Philippines seeks investments from ASEAN pension funds

The Philippines is eyeing to secure investments from other pension funds in Southeast Asia, which has around USD 1.3 trillion in collective assets, the top official of the Government Service Insurance System (GSIS) said.

This as the Philippines assumes the chairmanship of the Association of Southeast Asian Nations (ASEAN) Social Security Association (ASSA), a nongovernmental group.

“This is really a good opportunity. But what’s more important is the ability for all of these long-term fund managers also, now that they’re in the Philippines, to understand the key needs of our country,” GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso told reporters on the sidelines of the 41^st ASSA Meetings on Monday.

ASSA is a regional cooperation platform for social security institutions in the ASEAN. The GSIS accounts for around $31 billion of ASSA’s collective assets.

“Please take note for example for power opportunities in the Philippines there may be the same energy opportunities in Malaysia. Toll road (operators) in the Philippines can have toll roads in the rest of ASEAN,” Mr. Veloso said.

“Food security concerns in the Philippines are a priority and a concern for other countries. And we have not identified where all of these are existing for us to be able to invest.”

Asked which sectors these ASEAN pension funds can invest in the Philippines, Mr. Veloso said there are opportunities in infrastructure, education, food security and medical facilities.

Mr. Veloso said ASSA members can benefit from the ASEAN free trade agreement.

“The $1.3 trillion in collective assets under our management represents more than just financial strength. It positions us members as significant players in global capital markets and demonstrates our capacity to influence economic trends,” he said.

Meanwhile, ASSA Chairperson Ahmad Zulqarnain Onn of Malaysia said there is an opportunity in terms of greater collaboration in investing.

“I can speak for my own institution, which is that we have great interest in investing in infrastructure all throughout the region,” he said.

During the meeting, ASSA member institutions will finalize a sustainability pledge.

“The Philippines, like many of our ASEAN neighbors, is deeply committed to these priorities. We are digitalizing our services, fortifying cybersecurity, exploring sustainable investment strategies, and extending social protection coverage among all sectors,” President Ferdinand R. Marcos, Jr. said in his statement as read by National Treasurer Sharon P. Almanza.

Mr. Marcos also said the signing of the ASSA Sustainability Pledge — a declaration that aligns our mission with the principles of sustainability, inclusivity, and environmental stewardship is a step forward.

“With the adoption of ASSA Board Circular Resolution No. 1/2024, we formalize this pledge and reaffirm our commitment to a future where sustainability and social security walk hand in hand,” he added.

The members of the Philippine Security Association are the GSIS, the Social Security System, The Philippine Health Insurance Corp. (PhilHealth), the Employees’ Compensation Commission, and the Philippine Charity Sweepstakes Office. — Aubrey Rose A. Inosante