OFW remittances from the UAE, Saudi Arabia and Qatar fall

Above, Filipino workers returning home from Kuwait arrive at Manila International Airport on February 18. (AFP)
Updated 16 October 2018
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OFW remittances from the UAE, Saudi Arabia and Qatar fall

  • ‘The countries that contributed to the decline in August 2018 are the United Arab Emirates, Saudi Arabia and Qatar’
  • The three Gulf countries, together with the US, Singapore, Japan, UK, Canada, Germany and Hong Kong, make up to 79 percent of the total remittances regularly sent to the Philippines

DUBAI: The repatriation of Overseas Filipino Workers (OFW) from Middle East countries – where a major portion of remittances originate – contributed to a decline in money sent to the Philippines in August this year, government data said.
“The countries that contributed to the decline in August 2018 are the United Arab Emirates, Saudi Arabia and Qatar,” the Bangko Sentral ng Pilipinas (BSP) said on Monday. The three Gulf countries – together with the US, Singapore, Japan, UK, Canada, Germany and Hong Kong – make up to 79 percent of the total cash remittances regularly sent to the country.
The Philippine central monetary authority reported that cash remittances from overseas Filipinos dipped 0.9 percent to $2.476 billion in August, from $2.499 billion sent during the same month in 2017. Around 10 million Filipinos work overseas and usually are the breadwinners of families back home, providing for most of household budgets and contributing nearly 70 percent of overall national output.
Cash sent from the UAE by Filipinos fell by 36.4 percent to $175.02 million in August, from $275.31 million of the same month last year, while cash remittances from Saudi Arabia went down 20.7 percent to $180.9 million from $228.15 million while Qatar-based OFWs meanwhile sent $68.85 million during the same month, 35.3 percent less than the $106.47 million remitted in August 2017. Among other Gulf countries, remittances from Kuwait slipped 17.4% to $61.3 million from $74.05 million; it was down 37.3 percent in Oman to $17.71 million from $28.24 million previously, but was up 3.4 percent in Bahrain to $19.494 million from $18.85 million a year earlier.
For the eight-month period to August, OFW cash remittances rose 2.5 percent to 19.06 billion, from $18.6 billion during the same period last year. Those sent by land-based OFWs increased by 2.1 percent to $15.05 billion while cash remittances of sea-based overseas Filipinos went up 3.8 percent to $4.01 billion as of August.
In the UAE, the Philippine government recently conducted its sixth mass repatriation of Filipino nationals – mostly victims of illegal recruitment – to take advantage of the three-month amnesty program implemented by the Gulf country. Overstaying expatriate workers who wanted to leave the UAE for their home countries were allowed to exit without the payment of fines or jail terms. So far, 1,842 OFWs have been repatriated from the UAE and the number may further increase before amnesty program ends on October 31.
The Philippines earlier this year also repatriated Filipino workers from Kuwait, triggered by the death of a household service worker whose body was found stuffed in a freezer inside an abandoned apartment, as well as imposed a deployment ban after an ensuing diplomatic row over the protection migrant workers in the Gulf state. The dispute was resolved after an agreement signed in May between the two countries offered better protection for expatriate Filipinos, especially those working as housemaids.


SoftBank mobile unit to go for $21bn IPO

Updated 13 November 2018
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SoftBank mobile unit to go for $21bn IPO

  • The IPO will be one of the biggest ever worldwide, and will provide the group with funds to pay down debt and continue placing big bets on innovations
  • SoftBank’s bets so far have been as varied as small gaming startups, ride-hailing firms such as Uber Technologies, and e-commerce behemoth Alibaba Group Holding

TOKYO: SoftBank Group Corp. has won approval to conduct a 2.4 trillion yen ($21.04 billion) initial public offering (IPO) of its domestic telecoms business, in a deal that will seal the group’s transformation into a top global technology investor.
The IPO will be one of the biggest ever worldwide, and will provide the group with funds to pay down debt and continue placing big bets on innovations that CEO Masayoshi Son predicts will drive future tech trends.
SoftBank’s bets so far have been as varied as small gaming startups, ride-hailing firms such as Uber Technologies, and e-commerce behemoth Alibaba Group Holding.
SoftBank Group aims to raise 2.4 trillion yen through the sale of 1.6 billion SoftBank Corp. shares at an tentative price of 1,500 yen each, a filing with the Ministry of Finance showed on Monday.

 

 The amount could rise by 240.6 billion yen if demand triggers an overallotment, taking the total closer to the $25 billion that Alibaba raised in 2014 in the biggest-ever IPO.
The final IPO price will be determined on Dec. 10, and SoftBank Corp. will list on the Tokyo Stock Exchange on Dec. 19 with an initial market value of 7.18 trillion yen — about 1 trillion yen above that of rival KDDI Corp, which has about 10 million more subscribers.
The parent will retain a stake of around two-thirds, depending on the overallotment.
The mammoth offering comes at a time when investors have begun questioning the outlook for Japan’s telecoms companies.
The IPO was initially expected to appeal to investors seeking stability, but the government has recently called on carriers to lower fees while backing more wireless competition, sending shockwaves through the industry.
Yet SoftBank’s brand is still likely to draw retail investors long accustomed to using SoftBank’s phone and Internet services. Many still see CEO Son as a tech visionary who brought Apple’s iPhone to Japan.
Japanese households are commonly seen as an attractive target in IPOs with their 1,829 trillion yen in financial assets, even if they are traditionally risk-averse with over 50 percent of assets in cash and deposits. More than 80 percent of the shares will be offered to domestic retail investors, a person with knowledge of the matter told Reuters.
“I think a reasonable amount of money will be attracted to this one,” said Tetsutaro Abe, an equity research analyst at Aizawa Securities. “It’s a mobile company, so the cash flow is steady.”

FACTOID

SoftBank to sell 1.6 billion shares at a tentative price of 1,500 yen ($13) each.