Republic of the Philippines. Investor Presentation October 2017

Transcription

1 Republic of the Philippines Investor Presentation October

2 Table of Contents Strengthening Credit Profile...3 Favorable Macroeconomic Trends...5 Healthy External Position...12 Sound and Stable Financial System...18 Sound and Strengthening Government Finances...20 Infrastructure Development...29 Investor Relations Office Brochure 32 2

3 Strengthening Credit Profile

4 Sustained Strengthening of the Philippines Credit Profile Metric 2013 * Credit Ratings Fitch Moody s S&P BBB-/stable Baa3/positive BBB-/stable BBB-/stable Baa2/stable BBB/stable BBB-/positive Baa2/stable BBB/stable BBB-/positive Baa2/stable BBB/stable BBB-/positive Baa2/stable BBB/stable Real GDP Growth Rate (%) (Jan-Jun) GDP Per Capita** (USD), PPP Concept 6,546 6,952 7,333 7,886 GNI Per Capita** (USD), PPP Concept 7,953 8,425 8,870 9,408 8,302 (Annualized) 9,943 (Annualized) Inflation Rate (2006 = 100) (%) (Jan-Sep) National Government Interest Payments (as % of Revenues) (Jan-Aug) Fiscal Balance (as % of GDP) (Jan-Jun) Tax Revenue (as % of GDP) (Jan-Jun) General Government Debt (as % of GDP) NA Gross International Reserves (USD billion) (end-aug) Import Cover (months) (end-aug) Overseas Filipinos Cash Remittances (USD billion) p/ 16.1 (Jan-Jul) Foreign Direct Investments (USD billion) r/ 8.0 r/ 3.6 (Jan-Jun) Current Account (as % of GDP) r/ -0.3 r/ -0.2 (Jan-Jun) External Debt (as % of GDP) r/ 23.5 (Jan-Jun) * ROP achieved investment grade status in 2013, followed by series of upgrades from S&P, Fitch and Moody s ** At current prices p/ preliminary r/ revised NA not available Source: BSP s Selected Economic and Financial Indicators, DOF, BTr 4

5 Favorable Macroeconomic Trends

6 Philippines is Expected to Remain as One of the Fastest Growing Economies in Asia GDP growth of selected Asian economies Q1 Q2 Proj 2018Proj India (BBB-/Baa3/BBB-) Philippines (BBB/Baa2/BBB-) China (A+/A1/A+) Vietnam (BB-/B1/BB-) Indonesia (BBB-/Baa3/BBB-) Malaysia (A-/A3/A-) Thailand (BBB+/Baa1/BBB+) Rating: S&P/Moody s/fitch Source: PSA; International Monetary Fund (IMF) WEO October ; Bloomberg L.P.; BSP SPEI for Q1-Q2 GDP Growth Rates 6

7 Economic Rebalancing Towards a More Broad-Based Growth Consumption and services as major drivers of growth GDP breakdown by component Contribution to growth: demand (%) 7.0 Contribution to growth: supply side (%) H H1 Consumption Government Investment Net Exports H H1 Agriculture Industry Services 6.4 Capital formation remains strong and is an increasingly key driver of growth +2.8% -4.3% 1,217 1,165 Gross capital formation (PHP bn, constant prices) +23.7% +18.4% 2, % +4.2% 1,490 1,553 1, % 1, ,197.3 H1 H GDP breakdown by expenditure (%) H H1 Construction Durable Equipment Others Source: PSA Note: Numbers may not add up due to rounding Household Expenditure Capital Formation Government Spending Net Exports 7

