Dear Shareholders

I reported last year about our expectations in 2008 that PLDT would continue to perform ahead of prior years, and that MPIC and Indofood would respectively benefit from their expanded portfolios of businesses.

PLDT’s traditional businesses grew under challenging circumstances. The new growth driver in broadband, both on the wireline and wireless platforms, saw very strong gains. Together with PLDT's traditional businesses and strong cash flows, we were able to enjoy a second year of dividend payout of 100% of its core earnings. I have no doubt PLDT will maintain its pre-eminent position amongst Philippines corporates.

MPIC’s turnaround was completed last year, and 2008 saw excellent progress with its portfolio enhanced through the acquisition of the key tollroad franchise in the Philippines and increased interest in Maynilad Water. The outlook for 2009 suggests that further complementary infrastructural businesses could be added to the portfolio. We should see growth in the water and tollroad businesses as operational expertise and strong marketing practices bring better financial performance.

Indofood's complementary strategic business units were able to deliver a third consecutive year of good results. Whilst oil and soft commodity prices enjoyed a strong first half in the year, the adverse impact of falling commodity prices in the second half of 2008 was compensated by strong performances in the other divisions - most notably consumer branded products. The outlook for 2009 will be mixed, as commodity prices remain under pressure and as the divisions continue to focus on integrating the two significant acquisitions made over the past years - the 64.4% interest in Lonsum plantation made in 2007 and, in December 2008, the 68.6% interest in Indolakto, a premier milk products business.

First Pacific remains focused and prudent in its search for suitable investment opportunities in the coming years when it is expected that more investment opportunities will arise. However, we will continue to adopt the same practices and criteria in evaluating their value enhancing nature.

Whilst we remain vigilant with regard to how we spend our capital, the majority of our resources to date have been utilized to enhance our investment portfolio as a means to enhancing long term value and growth.

Sincerely

Anthoni Salim
Chairman

25 March 2009