Migrant workers assured of P2-b loan

The Philippine government has set aside P2 billion in business loans under its re-integration program for migrant workers including those who may be displaced by a new policy being enforced by Saudi Arabia, one of the richest markets for Filipino manpower.

This was disclosed on Wednesday by Administrator Carlos Cao of the Philippine Overseas Employment Administration at the weekly forum Balitaan sa Aloha Hotel.

The program sets the loanable amount per borrower from P300,000 to P2 million, collateral-free. The loan carries an interest rate of 7.5 percent per year that the borrower will pay through either of the state banks, the Land Bank of the Philippines or the Development Bank of the Philippines.

“The government is making sure that this will not turn out to be, and treated as dole-out,” said Cao.

Cao said the borrower will be guided by the government and will undergo training on financial literacy, basic production, marketing, accounting and book-keeping—the whole gamut of helping them shepherd this entrepreneurial ventures until it becomes viable.

Cao said the program has a micro-financing aspect to help the migrant workers shift to doing handicrafts and other livelihood projects.

Labor Communications officer Nicon Fameronag, for his part, said the government is looking for other job markets.

Despite this policy and program direction, Fameronag said that “ultimately, it will be the worker who will decide for himself whether he will stay in the country or return abroad.”

Fameronag said the foreign chambers of commerce are being asked for referrals in terms of job opportunities in other countries.

Fameronag said Philippine labor officials in Saudi Arabia have been directed to make representation with the Saudi Ministry of Labor, employers and other stakeholders to ensure those who stand to lose their job due to Saudization can transfer to other companies.

Although Saudi authorities appear to be very serious now in carrying out the Saudization policy, which have been in place since the 1990s, Fameronag said that there will be no abrupt displacement of Filipino workers on a massive scale.

“We have to understand the employment process in Saudi. Some workers are coming in while many others are going. So to pin down a tale on the elephant will be a futile exercise because the numbers are so volatile at this time. This is not due to our lack of estimates but because of the process,” Fameronag said.

Cao expressed the same view about the extent of the effects on Saudization on OFWs. He cited the pronouncement of his former Economics professor at UP, Solita Palma-Monsod that there is nothing to worry about as long as the government is prepared.

He said the government is very much prepared for the consequences of the Saudization.

He cited the admission by Saudi authorities that Saudization is a complex and complicated policy.

Because of this, Cao believes it will be graduated and calibrated. He said there are 8 million migrant workers in Saudi Arabia composed of 1.3 million Egyptians, 1.4 to 1.5 million Indians and 1.7 Pakistani.

“How can they in one fell swoop, send home these migrant workers?” asked Cao as he noted that driving away these migrant workers would result in the closure of 40 percent of companies in Saudi Arabia. –Macon Ramos-Araneta, Manila Standard Today