Philippines posts 15 percent drop in cash remittance from Middle East

Philippines posts 15 percent drop in cash remittance from Middle East
A man counts a wad of Philippine Peso bills he received from a relative working abroad at a money remittance center in Makati City, Metro Manila, Philippines on Sept. 19, 2018. (REUTERS)
Updated 23 September 2018

Philippines posts 15 percent drop in cash remittance from Middle East

Philippines posts 15 percent drop in cash remittance from Middle East
  • There has been a 15 percent decrease in remittances from Overseas Filipino Workers (OFWs) in the Middle East, with fund transfers from Libya and Israel falling the most at 73 percent and 61 percent — Central Bank of the Philippines
  • Remittances from Kuwait fell by 20.4 percent despite resumption of OFW deployment; Bahrain showed negative 22.9 percent; transfers from Oman dropped by 38.3 percent; and Saudi Arabia showed a slide of 10.4 percent

MANILA: Cash remittance from Filipino workers (OFW), particularly those in the Middle East, saw a steep decline from January to July this year, figures from the Central Bank of the Philippines (BSP) show.
A lawmaker noted that even the lifting of the ban on deployment of Filipinos to Kuwait last May failed to stop the remittance plunge.
Based on latest BSP data, there was 15 percent decrease in remittances from OFWs in the Middle East, although fund transfers from Libya and Israel fell the most at 73 percent and 61 percent respectively.
With that, Rep. Henry Ong, chairman of the House Committee Chair on Banks & Financial Intermediaries, said the policy shift in OFW deployment priorities must happen “sooner rather than later.”
“Filipinos are being held hostage by armed groups in Libya. Israel recently welcomed President Rodrigo Duterte on a brief visit. However, the remittances from these two countries pale in comparison with those from Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, and Oman, which were in the high double-digit percentages decline,” he said.
Remittances from Kuwait fell by 20.4 percent despite the resumption of OFW deployment last May. Bahrain showed negative 22.9 percent, transfers from Oman dropped by 38.3 percent and Saudi Arabia showed a slide of 10.4 percent. 
Qatar is the exception. The remittances decline from Filipino workers there was only 6.3 percent.
The Leyte second district representative pointed out: “There should not even be Filipinos in Libya because the security situation there is horrible, but still Filipinos go because that is where they have found jobs on their own.
“OFWs clearly have bleak and low-paying job prospects here in the Philippines because our wages are way below what they can earn abroad, so we have no choice but to deploy them elsewhere, to countries that will pay them well and respect their rights as migrant workers and as people of varied gender.” .
For this to happen, Ong said the priority list of alternative countries “must include those states that are signatories to the international conventions on human rights, labor, social security, and migrant workers.
“The other criterion would be the economic growth prospects of the target host countries because that will determine how well they will be compensated for their services. OFWs will go where they are respected, wanted, and paid well.” 
Ong lamented, though, that “it does not seem the concerned top officials have what it takes to help OFWs find better jobs in new host countries.
“They are just doing bureaucratic procedures and damage control on the problems that keep cropping up, but we do not see systemic, long-term solutions. Suffering through all that are the OFWs.” 
Meanwhile, aside from the decrease in cash remittance, the Philippines also suffered a decline in deployment of OFWs in 2017 after 10 years of continuous growth.
Recruitment consultant and migration expert Emmanuel Geslani, citing statistics from the Philippine Overseas Employment Administrstion (POEA), said deployment of OFWs to 180 countries went down by 9 percent in 2017 compared ith the previous year. The year 2016, Geslani said, was a banner year of deployment for OFWs with total deployment hitting more than two million.
POEA records show that only 1,992,746 OFWs were deployed in 2017. Geslani said this is the first time after 10 years of continuous increase starting in 2008 with 1,236,613 deployment; 2009 with 1,422,382; 2010 with 1,476,826; 2011 with 1,687,463; 2012 with 1,802,031; 2013 with 1,826,804; 2014 with 1,832,668; 2015 with 1,841,205; and 2016 with 2,112,331.
Geslani said the decrease may be attributed to actors, such as the decline in the hiring of new workers to Saudi Arabia, from 219,134 in 2016 down to 163,238 in 2017. 
A decrease in the number of new hires was also noted in the rest of the top ten OFW destinations, which include Kuwait, Qatar, Hong Kong, Taiwan, the UAE, Japan, Singapore, Malaysia and Oman.
“Another reason for the decline is the increasing shift of Saudi Arabia to employ more citizens to work in companies and malls as part of its ‘Saudization’,” Geslani continued.
In addition, more major projects in the Kingdom have been shelved or delayed, resulting in the exodus of more than 30,000 Filipino skilled workers in construction, maintenance services and oil industries, he added. “Crude oil, which has stayed in the $70-80 level, has prevented Middle East countries from going on construction and infrastructure projects, except for Qatar which is preparing for the football World Cup in 2022.” 
Even the household service workers sector also dropped by 8 percent in 2017 owing to internal controls implemented by the Philippine labor officers in the Middle East, Geslani said.
For 2018, he predicts that deployment of household service workers is not expected to go beyond the 200,000 mark with the deployment ban imposed in Kuwait resulting in the loss of 40,000 jobs.


