OFW remittances hit $ 12.8 B in 2006

http://www.mb.com.ph/BSNS2007021687228.html

OFW remittances hit $ 12.8 B in 2006
By LEE C. CHIPONGIAN

Remittances from overseas Filipino workers (OFWs) last year grew 19.4 percent to $ 12.8 billion, higher than forecast for the year, the Bangko Sentral ng Pilipinas reported yesterday.

For 2007 the BSP projection for OFW remittances is $ 14.1 billion, or ten percent more than last year.

OFWs sent $ 1.3 billion in December, about 37.2 percent higher than 2005’s $ 961.867 million.

"The strong inflows of cash remittances, which have been in excess of the billion-dollar level for the past eight months, can be traced mainly to the higher deployment of Filipino workers abroad and to financial institutions’ adoption of innovative ways to improve delivery of financial services, expand their network and enhance their infrastructure to reach a greater number of overseas Filipinos and their beneficiaries," BSP Governor Amando M. Tetangco Jr. said in a statement.

Based on initial data from the Philippine Overseas Employment Administration (POEA), new hires and rehires showed reached 1.1 million in 2006, up 10.5 percent. By type of worker, the BSP said the number of deployed land-based workers was higher by 12.2 percent at 831,318 while the number of sea-based workers went up by 5.2 percent at 260,737.

"The demand for OFWs is expected to increase further as the government intensifies its human resource development and training programs for potential workers, improving their competitive advantage over those from other labor-providing countries," said Tetangco. "Moreover, sea-based workers have maintained their leadership in the labor market for highly skilled maritime workers, as noted by the Department of Labor and Employment (DoLE)."

For the past two years, BSP said the banking industry improved its remittance channels with new and advanced systems and technologies such as internet/on-line banking, phone banking and through short messaging, as well as enhanced and expanded financial products and services (bills payment arrangements, international money/cash cards, remittance network expansion, new correspondent remittance agreements with host countries).

"The link-up of the three major ATM networks also facilitated the access by beneficiaries to the formal channels of remittance transfers," the BSP said. The interconnection was implemented last year after almost a decade of planning.

OFW remittances contribute almost 11 percent of gross domestic product. Major fund transfers come from the United States, Saudi Arabia, Canada, Italy, the United Kingdom, Japan, the United Arab Emirates, Hong Kong, Singapore, and Taiwan.