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.
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