I will be calling on members of FOCAP who have been lined up for this afternoon. First up is Mr. Mika Flores of Reuters. >> Good afternoon, Mr. President. >> Thank you for the opportunity. Mr. President, on the 10th anniversary of the 2016 arbitral award, uh divisions have emerged within your own administration over the provisional understanding with China on the resupply missions in second Thomas Shaw or Aayunin Shaw. uh as the country's chief architect of foreign policy, do you believe that pro that that provisional arrangement has served Philippine interests and should remain in place or do you think it should now be reviewed or revised or perhaps even terminated uh at this point? >> Uh well the yes I there has been discussion recently about this but uh I think the discussion is centered in the wrong on the wrong things is focused on the wrong thing. uh these arrangements that we make are to prevent any kind of miscalculation, mistake that might lead to uh even uh greater uh tension and uh hopefully not even not uh not as hopefully not conflict and that's what we are trying to avoid and that's why we make these arrangements and it is um uh it is especially important because we have to uh we have to resupply our people who are still on the sher of Madrid and with if if uh we just barge on through uh without what we what we actually do we we talk there there's been talk about a provisional agreement but essentially what the Philippines does is what when we are going to uh conduct a resupply mission we issue what is what is known as a notam which is a uh just a notice to uh of your maritime movements that the our ship is going to go from here to there and they will stay here and uh we will stay there for 2 days or whatever it is and then come back and that is the extent of it. Uh and that that that that does not um uh that does not somehow make more vulnerable or give up any of our sovereign rights, any of our territorial uh claims and our our wellrecoognized territory especially under the UNLOS and all uh other the arbitral awards. Nothing of that has been weakened in any way, shape or form uh in it is just an arrangement uh to make to inform not any specific uh country or group or uh vessel but everyone who is in the West Philippine Sea that the vessels from the Philippines are going to sail from this place to that place on this date and uh that is all. So that uh there is there is no confusion that these are unidentified vessels and we will they are uh they they have suddenly appeared out of nowhere. uh that that it's it's really um it it does not uh does not lessen uh our does not weaken there you go it does not weaken our position in any way uh in terms of our in terms of the arbitral awards in terms of the UNLOS in terms of our exercise of sovereign of our sovereign rights in terms of our defense of our territory and so uh it is just a practical it is just a it is a standard practice uh for all vessels that sail uh that to to put to to to issue the notam uh which is uh what we do so in in in conssonance together with the standard practice of uh all other vessels uh that that sail through the West Philippine Sea. >> Just a very quick followup, Mr. President. >> Yes. Uh the context of my question is because Secretary Tudoro has uh publicly mentioned that he is not aware of such understanding and then the DFA is saying that there has been 15 or 16 raw remissions over the past two years since the provisional understanding that has been carried out without incident. So based on your um answer to my first question, so does that it it seems and would you confirm that that arrangement still stands from your perspective and you're aware of the the details of it and it it it should be the status quo uh going forward. >> Well, I I I hesitate to use the word arrangement because we're not going into any arrangement with everyone. We're just uh conducting ourselves according to the standard practice uh of uh vessel sailing in the West Philippine Sea and for that matter in other uh in other seas. So there is no special arrangement that we uh somehow the implication is that we have to ask for permission or that we have to uh give up some kind of some of our rights and that that's not the case at all. Uh the case is very simple. our ships are going our vessels will sail uh they will resupply or they will patrol or they will and anytime that they do sail the that that notm is issued and that's the extent of it. >> Thank you. >> Up next is Miss Yan Fang Zoo of Phoenix TV. >> Good afternoon Mr. President. Sir, you sorry you have spoken about um resetting relations with China on at least two occasions this year. First was partly in response to the national energy emergency in connection to the possibility of a joint oil and gas exploration with China and then more recently during your meeting with the Chinese ambassador Ding Chen just last month. Mr. President, what specifically would a reset with Beijing look like in practice? And with less than two years left in your term, what realistic scope um is there for any significant change in the relationship with China? Well, uh it's a it's a reset in the sense that if we are beginning to detect or to to to feel uh an increase in tensions or uh an escalation in tensions, then we have to once again uh uh go back and talk to our friends in China and say look this is this is not headed in the right direction. Let's uh find ways to bring the tension the levels of tension down to deescalate and so that we do not get to the point where one of our our our forces your your vessels our vessels the the sailors that sail upon on on them uh make a mistake or there's a misunderstanding. Uh so let's continue. So we continue to talk and uh and that that's uh that is something that has been really ongoing. every time there is an incident u we I suppose you could call it a recess and let's not do that anymore what was the problem how did it occur uh why how do we avoid it in the future uh so that that that's what that reset really uh really means uh and that we try to bring the level of tensions we try to bring the even sometimes the language that is being exchanged uh down a notch uh as it were so that's that's the reset that when we when we talk about reset that's that's what we mean >> sir on the aspect of joint oil and gas exploration um I think EFA has recently um disclosed that there were initial exchanges on that aspect so what where are we at now on said discussions and do we have a timeline for this is in light um of the urgent need to diversify our sources of oil given the Middle East crisis >> well the the the the discussion on the joint exploration for oil and um has been going on for many many years. But of course it gained prominence. The discussion gained prominence uh in the recent past when we had our uh energy emergency and we started to think well we have to find ways so that uh this should something like this happen again where uh the supply of petroleum products is is cut. uh the prices go up and the effects that it has on the daily lives of our people and the economy of the country um uh is is deeply affected. We have to find new ways. So that's why as I said this discussion has g gained prominence and where are we at now? I think we we have moved forward. uh there are se several there were several issues from the beginning uh that we are slowly working through and uh I I I can see the I can see a distinct possibility that there will be such joint exploration. uh it is just in in terms of the terms of reference of what we are going to do like any uh like any joint um venture G2G or if it is purely commercial you have to define between yourselves the between the parties the terms of reference that's what we are doing now and we're working through them and we're making progress >> would it be within your term sir >> I'm sorry >> would it be possible to be to happen within your term >> to have a >> uh joint oil and gas exploration with Oh, certainly certainly uh we we the Philippines needs uh additional supplies of oil and gas and uh we we we need to explore the possibilities that uh that that uh that we have um in the Philippines, in the West Philippine Sea and whatever else we can uh we can take advantage of. Uh so yes definitely we wouldn't be making these discussions we wouldn't be having these