Palace, BSP bothered by OFW remittance boycott

MANILA, Philippines – Even before it gets off the ground, militant migrants groups’ “no remittance day" campaign is already creating discomfort for the Bangko Sentral ng Pilipinas and Malacanang. Deputy presidential spokesman Lorelei Fajardo described the move as “irresponsible and tantamount to economic sabotage." BSP deputy governor Diwa Gunigundo candidly admitted that non-remittance by overseas Filipino workers would have tremendous impact on the economy. He appealed to Filipinos overseas to find other ways to express their disgust at the Arroyo government. “This (remittance boycott) will have a big effect to the country. Perhaps they can still find other ways [to express their protest]," he said. Militant group Migrante International and its chapters and affiliates across the globe have been campaigning for a “zero remittance" day at least once a month as a form of civil disobedience to the government amidst mounting calls for the resignation of President Gloria Macapagal Arroyo. The United Filipinos in Hong Kong already kicked off the campaign on March 2, the first Sunday of the month when most OFWs remit their salary, as a sign of outrage over the corruption scandals facing the Arroyo government. Hong Kong is one of the top five country destinations of OFWs and consequently, a major source of remittances. “Our money should not be used to support a most corrupt regime. No Remittance Day is our way of expressing: Enough with corruption. Enough with plundering our money," Unifil chairperson Dolores Balladares said in a statement last week. Migrante’s chapters in the Middle East and in other countries will follow on March 8, coinciding with the annual observance of Women’s Day. Overseas Filipinos remitted $14.3 billion through the banks in 2007, plus an estimated 30 percent coursed through the non-formal channels like the door-to-door or “padala" system of sending money to their relatives in the Philippines. Maita Santiago, secretary general of Migrante International, estimated daily remittances from Filipinos across the world at more than $30 million. Migrante has vowed to observe a “no remittance day" at least once a month until President Arroyo quits. "Ang panawagan ng mga bagong bayani na ayaw kay Gloria ay ang makiisa ang ating mga kababayan na dito sa itinakda nating zero-remittance days (Our call is for the so-called new heroes who no longer want Gloria to join in the zero-remittance days)," Santiago said on Monday. She said that for as long as President Arroyo remains in power, the abuses on OFW rights will continue. “Our next Zero Remittance Day is March 8 to mark International Women's Day," said Santiago, adding that it will be an appropriate event considering that approximately seven out of 10 OFWs are women. Serious setback Fajardo, in a text message to GMANews.TV, said the remittance boycott would not benefit anyone. She warned that it could only result in more economic problems and bring greater financial damage to their loved ones. “Such a call is irresponsible and tantamount to economic sabotage. Their action will not benefit anybody," Fajardo said. “It could cause a serious setback to our economic gains, bringing greater damage to their loved ones and the nation as a whole," she asserted. Remittances from overseas Filipinos served as the powerhouse behind the country’s robust growth in 2007. Despite the excess liquidity created by strong foreign exchange inflows, monetary officials said remittances have been funding domestic consumption. BSP said that in December alone, remittances coursed through banks reached $1.4 billion, the highest monthly remittance level since May 2006. Remittances accounted for the bulk of the net factor income from abroad and about 10 percent of nominal Gross Domestic Product in 2007. Robust remittance BSP Governor Armando Tetangco attributed the robust remittance inflows in 2007 to the continued demand abroad for Filipino workers and enhanced remittance services provided by banks and non-bank remittance agents. He noted that about 40 to 45 percent of workers abroad were paid in US dollars or in currencies pegged against the US dollar, indicating that almost half of them were adversely affected by the appreciation of the peso and the weakness of the dollar. Classified by type of worker, the number of deployed land-based Filipino workers rose by 2.8 percent to 809,740 in 2007, while the number of sea-based workers contracted by 4.0 percent to 263,662. The lower number of deployed sea-based workers in 2007 can be partly attributed to delays encountered in recent months in the issuance of workers' visa by host countries. Growing demand for Filipino labor According to the Philippine Overseas Employment Administration, the major countries of destination in 2007 included Saudi Arabia, the United Arab Emirates, Qatar, and Taiwan, with professionals and skilled workers accounting for the bulk of deployed new hires. Tetangco said the employment prospects for overseas workers in the near term remained favorable following indications of continued demand from labor-importing countries such as Canada, Australia, Middle East, South Korea, and Taiwan. Employment opportunities were identified in the sectors of construction, information technology, engineering, architecture, and hotel/restaurant service. Tetangco said the significant increase in remittances in 2007 also resulted from the increased presence of commercial banks and local money transfer agents in countries with high concentration of Filipino manpower. "In particular, banks increased the number of remittance centers abroad, including tie-ups with their foreign counterparts, which in turn facilitated the transfer of remittances to beneficiaries," he said. Remittance flows were expected to get a further boost from the newly-signed agreements between a local money transfer company and two (2) telecommunication service providers aimed at providing overseas Filipinos with convenient and affordable remittance transfers with value added services through the use of mobile communications. To date, the BSP reported that the bulk of remittance flows came from the U.S., Saudi Arabia, U.K., Italy, the United Arab Emirates, Canada, Japan, Singapore, and Hong Kong. - with reports from Mark J. Ubalde, GMANews.TV