Savings Bond Platform Demonstration Held in Palau
By: Samatha Iyar:
Koror, Palau – September 30, 2024 – A demonstration event for Palau's new Savings Bond Platform took place at 1 p.m. in the Ulong Room of the West Plaza Lebuu Street. The event, which attracted key government officials and international partners, marked a significant step toward enhancing financial inclusion and domestic investment opportunities in Palau.
The event began with opening remarks from H.E. President Surangel Whipps Jr., who emphasized the broader impact of the new bond initiative. "By investing in this instrument, we are not only supporting our economy but also building a stronger, more resilient future for generations to come," said President Whipps. He outlined that the funds generated through the bonds would be allocated toward critical infrastructure projects, such as roads, bridges, and public facilities, while also promoting education, sustainable development, and financial stability. He added, "We need to work together, ensuring that the people trust the system and have confidence in its security and potential."
Following the President's remarks, Minister of Finance Kaleb Udui highlighted the Ministry's commitment to expanding access to financial tools through the Savings Bond Platform. "Today's launch marks an important milestone in promoting financial inclusion and innovation," said Minister Udui. He described the platform as part of a larger initiative aimed at enhancing Palau's financial systems and ensuring that investment opportunities are available to all citizens. Minister Udui also stressed the importance of gathering user feedback to improve the platform's functionality and accessibility for all participants.
Dr. Nobuhisa Nishigata, Counsellor at the Cabinet Secretariat of Japan, provided further insight into the significance of domestic investment for sustainable economic growth in Palau. In his remarks, delivered via video link from Tokyo, Dr. Nishigata stressed the importance of utilizing domestic savings for local investments, citing the example of other successful Asian nations. He highlighted that only 10% of Palauan deposits are currently circulated within the country, while 90% are invested abroad, primarily in the U.S. "It is very important to circulate domestic deposits through local loans, particularly for infrastructure investments and small businesses," Dr. Nishigata stated. He expressed hope that the Savings Bond Platform would help bring young Palauans back to the country by providing low-interest loans for startups and small businesses, thereby contributing to long-term economic stability.
The demonstration also showcased the potential benefits of the Savings Bond Platform, including its ability to provide affordable loans for housing and small businesses. However, both President Whipps and Dr. Nishigata noted the importance of maintaining public trust in the system and ensuring that interest rates on savings bonds remain lower than the returns from these investments. The platform's success hinges on Palauan residents and overseas Palauans becoming stable investors, Dr. Nishigata noted.
The event concluded with optimism about the platform's potential to foster continuous and sustainable growth in Palau. As the country moves forward with this digital investment initiative, it hopes to attract more local investors and improve economic conditions for its citizens.