discussions if it was not with an with an uh with a view to actually at the end having such a joint uh uh operation. >> Mr. President just to clarify her question is if how likely it will happen under your term. >> Ah that depends on how these uh uh that depends on how the discussions go. Uh I'm I I I think we the the the the s the sense that I get is that all parties involved want it to succeed and that is always a very good sign. I could not give you a a definite timetable I'm afraid. >> Thank you Mr. President. >> Up next Mr. President and is Miss Reene Kabato of the Wall Street Journal. >> Sorry. Um hello Mr. Mr. President, also on the topic of China, would an invasion of Taiwan happen? Would you allow the US military to launch offensive actions from Philippine bases and territory? And how do you see uh the Philippines uh in such a scenario? [laughter] >> Uh no, we we we there will be no attacks on anyone from the Philippines. The Philippines is has has no desire to to be a belligerent uh uh nation in in in the region. I mean, we have no no interest in that. All we all we are concerned about is the defense of our territory and the maintenance of peace and stability in the region. That is all that the Philippines is concerned with. That is all the cons the Philippines will promote. that is well that the Philippines will endorse and support. Uh so to that that to to allow an attack on anyone from the Philippines is contrary to that policy. So we will stick with that policy where all that we do is work hard to maintain peace and stability in the region. Is there anything more, sir, that you would like the US um or maybe other partners to do in the Philippines that would help bolster deterrence in the region? >> Well, actually that that question does not belong to the Philippines. the Philippines does what we do uh again to defend our territory to uh to to the continuation of the the exercise of our sovereign rights of our and the recognition of our sovereignty. Uh what other countries choose to do uh is really not something that the Philippines has much influence uh on. So the again what the United States or for that matter any other country chooses to do is is is really uh an internal matter for them and how they choose to handle their own foreign policy. When it involves the Philippines again we hue back to that policy where we are not interested in being a belligerent uh force. We are simply in interested in the defense of the republic, the continued exercise of our sovereign rights, uh, and the recognition of our ter of our territorial imperatives. >> Thank you, sir. >> Thank you. >> Up next, Mr. President, is Mr. Jason Gutierrez of the New York Times and former FOCAP president. >> Good afternoon, sir. >> Good afternoon. um uh in our quest to distance ourselves from too much economic reliance from China, are we not sacrificing um natural resources in our bid to host a tax silica hub um that could strain power and local water supplies or resources distancing ourselves from uh distancing ourselves from too much economic reliance from China? Uh I don't I don't think that that's uh in any policy in any policy uh statement that we are distancing ourselves from China. >> Uh we we are continuing to find uh many uh many instances where we are very much in cooperation with China. China is one of the biggest investors still uh in the Philippines. And uh just to as a as a as an example uh in during when the war first broke out in the Middle East, China was one of the countries that we engaged with. Uh we engaged with many many countries, but China was one of the countries we engaged with. And to the credit of of the the people's republic, they dealt with that uh that engagement on a purely practical business-like professional level. uh and all of these shall we say conflicting claims in the West Philippines he simply did not enter into that discussion uh and so that the the idea that we are somehow distancing ourselves from China quite the contrary China is only China is only uh one of two countries uh where we have a no visa policy and so that is hardly distancing ourselves from China we're opening our doors to China to and to Chinese travelers. The other country, by the way, is India. So that those are just the two countries that we now have a no visa policy uh uh with. Just to follow up, sir, um will the benefits actually outweigh the risks of hosting such a facility and the US is positioning itself as a um with this PACIA thing as a um it's an alternative um um to for um Chinese investments. Again, I don't see it in that way. It's not a it's it's not a binary thing. It's either it's not either or. Uh in our case, uh whenever whenever someone is interested to come into into the Philippines to invest, so long as it is to the mutual benefit of all parties involved, then that that that for us is a is a good deal. And it is a good deal that we will enter into no matter where it comes from. uh if it comes from the US, it if it comes from Europe, if it comes from the uh China, if it comes from Japan, if it comes from Korea, we it comes from Canada, Australia, we engage with with anyone. Uh what we are what we are interested in is to uh benefit our people in terms of jobs, in terms of investment into the country, in terms of the advancement of our capabilities, in terms of technology, in terms of uh uh uh uh training, uh reskilling and upskilling, all of those things. And so long as we are able to to move the economy forward and to better the lives of our people, then that is something that we will certainly uh certainly examine. And if it turns out that that is a uh that is a beneficial uh agreement or arrangement, then certainly we will we will uh we will become part of it. We will uh we will want to be part of it. >> All right. Thank you, sir. >> Thank you. >> I do have a follow-up question on that, sir. There's a lot of talk now among Filipinos regarding the back silica initiative. I've actually visited it when it was launched with under secretary of the US and BCDA. But Filipinos are concerned that once this hub is already established in the Philippines, it would exploit our minerals and displace um um our indigenous peoples. What assurances, sir, can the Philippine government give so that you know in our quest to provide more jobs and economic activity for the Philippines, the rights of Filipinos will not be trampled? Well, uh I cannot see how another country can come into the Philippines and for example exploit our minerals without uh the agreement of uh the Philippine government uh any kind of arrangement. In fact, if let's let's let's uh stay focused on on that particular subject in terms of uh the uh national treasure in terms of let's say our minerals. Uh for example, nickel let us say we are this we the Philippines has the second largest reserves of nickel in the world right now. All that we are doing is we are exporting raw ore and that is uh that is the then it is processed somewhere else. The value that is added in that processing does not stay in the Philippines that goes in another country. This this provides us a a an opportunity to start the processing in the Philippines. Therefore the value added to that will be um will be left here in the Philippines. We take our example from what uh Indonesia did and I remember having a conversation with then President Pidodo about this and he was saying what the the the uh initial the the shall we say the dollars that they that they get from exporting raw ore was a certain amount. and he said so he they banned the export of raw ore and made sure that the processing was conducted in uh in in uh Indonesia. Now to be able to do that you have to develop the processing centers. You have to provide the power for that processing centers and if you cannot do it yourself you do it in uh in partnership with either a purely commercial venture or a G2G arrangement or some hybrid arrangement and that is the Philippines fully exploiting our own treasure, our own national treasure, our own uh natural resources. Uh so that is a specific example but it applies to many many of the other things that uh that you fall under the category of natural resources. >> Thank you Mr. President. Now may I call on Miss Risa Robles of the South China Morning Post. >> Good afternoon Mr. President. Uh thank you for coming