<p>After the onset of the East Asian financial crisis, the interest in early warning system has been revived. While there are different causes to which crises can be attributed, early warning system can be utilized to predict its emergence via monitoring of key economic variables. Thus, policymakers are granted sufficient time to implement policy measures meant to minimize the adverse impacts of the crisis, if not to completely curb it. Although there are other methods to identify possible indicators, like the probability approach, the early warning system (EWS) developed by Kaminsky and Reinhart, is used in this paper because of various issues the probability approach are not capable of addressing. The concept of EWS is then applied to the Philippines. </p>