More on OFWs as investors

Ms. Ellene Sana of the Center for Migrant Advocacy Philippines emailed and reminded us that in the previous administration, GMA referred to OFWs as OFIS (Overseas Filipino Investors). We wonder whatever happened after that. Like Ellene, we want to know how the present government will integrate our OFWs within their development agenda.

Another migrant advocate, Ding Bagasao, President of ERCOF ( Economic Resource Center for Overseas Filipinos Phils) wrote that in order for OFWs to be investors, “the government has to put in place” the following four suggestions:

One, a specific investments incentives law for OFWs. The present Omnibus Investments Code does not make any distinction (whether the investors are OFWs or not) and is so foreigner-specific and covers only limited areas.

Two, clarify and spell out how dual citizens can maximize the privileges they now have as dual citizens. In short, an IRR or manual for dual citizens is needed. This needs to be done by a technical working group to be composed of private sector, government and civil society representatives.

Third, seriously implement the Barangay Micro Business Enterprise (BMBE) law, which Ding thinks is now practically a dead law”. He also added that “everybody is still in that bureaucratic mode of having 40 signatures to get a business permit. We have to improve our competitiveness index not only to attract foreign but also local investors. National and local governments should be aware that 97% of our employment is generated by Micro, Small and Medium Enterprises (MSME). We might be overpopulated, but on the other hand, we have a huge domestic market if only we knew how to support local industries learn to love and market our products”.

Fourth, get Congress to give the Commission of Filipinos Overseas ( CFO) more money to set up special offices overseas to campaign for investments.

According to Ding, “in Mexico, they have a specific office, headed by an ambassador, who goes around and meets Mexicans overseas to mobilize and coordinate local community investments. This might be a good idea that could work for us”.

Finally, Ding concluded that there are other suggestions that can be made but the new administration can start with the above suggestions. He also wrote that “President Aquino himself must go all out to champion this program of OFWs as investors and show that he means business and that our OFWs are one of his priorities, and not simply assign this program to a ceremonial official”.

For the information of our readers, especially our OFWs, the earlier mentioned BMBE Law, or Republic Act No. 9178 “grants incentives and privileges to barangay-based micro enterprises with assets of under P3 million. The law supports the development of small manufacturing, processing, trading and service shops through the grant of lucrative tax advantages as well as gainful non-tax benefits.”

A 2007 article written by the late Cerge Remonde noted that the BMBE Act of 2002, “provides additional incentives to stimulate further growth of entrepreneurship at the barangay level. It institutes transparency to drive growth even as it cuts restrictive rules that could impede barangay enterprises. Incentives include exemptions from income tax, particularly income from the operation of the enterprise, and exemptions from coverage of the Minimum Wage Law. In addition, BMBE-registered or accredited enterprises have priority access to special credit windows in government financial institutions and, through arrangements with Local Government Units (LGUs), local taxes, licenses and fees are significantly reduced, or waived, outright.”

We hope the Department of Finance can provide us all an update of this BMBE law and its implementation. We also hope that the present government of P.Noy will truly prioritize our OFWs as investors for our country’s reconstruction and renewal.

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