8 Rising Investments Highlight Confidence in Philippine Growth Prospects Sustained inflows from both foreign and local investors and bright prospects highlight confidence in ROP s fundamentals Net Foreign Direct Investment (FDI) Flows* (USD bn) Jan-Jun Average Growth of FDI, (%)* TH TW PH VN IN SG ID CH MY KR Mining and Quarrying 4% Wholesale and Retail Trade 6% Real Estate 9% Water Supply, Sewerage, and Waste Management 14% Arts, Enternainment and Recreation 11% Increasing FDIs in manufacturing Average Percent Share by Industry, Construction 2% Others 4% Manufacturing 37% Finance and Insurance 13% ROP is in the top 15 investment destinations of choice by multinationals for based on UNCTAD s World Investment Report. Investment Climate Statements of the US State Department s Bureau of Economic and Business Affairs cites ROP s increased attractiveness as FDI destination Source: PSA, NEDA, BSP, UNCTAD, Bloomberg; * BOP Concept 8

9 Economy Performed Well in 2016; Growth Momentum Expected to Continue in the Medium-term Incremental Capital-Output Ratio Total Factor Productivity Q Q2 Source: BSP Staff estimates 9

10 Sustained Low Inflation Environment Inflation remains manageable demonstrating monetary policy credibility 8.3 Headline CPI (yoy, %) Jan-Sep '17 Source: BSP; PSA Inflation Target Band Headline CPI Inflation condition supportive of growth GDP, CPI volatility (20Y Standard Deviation, F) Poland Colombia Philippines Uruguay Mexico Spain Thailand Peru Panama Kazakhstan Iceland CPI volatility GDP volatility Source: IMF World Economic Outlook, April 10

11 ROP Expects Continued Robust Growth in the Medium-Term The Philippine economy is now growing on higher growth plane with increasing contribution from the manufacturing sector along with robust infrastructure investment, and solid services sector 2015 Actual 2016 Actual 2018 Projections /3 Real GDP Growth (%) 6.1 r/ 6.9 r/ Dubai Crude Oil (USD/bbl) Inflation (%, average) 1/ Exchange Rate (PHP/USD) Balance of Payments (USD, bn) / NA Current Account (USD, bn) r/ / NA OF Cash Remittances (USD, bn) / NA Merchandise Exports (% growth) Per BPM6 Per PSA Merchandise Imports (% growth) Per BPM6 Per PSA r/ 5.0 2/ r/ 7.0 3/ r/ / r/ / 11.0 Gross International Reserves (USD, bn) / NA Sources: PSA, BSP, Bloomberg 1/ Inflation target range for / Assumption approved by the MB May 18, 3/ Assumption adopted by the DBCC June 9, 2016 a/ Based on Balance of Payments and International Investment Position Manual, 6th Ed. (BPM6) NA: Not Available p/: preliminary 11

12 Healthy External Position

13 Healthy External Finances Shield the Economy from External Shocks Reserve buffer provides protection against external payments shocks FX reserves (USD bn) and months of import cover while helping smoothen volatility in the foreign exchange market by enabling the necessary adjustments in a continued volatile global environment Implied Volatility (YOY %, as of September 29, ) Aug FX reserves Import cover Thai Baht Chinese Renminbi Philippine Peso Malaysian Ringgit Indonesia Rupiah Japanese Yen Korean Won Sustained decline in external debt-to-gdp ratio underscores the health of external finances External debt (USD bn) and external debt/gdp (%) end-q2 External Debt External Debt Ratio Source: BSP, Bloomberg 13

14 Structural and Sticky Current Account Flows Business Process Outsourcing (BPO) and increasingly tourism sector act as additional, strong economic engines, helping ensure resiliency of ROP s external payments position against external stresses BPO a strong driver of employment and revenues 527 BPO employment ( 000s) and revenues (USD bn) % revenue growth in ,146 1, E P 2022P Revenues 858 Employment 958 1,250 1,800 Sustained growth of remittances over the years Rising tourism receipts provide key support to the current account Overseas Filipinos' cash remittances (USD bn) International visitor receipts (USD bn) and arrivals (mn) % growth in % YOY growth % growth in arrivals in Jan-Jul 2016 Sources: BSP, IBPAP Jan-Jul P Arrivals Receipts 14

