cits, and mediocre levels of foreign currency reserves. Worst still, the Philippines has the lowest Gross Domestic Savings to GDP at 9% compared to the average of East Asian countries of between 25% to 35%. The Philippines has no alternative but to attract foreign savings in the form of Foreign Direct Investments. Our borrowing capacity has been severely limited by the increase in our debt-to-GDP ratio to dangerous levels exceeding 60%.
As regards PPP with domestic investors, we are witnessing a drying up of long-term capital among leading PPP proponents like San Miguel Corp., First Metro, DMCI, and Megawide. In this regard, the Senators should seriously consider the recommendation of former Finance Undersecretary Romeo Bernardo to tweak the MIF so that it could attract generous grant and soft loans from donor countries, multilaterals, and private sector investors that will fund green energy projects.
Under this “Maharlika Green Investment Fund” concept proposed by Dr. Romeo Bernardo can be subsumed the plans of a good number of foreign investors who are ready to invest in renewable energy projects in the Philippines.