Government Service Insurance System (GSIS) president and general manager Jose Arnulfo Veloso said Monday the $1.3 trillion in collective assets of the ASEAN Social Security Association (ASSA) members now shape global capital markets.
Veloso said in a news briefing after the opening of the 41st ASSA Conference and Board Meetings at the Seda Manila Bay Hotel in Paranaque City that that the economic vitality across ASEAN provides ASSA a strong foundation to enhance social security systems.
“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,” said Veloso, who also sits as ASSA vice chairperson.
Veloso acknowledged the “tremendous responsibility” in securing these funds considering the rapid transformation of economies which can either bring more opportunities or challenges especially in digital economy.
“The rise of the digital economy, evolving employment patterns, and emerging social needs of our diverse populations demand our immediate attention. This is why our conference theme, ‘Navigating the Future of Social Security: Integration, Innovation, and Inclusion’ is particularly relevant,” Veloso said.
The gathering comes as ASEAN demonstrates remarkable economic resilience, with the Philippines projected to maintain its position as the region’s fastest-growing economy, expecting GDP growth of 5.8 to 6.3 percent in 2024.
ASSA Chairperson Ahmad Zulqarnain Onn said the series of meetings would help the body to determine where these investible funds are best deployed.
Onn said that among the ASEAN member states, only 46 percent of the population is covered by at least one social protection benefit, lower than the global average of 52 percent.
Equally concerning, he said, is that social protection expenditure in the region stands at just five percent of the GDP, lagging “far below global average”.
“These statistics highlight the urgent need to strengthen our social protection systems and expand coverage to ensure that no one is left behind,” Onn said.
Countries, he said, should address key challenges impacting the sustainability and effectiveness of social security systems in the ASEAN by tapping innovative approaches and strengthening regional cooperation.
“By deepening regional cooperation and integration, we can create a more robust and cohesive social security system across ASEAN,” he said.
“Capital is best deployed when there is great knowledge about the needs of those that require capital and there is great knowledge surrounding how to manage the risks of investments as well,” Onn said.
ASSA, in its 26 years of existence, was founded in 1998 by seven institutions including the GSIS. The Philippines is set to take over the ASSA chairmanship this year.
National Treasurer Sharon Almanza opened the two-day summit on behalf of President Ferdinand Marcos Jr. and Department of Finance Secretary Ralph Recto.
Almanza reaffirmed the governments’ commitment to a collective mission to build social security systems that meet the demands of today and reinforce the aspirations of the next generations.
