“We are filled with hope as the year ends and a new year begins. Our country is stable, strong and peaceful. Our economy is vibrant, the stock market is on a bull run and investments come pouring in," President Arroyo said in a statement before a Cabinet meeting on economic development recently. ¹

These words of PGMA should be encouraging to both the local and foreign business communities. With a surge in the economy for 2007 of 7.1 %, the country has something very good to look forward to as well as the increase in Foreign Direct Investments (FDIs) of 35% over 2006.

Optimism on the country’s economy still prevailed during the year due to sustained strong economic fundamentals (such as the acceleration in GDP growth to its best record in three decades alongside the sharp slowdown in inflation, the improvement in the fiscal position and the large surplus in the balance of payments), the generally peaceful elections in May, the appreciation of the peso and strong corporate results. Several large initial and follow-on offerings at the stock market also attracted foreign investors.

These positive developments in the domestic economy were, however, partly negated by a number of challenges on the external front such as the huge global equities sell-offs triggered by losses in the China and US stock markets during the first quarter of the year 2007, the widening global credit crunch sparked by the sub prime mortgage crisis in the US, soaring oil prices, and the slowing US economy. ² There are mixed emotions on what is yet to come for 2008 due to the possibility of a recession in the United States which may affect the Philippine economy.

1     Philippine President Upbeat on Economic Outlook for 2008 - 27 December AP, www.biz.yahoo.com

2     BSP - Investors Relations Office - 10 January 2008

In 2007, ANZCHAM has been very active in advocating with the Joint Foreign Chambers on protecting the rights of both the local and foreign businesses in the Philippines. Some of the issues that we have addressed for the past year and will continue to push forward for 2008 are the legislative agendas on bills and laws to be passed that will affect doing business in the Philippines. As a chamber of commerce in the Philippines, ANZCHAM will continue to assist the Australian and New Zealand businesses in doing business in the country.

Should the membership have any concerns that are or will affect their businesses, we encourage members to contact the ANZCHAM board of directors or secretariat on how we may assist on these issues. We would also like to encourage members to join the chamber committees such as the National Issues and Concerns Committee, and Mining Committee. This will provide the opportunity for participation in deliberation on the issues at hand and share with other members who may have similar concerns.

For 2008, ANZCHAM has many great activities to look forward to. Firstly, the inauguration of the Australian Embassy - ANZCHAM Australia Day Celebration at the Mandarin Oriental Hotel 25 January 2008. This was a great success and we would like to thank the embassy and our sponsors for all their support in making this a great event.

As we go through 2008, I would like to encourage everyone to attend the ANZA-ANZCHAM Ball on 8 March at the Sofitel Philippine Plaza; the International Manila 10s Rugby Lunch on 4 April also at the Sofitel Philippine Plaza; the AFL Grand Final event on 27 September at the Intercontinental Manila; the ANZCHAM Annual Golf Tournament 24 October at the Orchard Golf and Country Club. In addition, we have the regular monthly meetings, economic briefings, sundowners and other events from time to time during the year. These events are a great opportunity for everyone to network and meet new people or to simply enjoy a good day out with the expat and Filipino community. You may contact the ANZCHAM secretariat or refer to the ANZCHAM website for the schedule and upcoming events of the chamber.

Farewell to Ambassador Tony Hely

On a final note, I would like to take this opportunity to express the ANZCHAM Board of Directors’ and Secretariats’ gratitude to Australian Ambassador Tony Hely and his wife Wendy Jeffrey for their strong support and assistance to the chamber over the past three years. They have actively participated in the ANZCHAM functions and have encouraged other members of the embassy to do the same. Ambassador Hely has worked closely with the Chamber to brief on embassy programs and to address issues and concerns of the Chamber’s membership. His invaluable contribution to ANZCHAM has continued the strong working relationship between the Australian Embassy and ANZCHAM.

We wish them all the best in their journey forward and they will always be welcome to the ANZCHAM when they are in the Philippines.