and uh congratulations on your latest sauna. That was a very good speech and I look forward your next one next year. >> That that that is very high praise coming from you especially. >> Okay. uh as co-executive of your father's estate. Uh your fa you were responsible for settling the estate tax. Uh your father died in 1989. As of the year 2021, the Bureau of Internal Revenue computed the unpaid amount uh uh due to penalties at 2.3819 billion pesos. Your family has actually won some civil forfeiture cases filed against your father's illgotten wealth and therefore as a result the assets went to you and your family. Have you settled the estate tax due to these assets you already won plus the penalties that accured as a consequence of not only not paying the estate tax but also not filing any estate tax return at the very least from 1990 to 2021. And if you have finally settled the estate tax, what were the terms of the settlement? >> You asked me this question a couple of years ago. >> Uh and I'm afraid I have to give you the same answer. Uh because as you write the point, let me just first go back and make one point. The reason we won those civil cases because they were proven to be not illotten wealth. And uh so to to to characterize them as illgotten wealth immediately uh I have to respond and to say illotten wealth. Anyway, to get to your question, I'm afraid I have to give you the again. I'll tell you the same thing I told you then. you know more about this than I do and I have to admit that I have neglected some of my duties as co-executive because I've been very busy uh with all the things that a president is busy with and when I it comes to uh this is it when it comes to uh prioritization for for things that I spend time with and and that I focus on uh this is a family matter the matters of state and governance are a thousand times more important than any family matter. In fact, I would say 113 million times more important than any family matter. And that is why uh I leave it I've left it to the lawyers. Uh uh my mother plays her part. She she's the other co-executive. Uh but again um you will have to talk to my to my legal adviserss about that. I'll give you with the number of my lawyers and they'll be happy to to to explain really the evolution of this entire thing. I I hear about it uh in passing but I I don't really sit in on meetings and I don't really uh uh concern myself with that so much. Um I believe that I have some uh some very good legal advice and I leave it up to them. Uh first of all I'm not a lawyer so that that uh uh that legal advice is not something that I I I fully understand and it's not time it's not something that I spend time on. Like I said it's a family matter which pales in in in in which pales in compar in importance in comparison to what I have to do in my day-to-day work. I'm sorry. I cannot give you a better answer than that. >> Mr. President, if you pay the estate tax, that would form part of the income of the government >> and you could use it for AFP modernization or the poor or for building schools. So that is a very important thing. Anyway, sir, my next question also was about uh two years ago. I asked you um in the last focon with you. I asked you about the arelma assets. >> The >> arelma. >> Oh my god. I haven't heard that that word in >> Yes. Almost 20 years. But you sir, >> your lawyers are finding the case up to now in New York. These were originally funded in 1972 when your father declared martial law. >> Yeah. uh using a shell corporation named Aelma in Panama. Aelma placed around $2 million in a brokerage account in Mary Lynch. And much much later, Arelma told the PCG, "The assets form part of their parents' illgotten wealth and the bearer forms pertaining to those assets were turned over to PCG. But you through your lawyer blocked the actual turnover by Mary Lynch to the Philippine government. It's stuck somewhere in a Singapore bank. In the last focon, I asked you for an update on the case and you specifically told me talk to my lawyer >> again. May I therefore now ask you to give me the name of your lawyer and how to get in touch with him and could you tell him please that I will be calling him and I have your permission >> to talk to him. Thank you. >> Yes. Yes. Please please do that because I cannot add anything. >> Yes sir. But uh >> in fact I was going to thank you for all the information that you have provided us here today because I don't I don't know these details. Um even when we were in the states um in exile uh even when we were in in the states I was not involved in any of these uh legal proceedings and uh and since I came back uh since in in in after the six years that we were uh disallowed from coming home. Uh the that that those cases again went went to court and I don't know what's happened to them anymore uh quite frankly. Uh, so my lawyers will know. So again, you have to feel free to give them a call. >> Could you give me a point person in the presidential palace to talk with your lawyer? >> Sure. They're not here right now, so I'll have to I'll have to I'll have to speak to them and they'll be in touch with you. >> Thank you, sir. It will be arranged probably after the Q&A right now. >> We'll share we'll share their information with you, their contact information so you can you can make these inquiries with them. >> Thank you for the asurances, Mr. President. Let now let's move on to a question on the economy. Uh may I call on Mr. Rammon Royand Doyan of Niki. >> Hi sir, thank you for doing this. Uh Mr. President, between Middle Eastdriven energy shocks and a slowdown in infrastructure spending following the flood control corruption scandal, inflation, and a record low peso. It's squeezing Filipino households. What immediate measures will you take to lower fuel, power, and food costs over the coming year without widening the fiscal deficit? Well, the uh we I think I mentioned several of these measures that we have undertaken in my in the last state of the nation address uh and that is to ease the burden of taxation to certain sectors of the economy uh especially those who are paying less than 300,000 per uh who are not earning who are earning less than 300,000 the the removal of the corporate tax on the MSMES uh the continuing provision of benefits for people. Now, uh you're absolutely right because uh the growth rate is dependent is heavily dependent on public spending and that has been delayed and this is what this is what re what really happens. Usually when the NEP is issued the uh the the contracts that are contained within the NEP are already bidded out uh and so that so that when January 1 comes the project can proceed. So there it's it's a it's a way of saving time and making sure that the project proceeds immediately with what happened last year where we had to reexamine the budget very very closely. those projects those projects those contracts were not bidded out and they were bidded out towards the end of the first uh quarter of uh this year. That is what happened. That's why that's why it delayed the public spending. Now public spending has now we have we have done taken very many measures to uh accelerate the rate of public spending and as of the end of the second quarter of this year we are only at a shortfall of about 7% yearonear in terms of public spending. we will make that up for the rest of the year and so that the inflation rate um uh so sorry the the the the rate of growth should uh the growth rate the GDP growth of GDP growth will uh will show an increase because of the increase in activity. So this is what we are also running into because uh the we had accel as I said accelerate public spending. What we are running into very much is the absorptive capacity not only of the government agencies but also of the contractors they can only do so much work. So you throwing money at the problem simply doesn't solve it. Doesn't make anything better. And that is the balance that we have been uh uh that we have try that we are trying to manage right now. Uh but again uh the uh in terms of public spending we are we are pretty much um on on current in terms of our scheduling uh and we will be again I'm confident we will be able to catch up and exceed the year-on-year public spending by the first by the last quarter of this year. uh and that will that the