Remittances raise OFW families' economic status

Thanks to remittances from Filipinos working abroad, some 265,000 Filipino families have now joined the middle class, the latest study by the media research firm Nielsen Media Research Philippines showed. Jay Bautista, executive director of Nielsen Media Research - Philippines, said some 25 percent of the official 1,063 OFWs deployed in 2006 have now been lifted from poverty. The number of OFWs came from the Philippine Overseas Employment Agency. However, estimates have placed overseas Filipino population at around 12 million, including the undocumented workers. “In effect, they are the real heroes. We have lesser number of poor Filipinos because of them," Bautista said. The study had a sample size of 300 OFW families located in key cities in the country. Most of the OFWs are fathers or husbands working as seamen; followed by daughters as nurses; sons and then housewives. “It is sad to know that after the husbands, it is the daughters that would be sacrificed next to earn money abroad," Bautista lamented. Majority of the OFWs are also working in Saudi Arabia, followed by the US, Taiwan, Dubai and Japan. About 14.2 percent of them are domestic helpers; 10.1 percent, caregivers; sea men, 8.9 percent; 7.8 percent as nurses and factory workers with 7.3 percent. Of the total number of OFW beneficiaries, some 66.4 percent belong to the low income level group; 22.7 percent to the C2 group; 6.6, C1 group and 4.3 percent to the AB class. However, Bautista noted that most of the remittance recipients are females, not working and housewives, and that bulk of them receive money from abroad once a month. Around 91.3 percent of the recipients receive P30,000 and below monthly from OFWs. Of the total amount received, a big portion is spent for basic needs such as household expenses, education, medical needs and home rentals; followed by investments such as savings, business, appliances, insurance and real estate and lastly to pay off debts. Compared to the general population, OFW families are more inclined to go to malls with 93 percent of them versus 82 percent of the general population; going to the supermarket at 93 percent versus 72 percent of the general population; and dining in fast food restaurants at 92 percent against 72 percent of the masses. Despite saying that after household expenses, extra cash goes to savings and other investments, the study noted that actually putting money in the bank only came as the fifth priority in items that OFW beneficiaries are planning to do in the next 12 months. The top priority was buying real estate; and then techi gadgets; car and then household appliances. “Most of the OFW families also think that there is no end to the stream of dollars coming their way as only 31.2 percent of them own businesses. And these businesses will hardly sustain them once the OFW returns home," Bautista said. The top businesses they engaged in are sari-sari (mom and pop’s) stores; apartment or condominium retail; owning a jeepney or tricycle; meat shop and canteen or restaurants. It is also revealed that only a third or 35.1 percent of the OFW beneficiaries have plan to put up businesses with sari-sari store or grocery as their top choice, followed by internet cafés, canteen and restaurant business, apartment and condominium retail and agri-business. OFWs, it was shown, would rather send money to their family than spend it buying ticket to come back to the Philippines, with a third of them or 36.2 percent saying they only come home once in every two years. Despite the generally bleak outlook on the Philippines, some 72.9 percent of OFW families are planning to stay here. Those that are planning to migrate are eyeing North America, East Asia, Oceania, Europe as their top choices. - Cheryl Arcibal, GMANews.TV