MoneyGram sees double-digit growth

MANILA, Philippines - MoneyGram International is forecasting a double-digit growth in its international money transfer or remittance business in the Philippines.

The company said this is based on the continued growth in the remittance business from overseas Filipinos and the growing Chinese businesses in the Philippines.

MoneyGram International country manager for the Philippines Alex Chan Lim said they forecast that their business would grow “by high double-digit” this year.

In a press briefing, Lim said remittances passing through the country’s banking system has been growing six to 10 percent over the year.

“Filipinos continue to be deployed every month with two to 300 leaving for overseas employment almost every month, and practically none are returning to the Philippines,” he added.

The MoneyGram official also said the company has an expanding money transfer business with Chinese nationals doing legitimate business in the Philippines. There are over 40,000 Chinese nationals that send or receive money transfers worth at least $1,200 a month.

“These are a mixture of business and personal transactions,” Lim said, reminding that the international money transfer company receives and sends to and from the Philippines.

Meanwhile, officials of the second leading international money transfer firm said that they are not overly concerned with the economic chaos affecting the eurozone and the United States market.

MoneyGram International executive vice president and chief marketing officer Juan Agualimpia said the remittance business and overseas Filipino have made the adjustments after the 2008 financial crisis.

“What is happening today has less impact on the overseas Filipinos and the Philippine economy. Most of the adjustments have already been made after 2008,” Agualimpia told reporters.

Remittances account for roughly 14 percent of the country’s gross domestic product (GDP).

The Philippines is recognized as the fourth largest recipient of remittances globally after India, China, Mexico and France.

In the first seven months of 2011, remittances already amounted to $11.35 billion or 6.3 percent from the same period in 2010. In 2010, remittances hit a record $18.76 billion, up 8.2 percent from 2009.

The major sources of remittances from overseas Filipinos are still the United States, Canada, Saudi Arabia, United Kingdom, Japan, Singapore, United Arab Emirates, Italy and Germany.

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