenda

• Goal 1: Improve country’s competitiveness; Land in the top one-third ranking in major international surveys. • 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%

2011 - 2013 DTI Roadmap

• Create an Enabling Business Environment to Increase Investments• Sustainable Employment through Enterprise Development and Strong Private Sector Partnership• Double Exports: Move Up the Value Chain• Advocate for Reasonable Prices and Product Safety

Legislative Agenda

Sectoral Goals

Overcoming the Challenges in Pursuit of Inclusive GrowthEnabling the industry and services sectors to contribute significantly to economic growth and employment

2727

Better business environment to increase investments

Overcoming the Challenges in Pursuit of Inclusive GrowthTowards realizing the country’s goal of globally competitive and innovative industry and services sectors

• 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 f irst 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.

Sustainable Employment Through Enterprise Development and Strong Private Sector Partnership

• SME Unif ied Lending Opportunities for National Grow th (SULONG) has released P229 billion to SMEs and supported an estimated 3.3 million jobs since its inception in 2004.

• In 2011, the SULONG program released P26.78 billion benefiting 32,807 SMEs and supporting 356,112 jobs.

• In the f irst three quarters of 2011, total number of micro enterprises served reached 14,186 or 95% of the Rural Microenterprise Promotion Program (RuMEPP) target of 15,000 until 2013.

• Conducted 936 training programs and seminars benefiting 38,850 MSMEs for the period January to September 2011

• Provided 1,254 MSMEs w ith design services and technical assistance• Series of SME caravans attended by 13,157 participants in 16 provinces. • Trainings w ere provided for overseas Filipino w orkers to encourage them to

become entrepreneurs and exporters• SME Development Plan 2011-2016 crafted

Double Exports: Move Up the Value Chain• The Philippine Export Development Plan (PEDP) 2011-2013

approved in July 2011 • One Country One Voice launched, a nationw ide public consultation

program that seeks to institutionalize an effective mechanism to enhance and sustain stakeholder engagement in formulating trade policies.

• The Doing Business in Free Trade Areas Phase II w as launched in March 2011 to continue to build know ledge of exporters on FTA opportunities. To date 68 sessions have been conducted

• Total sales generated through overseas trade promotion reached USD158.52 million

• From January to November 2011, Philippine Trade and Investment Centers w ere able to develop 622 new importers for Philippine products, served 2,425 export opportunities, assisted 9,106 Philippine exporters and businesses and sent 972 buyers to the country

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Better business environment to increase investments

Actual Targets

Outcome 2010 2011 2012 2013BOI-PEZA total approved investments

506.49 657.24 456.79 548.15

2012 - 2013 Targets and Goals

• Address barriers of entry of capital.• Attract investments and boost confidence of the international

business community.• Ensure that initiatives relative to indicators in the

competitiveness ranking surveys are being undertaken.• Initiate major interventions on streamlining business

processes. • Address disparity problem between skills demand by industry

and available labor supply.

• Streamline business processes. Pursue intensive promotion and industry development

• Regularly review National investment incentives • Consolidate and disseminate investment related

information, conduct Business Perception Surveys, and undertake Country Promotion Strategy.

• Fast-track deployment of PPP programs and projects to the private sector.

• Give priority to key concerns, namely: labor, telecoms, transport (aviation and domestic shipping), energy, peace and order, and disaster risk reduction. Develop a positive, innovative, and creative mindset conforming to global quality management standards, excellence, and continuous improvement.

• Undertake needs assessment study to determine current and projected demand for labor in ecozones and elsewhere.

Programs


2929

Sustainable employment through enterprise development and strong private sector partnership

2011 - 2013 Targets and Goals

• 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.

Programs

• One Town, One Product-Philippines Program• Industry Clustering Program• Export Pathways Program (EPP)/Regional Interactive Platform

for Philippine Exporters (RIPPLES)• Rural Micro Enterprise Promotion Programme (RuMEPP) • SME Star Awards – a three-level awards system based on

SME Development Framework • Doing Business in FTAs (DBFTAs)• Global Marketing and Intelligence System (GMIS)


Targets

Outcome 2011 2012 2013

MSMEs assisted

117,855 129,640 142,605

Jobs created 340T 374T 411T

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Double Exports: Move Up the Value Chain