Nintendo profits boom on healthy sales of its Switch as people stuck at home play games

Nintendo profits boom on healthy sales of its Switch as people stuck at home play games
Updated 14 min 14 sec ago

Nintendo profits boom on healthy sales of its Switch as people stuck at home play games

Nintendo profits boom on healthy sales of its Switch as people stuck at home play games

TOKYO: Nintendo Co.’s profit for the fiscal year that ended in March jumped 86 percent on healthy sales of its Switch handheld machine as people stayed home due to the pandemic, turning to video games for entertainment.
Annual profit for the Japanese maker of Super Mario and Pokemon games totaled 480.4 billion yen ($4.4 billion), up from 258.6 billion yen the year before. The results, released Thursday, were better than the company’s internal profit forecast of 400 billion yen ($3.7 billion).
Sales rose 34 percent to 1.76 trillion yen ($16 billion), the company said.
In game software sales, demand remained strong for “Animal Crossing: New Horizons,” with 20.85 million units sold for cumulative sales of 32.6 million units. “Mario Kart 8 Deluxe” and “Ring Fit Adventure” also were popular.
Kyoto-based Nintendo said digital downloads for the Switch also did well, helping to support its bottom line.
But Nintendo said it didn’t expect such good fortune to persist through the current fiscal year, which ends in March 2022. It is forecasting a 29 percent drop in profit to 340 billion yen ($3 billion).
Nintendo said it has attractive games in the works, including a collaboration in the mobile sector with Niantic on an application featuring Pikmin for smart devices. It expects to release that in the second half of 2021.
Other software titles planned for global release later this year include “Mario Golf: Super Rush,” and “The Legend of Zelda: Skyward Sword HD.” A new Pokemon game is planned for late 2021, according to Nintendo.
Nintendo is among companies that have thrived during the pandemic, which is wreaking havoc on the global economy overall.
Its Super Nintendo World theme park in Osaka, Japan, built with Universal Studios, opened in March after a delay due to the pandemic. But it closed soon afterward because Osaka is one of several areas under a state of emergency due to a surge of new coronavirus cases.
The state of emergency began last month and is certain to be extended beyond its May 11 end, as all such large-scale facilities are being asked to close.


Renewables set to grow far faster than oil sector

Renewables set to grow far faster than oil sector
Updated 22 min 6 sec ago

Renewables set to grow far faster than oil sector

Renewables set to grow far faster than oil sector
  • Models show renewables meeting 74% of total energy demand by 2050

OSLO: Renewable energy will account for a far larger share of global supply in 2050 than major oil companies or the International Energy Agency (IEA) expect, Oslo-based consultancy Rystad Energy said on Thursday.
Its updated models show renewables meeting 74 percent of total energy demand by 2050, compared to 43 percent, 45 percent and 69 percent in the most aggressive scenarios from energy firms Equinor, Shell and BP.
The IEA expects renewables to account for 35 percent of the market by 2040.
The renewed commitment to the Paris climate agreement by the US this year, the growing number of countries with net zero carbon emissions targets for 2050 and renewable technology development have changed the energy landscape, Rystad CEO Jarand Rystad told an online conference on Thursday.
“All previous assessments have to be scrapped and we need to look at it with completely new eyes,” he said.
Rystad Energy sees the sales of battery electric vehicles (BEVs) rising to 64 million by 2030, compared with oil company scenarios ranging from 22 million to 38 million and an IEA estimate of 30 million.
Rising renewable energy output amid falling costs and increasing efficiency of solar panels and wind turbines, as well as sales of electric vehicles have also hastened predictions for peak demand for oil and gas.
Rystad Energy said last month it expected global oil demand to peak at 101.6 million barrels per day (bpd) in 2026, versus a forecast made in November for a peak in 2028 at 102.2 million bpd.
With an increasing share of energy being produced by solar and wind power, the global energy trade, dominated by the fossil fuels today, is going to shrink significantly, it predicts.
“We are going to de-globalize the energy market with the new technologies,” Rystad said at Thursday’s conference.


