June OFW remittances total $1.7B, a new record

Remittances by overseas Filipino workers reached a new monthly record of $1.737 billion in June, unhampered by political tensions in the Middle East and North Africa, the "Saudization" program in Saudi Arabia, and the debt crisis in Europe and the United States. The amount of money OFWs sent back to the Philippines grew 7 percent from $1.623 billion year-on-year, BSP Governor Amando Tetangco Jr. said in a statement Monday. OFW remittances in June also eclipsed the record $1.694 billion recorded last December. The June 2011 figures brought the first half remittances to $9.635 billion, up 6.3 percent from $9.062 billion year-on-year. The main sources of money transfers to the Philippines in January to June originated from the US, Canada, Saudi Arabia, the United Kingdom, Singapore, United Arab Emirates, Italy, and Germany, according to the central bank chief. "The sustained demand for Filipino workers as well as the diversity of their skills and destinations contributed to the resilience of remittance flows even with the lingering uncertainties in the Middle East and North African region's political situation and the Eurozone sovereign debt crisis," Tetangco said. Data showed that the total approved job orders of the State-run Philippine Overseas Employment Administration (POEA) data showed 386,559 job orders were approved in the first seven months of the year of which 35.2 percent were processed for Saudi Arabia, UAE, Taiwan, Qatar, Kuwait, and Hong Kong. POEA data also showed 250,489 job orders were still being filled up. The POEA said its placement branch will soon sign a memorandum of understanding with Taiwan for Taiwan-based employers to directly hire Filipino workers. Also, the Autonomous Region in Muslim Mindanao (ARMM) is exploring job opportunities in the palm and rubber plantations of Malaysia, it added. Money transfer opportunities Tetangco said efforts to improve on the types and coverage of global remittance networks are giving more overseas Filipinos more opportunities for money transfers using innovative financial services including web-based systems, automated teller machines (ATMs), and reloadable or reusable cash cards. "Increased capture of money transfers has also been made possible with the expanded offering of financial products and services to overseas Filipinos by banks and other financial institutions that have established more tie-ups with foreign service providers," the BSP chief said. Remittances were up 8.2 percent to a record $18.76 billion last year from $17.35 billion in 2009. However, the Bangko Sentral last April lowered its remittance growth forecast to 7 percent from 8 percent, saying money transfers will likely reach $20.1 billion instead of $20.2 billion, and citing the political and social unrest the Middle East and North Africa and the disasters that hit Japan early earlier this year. The central bank also expects remittances to grow at a slower pace of 5 percent next year to $21.2 billion. — VS, GMA News