2012 - 2014 Targets and Goals Programs

Product: • Move Up the Value Chain• Participate in the Global Supply and Value Chain• Develop Organic and Natural Product Linkages• Implement Trade Remedies to Sustain Competitiveness

of Domestic IndustriesMarket:• Develop Philippine Trade Strategy• Maximize FTAs• 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 AgreementPromotion:• 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

Overcoming the challenges in pursuit of inclusive growthEnabling the industry and services sectors to contribute significantly to economic growth and employment

Actual Targets

Outcome 2011 2012 2013 2014

Merchandise exports increased

US$47.97BGrowth - 6.9%

US$62.20BGrowth 30%

US$68.40BGrowth 10%

US$75.59BGrowth 10%

Service exports increased

US$15.50BGrowth 17%(Estimate)

US$17.97BGrowth 16%

US$20.74BGrowth 15%

US22.89BGrowth 10%

Total Exports

US$63.47BGrowth - 2%

US$80.23BGrowth 26%

US$89.22BGrowth 11%

US$98.49BGrowth 10%

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FY2012 Fiscal ProgramThe new budget keeps the ROP on track to achieve a deficit of 2.0% of GDP by 2013

PARTICULARS

2011 2012

Outlook1 Actual Program2

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 20112 DBCC approved as of 25 Jan 2012

3232

31.3%

24.2%

19.6%

18.6%

6.3%

Soci al Services Eco nomic Serv icesDebt Burden General Publi c ServiceDefense

Funding For Good GovernanceEfforts to enhance governance are reflected in the 2012 Budget

Administration continues to allocate funds to social services Significant commitment to capital outlays for infrastructure2012 Budget allocation by sector

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 2011

32.7%

16.6%

31.5%

17.9%1.3%

Personal Services Maintenance & Other ExpendituresOther Current Operating Expenditures* Capital OutlaysNet Lending

Source: Department of Budget Management*Other current operating expenditures include allotment to LGUs, subsidies and interest payments

2012 Budget allocation by expense class

3333

Key Investment AreasDeveloping and promoting rapid-growth sectors that have unlimited investment opportunities

Agribusiness

Creative Industries

BPO/Call Centers/IT

Tourism

Investment opportunities in champion industry sectors

Infrastructure

3434

• 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

Recent Performance / Accomplishments

• 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

P65.97-billion allocation; The 2012 Budget will be used among others to : At least P24.5 billion of total allocation will support irrigation infrastructure projects, including

the construction and rehabilitation of irrigation systems across the country; Another P5 billion 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 localities

Generate 87,405 hectares of new areas, rehabilitate 79,246 hectares of degraded irrigation systems, and restore 57,199 hectares

Install/construct around 4,584 small-scale irrigation projects Distribute about 4,526 units of post-harvest equipment and machineries such as

dryers, storage and milling equipment, and dairy equipment and machineries 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.

Goals and Targets

Projected Philippine Exports of Processed Fruits &

Vegetables

Year Value (US$ Million)

2012 442.80

2013 473.802014 506.97

2015 542.46

Sources: Arangkada Philippines 2010: A Business Perspective; 2011 Value Propositions, Board of Investments

Key Investment Area: AgribusinessCompetitive, sustainable and technology-based agriculture and fisheries sector

3535

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-harvestprocessing 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 productsMarket 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

Challenges and Market Opportunities

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 Singapore

Sources: Arangkada Philippines 2010: A Business Perspective; 2011 Value Propositions, Board of Investments

Key Investment Area: AgribusinessCompetitive, sustainable and technology-based agriculture and fisheries sector

3636

• 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


• 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 billion

Goals and Targets

Challenges: • 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 firms


• 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


Key Investment Area: Business Process OutsourcingTowards global leadership

37371/ Creative Economy Report 2010, UNCTAD.20102/ Creative Economy Report 2008. UNCTAD 20083/ Department of Labor and Employment DOLE 2020 Vision

• Remarkable growth in the trade of creative goods and services in the last decade: 1,459.5% from 2002 to 20081

• 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: • 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 sectorMarket 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.