Saudi public debt up 5.6% to $240.4bn in Q1 2021

Saudi public debt increased about 5.6 percent during the first quarter of this year nearly amounting to SR901.4 billion ($240.4 billion). (Shutterstock)
Saudi public debt increased about 5.6 percent during the first quarter of this year nearly amounting to SR901.4 billion ($240.4 billion). (Shutterstock)
Updated 06 May 2021

Saudi public debt up 5.6% to $240.4bn in Q1 2021

Saudi public debt increased about 5.6 percent during the first quarter of this year nearly amounting to SR901.4 billion ($240.4 billion). (Shutterstock)
  • he debt grew by 24.6 percent compared to the same period in 2020, which amounted to SR723.46 billion

RIYADH: Saudi public debt increased about 5.6 percent during the first quarter of this year nearly amounting to SR901.4 billion ($240.4 billion), compared to the end of the fourth quarter of last year.

This recorded the fastest growth rate since the second quarter of last year, which was caused by the pandemic repercussions, Al Eqtisadiah reported.

The debt grew by 24.6 percent compared to the same period in 2020, which amounted to SR723.46 billion.

About 57 percent of the debt comes from internal debt nearly amounting to SR513.74 billion, while the external debt amounted to about SR387.63 billion, Al Eqtisadiah reported citing data of the Ministry of Finance.

The volume of debt to GDP increased to 35.6 percent at the end of the first quarter of this year compared to the end of last year at 32.3 percent, based on the GDP at constant prices.  

The rise in the debt comes despite the budget recording its lowest deficit for the first quarter of this year since the third quarter of 2018 at SR7.44 billion, due to the 9 percent decline in oil revenues on an annual basis, despite the growth of non-oil revenues.

Saudi Arabia was able to raise funds to pay its deficit by about SR29.55 billion, which exceeds the actual deficit for the first quarter, as it intends to use the rest of the funding to pay the deficit for the remainder of the year. 

Saudi Arabia is trying to take advantage of the lower interest rates in the debt markets.

The Ministry of Finance previously estimated that this year's public debt reaches SR937 billion, as the Corona crisis increased the target level of public debt.


Occupancy rate of Makkah hotels sees over 30% rise in second half of Ramadan

Saudis and expatriates used to spend the last 10 days of the holy month in Makkah for worship, but many of them put the habit on hold since the pandemic started. (Shutterstock)
Saudis and expatriates used to spend the last 10 days of the holy month in Makkah for worship, but many of them put the habit on hold since the pandemic started. (Shutterstock)
Updated 06 May 2021

Occupancy rate of Makkah hotels sees over 30% rise in second half of Ramadan

Saudis and expatriates used to spend the last 10 days of the holy month in Makkah for worship, but many of them put the habit on hold since the pandemic started. (Shutterstock)
  • Makkah is the main artery of hotels in Saudi Arabia, alone accounting for more than 64 percent of the sector

JEDDAH/MAKKAH: The occupancy rate at the beginning of the holy month of Ramadan varied between 10 and 20 percent, while in the second half it rose to 30-38 percent, Rayan bin Osama Filali, chairman of the Hotel Committee, an affiliate of the Makkah Chamber of Commerce and Industry told Arab News.

Filali explained that for the first time, a relatively mild increase in the prices during the last days of Ramadan was witnessed — an unprecedented occurrence, as prices often increase by 300 percent during the last 10 days of Ramadan, compared with the rest days of the month.

“The size and impact of the pandemic caused the cancellation of offers promoted by hotels in the last 10 days of Ramadan,” Filali noted. The fact that only a small percentage of hotels was able to operate “showed the extent of the damage to the sector due to the coronavirus disease (COVID-19), which disrupted the entire system, causing losses that are likely to cast a shadow for years to come.”

The chairman of the Hotel Committee said that the pandemic had directly disrupted much of the hotel sector’s dynamism, as it is one of the most productive, stimulating and job-creating market sectors.

He also said that only 26 hotels in Makkah’s central region are operating this Ramadan season with average prices dropping by 55 percent.

Makkah is the main artery of hotels in Saudi Arabia, alone accounting for more than 64 percent of the sector, which, according to Filali, needs at least four years to recover from the present crisis.

He also noted that the economic implications on the 1,200 hotels were extreme and that most hotels suspended their activities completely, closing their facilities and sending thousands of workers home.

“These workers are still waiting for hotels to open their doors after the end of the pandemic or the completion of the inoculation campaign of the entire community,” he added.

According to Filali, the hotel sector generates huge financial returns for all the countries of the world, and the holy capital depends mainly on the permanence of an industry that creates thousands of jobs annually.

Filali remarked that the sector was awaiting a major expansionary boom but that the virus threatened the industry despite the efforts of the Saudi leadership to maintain the salaries of its employees for several months with the unemployment insurance program “Saned.”

