Arroyo moves to woo Singapore investors

Philippine President Gloria Macapagal Arroyo yesterday assured Singaporean investors that the Philippines will not resort to "protectionism", as this would only discourage foreign investors needed to boost the economy and generate jobs for the Filipinos.

"It would only raise costs, diminish efficiency, weaken industries, and stunt the economy's growth," Arroyo stressed in a speech at the prestigious Institute of Policy Studies in Singapore.

Arroyo, her husband First Gentleman Jose Miguel Arroyo, and her official delegation arrived at the Changi International Airport in Singapore yesterday afternoon for a three-day state visit aimed at enhancing bilateral economic and friendly relations between Manila and the Lion City.

The president arrived in Singapore from neighbouring Brunei, where she held talks with Sultan Hassanal Bolkiah on reviving a special economic zone involving regions on their maritime borders as well as with Indonesia and Malaysia.

In Brunei, Arroyo said she and Bolkiah 'emphasised the historical close fraternal ties' that have existed between the two countries and their peoples, especially since the 1984 forging of diplomatic relations between Manila and Bandar Seri Begawan.

After their meeting, Bolkiah conferred on her the title of the "Most Esteemed Family Order Laila Utama (D.K.)."

Back in Singapore, Arroyo stressed the importance of opening the Philippines' firms and industries to the 'bracing winds' of competition in the global and regional economy. "[This is] a challenge not in the sense of something hostile, but as an incentive to do better," she said.

The Arroyo administration, she said, prefers instead to give local firms the policy environment and support to become more competitive in the domestic and world market.

She said the Philippines views globalisation and integration of the Asean (Association of Southeast Asian Nations) market, primarily the Asean Free Trade Area (AFTA), as an opportunity for local products to compete in the international trade.

Singaporean President S.R. Nathan officially received Arroyo and her husband, and the rest of the Philippine delegation at the Istana Palace. Arroyo was welcomed with a red carpet and given military honours, including a 21-gun salute traditionally given to visiting head of state.

Arroyo, who went on a state visit to Malaysia last week and received Indonesian President Megawati Sukarnoputri in Manila this week, has a hectic schedule in Singapore. Arroyo also met Singaporean business leaders during a dinner conducted by the Singapore Business Council (Trade Development Board).

Today Arroyo is set to visit the Nan Yang Polytechnic (NYP) technical school and will tour its facilities. She is also expected to witness the signing of a Memorandum of Understanding (MOU) between Clark Development Corp. and NYP.

Established in April 1992, the NYP is tasked to provide quality education and training for graduates to support the industrial, and economic and social development of Singapore. Then she will proceed to the Housing Development Board (HDB) headquarters to learn about the city-state's housing development programme.

Today, Arroyo will meet with Singapore Prime Minister Goh Chok Tong and influential Senior Minister Lee Kuan Yew, and address a business forum. She will witness the signing of 12 memoranda of understanding, including one in which Singapore would help set up an information technology centre in Manila.

Another key agreement involves a "twinning" tourism arrangement in which Singapore will help promote the Philippines both locally and abroad as a tourism site. This would involve allowing a larger seating capacity for Manila-Singapore flights.

Transportation Secretary Pantaleon Alvarez said the Philippines and Singapore would sign new air rights agreements that will allow another airline aside from national flag carrier Philippine Airlines to fly the Manila-Singapore route.

Tomorrow, Arroyo will inaugurate a centre to upgrade the skills of more than 100,000 Filipino workers in Singapore to prepare them for eventual reintegration into the workforce when they return.