Challenges and Market Opportunity

• 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 forpreferential 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 Japan


Source: Arangkada Philippines 2010: A Business Perspective and DTI

Key Investment Area: Creative IndustriesDeveloping the Filipino’s rich and varied base of creative talent

3838

• 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

Challenges: • Image of country as unsafe• Limited international air access to potential source markets• Inadequate infrastructure and domestic connectivity • Urban problems including traff ic, 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 Pacif ic• 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 diversif ication of products and activities offered to tourists• Development of new destinations


• 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 2016

Key Investment Area: TourismDeveloping and promoting rapid-growth sectors that have unlimited investment opportunities

3939


• 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 tourists

Sources: Arangkada Philippines 2010: A Business Perspective; DPWH, PPP Center

Key Investment Area: TourismDeveloping and promoting rapid-growth sectors that have unlimited investment opportunities

4040

Public Works and Highways

• Emphasis on Right Project, Right Cost, Right Quality, Right People and Right on Time• Simplif ied 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 Communications• 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

Key Investment Area: InfrastructureAccelerating the provision of safe, efficient, reliab le, cost-effective, and sustainable infrastructure

4141



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 risks

Sources: Arangkada Philippines 2010: A Business Perspective

4242

Baseline(2010) 2011 2012 2013 2014 2015 2016 REQUIREM ENT

NationalArterialRoads (15,872 km)

90.9% Paved

14,429 km

93.6% Paved

14,864 km

96.5% Paved

15,315 km

99.0% Paved

15,709 km

100.0% Paved

15,872 km

Paving of 1,443 km Rehab/ widening/

upgrading/ construction of

2,828 kms.

NationalSecondaryRoads (15,370 km)

70.6% Paved

10,852 km

71.9% Paved

11,052 km

74.6% Paved

11,463 km

78.6% Paved

12,088 km

85.4% Paved

13,130 km

94.0% Paved

14,445 km

100% Pav ed

15,370 km

Paving of 4,518 kms

Rehabilitation of 1,798 kms.(To include newly identified national

roads)

NationalBridges(345,978 lm)(7,958 bridges)

96.0%permanent332,139 lm

7,321 br


7,440 br


7,560 br

98.5% permanent340,788 lm

7,679 br


7,799 br

99%permanent344,248 lm

7,878 br

100% permanent345,978 lm

7,958 br

Replacement of 10,935 lm of temporary bridges

Reconstruction of 10,594 lm of existing permanent bridges

Repair/rehab. of 40,675 lm of bridges

Target outcomes over the medium-term: 2011-2016

Source: DPWH


4343


Source: DPWH, DOTC

Public Works and Highways •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), Department of Agrarian Reform (DAR), National Irrigation Administration (NIA), Department of Environment 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 f lood management• Integrated River Basin Management Plan

Integrated Transport System with Department of Transportation and Communications (DOTC):• Support for access to major airports and RORO ports is included in the DPWH FY 2012 Budget

Flood Management Program with Metropolitan Manila Development Authority (MMDA): • Coordinate f lood control measures and needed infrastructure in f lood prone areas of Metro Manila

Community Based Employment Program with Department of Social Welfare and Development (DSWD): • Prioritize CCT Beneficiaries for Labor Employment on DPWH projects

Peace and Prosperity Program with 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 Communications•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 f inancing 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 Tabaco


4444

PPP Projects for 2012 Rollout

Operation and Maintenance of the Puerto Princesa Airport (Department of Transportation and Communications)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)

Est. Project Cost

(PhP Millions)

TBD

PPP for School Infrastructure (Department of Education)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.

10,500.00

Vaccine Self-Sufficiency Project (Phase II) (Department of Health) 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

453.00

Modernization of the Philippine Orthopedic Center (Department of Health) 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

TBD

NLEX-SLEX Connector (Department of Public Works and Highways) 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

20,181.00

LRT Line 2 East Extension and Operation & Maintenance Privatization (Department of Transportation and Communications) 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.

11,900.00

Total 43,034.00

Source: Public-Private Partnerships (PPP) Center

Participating in the Philippine PPP Program allows investors to do business in a stab le economic environment bolstered by sound and consistent policies and processes as well as an improved governance that has reduced the time and cost of doing business.


4545

PPP Projects for 2012 Rollout

Grains Central Project (Department of Agriculture) 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

Est. Project Cost

(PhP Millions)

1,250.00

Operation and Maintenance of the Laguindingan Airport (Department of Transportation and Communications) The project will involve the operation and maintenance of the newly constructed international-standard airport in Laguindingan, Misamis Oriental

1,800.00

New Bohol (Panglao) Airport (Department of Transportation and Communications) The project will involve the construction of an international-standard airport to replace the existing Tagbilaran Airport within a 230-hectare spread

8,000.00

Mactan Cebu International Airport Passenger Terminal Building (Department of Transportation and Communications) 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.

