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MEMORANDUM OF UNDERSTANDING ON THE PHILIPPINES-SINGAPORE ACTION PLAN BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE REPUBLIC OF SINGAPORE

THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES and the GOVERNMENT OF THE REPUBLIC OF SINGAPORE

DESIROUS of expanding and enhancing bilateral relations and effective cooperation in the interest of both countries,

RECALLING the discussion between the then President of the Republic of the Philippines H.E. Mr. Fidel V. Ramos and the Prime Minister of the Republic of Singapore H.E. Mr. Goh Chok Tong during the latter's official visit to the Philippines from 9 to 11 June 1997 on the establishment of the Philippines-Singapore Action Plan,

HAVE AGREED to establish the Philippines-Singapore Action Plan (hereinafter referred to as "PSAP"). The concept and modality of, as well as the areas of cooperation under the PSAP are set out in the Annex attached hereto.

IN WITNESS WHEREOF the undersigned duly authorized by their respective Governments have signed this Memorandum of Understanding

DONE in Hanoi, Vietnam on the 14 day of December 1998.

FOR THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES (Sgd.) DOMINGO L. SIAZON, JR. Secretary of Foreign Affairs

FOR THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE (Sgd.) PROF. S. JAYAKUMAR Minister for Foreign Affairs

ANNEX

PHILIPPINES-SINGAPORE ACTION PLAN

1. During the official visit of Prime Minister Goh Chok Tong to the Philippines from 9 to 11 June 1997, Prime Minister Goh and President Fidel V. Ramos agreed to establish the Philippines-Singapore Action Plan (PSAP) to:

(a) Provide a framework for strengthening bilateral cooperation through consolidating and formulating new bilateral cooperation initiatives over the immediate, medium and long-term period, taking advantage of the complementarities and synergies that exist between the Philippines and Singapore and;

(b) Strengthen, through wider bilateral cooperation, the sense of friendship and understanding between the Governments and peoples of the Philippines and Singapore, leading to enhanced peace and prosperity for both countries, and the region.

2. The PSAP shall cover multiple aspects of bilateral cooperation, in particular, economic, information technology, education, cultural, military and people-to-people exchanges, and shall not preclude other areas as may be determined by the two Governments.

3. The Secretary of Trade and Industry of the Philippines and the Minister for Trade and Industry of Singapore shall be responsible for overseeing the implementation of the economic components of the PSAP and shall hold meetings from time to time to review and give advice and directions on these aspects of the PSAP.

4. The Secretary of Foreign Affairs of the Philippines and the Minister for Foreign Affairs of Singapore shall be responsible for overseeing the implementation of the non-economic components of the PSAP and shall hold meetings from time to time to review and give advice and directions on these aspects of the PSAP.

5. To maximize efficiency and flexibility in realizing projects encompassed under the PSAP, counterpart agencies from both sides will utilize existing channels and contacts and report progress of their efforts to the Department of Foreign Affairs of the Philippines or the Ministry of Foreign Affairs of Singapore respectively from time to time.

6. The PSAP shall cover the following areas of bilateral cooperation:

(A) ECONOMIC CO-OPERATION

(i) Industrial Park Development

There is considerable scope for the Philippines and Singapore to exchange experiences and learn the best practices from each other in setting up industrial parks from the feasibility study and planning stage to the construction of infrastructure and the management of such parks. The two sides could also work together to ensure the success of joint Philippines-Singapore industrial parks and the companies located therein.

Action Line:

• Facilitate the success of Carmelray Industrial Park II and the companies located therein; and

•Study the possibility of working together in other parks under the Philippine Economic Zone Authority (PEZA).

(ii) Business Opportunities in Mindanao and Northern Luzon

The regions of Mindanao and Northern" Luzon offer significant business opportunities that companies rom the Philippines and Singapore could take advantage of. Philippine and Singapore enterprises could:

(a) conduct feasibility studies on prospects in Mindanao which would enable the Philippines and Singapore to cooperate effectively in the booming economy being brought about by the formal linkages created by the Brunei, Indonesia, Malaysia, Philippines-East Asia Growth Area(BIMP-EAGA).

