Remittances hit record high in March, BSP says

MANILA, Philippines - Money sent home by Filipinos working abroad reached a historic high in March this year, breaching the previous record set in June last year. Remittances reached $1.5 billion in March despite the deepening recession in key markets, the Bangko Sentral ng Pilipinas (BSP) said. Besides being higher than the $1.45 billion posted in June last year, remittances have risen – although at a slower pace – since January, contradicting previous forecasts made by Bretton Woods institutions. Moreover, remittances during the first quarter improved by 2.98 percent to $4.06 billion from $3.95 billion as sea-based and land-based workers sent more cash home, BSP governor Amando M. Tetangco Jr. said. In March alone, remittances rose 2.8 percent from $1.43 billion as labor demand for Filipino skills abroad remained steady. The remittance hike was also encouraged by wider access to expanded money transfer services by overseas Filipino workers and their beneficiaries. “While concerns remain over the impact of the prevailing global economic crisis on the deployment of Filipino workers abroad, an assessment of the labor market situation by the Department of Labor and Employment (DOLE) and the Philippine Overseas Employment Administration (POEA) points to sustained demand for workers overseas," Tetangco said. For the first quarter, the major sources of remittances were the United States, Canada, Saudi Arabia, Japan, United Kingdom, Singapore, Italy, United Arab Emirates and Germany. Tetangco remains bullish for the remittance sector amid gloomy forecasts by multilateral agencies. As of May 12, nearly 37 percent of the total active job orders amounting to 279,889 have been processed 12 while the remaining 63 percent are still to be filled up, the POEA said. The bulk of the job orders were in the production, services, and professional skill categories. Philippine overseas labor offices have also reported new job opportunities in markets that have not been severely affected by the global financial strains. Besides labor accords signed between the Philippines and some host countries such as Canada, Australia, Japan, Korea, and some Middle East countries such as Qatar, Tetangco said. Prospective employment awaits Filipino workers in Algeria, particularly, in construction projects requiring professional and skilled workers. "The report of the BSP team that recently conducted a financial learning campaign for OFWs in Saudi Arabia indicated continued demand for overseas workers as the Kingdom gears up for the construction of megacities," he said. "These developments provide continued optimism for stability in remittances, notwithstanding the displacement of some OFWs as a result of the global economic crisis," he added. Latest labor statistics indicated a slowdown in the number of displaced OFWs as the government "intensified its efforts to directly assist the displaced OFWs find alternative jobs in emerging markets and in countries that are least affected by the crisis." Earlier, the World Bank and the IMF expected remittances to contract by single digits this year, citing the global slowdown which cuts demand for workers including those from the Philippines. - GMANews.TV