the effects of that will show in terms of the growth rate and uh the in terms of inflation inflation actually we we had we we had our core inflation at the beginning of the year was at 2 uh 2 and a half% more or less 2.6%. uh it is only when the it is only when the war started in the Middle East. Uh and as you know core inflation does not include uh fuel and food and that those are precisely the two commodities that increased dramatically in price. Uh we were we were working uh with uh the the price of uh of of uh oil of uh at uh when we start before the war started we were at about 72 72 and change and now it it reached about over 100. You know, when they say when they say Brent crude is at 100, that doesn't mean that you can buy it at 100. You're paying 180. And that's the real that's the real inflation in those prices. And that shock was immediately felt um in in all of it in all that we were doing. And it's not only it is it is not only it was not only the u uh the pricing that increased, it was also it was also the supply that decreased. So the demand and supply forces immediately came into play and that's what that's what the that's why the inflation went up that's why the inflation went up uh our our headline inflation went up uh because of those two mainly because of those two items now so that is why we again part of the public expenditure that I spoke about was direct benefits in terms of in terms of what uh we refer to as direct transfer payments benefits because uh we we've subsidized the the the price of diesel. Uh we put uh we especially in the transport sector we we we put them under contract so that every kilometer that they make uh that they that they are are are running uh they get an extra benefit from uh from the government. So all of these things were were really to to to to try and bring those levels down. We are now running uh our inflation uh went down a little bit in the last quarter by about 2.3%. Uh but we're still quite high. We're still at six six more than six way 63 6.4%. Depending on how you calculate it. So we are hoping uh that because we the the price of oil now at least on the world market is running in the 80s. It it it still fluctuates. Um uh and it is that it it is not so much now that the uncert the the price that is determining all of that. It is because of uh uh it it it is it is because of the uncertainty that the price is uh becoming uh is is so volatile and that volatility uh erodess confidence and that erosion in confidence means people do not spend their money uh because they don't know what that is going to happen uh next month or two months three months from now and that is that is what we are that is what we are having that's what we are having to deal with uh and what we are trying to what they what we're trying to do with the economy is to bring stability back into our our economic systems so that um uh people households uh uh business people can plan uh and in that way we'll be more will be more uh it the the situ the atmosphere or the the uh uh the sentiment ment will be more conducive to investment in savings which is what we are trying to increase. So the so we focused on those with who were spending a large percentage of their income on precisely food and fuel and that's those are the areas that we uh that we focused on uh in terms of supply of oil in terms of the pricing of oil. We do provided subsidies, we provided incentives and in terms of food uh we were very uh we were also very focused on keeping the pricing down. Uh we we lowered the tariffs on imported rice. We keep uh the project the program we have expanded the program of 20 peso rice. Um and we are providing uh benefits now to 7 and a half million families uh Filipino families. Uh so the usual calculation is to multiply that by four or five to see how many actual people are are are are being uh uh have have are feeling the effects of those measures that we are taking. So uh again it is uh I I'm the we hope that this is not a new normal that it will be like this forever more. We are hoping that the the the situation and uh the state of Hormuz improves. We hope that the situation uh uh in all of uh the the waterways that are being used uh to transport petroleum products are are uh are uh stabilized uh so that we can we can now count on uh some uh assumptions that we can make that we can make so that we can plan on the national and economic development. So there are many many moving parts here uh many many of them out of our control but we are trying to be as agile as possible and to prepare in the longer term for the possibility of this happening again uh so that let us say uh this this particular situation is is is normalized uh something else happens like something like COVID happens um once again uh then we will we have now developed many many many other options. We have approached what we refer to as non-traditional uh partners in terms of uh agreements, economic agreements, trade agreements. uh those that we we put in during the during the onset of the emergency and what we now are counting on uh as a as a as regular suppliers for petroleum products for food uh trade in general that they widen widen the footprint and the wider the footprint the more stable the economy should be. Uh in terms of the exchange rate it is a strong dollar. uh we the the the peso we are we are we are trying to to defend the peso but we it's not something that we are spending all our money on at all by any means. uh and if you as you as you know the dollar is usually regarded as a safe harbor during times of uncertainty and that's why people have invested in uh that's why the foreign exchange for the dollar has the dollar value has increased visav relative to many many in fact most uh most currencies around the world uh because of that the strange uh uh the there's a strange phenomenon that we cannot quite figure out yet. Usually, it's dollar and gold the safe harbor, but gold's not behaving like it usually does. So, that's that's not something that we bother ourselves about. >> Sir, follow-up question. What's your reaction to BSP Governor Ramolon uh saying earlier that growth in the second quarter was disappointing? How can you convince investors essentially of investing in the Philippines considering the Philippines poor economic performance and concerns surrounding governance especially corruption since it's been such a big issue in the past year? Well, again, I think that we that we have taken as many measures as we can in terms of the uh corruption and the bringing accountability to all of those who have been involved in this very large uh uh uh uh scandal that uh we that I unearthed and exposed uh during the sona before this last one. And uh that is that is we have taken the measures and those measures should uh allay the fears of investors and when they to to invest further in the Philippines and I I I do believe that if we look at the numbers in terms of investments that are coming into the Philippines they continue to increase and the real reason for that is not so much then looking at the inflation rate because we all regard this period as a temporary um phase in all of these uh developments that are happening around the world. uh but what really counts for businessmen are the measures that we've taken to make to improve the ease of doing business to um identifying the particular sectors which we are providing initiatives uh initiatives for that we are providing u uh incentives for uh and those are those are that is what really matters to investors to prospective investors and the numbers are still are are still uh reasonable. The growth rate the growth rate is of course very disappointing. But uh as if if we look at the basic policies that we have uh that we have undertaken and that we are we are used that we have uh that we have made the policy decisions that we have made uh that they were effective until this uh energy crisis uh uh arose. So once this emergency should be considered over then I hope that uh we will return to uh that um the the the investors confidence not only in the Philippine economy but in the world economy because this is what's happening. It's not happening just to the Philippines. Uh people have have have pulled in their investments because they don't know what's going to happen next. uh and so we