(b) consider prospects in Northern Luzon, which is part of the Natural Economic Territories (NET) involving South China, Hong Kong and Taiwan. The influence of overseas Chinese, the complementarity of resources and needs, and especially the increasing demands as living standards improve, should mark this Philippine region of high interest. The Philippines and Singapore would be willing to explore together the investment potential in Northern Luzon, especially Subic Bay.

Action Line:

• The Philippines-Singapore Business Council (PSBC) and the Singapore Trade Development Board (STDB) will be requested to examine the possibilities and identify sectors with potential in Mindanao and Northern Luzon for collaboration between the private sectors from both countries.

(iii) Promotion of Investments

Singapore companies are interested to invest in the Philippines. Through the identification and development of areas of cooperation between the two countries, it is hoped that Singapore and the Philippines can forge a close economic alliance. The PSBC, with the assistance of STDB, will play an important role in this regard.

Action Line:

Within the framework of the PSBC:

• Encourage and facilitate Singapore Investments in the Philippines.

• Encourage and facilitate Philippine companies to examine investment opportunities in Singapore.

• Encourage third country investments in the Philippines or joint Philippines-Singapore projects in third countries, wherever possible.

(iv) Port Infrastructure and Management

The Philippines plans to upgrade its port facilities from the infrastructure base to state-of-the art equipment as well as the training of personnel to manage these facilities. Singapore could contribute to such plans by sharing with the Philippines its experience in port operations and encouraging Singapore investors and port operators to look at opportunities in the Philippines.

Action Line:

• The Port of Singapore Authority ((PSA) Corporation and the Philippine Port Authority (PPA) shall explore the possibility of collaborating in the following projects in the Philippines:

(v) Franchising

Companies in both Singapore and the Philippines have established reputable brand names that could be marketed regionally and internationally. Singapore and the Philippines shall work together to facilitate the business growth of these franchises in the region and beyond.

Action Line:

• To facilitate cooperation in franchising, STDB and the Singapore International Franchise Association shall help to market Singapore-based franchises in the Philippines and seek opportunities for the business growth of these franchises. In turn, companies representing Filipino franchises could visit Singapore to study the scope for development here.

(vi) Tourism

Expansion of Flight Frequencies for Both Countries. Both countries should encourage the progressive liberalization of the bilateral air services agreement for mutual benefit.

Joint Marketing and Promotion. Both the Singapore Tourism Board (STB) and the Philippines Department of Tourism (PDOT) could explore a joint marketing and promotion programme to promote mutually beneficial flow of tourists to the Philippines and Singapore. Both National Tourism Organizations (NTOs) concerned would jointly fund this programme on an equal cost-share basis. It could be positioned to feature the Philippines' strong historical, culture, arts and geological attractions with the cosmopolitan appeal of Singapore. Activities that could be included would be joint seminars for travel agents, joint travel agents/media familiarization trips in the first phase and wholesaler support scheme for tour operators and airlines and promotional activities with trade in the second phase.

Tourism Investments. Blessed with scenic natural attractions, favorable investment incentives and trong government support, the Philippines has great potential for tourism development. Singapore is prepared to facilitate further collaboration between Singapore and Filipino companies so as to tap the tourism investment opportunities available in the Philippines. To achieve this aim, both Singapore and the Philippines could continue to leverage on the following existing platforms and agencies to surface investment projects and facilitate investment interest where appropriate:

(a) Philippines-Singapore Business Council;

(b) PDOT/BOI; and

(c) STB/STDB.

Action Line:

• The Department of Transportation and Communications of the Philippines and the Civil Aviation Authority of Singapore could work towards the progressive liberalization of the air services agreement between the Philippines and Singapore.

• STB and PDOT would cooperate in joint marketing and facilitation of tourism-related investment projects. Once these joint programmes have been built up and substantive benefits can be expected, a formal Tourism Cooperation Agreement between the two tourism agencies can then be explored.

(vii) Productivity and Skills Training

Singapore and the Philippines work closely together under the umbrella of the Asian Productivity rganization (APO). The Productivity and Standards Board (PSB) has cooperated with the Philippines in APO programmes such as Technical Expert Services (TES) and Bilateral Cooperation between National Productivity Organizations (BCBN). The two countries have also developed close ties under the Third Country Training Programme (TCTP).

