More OFW households saving, investing remittances – survey

MANILA, Philippines - More Filipino households receiving remittances from their loved ones abroad are saving and investing amid the heightened financial literacy programs being undertaken by the Bangko Sentral ng Pilipinas (BSP).

Results of the Consumer Expectations Survey (CES) for the fourth quarter showed an increase in the number of overseas Filipino workers’ households allocating remittances for savings to 41.4 percent from 38.2 percent in the previous quarter.

Likewise, the number of households which allocated remittances for investments improved to 6.6 percent in the fourth quarter from 6.2 percent in the third quarter. 

BSP deputy governor Diwa Guinigundo said financial literacy seminars and lectures being conducted by the BSP are yielding positive results as seen in the results of the survey.

“Among others our public information campaign focused on OFWs has been yielding positive results in terms of investments and savings. They are more aware of the need to save and invest in case they decide to come back in the Philippines,” he said.

Guinigundo said the number of households using remittances for savings has increased to 41.4 percent in the fourth quarter, a sharp increase from only 7.2 percent when the CES was launched in the first quarter of 2007.

On the other hand, he added the number of households using remittances for investments rose to 6.6 percent or almost three times the 2.3 percent level when the survey was launched eight years ago.

Rosabel Guerrero, director of the BSP’s Department of Economic Statistics, said the households receiving remittances from their loved ones abroad have prioritized the purchase of house to save on rentals.

Guerrero said the percentage of OFW households using remittances for the purchase of house increased to 11.9 percent in the fourth quarter from 11.5 percent in the third quarter.

She explained the number of households using remittances to buy motor vehicles declined to 6.4 percent from 7.4 percent amid the heavy traffic being experienced in major thoroughfares.

Guerrero said OFW households continued to prioritize foods and household needs that accounted for 95.9 percent followed by Education with 69.5 percent and medical expenses with 59.7 percent.

Likewise, the survey showed 42.7 percent of the total household respondents use the remittances to pay debt and other financial obligations.

The number of OFW households purchasing appliances and other consumer durables declined to 21.8 percent in the fourth quarter from 23.1 percent in the thid quarter.

The survey was conducted from Oct. 1 to 12 and covered 6,020 households. Of the total respondents, 574 households received remittances from Filipinos working and living abroad.

Latest data from the BSP showed cash sent home by overseas Filipinos went up 4.1 percent to $20.37 billion in the first nine months from $18.41 billion in the same period last year on the back of sustained demand for skilled Filipino manpower overseas.

Cash remittances went up  5.9 percent to $24.35 billion last year from $22.98 billion in 2013 while personal remittances increased by 6.3 percent to $26.97 billion from $25.37 billion.