Government adopts steps to help displaced OFWs

The government has put in place measures to help Filipinos abroad and returning overseas Filipino workers (OFWs) cope with the global financial turmoil, Socioeconomic Planning Secretary Ralph Recto said.

He said the Department of Labor and Employment and the Overseas Workers Welfare Administration (OWWA) have identified sectors that can be developed to augment the job losses of Filipinos abroad.

For instance, Recto said there are training centers for setting up small and medium-sized businesses.

The National Economic and Development Authority (NEDA) chief said OWWA will also put in place training programs for various livelihood projects which could help returning Filipinos earn a living here at home.

Earlier, Sen. Edgardo Angara said the government should help lower financial costs incurred by OFWs.

The lawmaker urged the Bangko Sentral ng Pilipinas to regulate remittance firms in the country to ensure that the costs of sending dollars home are fair and reasonable.

“The cost of transmitting remittances in the Philippines is relatively high, compared to other countries. Lowering this high cost of remittance will mitigate the adverse impact of the global financial crisis to the income of OFWs and their families,” said Angara, who chairs the Senate Committee on Banks, Financial Institutions and Currencies.

Citing data from remittance firms, Angara said the cost of sending dollars through Moneygram and Western Union to the Philippines from the United States and other countries ranges from 10 percent to 14 percent of the amount to be remitted.

He said if monetary authorities will regulate remittance firms, the cost of sending dollars home would be cheaper.

 “Placing remittance firms in the country under the supervision of the BSP would allow the latter to regulate the remittance fees charged by these firms. Through this, we can show a gesture of concern to our OFWs especially during these tough times of financial crisis,” the lawmaker said.

Total remittances are seen to hit at least $16.6 billion this year, of which $16 billion would likely be coursed through the banking system.

However, BSP Governor Amando Tetangco Jr. said for 2009, the growth of overseas remittances may slow to six percent compared with the 10 percent to 11 percent growth projected for this year.

According to the latest BSP data, money sent home by overseas Filipinos surged 16.94 percent year-on-year in September from 10.36 percent in August. In September alone, remittances amounted to $1.3 billion, bringing the nine-month dollar inflows to $12.3 billion.

The World Bank has said that reducing remittance fees could increase annual remittance flows to developing countries.

“During this time of financial difficulty, we must seek all possible options to extend assistance to our OFWs. One of these options is to increase their spending power through lower remittance costs. On the other hand, we may see that in the long run the Philippine economy is most likely to benefit from this increased consumer spending,” Angara said.

OFWs are spread out in various countries such as Saudi Arabia, Dubai, Qatar, United Arab Emirates, Hong Kong and the United States.