Speech of Cabinet Secretary Karlo Alexei B. Nograles

Thank you Champion President Joaquin C. Rodriguez Sr., Program Committee Chairman Jose C. Policarpio Jr., Board of Directors, Executive Officers and Members of the Rotary International District 3810, more popularly the Rotary Club of Manila! I am most honored to be invited by the organization that began the Rotary movement in the Philippines and in Asia. Magandang Tanghali po sa inyong lahat. Ikinagagalak ko pong makapiling kayo ngayong araw na ito.

The common thread that binds everyone here today is Service. We have all answered the call to Serve. It is indeed humbling to be in the presence of the captains of industry and pillars of society who choose to dedicate your time, talent and resources to reach out and help make a difference in the world the Rotary way.

Like you, I too heeded the call to public service when a little over a decade ago in 2008, I served as Chief-of-Staff to my father, Speaker Boy Nograles. Since then I have had the privilege of serving the people of the 1st District of Davao City, as their representative in Congress for almost nine full years before I was appointed to my current post as Cabinet Secretary. This of course pales in comparison to the RCM who has been serving our country for more than a century.

I have always believed that we are all born into this world for a divine purpose. That regardless of our religion or moral creed, we have all been put on this earth for a purpose. And that purpose is to serve others in whatever capacity that we can. To serve is to help create good in the life of another so that he too may do something good that would in turn change the life of another person for the better and so on.

The President, in his Inaugural Address said, “Love of country, subordination of personal interests to the common good, concern and care for the helpless and the impoverished, these are among the lost and faded values that we seek to recover and revitalize as we commence our journey towards a better Philippines.”

It is on this mantra that the President has anchored his term and his Administration’s brand of service. Since the President took the helm in 2016, the country's medium-term growth outlook remains positive. This 2020, our growth is expected to reach 6.5 percent. Our economy is currently growing at its higher potential, with our government making consistent productive investments in both physical and human capital to sustain this growth trajectory.

We began our year with good prospects – the fourth quarter 2019 GDP up 6.4 percent, the proportion of our poor families to the total population was estimated at 12.1 percent, we recorded more than 8 million tourists in 2019, we kept inflation down to 2.5 percent and same with self-rated poverty at 8.8 % and subsistence incidence at 3.4 percent.

But with recent developments in January: the threat of an Iran-US war; the Taal Volcano eruption; the ongoing 2019 Novel Corona Virus emergency; and African Swine Fever now reaching Mindanao; some sectors are now beginning to worry. Let me assure you that with the appropriate government response and contingencies in place, together with the support of the private sector, Philippine growth and development remains on track.

Amidst unrest in the Middle East, we have been working to attain energy independence by implementing power market reforms as an ongoing priority of this Administration. The President has directed the Department of Energy to promote an energy mix to include sustainable renewable, alternative and cheaper energy from local sources to make us less import-dependent.

As of February 12, while Alert Level 3 remains over Taal Volcano, the DOST-PHIVOLCS continues to remind the public that sudden steam-driven and even weak phreatomagmatic explosions, volcanic earthquakes, ashfall, and volcanic gas expulsions can still occur. While entry into the Taal Volcano Island as well as areas over Taal Lake and communities west of the island within a seven km radius from the Main Crater remains strictly prohibited, we have identified housing units in Batangas, Laguna, Cavite and Quezon, to be given for free as a grant to the displaced families who still remain in relocation sites including about 2,000 families from the Taal Volcano Island itself. Rest assured, we have intensified disaster risk response, as well as the recovery and rehabilitation plans, especially for the areas directly affected by the eruption last month.

For the long term, government is committed to further increase investments in climate and disaster-resilient farm technologies and practices, and the adoption of such among all our farmers and fisher folks. We are also fast-tracking the implementation of interventions under the Rice Competitiveness Enhancement Fund (RCEF) to improve the productivity of our farmers, alongside our other mitigation measures (e.g. Rice Farmers Financial Assistance, Program Quick Response Fund, Survival and Recovery loan) to fully assist our rice farmers’ successful transition amid the tariffication of rice.