suffer the same consequences as many other countries have has done as well. >> Thank you sir. >> Thank you. >> All right sir. Up next is Mr. Taisuki Kikuchi of Kyoto News. >> Good afternoon uh Mr. President. Uh my question is about uh following a recent uh summit with uh Japanese Prime Minister Sai Taki. Uh in the last May uh during uh summit you reached an agreement on the the limitation of marit maritime boundaries. So my question is how will you proceed uh the discussion about the uh uh delimitation boundary also uh by when uh will you expect to hope to uh reach a conclusion? >> Yeah. Well, let me explain a little bit. No, what what this process is uh uh there's a border delimitation that we're talking about. uh it is it it it it is it it uh comes from uh a a difference in the in the pro uh in the definition of our borders. Um we came this happened before actually and it is a was a situation that quite familiar with because I was an author in the baselines uh uh the baselines law where we define the baselines around the country and what happened was that our baselines crossed with Indonesia and so there was there was a there was a bit of a crisis there because we do a lot of fishing in those waters and there was a conflict there was a disagreement rather uh on how uh which waters belong to Indonesia and which belong to uh the Philippines. We since have come to an agreement with Indonesia and basically we drew a line down the middle and that brought back our fishing industry. our fishing industry was more rebound for months until we finish we fix that problem with Japan that it is not the it's not it is just simply the same process wherein we decide bilaterally between Japan and the Philippines what we agree upon are our boundaries uh because as I said some of the lines are uh cross one another and so we have to we have to agree amongst ourselves among between Japanese the uh the Japanese government and the Philippine government uh what we what the border where the border actually we we will where we will define the border to be and uh that will be what we will going to go by. I do not see any great obstacle uh to this uh our discussions with uh uh the government of Japan and it's something that I did bring up to the prime minister Takayichi when I when I met with her uh and I do not see any particular obstacle. So although there is not a strict timetable we are hoping to get it done by this year. We hope to get we hope to get it finished by the end of the year. >> Okay. Thank you. Uh just follow up quick following up. Uh after uh uh announcement of the starting of the discussion, China strongly criticize uh about it. So how uh will you address uh China's uh opposition about uh the discussion >> about the >> about the uh discussion about the the limitation maritime boundary? Well, it it it is essentially a bilateral discussion between Japan and the Philippines. However, if there are any other stakeholder parties that are interested to speak up and to give their input, that's something that it that uh that it depends on the Japan and the Philippines as to how to handle those. So uh we certainly take into account any any any input that any other country has to has to has to offer. But essentially uh it is a bilateral agreement and so it is really up to Japan and the Philippines to decide on where those uh where the border lies and we take we take in all of the insights and the uh perspectives of anyone who has an who has an interest in it. Uh but again uh it in the end it is a bilateral agreement between Japan and the Philippines. >> Okay. Thank you so much. And my next question >> very quickly please. >> Oh yeah. Okay. uh the relationship with uh the Philippine and Taiwan Taiwan uh recently Taiwan's top uh diplomat uh Lin Jon uh said Taiwan is stepping up effort to strengthen uh partnership with the Philippine and other neighboring countries uh to uh to push back against China's latest uh maritime pressure. So uh do you uh positively response uh this Taiwan's uh remark and more practically like would you uh the Philippine uh administration meet with Taiwanese uh counterpart or increasing maritime patrol to uh northern territory. Thank you. >> Yeah. Well, we we you know, we have been do doing business with Taiwan for a very long time since they are a very close neighbor and those uh those arrangements and partnerships that we have with them continue. However, this is very much in the context of our one China policy. We continue to to uh uh to to respect and and to to behave uh with that policy. um as the dominant uh principle uh in the treatment of both uh uh the the people's republic of uh uh that in that that and then and our more local uh uh engagements with Taiwan. uh so I do not see I whatever whatever arrangements can that that are made. We have uh we have the what we call mechco which is uh uh the the and the tech which are the two bodies that that serve but they are purely commercial in nature uh and we do not uh we do not really enter into other uh into other kind of arrangements with Taiwan again because we close and continue to uh uh to engage China uh under in the within the context of our one China policy. >> Thank you so much. >> Down to our last three reporters lined up for this afternoon. Mr. President, up next is Mr. Andreo Colonzo of Bloomberg News. >> Bloomberg. >> Good afternoon, Mr. President. Thank you for braving the rains to be with us. um [laughter] um uh investors and markets are already looking to 2028 for signs of um continuity or not continuity. So if I may um uh ask about domestic politics, will you endorse somebody a candidate against Vice President Sarah Duterte in the upcoming 2028 elections? I will certainly endorse a candidate in the 2028 elections. Who that is, I cannot tell you because even I don't know. Uh so it's a little early for that. And uh we don't know we only have so so far we have only one person who has thrown their hat in the ring. Uh so that that's a very we're very very early on in that that process. But of course uh I I I I have a political party that uh that I that I belong to. Uh that that political party the PFP is going to make its alliances with other parties and how that ends up uh in terms of uh uh the actual joint candidate with other parties or if not our own candidate. Uh of course many names have been thrown around. Surveys are already being run uh to compare tandemss. this uh this president and vice president against this president and vice president and looking at the numbers. Well, they're interesting, but I don't know how useful they are only because it's it's far too early. Uh and there is so much there are so many political events that are still going to happen between now and that time. And so I it's very hard for me to to to uh for myself even to make a decision now. I would say that if I decided now it would be a pre it would be premature. We have to see how things uh how things really shape up. Uh and it's it's not uh I put it this way I haven't sat down with anyone uh and said do you want to run for president or not? Uh no, we've not come anywhere near that. Uh so the time will come though. Uh the time will come and we will provide uh and at least from a from a very partisan point of view, we will certainly provide uh the best candidate to the betterment of uh the lives of every Filipino. that we will choose the best possible candidate uh to continue what we have started and to bring even new and hopefully even better initiatives to the development of our country. >> Um as a followup, Mr. President, um you mentioned surveys. So um how do you feel when you see surveys showing that Vice President Duterte is the leading preference to succeed you? And uh in relation to that um our our country has a history of former presidents being jailed and pursued by their predecessors. Are you do you fear that at all? No. Uh I don't really worry about surveys quite frankly. Um I I don't I don't really because I I of course I see them but it doesn't make any difference to me. I don't change my decision because of the survey. I don't change direction because of a survey. I take a decision because that's what I feel is the proper is the proper uh decision to be to make. I I I I uh adopt a policy because I believe that is the best policy and uh a survey doesn't really come into it. Um