10,150.00

CALA Expressway (Cavite & Laguna Side) (Department of Public Works and Highways) 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

19,690.00

Automatic Fare Collection System (Department of Transportation and Communications) 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

1,800.00

New Water Supply Source Project (Metropolitan Waterworks & Sewerage System) 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

25,000.00

Total 67,690.00



4646

17 PPP Projects for 2012 Rollout

Operation & Maintenance of Angat Hydro Electric Power Plant (AHEPP) Auxiliary Turbines 4& 5 (Metropolitan Waterworks & Sewerage 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

Est. Project Cost

(PhP Millions)

1,600.00

Balara Water Hub (Metropolitan Waterworks & Sewerage System)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.

20,000.00

LRT Line 1 South Extension (Department of Transportation and Communications) 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.

59,200.00

Establishment of Cold Chain Systems Covering Strategic Areas in the Philippines (Department of Agriculture) 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

5,300.00

Total 86,100.00

Overall Total of 15 projects 196,824.00



4747

Ferdinand K. ConstantinoSenior Vice President/CFO and TreasurerSan 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 PresidentofAnchor 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.

4848

Maulik ParekhPresident and CEOSPi Global

Mr. 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 largestFilipino-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 developmentof 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 company's 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 company'soffshoring 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 GujaratUniversity, India.

4949

Aileen C. ClementePresidentPhilippine Travel Agencies Association and Rajah Travel Corporation

Ms. 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 manpowercomplementofover 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 Travel 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 TTGAsia magazine and Travel Update.

5050

Stephen P. GroffVice PresidentAsian Development Bank

Stephen 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 about700 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 OECD's envoy to the G20 Working Group on Development and was a member of the World Economic Forum's 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 ofadvisoryboards 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.

5151

John Eric T. FranciaManaging DirectorAyala Corporation

Mr. 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.

5252

Lance Y. GokongweiPresident and Chief Operating OfficerJGSummit Holdings, Inc.

Mr. Lance Y. Gokongwei is the President and Chief Operating Officer of JG Summit Holdings, Inc. (JGSHI). He also holds severalpositions 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 DeputyChiefExecutive 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.

5353

Nicolaas K. De LangeVice President and Corporate SecretaryChamber of Furniture Industries of the Philippines

Mr. 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 oversees 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 ofArts in InterdisciplinaryStudies from the Ateneo de Manila University.

5454

Eduardo V. FranciscoPresident/DirectorManagement Association of the Philippines

and BDO Capital & Investment Corporation

Eduardo 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 Advisory 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 ofBusiness Administration.

5555

Amando M. Tetangco, Jr.BSP Governor and Chairman of the Monetary BoardBangko Sentral ng Pilipinas

Mr. 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 Governor 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 DevelopmentBank (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 atdifferent institutions including the Harvard Business School.

5656

Cesar V.PurisimaSecretaryDepartment of Finance

Mr. Cesar V. Purisima was appointed as Finance Secretary by President Benigno Aquino III in July 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 over 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.

5757

CayetanoW. Paderanga, Jr.SecretaryNational Economic and Development Authority

Mr. Cayetano 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 Cabinetofficial.

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.

5858

Florencio B. AbadSecretaryDepartment of Budget and Management

Mr. 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 managementconsultant to different local and foreign foundations.

5959

Gregory L. DomingoSecretaryDepartment of Trade and Industry

Mr. Gregory L. Domingo was appointed as Trade and Industry Secretary by 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 inManagementEngineering at the Ateneo de Manila Universityin 1976.

6060

Rogelio L. SingsonSecretaryDepartment of Public Works and Highways

Mr. Rogelio L. Singson, in leading the State's 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 Maynilad 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 PointDevelopmentCorporation.

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 Master's 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.

6161

Jose Rene D. AlmendrasSecretaryDepartment of Energy

Mr. Jose Rene D. Almendras is the Secretary of the Department of Energy (DOE). Under his leadership, the DOE was ranked bythe Management Association of the Philippines as one of the Top 10 Performers, out of 50 government agencies, in a survey ongovernmentperformance 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 ExecutiveBoard of the International Energy Forum (IEF) at the 4th Asian Energy Ministerial Roundtable on “Sustainable Growth and EnergyIndependence” held in Kuwait.

