The Philippines is ?an island of calm? in a world financially in turmoil, said Agosto Bernard, associate director of the international credit watchdog Standard & Poor?s, in an email to Malacañang?s investor relations office.

The email, a portion of which the Palace distributed to reporters, said: ?Yes, the Philippines is ?lucky? because they have made the necessary adjustments and reforms when times were still good. So they are facing the global market problems and economic slowdown from a considerably improved position, compared to what they were in three to four years ago....?

Bernard added: ?The Philippines is an ?island of calm? currently, while there is turmoil in higher rated and previously stable countries ...?

President Gloria Macapagal-Arroyo on Monday proposed an ASEAN initiative to protect the region from the world financial crisis. The matter will be discussed on the sidelines of the Asia-Europe Meeting in Beijing next week.

Press Secretary Jesus Dureza said the President would announce this Wednesday the preliminary details of the regional strategy.

Rolando Tungpalan, deputy director-general of the National Economic Development Authority, said there were clear bases for S&P?s assessment. He said inflation had slackened?to 11.9 percent in September from a 17-year high of 12.5 percent in August?and the August rate was primarily a reaction to ?movements in the US and other markets.?

"Combined and coordinated efforts of the US, Europe and even Australia are bringing confidence back to the market. These initiatives would be sufficient for us not to contemplate a rescue plan of our own," Tungpalan at a news briefing after a Cabinet economic cluster meeting in the Palace.

Bernard?s message was included in a presentation at the economic cluster meeting, which tackled the government?s action plan to cushion the negative impact of the financial crisis on the country.

Tungpalan said the government had a ?full program? to address impact of the global financial crisis. He said the main idea was to continue increasing spending on infrastructure and basic services, a top priority in the proposed P1.4-trillion national budget for next year, and better tax collection.

?We are keeping this momentum and that should keep us not only in calm but also better waters,? he said. Christian V. Esguerra, with reports from Leila B. Salaverria and Thea Alberto; edited by INQUIRER.net