On behalf of the Government and people of the Republic of Singapore, it is my pleasure to formally welcome you and your distinguished delegation to Singapore. We are honoured that you have chosen to make Singapore the first country to visit since your inauguration as the 13^th President of the Republic of the Philippines on 30 June 1998. It is an affirmation of the friendship between our two countries and peoples.

We were all impressed, Mr President, by the magnitude of your presidential victory last May. You garnered the biggest margin of victory in a presidential election in Philippine history. It is a strong indicator of your popularity and that your nation-wide victory transcended ethnic, linguistic and regional biases. May I once again, on behalf of the Government and people of Singapore, congratulate you on your victory.

The Philippines has made impressive economic advancement over the last few years because of prudent policies and political stability. Investors from both the region and the rest of the world regard your country as an attractive place to do business. All Filipinos can be rightfully proud of these developments.

Mr President, you have a very strong mandate to implement the necessary policies to meet the difficulties ahead and build on past achievements. You have set for your new Administration some priority tasks such as ensuring food security, strengthening the peace and order situation, wiping out graft and corruption, creating jobs and continuing with policies of liberalization, deregulation and privatization. These, when implemented, will, I am confident, ensure your country�s long term well being and economic prosperity.

Mr President, Singapore-Philippines relations have continued to strengthen in recent years. I am pleased to note that the regional economic crisis has not dampened our bilateral trade. It grew 41.1% in 1997 to reach S$7.34 billion. The trend continues to be positive in 1998. In the first eight months of this year, bilateral trade grew 14.5% compared
to the same period in 1997. Similarly, the flow of Singapore investments into the Philippines has increased. In 1997, Singapore investments totalled US$72 million. In the first six months of this year, Singapore investments surged to US$1.6 billion. For 1998, Singapore is the second largest foreign investor within the Philippines Economic Zone Authority (PEZA). These figures are proof that the attractiveness of the Philippines to Singaporean investors has not waned. I am sure that the impressive business delegation you have brought with you will have fruitful meetings with their Singapore counterparts resulting in more business linkages.

Contacts between our two peoples also continue to expand rapidly. As you know, there is a large Filipino community working and living here in Singapore. We appreciate their presence here and value their contributions to Singapore. I understand that the Singapore community in the Philippines, a small but growing number, is also doing its part in your country to increase knowledge of Singapore and our way of life.

The last two years have also seen many exchanges of visits both at the official and unofficial levels. There have been ministerial visits on both sides. Prominent personalities from your private sector and from Congress visited Singapore as well. In education, many Filipinos have taken up scholarships to study in Singapore. In the arts and cultural sphere, the world famous Bayanihan Dance Company performed recently to enthusiastic crowds here. For our part, the Singapore Youth Choir and the Singapore Dance Theatre performed to appreciative audiences in Manila. These people-to-people exchanges are valuable and should continue as they lead to a much better understanding of each other, our concerns, aspirations and sensitivities.

Mr President, your visit to Singapore is taking place amidst dramatic developments that have unfolded in our region over the last year. The crippling financial crisis afflicting the region has resulted in economic, social and political chaos in some countries. The economic slowdown and loss of business confidence in the region have sharpened competition for reduced investments. The challenge is how to ensure that regional cohesion and co-operation are not undermined and that the pace of regional economic integration and liberalisation are maintained within the framework of the ASEAN Free Trade Area and APEC.

In this regard, co-operation between Singapore and the Philippines will serve as a good example of a resilient partnership between fellow ASEAN members in times of economic adversity. Both our countries should exchange views and consult closely on the regional crisis. We should work together to encourage the continuation of free-market policies that have served us well. We need to underscore to foreign investors the region's sound economic fundamentals and work together in regional fora like ASEAN and APEC to ensure that the momentum towards economic liberalisation does not weaken. There is no turning back. Our region will be worse off if member countries opt out of the global economy through self-imposed restrictive measures.

Excellencies, ladies and gentlemen, I now invite you to join me in a toast to the good health and success of President and Mrs Estrada and to the friendship between Singapore and the Philippines.

. . . . .