By Lawrence
Agcaoili (The Philippine Star) | Updated April 16, 2016 - 12:00am
BSP
officer-in-charge Diwa Guinigundo said cash remittances from overseas Filipinos
reached $2.11 billion in February, 9.1 percent or $175 million higher compared
with the $1.93 billion recorded in February last year. File photo
MANILA,
Philippines - Remittances from overseas Filipino Workers (OFWs) expanded 9.1
percent in February despite the prolonged slump in global oil prices, the
Bangko Sentral ng Pilipinas (BSP) reported yesterday.
BSP
officer-in-charge Diwa Guinigundo said cash remittances from overseas Filipinos
reached $2.11 billion in February, 9.1 percent or $175 million higher compared
with the $1.93 billion recorded in February last year.
The 9.1
percent growth in February was the fastest since June last year when cash
remittances booked a double-digit growth of 10.9 percent.
Guinigundo
said remittances rose 6.2 percent to $4.13 billion in the first two months of
the year from $3.89 billion in the same period last year.
The growth
in the first two months was faster than the four percent full year growth set
by the central bank.
Guinigundo,
who is also deputy governor of the BSP, said remittances from land-based
Filipino workers went up 6.9 percent to $3.2 billion, while remittances from
sea-based workers increased 3.7 percent to $917 million in the first two months
of the year.
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More than 75
percent of the cash remittances came from the US, Saudi Arabia, the United Arab
Emirates, Singapore, United Kingdom, Hong Kong, Canada, Japan, and Qatar.
“The steady
deployment of overseas Filipino workers remained a key driver to the growth of
remittance inflows,” Guinigundo said.
BSP Deputy
Governor Nestor Espenilla Jr. earlier said the $81 million bank heist involving
the money stolen by hackers from Bangladesh Bank that found its way to the
country via Rizal Commercial Banking Corp. (RCBC) has not affected remittances.
However, he
noted foreign correspondent banks of local banks have ended their partnerships
involving remittances as part of their de-risking efforts.
BPI
president Cezar Consing earlier confirmed the money laundering scandal could
result in higher cost for cash remittances.
Data from
the Philippine Overseas Employment Administration (POEA) showed 31.6 percent of
the 160,277 total approved orders in January and February were processed during
the period.
Processed
job orders were intended mainly to fill demand for service, production, and
professional, technical and related workers in Saudi Arabia, Kuwait, Qatar,
Taiwan, and the UAE.
Personal
remittances also grew nine percent to $2.33 billion in February from $2.14
billion in the same month last year.
Personal
remittance is computed as the sum of gross earnings of overseas Filipino
workers with work contracts of less than one year, including all sea-based
workers, less taxes, social contributions, and transportation and travel
expenditures in their host countries.
For the
first two months, personal remittances went up 6.1 percent to $4.57 billion
from $4.31billion in the same period last year.
According to
Guinigundo, personal remittance flows consisted primarily of transfers from
land-based workers with contracts of one year or more amounting to $3.5 billion
as well as compensation of sea-based workers and land-based workers with
short-term contracts reaching $1 billion.
Cash
remittances rose 4.6 percent to $25.77 billion last year from $24.63 billion in
2014 amid the strong demand for skilled Filipino workers abroad.
For this
year, remittances are expected to increase by four percent on account of the
steady deployment of Filipino workers, greater diversification of country
destinations, and shift to higher-skilled types of work.
Moody’s
Investors Service said weaker remittances from the Middle East due to the
continued softening in oil prices would reduce the benefits of oil imports for
several Asian economies including the Philippines.
In a report,
Moody’s said the more pronounced and prolonged oil price decline coupled with
fiscal tightening in many oil exporting countries could hurt migrant worker
earnings and remittances.
Moody’s said
diversified locations and vocations of overseas workers from the Philippines,
India, and Vietnam would help reduce the fall in remittances.
Moody’s said
the Philippines draw its remittances almost equally from the Gulf Cooperation
Council (GCC) economies with 34 percent and the US with 31.7 percent.
“The
proportion of remittance inflows from the US and GCC are nearly equal, at 34
percent, and 31.7 percent, respectively,” Moody’s added.
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