15 Current Account Developments Consistent with Economic Expansion Philippine economy s expansion remains at an accelerated pace resulting in high rate of growth of goods imports Over time, as investments enhance the economy s potential capacity and support needed infrastructure development, goods exports are expected to increase, eventually alleviating the trade gap Current Account Drivers of Goods Imports Growth, Q Q2 Current Account components, Q Q2 (USD bn) In percentage points Goods Exports (lhs) Goods Imports (lhs) BPO receipts (lhs) Other imports Consumer durables (cars, appliances, etc.) Consumer non-durables Other raw mats. & intermediate goods OF remittances (lhs) Current Account Balance (rhs) 50.0 Mat/Acc. for mftr. of elec. eqpt. Iron & steel Chemicals Mineral fuels & lubricant Capital goods Total Imports Growth (10.0) (20.0) (4.5) (1.4) (1.2) Jan-Jun (30.0) Q Q Q Q Q Q Q Q Q1 Q2 Source: BSP, PSA 15

16 r r Strong fundamentals and adequate reserves lend support to Peso Year-on-year movements show depreciation of other regional currencies Year-on-year appreciation (+)/ Depreciation (-) of Asian Currencies vs. USD (%), 03 Oct vs. 03 Oct 2016 Japanese Yen Philippine Peso Indonesian Rupiah Malaysian Ringgit Chinese Yuan South Korean Won Singaporean Dollar Indian Rupee New Taiwan Dollar Thai Baht Flexible and competitive peso Peso per USD Rate, NEER (1980=100) and REER (1980=100) Jan Aug Note: Based on last done deal transaction (closing price) 0.0 Overall Trading Partners Advance Trading Partners Source: BSP Developing Trading Partners 16

17 Peso to Remain Driven by Fundamentals Recent depreciation of the peso remains fundamental-driven, reflecting robust economic growth on the back of strong imports, increasing investments abroad and debt prepayment of residents The peso is expected to be broadly stable supported by structural foreign exchange inflows from overseas remittances, BPO revenues, tourism receipts, sustained FDIs, as well as the country s robust external payments position Source: BSP 17

18 Sound and Stable Financial System

19 Sound Banking System Effectively Funds Productive Sectors Solid Asset Growth Improved Quality of Loan Portfolio 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Total Asset and Deposit Levels (PHP bn) +14.7% YOY growth in deposits 13,591 14,248 10,507 11,093 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Total Loan Portfolio (PHP bn) and NPL coverage ratio (%) , , Jul-17 Assets (in PHP bn) Deposits (in PHP bn) Jul- Loans outstanding (in PHP bn, LHS) NPL, Gross ratio Sustained Profitability Strong capitalization well above international norms Net Profit and ROE Note: Except otherwise indicated, statistics refers to Philippine Banking System * UK/Bs Universal and Commercial Bank Source: BSP Jun-17 Annualized Net Profit (in PHP bn, LHS) ROE (in %, RHS) Capital adequacy ratio (%) of U/KBs * BSP Regulatory Requirement: 10% International Standard: 8% Mar Solo basis Consolidated basis 19

20 Sound and Strengthening Government Finances

21 Sustainable Sound Fiscal Position Reforms in tax administration contributing to stronger revenue effort in 1H Jan-Jul PHP bn Jan-Jul 2016 National Government Fiscal Performance Jan-Jul YoY Growth (%) Actual Jan-Jun % of GDP PHP bn FY2016 % of GDP FY Adjusted 1 FY PHP bn % of GDP PHP bn Total Revenues 1, , , , , Tax Revenues 1, , , , , % of GDP Bureau of Internal Revenues , ,782.8 n.a. 2,005.0 n.a. Bureau of Customs n.a n.a. Non-Tax Revenues (7.9) Bureau of the Treasury (15.9) n.a. n.a. n.a. n.a. Privatization (48.8) Expenditure 1, , , , , Surplus/(Deficit) (205.0) (171.0) 19.9 (2.1) (353.4) (2.4) (482.1) (3.0) (3.0) Primary Surplus/(Deficit) (8.8) (49.0) (0.3) n.a. n.a. n.a. n.a Note: Some values may not sum up to exact figure due to rounding 1 Medium Term Fiscal program, Development Budget Coordination Committee (DBCC) approved on June 9, 2 Budget of Expenditures and Sources of Financing FY 2018 submitted to Congress on July 24, n.a. not available Source: DOF, Budget of Expenditures and Sources of Financing (BESF) Department of Budget and Management (DBM) 21