because it it it has it it it does not determine the the rightness or wrongness of what I'm trying to do or what the my government is trying to do. Um so it's not that I don't care. Of course you care. You're a politician. But it it only to a very small extent. You know, if if the if your numbers aren't good, I wish they were better. If your numbers were great are good, then you say, "Oh, great. They're good." But uh once that that stays in my mind maybe for a minute or two and then I get back to work after that. >> Thank you. >> Up next is Mr. Chad Williams of a John's France Press. >> Good afternoon, Mr. President. Thanks for taking the time today. >> Um, about a year ago, you pledged to tackle a flood control scandal that has shown a very, very harsh spotlight on the Philippines issues with endemic corruption. Do you believe you've personally done enough uh to confront that issue in the 12 and a half months since that speech? And what concrete measurable systems do you think Filipinos can expect to be in place before the end of your term that that tackle those issues? >> They are already in place. Many of those measures are already in place. Uh uh in terms of the transparency that we have u well first of all that let's say those in terms of accountability. Let's take that first uh because that has be gained the most interest amongst the uh the public. Uh and that cases have been filed. the people have are already have been put behind bars. Uh there are continuing investigations into those who are going to be uh held accountable who have to be held accountable uh for any wrongdoing in terms of uh corruption in terms of uh the uh uh flood control scandal. I think that's the the general term now that everyone uses. Uh so that I that that is ongoing and I I I I would not be surprised if that continues to go that those investigations if this kind of self-examination in terms of the government continues to go beyond my term beyond 2028. I sincerely hope it does because that will keep people on their toes and continue to to to to to be uh to discourage people from uh going back to these old practices. Uh and because that is really what I had hoped to achieve. Uh the reason the reason that I exposed all of this in the sauna before last was simple because I was shocked by what was going on. And I was uh I I said we have to it is so endemic and it is so deeply rooted in the way in our thinking in our political culture that you have to do something fairly radical uh to to to to change the change change the uh it's not paradigm shift is actually even a bit of a weak term for it. it you have to it change the culture change the thinking of how what the way the way people view uh their positions in government and that is what that is what we are trying to do and that is why when I say I hope this continues beyond my term that is because then we will have succeeded in changing that culture and so as an effect of that is that we have then the the people who have gone who are at in detention right now who have been charged uh they're There are continuing investigations that uh that are ongoing. Uh the ombbudsman is a very very busy man these days because of all of these uh all of these accusations all of these allegations that they have to examine that they have to investigate and if need be uh files uh file cases uh on the on the reforms that we have done uh specifically to the DPWA the public works uh department. uh we have the the in terms of accountability and in terms of transparency we are much improved. Number one of course is our transparency portal uh that we did not have before that we have now we have now created uh so that every citizen or not anyone not even citizen anyone can go to those portals and check exactly in detail what are the projects that are ongoing in a district in a town and what is the specific project and should they choose to they can go and inspect it themselves and should they find that those are not going well or they are ghost projects or they are substandard or the contract is uh questionable then they can report it back to us. Since the time after the uh the last year Sona uh we have received thousands of reports from around from around the country and we have taken and those have been extremely helpful to us uh and going to to to to to look because of course our people the public works people cannot be everywhere all the time and it is it is a it it has been a a a an an important part of this out process. proess of of accountability and and transparency. The reports that we have been getting from people. Uh so this but this we have extended not only to the public works. If you look there are now dashboards for most departments in uh in uh uh in the government and again they can go to those portals they can go to those websites and they can check specifics and that is what I insisted upon. Don't give me a general thing that this province has X billion in terms of project. I need to know the town, the Barangai and the very specific location of that so that should anyone go choose to go and inspect it themselves then they are they know where to go they know what to look for and uh should there be a problem uh it goes both ways as well because we also have received reports it's going well but the majority of course is saying uh saying well we don't see the progress that we are we were uh that has been reported where it's reported as finished. It doesn't look finished or it's broken already uh because it was substandard. All of these things have been have played an important part in that process of shifting uh the the the the approach that we have had in the recent past on how government should uh should behave. Uh so that uh that uh anti-corruption um uh uh pro the progress on the anti-corruption uh measures that we are taking continues and will continue and I hopefully continue uh until we have changed the way we think, the way we do business, the way we feel that uh all government officials and uh they all the um attached contractors, attached groups, agencies etc. uh behave and how they view this kind of activity, this kind of wrongdoing that it is in fact wrongdoing and it will not be tolerated. That is the basic that's the basic lesson that we're trying to teach everyone or we're trying to inculcate in everyone's thinking that this is not allowable and we will not allow it and it should not be allowed. Uh it is a tragedy that it was allowed for for for for so many years and we are finding instances of this not only in the past years but in the past maybe 20 years we see things. Uh for a while there the more we look the more we found. Uh we're getting to the end of that. uh by the way. Um and then hopefully we were we we are beginning to to to see the beginning where it all started, how it evolved into this situation and now we are coming up with measures to uh to to to to be more secure in the knowledge that these will no longer be repeated. So we are putting measures in place for that both legal both administrative uh and again uh transparency portals such as what we have now with the the department of public works. We have them now as well in uh other departments the the the department of uh development economic development has their own which goes to all the big projects that uh that they've undertaken especially the foreign assisted projects. uh then all the all the other the directions that we are taking are have very clearly specified what needs to be done and uh what and the constant monitoring that we are now doing whereas before we signed the contract and we left the contractor to do uh what what they what they would no longer do that uh we now stay on it and the people and their reports that they're coming to us are an essential part of that of that process. >> Quickly, um, as you're saying, a lot of this stuff in terms of oversight are just now being put into place and as you note, you personally brought this issue to the spotlight in your first Sona address on it a couple years ago. But how much, if any, portion of the blame can go back to the administration given that some of these funds flowed from what are called here unprogrammed appropriations? Uh I I don't well if it depends how how you define the administration. Do you define the administration as everyone who belongs in government or >> I would define it I would define it here as the person who can make the decision on this this amount of money that that some critics would say is basically you know pork barrel spending or >> sure you just mentioned oversight. Many of these many of these oversight measures were actually in place. they were just not being uh respected or used uh and people would sort of paper over these things. So, we're bringing it back to where it should be. Anyway, now the one one of the one of the um one of the focus points that we that we that we found that we had to deal with was the discretionary the amount of discretion that is exercised by officials in government. And we noticed that that that discretion has become has gone to a much lower to a lower and lower lower part of the administration until rank and file members are making decisions that are in the billions of pesos uh that are in fact uh very gray area if not absolutely and totally illegal. uh so that is one of the measures that we have we have uh put in is to remove that discretion and the tool that we are using to remove that discretion as much of that discretion as possible because that's where the corruption comes in if I a say a a a functionary can make big decisions uh then I can ask for money and say I will decide it in your favor if you give me money uh if you give me or if we come to an arrangement where I profit or you profit or you know do something uh that is uh that is uh disadvantage what what the term is disadvantageous to the government. Uh so digitalization is our is our most powerful tool for that because we remove that human element where wastage uh corruption can creep into and that I think is uh the what we consider to be the administration's responsibility in fixing those processes so that that discretion is not abused and is not exercised unnecessarily or and again not exercised in uh not applied uh to uh illegal and to uh wasteful uh uh activities and that that's where I believe uh this administration has uh has focused and that is what we are continuing to focus to make again the process safer and uh more equitable uh in terms of our uh in terms of our spending and uh the projects that we are undertaking. >> Thanks. Uh lastly, you did mention at the last Sona that charges were imminent against the former house speaker, your cousin. I wonder if there's any update when you would expect those charges to to land if it be in the next month. >> I think you should be asking that question of the ombbudsman uh not me. I am not uh privy to the investigation that they are that are being conducted uh by the ombbudsman. I am not privy to any kind of schedule. uh so but the they the the budsman and his officers have uh uh are very much are very much on this uh on this subject uh as I'm sure you have uh gleaned from his statements that he has been making in the past few weeks. So uh we leave it to the ombbudsman and uh now that you've asked me I'll give him a call and see how is it go ask him how is it going uh just to give for my own uh for my own uh edification. >> Thank you Mr. President. >> Thank you >> Mr. President. Just one quick follow up on that. Are you confident that your anti-corruption measures that you're putting in place in your administration now will survive even after your term? And I asked that because there is a chance that political headwinds would change in 2028. And your critics are saying that this the power of the state is being used to target allies of the vice president amid her impeachment case. >> Oh. Uh it's no that no that that's not really the way we uh that way we approach the subject. I I approach the subject from another direction. Uh I'm I'm more positive. I'm more positive in my in the way I treat this. Uh I'm not saying we do not want certain people. What I'm saying is that what we will want you are going to we are going to want this person who I will uh endorse uh because they are the best person for the future of the country and the continuing uh uh attention that we are giving to corruption uh to wastage to uh all of these uh problems that government faces. This is not something that you can stop because if you do stop then we're back to the old system. Then we're back to all of these ridiculous uh contracts that uh you don't see any any any progress. You don't see that they're double they're charged over and over and over again for the same project. All of these things that we have uncovered um that that that is an ongoing process. The government has to continue to do that because the corruption is not is not is not a is not a Filipino problem. Corruption is a human problem. There is corruption everywhere. What you want to do is to to to lessen and if not eliminate it uh as uh as much as possible. And so you know there there are good guys and there are bad guys. And the bad guys are always going to try to uh to to to gain an unfair advantage. And to put not too fine a point on it, the bad guys are going to steal. And that's what you have to continue to watch out for. And uh and that is why to go back to the previous question about endorsing a candidate. The candidate I will endorse will be somebody who I am confident will continue what we have begun in terms of the anti-corruption measures. >> Thank you Mr. President. And for the final question for this afternoon may I call on Miss Joanna Balaran of GG Press. >> Good afternoon sir. Good afternoon. I'm Joanna Balaran from GG Press. Sorry last sir. [laughter] Um sir I'm going to ask the about the bank Samuro. No. So Mr. President um violence continued in Bang Sammoro despite establishing the barm in 2019 holding back expected progress in the region. How will the upcoming elections deliver that long awaited progress particularly the promises of the comprehensive agreement on the bank Samurro? I I will I will have to uh I I see it differently when you say that violence continues. Let us talk about the levels of violence. Um there what what we have now is not organized violence, not secessionist movement, not organized violence against the government and against personalities. What we have now is banditry. Uh and although and the the um the the main agents uh the ones that that especially during the secessionist movement in the 70s and the 80s uh and even in the 60s is uh uh that is what held back the progress of uh uh of bang of the Bangsamuru region of mostly Mindanao in general. Uh and you know we we have we how many times have we heard the expression Mindanao is the promised land because the the possibilities the opportunities that are available in Mindanao are are immense except for the violence that was uh ongoing at the time. That's no longer the case. I have been to several places in Muslim Mindanao in Tawi Tawi in Sulu where there was fighting before that are now resorts that that we have tourism going into that. And so uh when you say violence is continuing perhaps yes to an extent that's true but it is perhaps uh I would I uh very very small uh in compar the level of that is very very much lower in comparison to what we had before. Now the development, I'm more worried about the development. I'm more concerned in making a success that it becomes a region, an autonomous region that is successful in terms of providing service to its people, to its constituents and that there will be progress in terms of the economies, in terms of jobs, in terms of people's uh livelihoods etc. And the re and that that is why I hold out very much hope for the barm elections because it will be the very first time that we have uh that we have a elected parliament that is running the autonomous government in uh Muslim Indana. And that will immediately because now you give a voice to all the stakeholders and they're running their own show. It's not the Manila dictating them. Of course, they are a region and they still belong to the national government, but in terms of local issues, it is very much a paroial issues. It would very much be decided by by uh by them by themselves. And that is why I and we we see from many many uh quarters uh from from Muslim countries, from other from Japan, from the EU, from again Muslim countries, Gulf countries uh the interest that they have in coming into Muslim Mindanao when the time comes that they again that the situation is stable and no longer deemed as volatile. Uh