BSP: Consumer finance survey to serve as guide for investors

CEBU, Philippines - Aside from determining the financial holdings and behavior of Filipinos nationwide, the findings of the first Consumer Finance Survey released by Bangko Sentral ng Pilipinas (BSP) could further serve as basis for investors on which market that needs to be tapped. 

This statement was given by BSP Assistant Governor for Monetary Policy Sub-Sector Ma. Cyd Tuaño – Amador during the inaugural report last July 24 at BSP Cebu Regional Office.

The CFS generates data on the financial conditions of households which includes their financial and non-financial assets, sources of credit and level of indebtedness, and income, spending and insurance coverage of households.

The survey has a sample size of 10 520 households of which 3 872 respondents came from the National Capital Region and 6 648 households in Areas Outside National Capital Region particularly Regions 1, 7 and 11. The overall response rate was 89.4 percent.

The survey respondents were predominantly female (59.8%), in the working age bracket of 21 – 64 years old (85.7%), and were high school or college graduates (55.2%).

Following the National Statistics Office Master of Sample of Households, the respondent identified for each sample household was the most knowledgeable about the household finances.

For data pertaining to demographics, assets, liabilities, preferences and behaviors, the date the households were interviewed was within the period from November 2009 to January 2010 while the full year of 2008 was the reference period for the data collection on work, income and expenditures.

Amador said that the Philippine survey is considered to be the second CFS in Asia, next to Korea. She added that it serves a good representation of the whole economy as it tells how the Filipinos are when it comes to their financial preferences and perspective.

She further revealed that the institution intends to update the survey every three years with a considerable cost involved and to expand the survey to other regions of the country.

The next survey, she said, shall be an evaluation on the financial condition for 2012 which she described as “challenging” since there is a notable improvement in the global economy this year than in 2009 when the financial crisis was felt worldwide. 

She noted that the CFS is not only significant for BSP’s policy implications and advocacy on financial education but also for the benefit of the private sector that could utilize the data as a potential source of information to know what “gaps to fill in.”

CFS findings indicate a significant increase in the country’s labor force is expected over the next decade.

Age distribution of household members showed that 21.5 % were 5 – 14 years old while those who were about to retire or were close to compulsory retirement which are aged at 55 – 64 years old and the elderly from 65 years old and above accounted for 6.9% and 5.4% of the household members, respectively, at the time of the survey.

Results further revealed that wages and salaries are the main sources of household income that accounted 43.2% of the total households.

Moreover, food and beverages consumed at home was found to be the main household expenditure which accounted for 38.5% of the annual household expenditures.

With such key findings, Amador cited that local and foreign investors could make use of the survey results as a basis since consumption could be considered as a strong growth driver with the relatively large working age population as a good market to tap.

She added that businesses proven to be feasible are those involved in products and services utilized by the particular segment of the Filipino population.

“Philippines should be benefitting from this demographic dividence. Consumption will be a key driving force of the Philippine economy with the working population mostly composed of young professionals,” she stated. (FREEMAN)