PRESS DIGEST - Philippine newspapers - Oct 6

MANILA, Oct 6 (Reuters) - These are the leading stories in Manila newspapers on Monday. Reuters has not verified these stories.

- The sale of Philippine American Life and General Insurance Co (Philamlife), the local unit of American International Group (AIG) (AIG.N), may attract top local conglomerates like the Ayala Group (AC.PS) and San Miguel Corp (SMC.PS), Chinese-Filipino businessmen and big foreign groups in related businesses, according to stock market analysts. (PHILIPPINE DAILY INQUIRER)

- State-pension fund Government Service Insurance System (GSIS) said the value of its overseas investments grew 5 percent or 1.25 billion pesos ($26 million) despite the global financial crisis, its president said. (ALL PAPERS)

- Filipinos should brace for tough times ahead as it would take some time before the global economy recovers despite the recently passed $700 billion financial bailout in the United States, the presidential palace said. (THE PHILIPPINE STAR)

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BUSINESS

- The Philippine central bank is expected to keep policy rates steady, with analysts saying that moderating inflation would allow regulators to focus on growth, a BusinessWorld poll showed. (BUSINESSWORLD)

- Next year's revenue effort will dip slightly because of lower privatisation proceeds but the government still expects to cap the budget at 40 billion pesos, the Department of Finance said. (BUSINESSWORLD, THE PHILIPPINE STAR, THE MANILA TIMES)

- Moody's Investors Service said Asia-Pacific countries would find it more difficult to access funds from the international capital market because of the U.S. financial crisis and high inflation. (PHILIPPINE DAILY INQUIRER, THE MANILA TIMES) ($1 = 47.0 Philippine pesos) (Reporting by Karen Lema; Editing by Valerie Lee)