22 Sustained Sound Fiscal Position Manageable Fiscal Deficits National Government (NG) Revenue, Expenditure and Deficit (% of GDP), General Government Revenue (% of GDP) Jan-Jun NG Revenues/GDP NG Expenditures/GDP NG Deficit/GDP Gen. Gov. Revenues/GDP Healthy fiscal position despite acceleration of government spending NG Primary Balance (% of GDP) *as of end-sep 2016 Sources: DOF, BTr Jan-Jun Primary Balance/GDP Steady decline in debt/gdp ratio NG Debt and GG Debt as % of GDP End-Jun National Gov't Debt General Gov't Debt 22

23 Ensuring Long-Term Fiscal Sustainability Administrative measures to complement proposed legislative fiscal reforms to ensure healthy fiscal position. Revenue impact from administrative measures is estimated to reach PHP102.2bn by 2019 Tax effort is back on a higher trajectory NG Tax Revenue (% of GDP) Jan-Jun Rigorous tax administration continues to yield positive results NG Revenue (% of GDP), BIR and BOC Revenue (PHP bn) Jan-Jun BIR Revenues BOC Revenues Revenue-to-GDP Jan-July Sources: Department of Finance (DOF), Bureau of the Treasury (BTr) 23

24 and 2018 Budget: A Budget for Real Change Focus on Social Services to empower human capital development 2018 Proposed Budget and GAA by Sector, PHP bn and % Share Infrastructure and Other Capital Outlays get a big allocation National Budget by Expense Class, PHP bn and % Share Department 2018 Proposed Budget Allocation to LGUs* PHP558.6bn, 16.7% Personnel Services Support to GOCCs PHP990.5bn, 29.6% Economic Services 1, PHP138.2bn, 4.1% General Public PHP3,350bn Services Infrastructure Debt Burden and other Capital Maintenance Defense Outlays 1 Expenditures PHP773.3bn, 23.1% Total 3, , PHP537.9bn, 16.1% Debt Burden *Includes other transfers to LGUs Note: Rounding off may not add up to total PHP351.6bn, 10.5% General Appropriations Act PHP3.35tn budget for is higher by 11.6% than the PHP3.002tn budget for It is equivalent to 21% of GDP Strictly compliant with the Supreme Court decision on the Disbursement Acceleration Program (DAP) and the Priority Development Assistance Fund (PDAF) Measures to address underspending and increase absorptive capacity of agencies 24 hours/7 days a week construction work for major public infrastructure projects in urban areas Strengthen project monitoring by geo-tagging projects Streamline and accelerate the approval process of major public infrastructure projects Simplify the Implementing Rules and Regulations (IRRs) of the Government Procurement Reform Act Roll out Program Expenditure Classification(PREXC) to restructure agency budget by grouping all recurring projects under key strategies set at agency level or major final outputs to clearly monitor public funds Proposed Budget Reform Bill to institutionalize budget data disclosure, civil society participation in budgeting and all the requirements of a modern budget system 2018 Proposed National Budget PHP3.8tn proposed budget for 2018 is 12.4% higher than s budget and is equivalent to 21.6% of GDP Government agencies implementing investments in education and infrastructure development will get the biggest allocations at estimated amounts of PHP691.1bn and PHP717.1bn, respectively Following early approval by the House of Representatives, the Senate Committee on Ways and Means has issued its report on the 2018 budget; the budget is due to be deliberated by the Senate on second reading Source: DBM 1 Excludes subsidy to GOCCs, LGU Infra Transfer intended for infra projects GAA Share to Total Budget (%) Social Services 1, ,

