National Social Security Fund | Picking a Leaf from Countries with High Savings Rate

Picking a Leaf from Countries with High Savings Rate

Smartlife Flexi Register Member Register Company Contribute Submit Claim

Saturday, May 10 2025 9:00 am

By Paul Busharizi, Financial Journalist  

Savings Digest - Issue 2

Full magazine

Based on data from TheGlobalEconomy.com, the top five countries with the highest gross savings as a percentage of GDP in 2023 were:

  • Cambodia - 57.1%
  • Brunei - 45.96%
  • Norway - 43.24%
  • Algeria - 41.23%
  • Singapore - 40.87%

These countries have achieved high savings rates through various strategies and economic structures, as shared below:

1. Cambodia

  • Economic Growth: This growth has increased national income, enabling higher savings.
  • Foreign Direct Investment (FDI): The country has attracted significant FDI, contributing to capital accumulation and national savings.

2. Brunei

  1. Oil and Gas Revenues: Brunei’s economy is heavily reliant on its extensive oil and gas reserves. The substantial income from hydrocarbon exports has led to high national savings.
  2. Sovereign Wealth Fund: The Brunei Investment Agency manages surplus revenues, investing them to ensure long-term financial stability and wealth preservation.

3. Norway

  • Oil Wealth Management: Norway has effectively managed its oil revenues by establishing the Government Pension Fund Global, one of the world’s largest sovereign wealth funds, to save and invest surplus income for future generations.
  • Fiscal Responsibility: Prudent fiscal policies and a strong emphasis on social welfare have contributed to substantial public savings.

4. Algeria

  • Hydrocarbon Exports: Algeria’s economy benefits significantly from oil and natural gas exports, which constitute a major portion of its GDP. The revenues from these exports have been a primary source of national savings.
  • Public Investment: The government has directed a portion of its resource revenues into public investment programs, contributing to the national savings rate.

5. Singapore

  • Economic Diversification: Singapore has developed a highly diversified and export-oriented economy, excelling in finance, manufacturing, and services. This diversification has led to substantial income and savings.
  • Central Provident Fund (CPF): A mandatory savings scheme requiring contributions from both employers and employees has significantly boosted national savings.