so that is what that is that is why that is the the the elections in September are so important for the development of Muslim in the just pointed out to me that the elections uh in September will be 50 years >> after the Tripoli agreement. And if you want to go even further, the peace process began in 1968. And so this is the fruition of that entire process that went on from shall we say ' 68 then to the triple E agreement and then now we have bar and we will have an elected uh parliament. And if you you you and the reason that I have s I have great confidence that I have that I'm such an optimist about it is because the fighters uh that were literally in the in the mountains fighting against government forces, they are now out there campaigning to be MPs, to be members of parliament, to be members of of the parl bank bangamor of parliament. And for me that is that is the best possible sign that they have now adopted instead of picking up their weapons. They are now using the polit they they are now involving themselves in the political process which of course will bring peace and hopefully progress to uh the bank bangamoro autonomous region of Muslim Mindanao. Um it is it is as important an uh an an issue for me as anything else that uh uh that we that I have on uh in front of me. Uh I we we we once heard I we hear over many years that the the the there is a Mindanao problem and I reject that uh characterization. It is not a Mindanao problem. It is a Philippine problem. And it is going to be good not only for Muslim Mindanao. It will not only be good for our Muslim brothers and sisters. It will be good for the Philippines. And that is why it is so important to me. And to to have a a you remember we were what we were fighting on two fronts. We were fighting on the communist insurgency and we were fighting the secessionist movement. both now have been uh marketkedly reduced and now we can get on with progress uh which is which all of these uh uh uh conflicts had uh had held us back from. So yes, uh it is very very important and I really really I'm I'm very optimistic that as long as we have a a a credible uh and transparent election in uh and peaceful of course uh election in September then uh that will be an enor that will be a huge step forward for uh the re for the for the regional government of bar >> and I'm I I can I can see I I can already anticipate that the progress the development that will go into Barm will be tremendous. It will be tremendous. I uh I joke with some of my uh some of my friends from uh the the area. I said when I'm done being president I'm moving to Mindanao simply because the opportunities are just incredible. So I'll finally be a rich person you know. I'll I'll I'll make make a lot of money when I get get go back into business. >> Thank you, sir. Um my final question is uh with less than two years left of your term, what concrete legacy are you leaving to the Filipino people? [laughter] >> I I worry about legacy. Legacy is when you die. I always worry when people talk to me about legacy. I'm not about to die anytime soon despite the reports to the contrary. um legacy. I I just hope we we we uh put the faith of people back in government and that we now have a government that people can depend on, people can trust and uh uh that that that people can can talk to uh instead of having government telling you these are the things you do. you we we I hope that we have in we have started a listening government where we actually listen to people we don't tell people what to do and one of the re one of the ways that that we have done that is the engagement that we have done with the local governments uh as I always say in politics my I I grew up in local government and that is why I I' I've taken them on as a a very very very important partner to national government and what that's and that brings you closer to the people and that gives you a better idea of what people are concerned about because local the lo local local government know the situation in their area better than anybody else better than the president better than the cabinet secretaries better than anybody else. You ask a governor about their province, they know they should, if they're a good governor anyway, they should know everything about their pro. No one should know more about their constituency than them. Same applies to a mayor. Same applies to a barangi uh a barangi official. So that's is that that that that we make government more accessible uh not only in terms of transparency but accessible in terms of we can bring our concerns to government and we can we have enough confidence that they will in fact do something about it because there's one thing that I always say about lo about uh when when I when I entered national uh national became a national government official rather than a governor or uh is that we should listen more to local government for the simple reason that they you know that we always think well all they'll bring is the their problems and what they want but that's not necessarily true because of the knowledge that local government executives have of their constituency they also bring solutions they say this is the problem and in our view the best way to solve it is this it may not be perfect But it is something that will give you an idea of how to proceed, how to make this, how to get these things uh uh how to improve uh matters. Uh and so that's what uh that it's a more open more open government. And uh secondly that we move the country forward. I I have been saying this since I was uh well for a long time now. I don't even remember when it started but I remember when I when I I I first was becoming conscious of politics and government all I keep hear I kept hear I kept not I'm an old but what I kept hearing was nation building we are here to build a nation and after we I came back from the states I never heard that phrase again did you hear that phrase since 1991 one I haven't heard that phrase ever I and that's what I'm now we are bringing back that idea that government is not here to coast and to just you know sit back and uh I don't know what make pasikat and make ppyabang and no government is there to build the nation and that's what I hope that we have started to be it is a long road uh that to to build the nation it is a difficult process and you know there there are there are growing pains in everything that you do. Every change of course entails all kinds of uh of of adjustments. Some pleasant, some not so. Uh so it is it is a difficult process but hopefully we have started that process once again of nation building that we are making the country better. We're not just custodians and just, you know, just making sure it's the same, you know, nothing new. Just do the same business as usual. Uh, no new initiatives. No, it's too hard. It's too complicated. You know, people won't understand that. You have to get away from that. We have to get away from that. Say, what are we going to do in 20 years? What are we going to where will we be in 25, 30 years? And what can we do now to get to that point that we aspire to? That's the legacy I hope and hesitant as I am to speak about legacy that's the legacy I hope to to to leave that now government is your partner hand in hand with every citizen with every sector hand in hand trying to build a better Philippines trying to make the Philippines better trying to make the lives of our people better trying to create more jobs trying to increase the the li better the livelihood trying to bring develop- velment trying to be part of the of the the global economy an active part a a a a an important part of the global economy that's what we are trying to do that's what I I hope that we will leave uh when the time comes in 2028 when the time comes when we leave that is what I hope that we will leave behind is this culture of development of nation building if that If I can do that, if I have met with even some success to do that, then I will say that we have done we have done a reasonably good job. You will never have done a perfect job but we will have done a reasonably good job. Nation building once again returns to the government once again returns to the people once again returns to the country that perhaps is the most important thing that I hope to achieve. Thank you very much, sir.