25 and 2018 Budget: A Budget for Real Change Spending priorities on infrastructure and human capital development Select Public Infrastructure Items Adjusted (PHP bn) 2018 Proposed (PHP bn) Road Networks Flood Control Systems Irrigation Systems Seaport Systems Airport Systems Railways Total infrastructure spending is programmed to reach PHP858.1bn* 1 and PHP1,097.5bn in and 2018, respectively Infrastructure development in key regional areas is expected to bring these communities to the mainstream of growth and to maximize connectivity of sustainable urban and rural communities Infrastructure Spending Priorities o/w: Department of Public Works and Highways (DPWH) 2018 Proposed Budget GAA (PHP bn) Share of Total Budget (%) Department of Transportation (DOTr) Education o/w: Department of Education (DepEd) State Universities and Colleges Commission on Higher Education Technical Education & Skills Dev t. Authority Healthcare o/w: Department of Health (DOH) Social Protection Services o/w: Department of Social Welfare and Dev t Source: DBM *Adjusted level of infrastructure outlays based on Budget of Expenditure and Sources of Financing (BESF) 2018 and includes other infrastructure lodged in other agencies 1 Infrastructure expenditure of the National Government, inclusive of infrastructure subsidies to Government Corporations and infra transfers to Local Government Units 25

26 National Government Financing Strong bias for domestic sources of financing to minimize FX risks Strategic Financing Program Particulars (in millions PHP) Actual 2015 Actual 2016 Program Emerging Program 2018 NET FINANCING 242, , , , ,274 External (Net) 64,782-24,113 43,170 43, ,346 External (Gross) 189, , , , ,269 Less: Amortization 124, , , ,609 61,923 Domestic (Net) 178, , , , ,928 Domestic (Gross) 420, , , , ,958 Treasury Bills -17,303 23,501 54,969 51,285 71,958 Fixed Rate T Bonds 437, , , , ,000 Less: Net Amortization 242,003 2,445 3,359 3,359 5,030 Gross Borrowing 609, , , , ,227 Total Amortization 366, , , ,968 66,953 Financing Mix (Domestic : External) 69:31 71:29 80:20 74:26 80:20 Source: Budget of Expenditures and Sources of Financing (BESF) FY 2018, Bureau of the Treasury, Department of Budget and Management 26

27 Fiscal Deficit is Increasingly being Funded from Domestic Sources Steady decline in the Republic s interest service burden Interest payments / NG revenue (%) and Interest payments / NG expenditure (%) Ample domestic liquidity allows ROP to source majority of its financing needs from domestic market minimizing FX risks Total debt breakdown (%) Jan-Aug Jan-Aug 2016 Interest Payments/Revenue End- Interest Payments/Expenditure Jun External Domestic Long-dated debt profile reduces refinancing risk Domestic debt breakdown (%) External debt breakdown (%) End-Jun Long-term: >10yrs Medium-term: 1yr to 10yr Short-term: <1yr Unless otherwise stated, graphs pertain to National Government (NG) debt Sources: BTr, DOF End-Jun Long-term: >10yrs Medium-term: 1yr to 10yr Short-term: <1yr 27

