OFWs are backbone of Philippine economy

The money remitted by Overseas Filipino Workers (OFWs) to their country hit $ 20.117 billion last year. In January alone this year, the figure stood at $1.855 billion representing an increase of 8.4 percent from $ 1.7 billion a year ago, according to the Bangko Sentral ng Pilipinas (BSP) report issued recently.
Remittances continue to support the country’s balance of payments (BOP), which gauges our capacity to meet external trade obligations and foreign debts. As of January, BOP recorded a surplus of $ 2.043 billion.
These remittances came mainly from the US, which accounted for 39 percent of the total inflows, central bank figures showed. It was followed by Canada (11 percent), Saudi Arabia (7.6 percent), the United Kingdom (5.3 percent), the United Arab Emirates (4.7 percent), Singapore (3.9 percent) and Japan (3.8 percent).
According to Neda National Planning and Policy Staff (NPPS), OFWs remittances will remain an important source of investment in the country.
“In reality, their remittances are a significant part of a country’s economy, whether developed, developing or at any stage of economic development,” said NPPS director in a report last year.
“It plays an important role in promoting inclusive growth that trickles down to the masses,” the official noted. It is a significant source of human capital development, since the money goes straight to households and address various their needs such as food, shelter and education.
But the OFW has been called unsung heroes, or modern day heroes, but are sometimes not given the credit for what they do, says Deen Mohammad, community leader based in Riyadh and admin of an OFW-Forum site.
As such, OFWs in Saudi Arabia have requested Philippine President Benigno Aquino III to give priority to their concerns.
This call was also expressed by Senator-elect, Alan Peter Cayetano, saying that returning OFWs must find their place in the growing Philippine economy. He urged the Department of Labor and Employment (DOLE) to strengthen its reintegration programs.
Cayetano, who is a Senate Minority Leader, said that the government has to work tirelessly to create jobs, increase wages, and lower prices. He renewed his call for setting up the Department of OFWs to address the issue.
The OFWs have also raised their concerns in an open letter to the Secretary of Foreign Affairs, Albert Rosario, to include OFWs in three pillars of the country’s foreign policy: National security, economic diplomacy and protection and promotion of the welfare of Filipinos abroad.
Elaborating on the theme, the OFWs observed: “We would like to stress here that while security and economic diplomacy are of prime importance, it may be appropriate to suggest that you should give priority to the OFWs concerns at this time. This, we are suggesting, mainly because of the current vulnerable situation and the plethora of problems that our OFWs are facing, especially in the countries of the Middle East.”
It is important to note here that out of the billions of dollars in annual remittances sent by OFWs, a sizable volume is generated from Saudi Arabia, which helps in stabilizing the Philippine economy.
“On the above scores, we will request you to accord first priority of the DFA to Saudi Arabia, which is home to the largest Filipino expatriates in the Middle East in recognition of their contribution to our economy and also the growing Riyadh-Manila relations,” the OFWs point out.
The central bank has a five-percent growth projection for cash remittances this year, up 7.2 percent over 2012. An official at BSP attributed the increase to “steady demand” for overseas Filipino workers as well as the expansion of remittance centers abroad.
“The introduction of new financial products and services has also contributed considerably in addressing the remittance needs of overseas Filipinos and their beneficiaries,” the official added.
According to the bank, there are indications remittances growth could continue throughout the year, citing hiring data from the Philippine Overseas Employment Administration (POEA).
A total of 1.8 million overseas workers were deployed last year, an increase of 6.7 percent from 1.687 million a year ago. About 80 percent of those deployed are now land-based employees.
In addition, around two million workers are awaiting deployment, up 12.6 percent, while job orders processed for the first two months reached 29,533. Most jobs were related to service, production, professional and technical sectors.