An even more basic reason is the need to improve on the current low domestic saving rate. According to comparative data from ADB as of 2003, the gross domestic saving rate in the Philippines was only 20.1% of GDP compared with Hong Kong (31.6%), Thailand (33.1%), Malaysia (42.9%) and Singapore (46.7%). Even Indonesia is slightly higher at 21.5%.
A low domestic saving rate is a basic constraint to achieving higher levels of investment needed to support a faster pace of economic growth. To promote savings, the Philippine financial market needs to offer a broader array of financial instruments beyond bank deposits and equity. We are particularly keen on seeing the faster development of the domestic debt market.