Mr. Almendras assumed significant leadership roles in the top corporations in the country. He was previously President of ManilaWater Company where he was instrumental in the expansion and growth of the company including the recognition it earned hereand abroad; to name a few - Best Managed Companies in Asia, the Best in Corporate Governance, one of the GreenestCompanies in the Philippines and most recently, hailed as the world’s MostEfficientWater Company.

He started his corporate career at Citytrust Trust Banking Corporation and later moved to Citibank as Account Management GroupHead 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 Savings Bank, and was appointed CEO of Cebu Holdings Inc. and Cebu PropertyVentures and Development Corporation and later assumed the role of Business Group Head for VISMIN (Ayala Land) andconcurrentlyOperations Transformation Group Head ofAyala Land.

Mr. Almendras is an acknowledged international resource person on Sustainable Development and leadership as evidenced by thelong list of international speaking engagements in Asia, Europe, and the US. He is a staunch sustainability advocate and a leaderin doing business at the base of the pyramid, as well as ensuring the triple bottom line of financial profits, social impact, andenvironmental protection.

6262

ProcesoJ. AlcalaSecretaryDepartment of Agriculture

A civil 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 (RA 2718), and co-authored the Climate Change Act (RA 9729) and the Expanded Senior Citizens Act (RA 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 DA, 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 thatSecretaryAlcala 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 ofCivil Engineers.

6363

Rene K. LimcaocoUndersecretaryDepartment of Transportation and Communications

Mr. 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 ofLaw and The Economics ofAntitrustLaw.

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 AnalystatSKR 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 atStanford Universityin 1986.

6464

Guillermo M. LuzPrivate Sector Co-ChairmanNational Competitiveness Council

Guillermo 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 2011

He 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. Luz 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.

6565

Claro P. FernandezExecutive DirectorInvestor 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 graduatedwith a BA Communications degree in 1985.

6666

Ten Years of Commitment to the Investor Community

The effective implementation of the Government’s economic program and itssuccess depends on regular tw o-way dialogue betw een economic policymakers and the investment community.

The Investor Relations Office (IRO) w as established in July 2001 tostrengthen the country’s relations w ith investors and other stakeholders bypromoting active channels of information flow and dialogue betw eeneconomic policy makers and investors.

Based in the Philippine central bank, the Bangko Sentral ng Pilipinas (BSP),the IRO has a dedicated staff comprised of trained economists andcommunication specialists w ho w ork w ith colleagues in the BSP and theeconomic agencies to implement a w ide-ranging program of investor relationsactivities.

As the Government has implemented its economic reform program over thelast ten years, the IRO’s program of investor outreach has helped to ensurethat investor decisions benefit from a comprehensive understanding of theprogress 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 f inancial 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.

Serving Our Stakeholders in the Philippines and Internationally

The IRO provides services to a w ide range of stakeholders – theGovernment’s economic agencies, f inancial institutions, credit ratingagencies, bilateral and mult ilateral organizations, domestic andforeign investors, the diplomatic corps, business people, the mediaand the general public. All services to its stakeholders areunderpinned by a set of fundamental principles: transparency,accessibility, timeliness, consistency and feedback.

The IRO adopts a mult i-pronged approach to serving its stakeholdersthrough: Dissemination of key economic and financial information about

economic policy objectives and performance Seeking market feedback on current and proposed policy

measures Providing feedback to economic policy-makers about investor

sentiment Facilitat ing candid and constructive dialogue betw een policy-

makers and investors

INVESTOR RELATIONS OFFICEPromoting Excellence in Investor Relations. Enhancing Sovereign Value

6767

Contact InformationFor further information about the Investor Relations Office, or about the Philippine economy, please contact:Claro P. FernandezInvestor Relations Office Bangko Sentral ng PilipinasA. Mabini St. cor. P. Ocampo St.Malate Manila, Philippines 1004Tel: (632) 708-7487 / (632) 336-7124Email: [email protected]: (632) 708-7489Website: w ww.iro.ph

The IRO undertakes a range of init iatives to build aw areness among domestic and international investment audiences around the Government’seconomic reform program, promote specif ic 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 f inancial 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 andprovides users better updates on the general economy through its more personalized email function.

INVESTOR RELATIONS OFFICEPromoting the Philippine Economy at Home and Abroad

6 March 2012

Policy Agenda, Fiscal and Macroeconomic Updates

Philippine International Convention CenterPasay City, Philippines

Philippine Economic Briefing

Good Governance for a Better Tomorrow

rop presentation yeb final 3 march 2012-1

Economy & Finance