Action Line:

• PSB and its Filipino counterparts will continue to collaborate under the existing frameworks. PSB is also prepared to offer training to Filipino representatives in the areas of productivity and quality enhancement.

(B) INFORMATION TECHNOLOGY

There exists considerable potential for cooperation between the Philippines and Singapore in Information Technology (IT), the new enabler for economic development and social well-being. The Philippines and Singapore have the advantage of a talented and educated manpower, proficient in English. This provides the opportunity for both countries to jointly develop and sustain a competitive edge by exploiting and leveraging on IT. Forging a strategic collaboration on IT will help accelerate IT development on both countries that will be mutually beneficial.

Action Line:

• The National Computer Board of Singapore and the National Information Technology Council (NITC) of the Philippines should work towards the signing of a government-to-government memorandum of understanding (MOU) in IT between the Philippines and Singapore to serve as a broad-level framework and agreement for collaboration.

• Singapore and the Philippines could explore the possibility of establishing a highspeed telecommunications link between the two countries. Such a link will provide the means for communication, information and transaction to flow easily between the two countries.

• Singapore and the Philippines could undertake joint IT projects to develop products for the world market by combining multimedia creative talents in the Philippines, and project management and marketing expertise in Singapore.

• The Philippines could look at Singapore's experience in setting-up an Internet backbone through Singapore One.

(C) CAPITAL MARKET DEVELOPMENT

Singapore has been successful in raising national savings, managing pension fund schemes, and building a world-class financial center. The Philippines can learn from the experience of Singapore. On Singapore's side, Singapore banks are interested to expand their presence in the Philippines.

Action Line:

• Singapore and the Philippines shall carry out exchanges in the supervision and regulation of the banking and securities industries. These exchanges could be carried out through exchange visits and bilateral meetings between the Finance Ministries, central banks and securities exchanges of Singapore and the Philippines.

• Singapore banks, investment houses, mutual funds, and other financial institutions could also explore the possibility of expanding their operations to the Philippines through joint ventures and the setting-up of branch offices.

• Philippine banks that satisfy the admission criteria established by the Monetary Authority of Singapore may also wish to set up operations in Singapore. However, this would have to be undertaken under the ASEAN Framework Agreement on Services. In this regard, Singapore and the Philippines could cooperate with each other to work towards greater liberalization of the financial services sector within ASEAN.

(D) EDUCATION

The Philippine and Singapore governments recognize the important role of education plays in the pursuit of economic and social development. In this regard, the common medium of instruction - English — used in both the Philippines and Singapore creates vast potential for bilateral education cooperation. The two countries shall share experiences in the teaching of various fields, in particular Science, Mathematics and the Arts. To this end, linkages shall be established between the educational institutions of the Philippines and Singapore, and student and teacher exchanges programmes shall be instituted. The exchange of teachers will enrich the teaching environment in both countries, while student exchanges will help build ties between Singapore and the Philippines for the future.

Action Line:

• For schools in the Philippines and Singapore to establish institutional linkages through a twinning programme which matches schools in the Philippines with schools in Singapore.

• To establish student exchange programmes.

• For Singapore to offer scholarship grants to Filipino students who meet entry requirements to study in Singapore schools and institutions of higher learning.

• The fostering of closer university-to-university cooperation to be achieved through academic student exchanges for 1 or 2 semesters at undergraduate and graduate levels.

• To establish teacher exchange programmes in specific areas of specialization, e.g., Singapore can send Mathematics and Science teachers to the Philippines while the Philippines can send Fine Arts teachers to Singapore.

• For Singapore and the Philippines to cooperate in the training of seafarers. Singapore polytechnic could offer places in its maritime courses to Filipino students who meet the requirements.

(E) CULTURE

The Philippines is known for the vibrancy of its arts and culture, while Singapore is endeavoring to build itself into a world-class city of the arts. In this respect, there is tremendous scope for cooperation and exchanges between the two countries in this field. Exchanges in Arts and Culture will promote a greater understanding and appreciation between the two peoples. Furthermore, with the Arts becoming an industry with strong economic potential, cooperation between Singapore and the Philippines will contribute to the harnessing of this economic potential for both countries.

