Overseas

6
filipino globe news
November 2006
Remittances seen topping US$21b
Robust demand for healthcare workers to drive explosive growth in deployment, says TUCP
DANTE VINO in Manila
Peso expected
to gain more
strength from
Christmas rush
If trends continue, the annual remittances
of overseas Filipino
workers will hit US$21.4 billion
by 2010, or double the US$10.7
billion last year, the Trade Union
Congress of the Philippines (TUCP)
said.
“We foresee migrant worker remittances
increasing by at least 100
per cent over the next five years,
barring a global economic shock,”
former senator and TUCP general
secretary Ernesto Herrera said.
Bangko Sentral ng Pilipinas statistics
show OFW remittances expanded
at an annual average compounded
rate of 16 per cent from
2001 to 2005. Herrera said the annual
double-digit growth rate is sustainable
due to the continued robust
demand for semi-skilled and highly
skilled Filipino workers.
Remittances reached US$6.04 billion
in 2001; US$6.88 billion in 2002;
US$7.58 billion in 2003; US$8.55
billion in 2004; and US$10.7 billion
in 2005. As a rule, any amount
that grows at a compounded annual
rate of at least 15 per cent doubles
every five years.
Herrera cited three key remittance
growth drivers in the years ahead.
These are:
• The ageing of 77.5 million “baby
boomers” (those born between
1946 to 1964) in the US, which has
spurred demand for foreign healthcare
workers, including nursing
home staff. The oldest baby boomers
are turning 60 this year;
• Soaring energy prices that have
boosted the economies of oil-producing
countries in the Middle
East that, in turn, have stepped
up hiring of foreign workers in
industries such as construction,
travel and tourism and oil and
gas exploration, development and
production;
• Rapid globalisation that has
increased the need for multinational
corporations to retain highly
qualified, experienced and Englishspeaking
Filipino business and production
managers.
The US is the Philippines’ biggest
source of remittances. Inflows
from OFWs based in US
grew by US$1.51 billion or 31
per cent, from $4.91 billion in
2004 to US$6.42 billion last year.
About US$6.61 billion from
North America, including $190 million
from Canada, accounted for 62
per cent of all remittances.
The Middle East is the third
biggest source of remittances at
US$1.42 billion in last year, behind
Europe (US$1.44 biliion).
Hong Kong, home to more than
120,000 OFWs, accounted for
US$360 million of the estimated
US$1.1 billion from Asia-Pacific,
including Japan, Korea, Australia,
Singapore, Malaysia and Taiwan.
RAUL ACEDRE in Manila
A surging peso is expected to pick
up more steam after record remittances
in the first nine months
helped drive it to a 4-1/2-year high
It is trading at just under P50 to
the US dollar after touching a fresh
high of P49.99, its strongest level
since 2002, Bangko Sentral ng Pilipinas
said.
The currency is expected to stay
on the strong side of trading for
the rest of the
year. The peso’s
strength leaves
room for the
BSP to cut interest
rates, which
could push up
the US dollar/
Tetangco peso exchange
rate. But most
economists say any such cut would
be taken by the market as an opportunity
to buy back the peso.
“I think there will be very little
effect on the strength of the peso,”
one economist said. It has had time
to consolidate its gains.”
Improved economic fundamentals
and strong inflows of overseas
remittances have combined to power
the peso to levels not seen since
more than four years ago.
OFWs have sent home more than
US$9 billion in the first nine months
of the year, just under the the $10.7
billion for all of last year, and within
sight of the US$11 billion expected
for this year.
“There’s every reason to believe
that the target for this year will be
achieved,” BSP governor Amando
Tetangco said. “This has implications
on the continuing strength of
the peso and on exchange rates.”
THE STARS COME OUT
A Philippne Airlines jet looks like part of the Christmas
decor at the NAIA terminal. The airport is decking itself out
for the holidays just before an expected surge of overseas
Filipino workers returning home for Christmas.
NAIA officers warned over ‘discourteous’ behavior after Luli fiasco
RAUL ACEDRE in Manila
NAIA personnel have been told to
treat all passengers courteously and
fairly, regardless of their nationality.
Executive Secretary Eduardo Ermita
issued the reminder after an
incident in which the President’s
daughter, Evangeline Lourdes “Luli
Arroyo” reportedly got a boorish
treatment from an immigration officer.
Edgardo Padlan has been suspended
by his superiors at the Immigration
Bureau pending an investigation.
Ermita was reacting to the incident
in which Arroyo was reportedly told
off by Padlan after she complained
about a foreigner being allowed to
jump the queue. Padlan reportedly
snapped at Arroyo: “Hindi ka ba
marunong maghintay?” (Don’t you
know how to wait?)
“I called the attention of the public
servants there (NAIA), dahil siyempre,
kahit siguro hindi anak ng
presidente could make that observation
and call the attention of the immigration
personnel,” Ermita said.
“Hindi naman tama … what he
had done at the expense of a Filipino,
parang nagpapakita lamang sila
na para bang binibigyan ng pabor
ang mga foreigner,” Ermita said.