In his inaugural address, Toribiong said 2009 will be a very critical year for Palau, when the package of economic and financial benefits provided by the Compact comes to a halt.
Local revenues, he added, are not enough to replace the U.S. subsidies while Palau’s Compact trust fund in the last six months of 2008 sustained $50 million in losses.The new president said he will ensure that the “mutual expectations and hopes under the Compact are safeguarded.”According to Toribiong, local budgetary issues or the government’s debt also need to be addressed.“We lived beyond our means by borrowing from the future of our children,” he said. “It is our obligation to pay our debts and begin to live within our means.”Toribiong’s major economic development policy is to welcome new foreign investments.“We need to bring Palau within the sphere of trade and commerce of the Asia Pacific region and the world — we should not be afraid of foreign investors,” Toribiong added.He said what Palau needs is a broader base of foreign investment and assistance.“Economic self-sufficiency should always be our guiding star,” Toribiong added.He said he is also committed to ensuring that the quality of education and health care will be improved.He noted that his inauguration ceremony was “very historical — it was held for the first time on Babeldaob.His predecessor, now Sen. Tommy Remengesau, relinquished the presidential seal to Toribiong during the two-hour ceremony attended by foreign and local dignitaries.Hundreds also trooped to the Capitol to witness the event.
