OFW remittances up 11% to $1.7 B in Aug

MANILA, Philippines - Total remittances by Filipinos working overseas posted a double-digit growth for the first time this year, expanding by 11.1 percent in August due to sustained demand for skilled Filipino workers abroad, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

BSP Governor Amando M. Tetangco Jr. said the amount of money sent home by Filipinos working abroad amounted to $1.67 billion in August, $168 million higher than last year’s $1.502 billion.

“Remittances from overseas Filipinos coursed through banks grew by a double-digit rate for the first time in August to reach $1.7 billion. The cash transfers in August 2011 represented a year-on-year expansion of 11.1 percent,” Tetangco reported.

Data showed that OFW remittances increased by 6.9 percent to $13.021 billion in the first eight months of the year from $12.181 billion in the same period last year as the amount of money sent home by sea-based Filipino workers jumped 14.4 percent while that of land-based workers climbed five percent.

“Notwithstanding lingering global economic uncertainties, the cumulative stream of remittances from overseas Filipinos continued to be solid and resilient, supported by sustained demand for Filipino skills abroad,” the BSP chief said.

The bulk or about 85 percent of total remittances in the first eight months of the year came from Filipinos working in the US, Canada, Saudi Arabia, United Kingdom, Japan, United Arab Emirates, Singapore, Italy, Germany and Norway.

The Philippine Overseas Employment Administration (POEA) reported stable employment prospects for OFWs as the number of processed job orders climbed by 8.6 percent to193,176 from January to September this year for Saudi Arabia, United Arab Emirates, Taiwan, Qatar, Kuwait, and Hong Kong from 177,936 in the same period last year.

The POEA also reported that another batch of licensed Filipino nurses and caregivers are expected to be deployed in Japan next year as part of the continuing hiring program under the Philippines-Japan Economic Partnership Agreement.

Tetangco added that the growing number of alternative remittance services offered by banks and financial institutions also encouraged oversead Filipinos and their beneficiaries to use the formal channels for their fund transfers.

“Meanwhile, commercial banks’ continuing aggressive efforts to build up their network of remittance business partners worldwide have contributed in the country’s larger share of global remittance market. Partnerships have been strengthened with correspondent banks and with other remittance companies abroad,” he explained.

Last April, the BSP lowered its OFW remittance growth forecast to seven percent or $20.1 billion instead of the original target of eight percent or $20.2 billion this year due to the tensions in the MENA region and the disasters in Japan. Next year, it expects a slower growth of five percent or $21.2 billion.

According to him, OFW remittances would further pick up in the coming months in time for the Christmas season despite the political crisis in the Middle East and North African (MENA) states.

“Going forward, the remittance outlook for the remaining months of the year remains favorable as government redeployment strategies are in place to help Filipino workers affected by the social unrest in the MENA region,” he said.

OFW remittances grew by 8.2 percent to a record level $18.76 billion last year from $17.35 billion in 2009 due to the continued demand for skilled Filipino workers abroad as well as the expansion of remittance centers abroad giving OFWs more options to send money to their loved ones in the Philippines.