On the 2019 nCoV, as of February 12, the DOH reported that there are 238 persons under investigation currently admitted in the different health facilities. Last February 5, the DOH confirmed the third case of the coronavirus in the Philippines in a 60-year-old woman from Wuhan. Later samples taken from her, reveal that she has recovered from the disease and was allowed to return to China. The first case of a Filipino infected by the disease was also recorded. He remains in Japan as the cruise ship he works on is quarantined there. The Department of Foreign Affairs (DFA) in a statement on February 10, reported that there are now six confirmed cases and they are being treated in hospitals in Japan. A total of 538 Filipinos are onboard the ship and the rest remain under quarantine. Also last week, the DFA said that there are two overseas Filipino workers in Hong Kong now under quarantine there following exposure to employers who tested positive for 2019-nCoV.

Our DOH is undertaking these actions to stem the spread of the virus: A taskforce on the 2019-nCoV was established. Interim guidelines have also been issued. Border screening through thermal screening and health declaration checklist had been heightened and so has laboratory and hospital preparedness. Decision tables for sick passenger evaluation are being used. Sick passengers are triaged at the arrival area. Daily nCoV surveillance update are being released. Risk communications are observed in all communication venues.

We strongly request all Filipinos to heed the DOH advisory to help contain the spread of this virus: a) Practice frequent and proper handwashing b) Practice proper cough etiquette. c) Maintain distance at least one meter away from individual/s manifesting flu-like symptoms. d) Avoid unprotected contact with farm or wild animals (alive or dead), animal markets, and products that come from animals (such as uncooked meat). e) Ensure that food is well-cooked. f) Maintain a healthy lifestyle. g) Avoid crowds and public gatherings as much as possible.

Following these simple practices will go a long way in the prevention of onward spreading of the virus, reducing human infection, and preventing secondary transmission and international spread. Know that we are prepared and equipped for the containment of cases, active surveillance and monitoring; early detection; isolation or quarantine; contact tracing or finding the people confirmed cases have interacted with. We ask everyone to do their part, be properly informed, cooperate, keep ourselves healthy and please let us confirm our information sources and stop the spread of fake news, which in this case I believe is more harmful than the actual virus.

On the African Swine Fever, Davao Occidental declared a state of calamity due to an ASF outbreak last week. All 13,000 pigs in San Marcelino town, ground zero of the disease in Mindanao, are being culled. An indemnification fund of P 5,000 per pig is being funded by the Department of Agriculture, with the provincial government also providing a counterpart fund. The provincial government is also strictly complying with control measures put in place, such as the temporary ban on the entry and exit of domestic or wild live pigs and pork-related products. Alternative livelihood projects for affected pig owners are also underway. Government will file cases against those who do not cooperate in the anti-ASF efforts. Meanwhile, guided by the Food Safety Act of 2019, Meat Inspection Code of 2003, and the National Zoning Plan, biosecurity and border control measures are being strengthened and the regulation on the movement of pork products are strictly enforced around the country.

Government remains vigilant on these recent unexpected events. We abide by our economic managers’ caution that “despite the relatively stable inflation outlook, we cannot be complacent, as the balance of risks remains on the upside for 2020 due to the earlier mentioned challenges.”

In the remaining years of the Duterte Presidency, amidst global uncertainty and inflationary pressures, we stand firm in our commitment to deliver on the President’s promise of Real Change. This Real Change is the articulation of the President’s Inclusive Growth Agenda aligned with AmBisyon Natin 2040 and the Philippine Development Plan 2017-2022. “AmBisyon Natin 2040” is our collective 25 year vision for Filipinos to attain a "matatag, maginhawa at panatag na buhay”.

Three years into this administration, ordinary Filipinos are already enjoying economic growth, with surveys showing a lower number of people identifying themselves as poor. The full year 2018 poverty incidence among our population, was estimated at 16.6 percent. This is lower than the 23.5 percent posted in 2015. Consequently, the proportion of poor families in 2018 was estimated at 12.1 percent. This is much lower than the 17.9 percent in 2015. In real numbers, this means from 4.1 million Filipino families living below poverty, we have been able to reduce this number to 3 million.

