Camacho bids Finance Goodbye

President Arroyo’s most senior economic adviser, Finance Secretary Jose Isidro N. Camacho, left the Cabinet exhausted at end-November.

The former Deutsche Bank executive kept the problematic fiscal deficit, however, in better shape compared to last year’s record shortfall of P210.7 billion which overshot the P130.0 billion ceiling. In the first eleven months of this year, the fiscal deficit is estimated to have reached P179.9 billion, 5.2% below the period target of P189.7 billion and 10.3% down from last year’s P200.6 billion performance. Although the government is confident it can meet its P202.0 billion deficit target this year, analysts doubt that it can further sustain the deficit reduction program without legislative support for bills reorganizing the Bureau of Internal Revenue and indexing taxes on sin products. Secretary Camacho enjoyed the confidence of global capital markets and his departure from the Department of Finance did not affect Standard & Poor’s sovereign credit ratings on the Philippines. National Treasurer Sergio Edeza likewise indicated his intention to resign by yearend. Secretary Camacho’s successor, Finance Undersecretary Juanita D. Amatong, is expected to push for the revenue reform measures still pending in Congress.

Halal Industry takes centerstage

The government is attempting to strengthen the halal food and non-food industry to take advantage of a large and growing Islamic market in the region and the Middle East. The Office of Muslim Affairs is the lead government agency trying to introduce the concept of “halal” to Philippine companies, business establishments, and Filipino consumers.

Halal and haram are terms used by Muslims to categorize food and non-food products. Halal refers to items that are allowed or acceptable for Muslim consumption. In contrast, haram are items specified or mentioned in the Qu’ran or by Hadith as unlawful for consumption. The halal food sector – currently valued at US$150 billion worldwide - is a fast-growing industry, with Muslim population projections showing an increasing consumer base for halal products. In the Philippines, halal is accepted as a cultural requirement driven by the Islamic faith.

Realizing the opportunities and gains the halal food industry has to offer, the Philippines has started to jumpstart its halal food sector in order to fully maximize income and employment opportunities.

Tourism is also driving the need for more halal products. In view of the now rigid immigration controls now in place in Western countries after the 11 September attack on the World Trade Center, tourists from the affluent Middle East see Southeast Asia as an alternative destination. The Philippines experienced 10.9% growth in tourist traffic from the Middle East in 2002. For many of these tourists, halal food is mandatory.

According to OMA Executive Director and Undersecretary Datu Zamzamin Ampatuan, going into halal also has social implications. “The last but not the least important point about halal is its sensitivity to our government’s peace initiative and the building of national goodwill and understanding between Muslims and Christians. While it is culturally and religiously based, the provision of halal and the guarantee to Muslim consumers of its availability will allow a more open environment for co-existence,” he asserts.

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