OFW inflows up 7% to $14.8 B in 9 mos

MANILA, Philippines – The amount of money sent home by Filipinos working overseas grew 7.1 percent in the first nine months of the year on the back of sustained demand for skilled Filipino workers abroad, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

BSP Governor Amando M. Tetangco Jr. said that remittances from overseas Filipino workers reached $14.756 billion from January to September this year or $974 million higher than the year-ago level of $13.782 billion.

Tetangco pointed out that remittances from land-based Filipino workers rose by 5.3 percent to $11.6 billion in the first nine months of the year while the amount of money sent home by sea-based workers jumped 14.1 percent to $3.2 billion.

“Overseas Filipino remittances continued to be an important contributor in solidifying the country’s economic fundamentals amidst the lingering global economic uncertainties, driven by prospects of sustained demand for Filipino workers abroad,” he said.

Tetangco added that the bulk or 85 percent of the total remittances in the first nine months of the year came from the US, Canada, Saudi Arabia, United Kingdom, Japan, United Arab Emirates, Singapore, Italy, Germany, and Norway.

For the month of September alone, the BSP chief said remittances grew 8.4 percent to $1.735 billion from $1.6 billion in the same month last year. Remittances last September was the second highest monthly record next to $1.737 billion booked last June.

Authorities cited the sustained demand for skilled Filipino workers amid the tensions in the Middle East and North African (MENA) states, the disasters in Japan, and the decision of Saudi Arabia to stop the hiring of overseas workers.

Data from the Philippine Overseas Employment Administration (POEA) showed that 40.7 percent of the total processed jobs or 223,172 from January to October were intended for Saudi Arabia, United Arab Emirates, Taiwan, Qatar, Kuwait, and Hong Kong.

Furthemore, POEA data showed that the number of land-based workers with processed contracts and are awaiting to be deployed inched up by 4.5 percent to 933,579 from 893,220 while the number of sea-based workers increased by 5.5 percent to 316,411 from 300,033.

“The POEA’s data on job orders abroad provide support for a stable outlook on the growth of remittances in the last quarter of 2011,” Tetangco said.

Tetangco also cited 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.

“The wider remittance network of banks and financial institutions has allowed both the remitters and beneficiaries to experience a more diverse and economical set of money transfer channels and services as well as encourage increased use of banking system as remittance conduits,” he added.

Latest data showed that the total number of bank branches, correspondent banks, remittance centers, and tie-ups with overseas Filipino remittances abroad grew 6.7 percent to 4,688 as of end-September this year compared to 4,392 as of end-September last year.

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.

The BSP sees remittances further picking up in the coming months in time for the Christmas season.

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. –Lawrence Agcaoili (The Philippine Star)