This wasn’t exactly a case of being lost in translation. It was more like the words dished out were unintentionally blunt.
I was actually surprised to hear it from Bangko Sentral ng Pilipinas Governor Eli Remolona Jr., who speaks in a very mild manner that one may liken to that of a priest.
“Mayabang tayo, merong consumption culture,” the BSP chief, the highest-paid government official in the country, said during a recent briefing at the Senate.
Not surprisingly, critics immediately pounced on the remark.
The social media mob, perennially triggered over anything big or small, went haywire.
Some interpreted it as an accusation that Filipinos, especially those struggling to put food on the table, just spend recklessly here and there, splurging every peso they’ve got.
But even economists, interviewed by our banking reporter Keisha Ta-asan, believe that was not the governor’s point.
It was obvious that the governor, who used to be a professor and has a penchant for explaining economics, was referring to Filipinos who have the means to save but choose to splurge on non-essential goods or services.
This is not rocket science. It’s true and you see it in restaurants and night haunts filled with the well-heeled crowd. You see it in luxury stores frequented by the Titas and Titos of Manila and just recently, I also noticed brick-and-mortar casinos filled to the brim by mostly Filipino gamblers.
One will also see this in the long queues when a new smartphone or gadget is launched. Or how about that billionaire heir caught using fake plates on a luxury sports car he has not even fully paid for yet? Or those government officials in screaming designer clothes from head to toe?
That said, there is nothing wrong with enjoying one’s hard-earned money.
Consumption, after all, keeps businesses running and workers employed.
But when spending becomes excessive and saving becomes an afterthought, both households and the economy become vulnerable.
Rainy days
Sometimes, during an emergency, those without enough savings are forced to borrow, mayabang or not.
This is why the governor’s message, harsh as it was, should not be taken lightly.
The numbers support his concern.
According to World Bank data, the Philippines’ savings rate, at 26 percent, lags behind the figures for many of its peer countries. Indonesia has 36 percent, Vietnam has 38 percent, Cambodia has 40 percent, Brunei has 44 percent and Singapore has 48 percent.
More funds for growth
This matters because the money that we keep in banks, investment funds and other formal financial institutions does not merely sit in the vaults of banks or safety deposit boxes.
These funds are channeled back into the economy, financing businesses – big or small. They are lent out through loans for housing, infrastructure and other productive activities.
In short, a country that generates more of its own savings is less dependent on foreign money to boost its economy.
This also means that if higher income households moderate spending on non-essentials, demand pressures may ease.
More importantly, when savings are transformed into productive investments, the economy gains the capacity to produce more goods and services. Greater supply can help contain prices over time.
A widening trade deficit
Our external accounts tell the same story.
The Philippines has continuously posted trade deficits for over two decades now, or since 2001. This means the country has been spending more on imports than earning from its exports.
The most recent data show that from January to July 2026, Philippine merchandise exports amounted to about $55 billion, while imports surged to about $92 billion. This resulted in a massive trade deficit of about $37 billion in just seven months.
Buy local
What we should discourage is excessive spending on imported non-essential and luxury goods, especially when domestic alternatives are available.
A stronger export sector would bring more dollars into the economy, support local industries and create better-paying jobs. Moderating unnecessary imports would reduce the demand for dollars, help narrow the trade gap and ease depreciation pressures on the peso.
A more stable peso, in turn, would help temper the cost of imported fuel, food and production inputs – and therefore inflation.
Save if you can
Against this backdrop, the call from the BSP governor to save more – and rethink this excessive consumption culture – is justified, but it is addressed to those who can afford to save, not to those struggling to make ends meet.
Unfortunately, his words were uncharacteristically and unintentionally blunt.
My guess is that he unwittingly tried to speak the language of his audience, the senators – mayabang for sure and some of them, big spenders, too.
Still, the economic message was sound: a nation cannot consume its way to lasting prosperity.
I guess the problem is that not many people are aware that savings are not simply about keeping money in banks for the rainy days. This money, when kept in the formal financial system and channeled to productive purposes, will help build a strong economy where everyone can benefit.
Mayabang tayo? For sure. It is what it is. But the real flex is when we actually try to understand why it’s important to produce more, export more, invest more – and, yes, save more.
At the very least, Gov. Eli has started a conversation, and whether we like it or not, it is a conversation worth having.
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