02.15.2008 Remittances from overseas Filipinos (OFs) coursed through banks reached US$1.4 billion in December, the highest monthly level on record. Monthly remittances have been surpassing the billion-dollar level since May 2006. Sustained strong inflows during the year brought total remittances in 2007 to a high of US$14.4 billion, exceeding the 2006 level by 13.2 percent. It was also higher than the forecast level of US$14.3 billion. Remittances accounted for about 10 percent of nominal Gross Domestic Product in 2007.
Robust remittance flows in 2007 was due to continued demand abroad for Filipino workers and enhanced remittance services provided by banks and non-bank remittance agents. Preliminary 2007 data from the Philippine Overseas Employment Administration (POEA) showed that deployment of workers in December grew by 20.8 percent year-on-year to reach 73,643. As a result, the total number of deployed Filipino workers abroad in 2007 exceeded 1 million (at 1,073,402), a modest 1.0 percent growth compared to the 2006 level. Classified by type of worker, the number of deployed land-based Filipino workers rose by 2.8 percent to 809,740 in 2007, while the number of sea-based workers contracted by 4.0 percent to 263,662. The lower number of deployed sea-based workers in 2007 can be partly attributed to delays encountered in recent months in the issuance of workers’ visa by host countries. According to the POEA, the major countries of destination in 2007 included Saudi Arabia, the United Arab Emirates, Qatar, and Taiwan, with professionals and skilled workers accounting for the bulk of deployed new hires. Employment prospects for overseas workers in the near term remain favorable following indications of continued demand from labor-importing countries (such as Canada, Australia, Middle East, South Korea, and Taiwan). Employment opportunities were identified in the sectors of construction, information technology, engineering, architecture, and hotel/restaurant service.
The significant rise in remittances in 2007 also resulted from the increased presence of commercial banks and local money transfer agents in countries with high concentration of Filipino manpower. In particular, banks increased the number of remittance centers abroad, including tie-ups with their foreign counterparts, which in turn facilitated the transfer of remittances to beneficiaries. Looking forward, remittance flows are expected to get a further boost from the newly-signed agreements between a local money transfer company and two (2) telecommunication service providers aimed at providing overseas Filipinos with convenient and affordable remittance transfers with value added services through the use of mobile communications.
To date, the bulk of remittance flows came from the U.S., Saudi Arabia, U.K., Italy, the United Arab Emirates, Canada, Japan, Singapore, and Hong Kong.
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