28 Fairer, Simpler and More Efficient Tax System Proposed tax reform packages to broaden the tax base, generate revenues and fund investments Priority Legislative Measures The Comprehensive Tax Reform Package (CTRP) aims for a simpler, more equitable and efficient tax system with a goal of lowering the tax rate and at the same time broadening the tax base, resulting to net positive gains in government revenues Lower personal income and corporate tax rate to be competitive with the region to boost spending power of wage earners and encourage more investments Update: House Bill No for Package 1 of CTRP or the Tax Reform for Acceleration and Inclusion Act (TRAIN) was approved by the House of Representatives on May 31, ; Senate Bill No or TRAIN is now pending in Senate for second reading Package 1: Tax Reform for Acceleration and Inclusion Act, House Bill 5636 Revenue impact of HB 5636 with complementary measures 2018 PHP133.8bn 2019 PHP233.6bn 2020 PHP272.9bn 2021 PHP253.0bn 2022 PHP269.9bn Salient features: Lowering of Personal income tax (PIT) rates except for those belonging in the highest income brackets but indexed to cumulative Consumer Price Index (CPI) every three years; A flat rate of 6% for the estate and donor s taxes; Broadening the tax base by removing special laws on VAT exemptions but retaining exemptions for senior citizens and persons with disabilities; Staggered excise tax increase for petroleum products from 2018 to 2020 but with no indexation to inflation, and liquefied petroleum gas (LPG) used as feedstock to be exempted from the hike; A five-bracket excise tax structure for automobiles with a two-year phase-in period for the tax increases; Excise tax of PHP10 per liter on sugar sweetened beverages; Earmarking of the proceeds from the fuel excise tax increase for social protection programs Tax administration reforms such as the fuel marking and monitoring system to curb oil smuggling, the use of electronic receipts, and the mandatory connection of the point-of-sale (POS) system of all establishments to the BIR, and the relaxation of bank secrecy laws for investigating and combating tax fraud Complementary measures are motor vehicle user s charge and proposed estate tax amnesty Other Tax Reforms in the Pipeline: Corporate income tax (CIT) - reduce CIT rate to 25% from 30% and rationalize fiscal incentives to be more transparent, targeted, performance-based, and time-bound sunset provisions to existing incentives Capital income tax - harmonize capital income tax rates for dollar deposits and investment, dividends, equity, fixed income Property tax harmonize tax on land valuation Health, environment and luxury tax introduce new tax and amend current tax 28

29 Infrastructure Development

30 Spending Big on Public Infrastructure to Improve Competitiveness Massive Infrastructure Investment The government plans to ramp up infrastructure investments to reach PHP8-9tn (or USD160bn to USD170bn) in the next 5 years Infrastructure investment is projected to reach 7.3% of GDP by 2022 A quarter of the national budget or PHP858.1bn*, equivalent to 5.4%* of GDP has been allocated to jump start the infrastructure buildup Infrastructure Spending Targets for -2022** Years P 2018P 2019P 2020P 2021P 2022P Infrastructure Spending (in PHP bn) 858.1* 1, , , , ,840.2 As % of GDP 5.4%* 6.3% 6.8% 6.9% 6.9% 7.3% Note: Medium Term Fiscal Program FY (June 9, ) *Adjusted level of infrastructure outlays based on Budget of Expenditure and Sources of Financing (BESF) Refers to the infrastructure expenditure of the National Government inclusive of infrastructure subsidies to Government Corporations and infrastructure transfers to Local Government Units **Refers to the infrastructure expenditure of the National Government inclusive of infrastructure subsidies to Government Corporations and infrastructure transfers to Local Government Units In terms of Effect on Gross Value Added Construction Household Sector Wholesale and retail trade Food manufactures Crude oil, natural gas and condensate Basic metal industries Petroleum and other fuel products Chemical and chemical products Non-metallic mineral products Electricity Source: NEDA Top 10 Industries/Sectors that will likely benefit from the accelerated infrastructure spending In terms of Jobs Created Construction Wholesale and retail trade Wood, bamboo, cane and rattan articles Forestry Fabricated metal products Stone quarrying, clay and sandpits Land transport Non-metallic mineral products Gold mining Renting and other business activities Year Estimated Impact of Public Infrastructure Spending Additional GVA (% of GDP) Additional Employment (Number of Persons) , , ,115, ,228, ,399, ,705,021 Annual Average 3.4 1,063,328 Notes: The simulation was based on the 2006 IO semiclosed global model; Impacts are maximum average per year; GVA and household income are nominal values; and PHP tn is based on the government s commitment as released to the public at 30

