NEWSFLASH

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FOREIGN INVESTOR PREDICTS P35=$1 RATE

Manila, May 17, 1998 - A foreign investor/economist predicts that the Philippine peso will strengthen to within P35=$1 before the end of 1998.

"The Philippines is expected to weather the regional crisis remarkably well. It does not suffer from any of the structural problems that plague its neighbors," said Federal Express Corporation chief economist Ting Ho, who also sees a growth rate of 3% for the Philippine economy this year, expanding to 5% by 1999.

"The decline in the peso appears to have bottomed out. The P4 to P5 billion annual inward remittances from Filipino overseas workers would also help stabilize the peso," Ho said.

"The Philippines has a very good Central Bank and it is very credible in the international community."

The current regional financial turmoil is considered the worst Asia has experienced since World War II.

"The current developments offer a unique opportunity for Asia to abandon outmoded business models based on close business and government partnerships, in favor of a new one based on accountability, flexibility and the rule of law," Ho said. The recession, he added, would help the region purge itself of impurities and warped values.

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