We attribute this largely to the President’s social reform programs, which include among others, free college tuition, higher pensions, conditional cash transfers, and universal health care.

Concurrently, the Administration’s flagship infrastructure program 'Build, Build, Build' is transforming the country’s landscape enhancing mobility, connectivity and accessibility nationwide. From 2016 to 2019, investments and actual disbursements for the most ambitious infra program of the government remains unparalleled. This is up by more than 180 percent in public works and highways alone, from 715 billion (2012-2015) to more than two trillion pesos. More than 6,000 flood mitigation structures, 14,600 kilometers of roads, 4,500 bridges, 129,400 classrooms and 110 evacuation centers have been completed. As a result, the construction industry grew by 10.7 percent in the fourth quarter of 2019. This expansion was attributed to faster growth in Public Construction. Government Final Consumption Expenditure (GFCE) grew by 18.7 percent in the same quarter, higher compared with the 12.6 percent growth in the same period in 2018.

While we passed landmark reform measures such as the Rice Tariffication Law, the BSP Act, the National ID, and the Bangsamoro Basic Law, a simplified, more efficient and fair tax system, and the Ease of Doing Business Act, the President continues to call on Congress to prioritize and enact new policies to help him deliver his commitment of a comfortable life for all Filipinos.

Among these priorities is the creation of the Department of Water Resources and the Water Regulatory Commission to be the primary national agency responsible for the comprehensive and integrated planning, policy formulation, and management of water resources in the country. The President also reiterated his appeal to enact the remaining tax reform packages of the Comprehensive Tax Reform Program, among which is the Corporate Income Tax and Incentive Rationalization Act or CITIRA; bills to raise the tobacco and alcohol excise taxes and reform the property valuation system of LGUs. Vital amendments to the Foreign Investments Act (FIA); Public Service Act (PSA) Retail Trade Liberalization Act (RTLA) and Contractors’ License Law have also been filed.

It is full steam ahead in the next two years as we continue to engage and foster the participation and support of all sectors for more bold initiatives for inclusive growth and real change. In the remainder of the President’s term, our work continues to lift more poor Filipinos out of poverty, empowering them to live better lives and institutionalizing government services to ensure they will never be poor again.

But…government cannot do this alone. At this point, may I appeal for your support for an urgent and most important initiative.

Last month, the President issued Executive Order 101 creating the Inter-Agency Task Force on Zero Hunger which I have both the honor and challenge to Chair. This task force will formulate a national food policy to ensure the attainment of zero hunger and poverty eradication, consistent with the 2017-2022 PDP. Under this task force is the Enhanced Partnership Against Hunger and Poverty Program or EPAHP. A convergence program that aims to increase farm productivity and income of farmers, ensure food and nutrition security, and mitigate hunger and malnutrition in the urban and rural communities.

We are linking community-based farmers organizations to the institutional feeding programs of the government to ensure that they have ready buyers for their produce. EPAHP adopts the same whole-of-government approach that has proven effective in other government initiatives and applies it in efforts to address hunger. Basically, our goal is to ensure that all these anti-hunger programs are linked directly with our local farmer groups. Under EPAHP, government feeding programs under DepEd, DSWD, DOH and DILG will be supplied directly from the produce of local farmers without passing through middlemen. We also included support programs and services of the partner agencies including TESDA, NIA, DOST, DTI, DA and Landbank.

May I count on your support for our Task Force Goodbye Gutom. It is my hope that the Rotary Club of Manila will become one of our staunchest supporters for our anti hunger initiatives. It is only with the strong support from communities and non government organizations such as Rotary that we will be able to sustain economic growth and improve government services. In these challenging times, may we continue to be strong partners, working together to serve our country, to serve our fellow Filipinos.

Daghang salamat! Mabuhay tayong lahat!