The foundation for bilateral cooperation in this area shall be the MOU on the Singapore-Philippines Cultural Cooperation Programme signed during PM Goh Chok Tong's visit to the Philippines in June 1997. The National Arts Council (NAC) and the Philippine National Commission for Culture and the Arts (NCCA) should endeavor to actively implement the MOU with specific and substantial programmes. In addition, Singapore-Philippines cooperation in arts and culture could also extend to museological and archival exchanges, and to exchanges of TV and radio programmes between broadcasters in the Philippines and Singapore.

Action Line:

• The National Commission on Culture and the Arts of the Philippines and the National Arts Council of Singapore shall actively promote bilateral cultural exchanges.

• There shall be exchanges of visits of administrators, experts and practitioners in the field of performing, visual and literary arts as well as the field of heritage.

• Broadcasters in the Philippines and Singapore shall explore TV co-production covering cultural, arts, music or children's programmes.

• The National Heritage Board of Singapore and the relevant agencies in the Philippines can consider collaboration and exchanges hi areas such as the loan of Filipino pottery from the National Museum of the Philippines for exhibition at the Asian Civilizations Museum; collaboration between the Singapore Art Museum (SAM) and a key art museum in the Philippines to present an exhibition of high regional and international standing on Philippine modern art in Singapore sometime in 1999/2000; and in conjunction with the exhibition on modern art, a joint research programme into areas covered by the exhibition theme, where curators from SAM and art historians from key modern art research institutions in the Philippines can work together.

• The National Library Board of Singapore and the relevant agencies in the Philippines can expand publication exchanges and explore the possibility of developing a database on culture.

(F) PEOPLE-TO-PEOPLE EXCHANGES

A fundamental element in building and strengthening ties between the Philippines and Singapore is through enhanced people-to-people exchanges aimed at fostering greater understanding and better coordination among the people and institutions of Singapore and the Philippines as well as promote economic prosperity for the two countries. Such exchanges shall be multi-level and involve Singaporeans and Filipinos from government, the business sector and non-government groups and civic bodies;

(i) Political Leaders and Officials

The political leaders, parliamentarians and government officials of Singapore and the Philippines should meet regularly through exchanges of visits.

Action Line:

• Parliamentarians. The parliamentarians of both countries should explore the . possibility of setting up a Singapore-Philippines Parliamentarians Association.

• Civil Service Cooperation. The Philippine Civil Service Commission and Singapore's Public Service shall share experience and views in structuring and managing an efficient and effective civil service and in human resources development. This could be carried out through an annual exchange visit.

• Foreign Ministry Exchanges. The Foreign office officials of both countries should meet on a bilateral basis, at the sidelines of the various regional and international fora, rapport-building and policy consultations.

• Forensic Pathologists. The Philippine National Bureau of Investigation (NBI) and the Singapore Institute of Forensic Science and Medicine can exchange visits of forensic pathologists. Such visits could include comparative discussion of each country's methodology and practices; and visits to the Singapore Department of Forensic Medicine and the MBI autopsy facilities.

(ii) Academic and Journalists

The exchanges of visits by other opinion-makers, particularly academics and journalists, would also be useful in fostering better mutual understanding between the Philippines and Singapore.

Action Line:

• Academic. The leading universities of the Philippines and Singapore could organize seminars involving professors for discussions in various fields. The output of such seminars could be used to further the scope of the PSAP and improve Singapore-Philippines relations.

• Journalists. Journalists and editor of the mass media from both countries should exchange visits. Following the success of the first Journalists Visit Programme for Philippine journalists organized by Singapore's Ministry of Information and the Arts; the programme shall expand to involve more journalists.

(G) MILITARY COOPERATION

Defense relation are an important part of the broad-based relationship between the Singapore and the Philippines. The two defense establishments and armed force shall work towards progressing existing defense interactions, such as in bilateral military exercises, and identifying new areas of cooperation.

Action Line:

The Singapore Armed Forces (SAF) and the Armed Forces of the Philippines (AFP) shall continue to plan bilateral military exercises, implement and explore cooperative defense and military activities under the existing Agreement between the Government of the Republic of Singapore and the Government of the Republic of the Philippines for Military Training and Cooperation signed in May 1994.