31 Spending Big on Public Infrastructure Rapid administrative response for infrastructure development High impact projects envisioned to increase the economy s productive capacity, create jobs, increase incomes, and strengthen the investment climate make up the boldest and most ambitious infrastructure development plan for the Philippines worth at least USD79.7bn* The NEDA Board, which is chaired by the President, has approved 30 infrastructure programs and projects as of September * 18 airport projects USD4,641.0mn 13 railway projects USD49,273.6mn 6 mass transit projects USD1,771.5mn 7 seaport/fish port projects USD1,239.9mn 45 major projects on roads and bridges USD14,478.0mn 8 flood control project USD2,224.4mn 12 irrigation/ water resource projects USD1,568.8mn 7 projects for new cities USD4,481.6mn 5 Other projects USD60.3mn *Includes 75 Infrastructure Flagship Projects and other infrastructure projects listed in the Build Build Build Portal; Excludes DOTr s Maritime Safety Capability Project; 24 projects without estimated cost yet Source links: NEDA Board Approved Projects (Duterte Administration), Infrastructure Flagship Projects, NEDA ODA Pipeline of Programs and Projects as of June 30, 31

32 Investor Relations Office

33 Investor Relations Office Promoting excellence in investor relations. Enhancing sovereign value Strengthening the Investor Community 16 Years and Beyond The effective implementation of the Government s economic program and its success depends on regular two-way dialogue between economic policy makers and the investment community. The Investor Relations Office (IRO) was established in July 2001 to strengthen the country s relations with investors and other stakeholders by promoting active channels of information flow and dialogue between economic 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 and communication specialists who work with colleagues in the BSP and the economic agencies to implement a wide-ranging program of investor relations activities. As the Government has implemented its economic reform program over the years, the IRO s program of investor outreach has helped to ensure that investor decisions benefit from a comprehensive understanding of the progress in reforms and what they mean for the economic fundamentals of the Philippines. In turn, the Government s economic reform program has made the economy relatively more resilient amid the global financial and economic crisis. With stable macroeconomic fundamentals, the Philippines remains as one of the most viable economies for investments in the emerging market. The IRO is proud to have played a role in communicating the successes of the Government s reform program in the last sixteen years and is committed to continuing its efforts to promote the Philippine economy. Serving Philippine and International Stakeholders The IRO provides services to a wide range of stakeholders the Government s economic agencies, financial institutions, credit rating agencies, bilateral and multilateral organizations, domestic and foreign investors, the diplomatic corps, business people, the media and the general public. All services to its stakeholders are underpinned by a set of fundamental principles: transparency, accessibility, timeliness, consistency and feedback. The IRO adopts a multi-pronged approach to serving its stakeholders through: 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 Facilitating candid and constructive dialogue between policy-makers and investors 33

34 Investor Relations Office Promoting the Philippine economy at home and abroad The IRO undertakes a range of initiatives to build awareness among domestic and international investment audiences around the Government s economic reform program, promote specific investment opportunities in the Philippines and facilitate information exchange and dialogue between key economic 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 Roadshows to bring the Government s resilient economic performance record, commitment to sound economic management and responsible reform to members of the international financial community Media Briefings to raise awareness 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 service to keep investors and other investors abreast of data releases on a regular basis An English Language website, to provide a wide range of easily accessible information about the Philippines economic performance and the government s economic policies Contact Information For further information about the Investor Relations Office, or about the Philippine economy, please contact: Editha L. Martin Investor Relations Office Bangko Sentral ng Pilipinas Governor Nestor Espenilla, Jr. Finance Secretary Carlos Dominguez Economic Planning Secretary Ernesto Pernia Budget and Management Secretary Benjamin Diokno Transportation Secretary Arthur Tugade Trade and Industry Secretary Ramon Lopez Bangko Sentral ng Pilipinas A. Mabini St. cor. P. Ocampo St. Malate Manila, Philippines 1004 Tel: (632) / (632) emartin@bsp.gov.ph Fax: (632) Website: Tourism Secretary Wanda Teo Agriculture Secretary Emmanuel Piñol Energy Secretary Alfonso Cusi Public Works and Highways Secretary Mark Villar 34

35 Republic of the Philippines Investor Presentation October