Highly paid workers drive remittance boost in May
MANILA, Philippines - Remittance inflows from Filipinos living and working abroad has regained pace owing to the rise in deployment of higher-paid, skilled workers abroad, the central bank said.
Data released Tuesday by the Bangko Sentral ng Pilipinas (BSP) showed that remittance coursed through banks grew to $1.4 billion for the month of May alone, 15.6% higher than year ago levels.
Month-on-month, remittance inflows in May showed a recovery as receipts grew by 1.39% from the previous month’s level, a reversal from the 1.23% decline from March to April.
Total remittance receipts for the first five months of the year reached $6.8 billion, 14.7% higher than $5.92 billion in the same period last year.
The central bank attributed the growth to the growing number and higher quality of workers deployed abroad, as well as the enhanced financial services offered by the banks to Filipinos based overseas.
Preliminary data from the Philippine Overseas Employment Administration showed that the number of Filipino workers who wend abroad rose by 39.5% to 533,945 in the first five months of the year compared to year ago levels. There are about 8 million Filipinos working abroad, accounting for nearly a tenth of the country’s 87.2-million population.
"The workers [being deployed] have better skills so they have bigger compensation," BSP Governor Amando M. Tetangco, Jr. told reporters on the sidelines of inauguration of the officers of the Bankers Institute of the Philippines Tuesday.
"[The growth in remittances] reflected the distinct preference for the skills quality and competence of Filipino workers," he added.
Bulk of remittances continued to emanate from the United States, Saudi Arabia, Canada, the United Kingdom, Italy, the United Arab Emirates, Singapore, Japan and Hong Kong.
Mr. Tetangco also said remittance inflows are expected to get further boost from more work opportunities awaiting qualified Filipino workers, especially with the current expansion of a big oil processing complex in the Middle East to service the rising global demand for crude oil.
The central bank also said banks and non-bank remittance centers continued to exert aggressive marketing efforts to provide expanded financial services to overseas Filipino workers and their beneficiaries. The establishment of more remittance centers, correspondent banks, branches and representative offices abroad, together with the existing tie-ups with foreign financial counterparts, is expected to further facilitate the flow of remittances, the BSP said.
BSP expects remittances to grow by 10% from last year to $15.7 billion by yearend, and by about 15% to $16.4 billion if remittances coursed through informal channels are to be included.
The buoyancy of remittance inflows was expected to continue to give support to the country’s current account, which was expected to post a lower surplus of $4.2 billion this year from last year’s record high of $6.4 billion due to a widening trade deficit. — Gerard S. dela Peña, BusinessWorld
Data released Tuesday by the Bangko Sentral ng Pilipinas (BSP) showed that remittance coursed through banks grew to $1.4 billion for the month of May alone, 15.6% higher than year ago levels.
Month-on-month, remittance inflows in May showed a recovery as receipts grew by 1.39% from the previous month’s level, a reversal from the 1.23% decline from March to April.
Total remittance receipts for the first five months of the year reached $6.8 billion, 14.7% higher than $5.92 billion in the same period last year.
The central bank attributed the growth to the growing number and higher quality of workers deployed abroad, as well as the enhanced financial services offered by the banks to Filipinos based overseas.
Preliminary data from the Philippine Overseas Employment Administration showed that the number of Filipino workers who wend abroad rose by 39.5% to 533,945 in the first five months of the year compared to year ago levels. There are about 8 million Filipinos working abroad, accounting for nearly a tenth of the country’s 87.2-million population.
"The workers [being deployed] have better skills so they have bigger compensation," BSP Governor Amando M. Tetangco, Jr. told reporters on the sidelines of inauguration of the officers of the Bankers Institute of the Philippines Tuesday.
"[The growth in remittances] reflected the distinct preference for the skills quality and competence of Filipino workers," he added.
Bulk of remittances continued to emanate from the United States, Saudi Arabia, Canada, the United Kingdom, Italy, the United Arab Emirates, Singapore, Japan and Hong Kong.
Mr. Tetangco also said remittance inflows are expected to get further boost from more work opportunities awaiting qualified Filipino workers, especially with the current expansion of a big oil processing complex in the Middle East to service the rising global demand for crude oil.
The central bank also said banks and non-bank remittance centers continued to exert aggressive marketing efforts to provide expanded financial services to overseas Filipino workers and their beneficiaries. The establishment of more remittance centers, correspondent banks, branches and representative offices abroad, together with the existing tie-ups with foreign financial counterparts, is expected to further facilitate the flow of remittances, the BSP said.
BSP expects remittances to grow by 10% from last year to $15.7 billion by yearend, and by about 15% to $16.4 billion if remittances coursed through informal channels are to be included.
The buoyancy of remittance inflows was expected to continue to give support to the country’s current account, which was expected to post a lower surplus of $4.2 billion this year from last year’s record high of $6.4 billion due to a widening trade deficit. — Gerard S. dela Peña, BusinessWorld
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