PHILIPPINE NEWSPAPER HIGHLIGHTS - MAY 3, 2006.

MANILA, May 3 Asia Pulse - Highlights of today's newspapers:

MANILA TIMES:

- The package of nonwage benefits announced by President Arroyo has failed to impress labor groups, who said the perks are too little, too late.

- Key interest rates climbed at Mondays auction of government securities or IOUs, but the Bureau of Treasury denied this reflected a turnaround in investors sentiments with regard to the Philippines fiscal prospects.

- Merrill Lynch, the world's largest retail stock brokerage firm, expects Philippine economic growth to be broadly stable, while the national government cuts its debt substantially this year.

- The Board of Investments, the promotions arm of the Department of Trade and Industry, has approved the applications of Ford Group Philippines and Toyota Motors Philippines Corp. for the manufacture of new vehicle models under the governments Motor Vehicle Development Program (MVDP).

- Flying V Corp. plans to construct an ethanol production plant and additional pump stations this year in a bid to solidify its hold on the domestic market and its status as a market leader in the alternative fuels business.