Last week, the International Monetary Fund (IMF) released the October 2026 update of the World Economic Outlook (WEO) and its database. I downloaded the Excel file to check comparative macroeconomic indicators across countries and economies, among which are the Gross National Savings (GNS) and Gross Capital Formation (GCF) or investment (I) as percent of GDP, or the S/GDP and I/GDP ratio.
When it came to the S/GDP ratio, in 2025 the Philippines’ was the smallest in East Asia with only 19%, and in I/GDP ratio, the country had the second lowest (see Table 1).
My friend and fellow BusinessWorld columnist Alex Escucha clarified in his last piece in a series for the “Introspective” group column, “Not mayabang: Save more? Export more, import less” (Oct. 11) that the IMF’s S/GDP ratio of 19% does not include OFWs and foreign income while the Philippine Statistics Authority (PSA) data on S/GDP ratio is 29% that includes OFWs and foreign income.
Nonetheless, there is a need to encourage more domestic savings to help finance domestic investments. In the Bangko Sentral ng Pilipinas’ (BSP) “2025 Consumer Finance and Inclusion Survey,” I was surprised that only 1% of Philippine households invest in stocks and listed companies but they have high account ownership in E-money at 76%, banks at 49%, Non-Stock Savings and Loan Association (NSSLA) and cooperatives at 9% (see Table 2).
There is a need particularly to increase Filipinos’ awareness and confidence in the stock market. Among recent corporate issues is the initial public offering (IPO) of GCash by Mynt, Inc. On Oct. 2, the Philippine Stock Exchange (PSE) announced that the final offer price of the GCash IPO is set at P6.60 per share, lower than the initial estimate of P10/share so more Filipinos may find this affordable.
One big advantage of GCash is that it is used by many Filipinos nationwide (me and my family included), and subscribers’ demand for more services is rising. So GCash must expand its digital infrastructure to give more security and peace of mind to its subscribers. It will need more public investments to fund the infrastructure expansion.
There has been some skepticism and even accusations of devaluation and liquidation by existing shareholders. So, I researched who the guys involved in its IPO are, and I was surprised to see many big names are involved, both domestic and foreign, including BPI Capital, BDO Capital, and China Bank Capital (see Table 3).
The participation and involvement of these big names, and the reputable institutions that created a formal bookbuilding and price-discovery process is enough proof that the GCash IPO offer price of P6.60/share is based on rigid number-crunching and not on sheer speculation.
With the above data and considerations — the Philippines’ low S/GDP and I/GDP ratio, a very low 1% of population involved in the stock market, and reputable finance institutions involved in the GCash IPO — certain measures should be remembered by the public.
One, stop and ignore the fearmongering surrounding the IPO. Focus on expanding Filipinos’ confidence in the stock market so that more of the public’s savings can be mobilized, effectively raising our S/GDP ratio. It is an opportunity for ordinary Filipinos to put part of their disposable income to productive use and expand their wealth over time. The high and rising digitalization of the Philippine economy, coupled with GCash’s established position in the country’s digital financial ecosystem, improves the potential for business growth and investment returns as more economic and financial activities go virtual and online.
Two, do more research, including reading Mynt’s Prospectus as submitted to the Philippine Stock Exchange. The document distinguishes the new primary shares being issued by the company from the secondary shares sold by existing shareholders, the new ownership structure, use of proceeds, its financial condition, the offer terms, and the risks surrounding the investment.
Three, respect the valuation made by reputable finance institutions regarding the final offer price. It is the result of highly quantitative simulations on capital-market processes and actual investor demand. The offer price is the baseline from which future values of the company are expected to increase and, hence, average investors’ funds would earn good returns, giving them more financial security and freedom.
Finally, I want to borrow the assessment of my friend, US-based investing consultant Eric Jurado of The International Investor. It is inspirational. He wrote:
“Owning a share of GCash is an opportunity to participate in the future of a business — and, in a small but meaningful way, in the future of the Philippines… investors should approach GCash not as a ticker symbol to trade, but as a business to understand and own.
“Think like an owner. Invest with patience. And remember that when you own a piece of a productive Filipino business, you own a piece of what the Philippines may become.”
Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.