“The lack of demand on bookings and the high operating volume and cost of food have paralyzed the tourism sector, which has led many hotels to suspend their operations until the pandemic ends,” said Filali.

READ MORE

Hotels surrounding the courtyards of the Grand Mosque in Makkah were on Tuesday authorized to issue Umrah permits to guests during Ramadan as part of an initiative to help revive the holy city’s struggling hospitality sector. Click here for more.

Bassam Khanfar, general manager of the Shaza Makkah Hotel, told Arab News that over 17,000 rooms remained vacant due to the pandemic.

He said that a gradual resumption of operations and purchasing power must be taken into account so that the sector can recover with the least possible losses.

He noted out that the average price of a room in the first 20 days of Ramadan was SR 1,300, increasing to an average of SR 1,900 in the last 10 days of the holy month.

Khanfar’s hotel offered a discount of 50 percent to health practitioners in recognition of their great efforts in fighting the virus — efforts echoed in the performance of the Kingdom as a whole in addressing the pandemic.

Saudis and expatriates used to spend the last 10 days of the holy month in Makkah for worship, but many of them put the habit on hold since the pandemic started.

Ahmed Al-Ghamdi, a Jeddah cafe owner, told Arab News: “Before the pandemic, I was keen to perform Umrah in the last 10 days of every Ramadan, especially on the 27th night, which is when Laylat Al-Qadr (Night of Power) is believed to have occurred.”

He added that the Grand Mosque normally would see hundreds of thousands of worshippers during the last 10 days of Ramadan, in pre-COVID-19 times.

“Unluckily, I can’t perform Umrah this time because I have not yet received the first dose of the vaccine despite my attempts to get vaccinated. But it’s to be expected, as millions are trying to register for the vaccine,” he said.

Al-Ghamdi’s friend, retired army officer Salem bin Saleh, said he was lucky to get the first doses and is planning to perform Umrah in the few coming days.

“Performing Umrah in the last 10 days of Ramadan has been one of my habits for over 30 years,” Saleh told Arab News.

He said that performing Umrah in Ramadan is equal in reward to performing Hajj, as Prophet Muhammad said.

“The feeling you get during and after performing Umrah in Ramadan is indescribable,” Saleh added.


Saudi AC distributor sees 30.5% increase in Q1 revenue

According to a report by research company Euromonitor, the Saudi AC market is set to grow by 2 percent in the next two years. (Shutterstock)
According to a report by research company Euromonitor, the Saudi AC market is set to grow by 2 percent in the next two years. (Shutterstock)
Updated 06 May 2021

Saudi AC distributor sees 30.5% increase in Q1 revenue

According to a report by research company Euromonitor, the Saudi AC market is set to grow by 2 percent in the next two years. (Shutterstock)
  • The quarterly rebound is in contrast to a net loss of SR3.3 million in the same period last year

RIYADH: Al Hassan Ghazi Ibrahim Shaker Co. (Shaker), a Saudi importer, manufacturer and distributor of air conditioners (ACs) and home appliances, has reported that revenue in the first three months of 2021 grew 30.5 percent year-on-year to SR288.3 million ($76.88 million), resulting in a net profit of SR4.5 million for the quarter.

The quarterly rebound is in contrast to a net loss of SR3.3 million in the same period last year.

Mohammed Ibrahim Abunayyan, CEO of Shaker, said in a press statement: “During the first quarter our team continued to demonstrate flexibility to operate in a challenging environment and deliver strong sales and earnings. At the beginning of the year, we rolled out our 2021-2023 strategy and we are pleased to already see the results of our growth plan.

“We continue to expand our footprint in our core segments – ACs and home appliances – by growing our portfolio and seeking new opportunities in the market. In the first quarter we welcomed Panasonic, a brand with which we have now entered the TV category. Meanwhile, we have pursued opportunities emerging from the government’s commitment to megaprojects across the Kingdom, and this is an area we will continue to place significant emphasis on.”

The company has also embraced new manufacturing techniques, such as robotics and artificial intelligence, at its LG-Shaker manufacturing facility in Riyadh, which has helped to increase production speed and accuracy and reduce sots, he added.

According to a report by research company Euromonitor, the Saudi AC market is set to grow by 2 percent in the next two years, while the home appliances market is expected to grow by 3 percent over the next three years

Growth will also be supported by government energy-efficiency programs including the Saudi Energy Efficiency Center’s high-efficiency AC initiative, and Tarsheed, the government’s National Energy Services Company.

Shaker also sees potential growth due to the launch of megaprojects such as NEOM and the Red Sea Project.