Study: RP diaspora widens poverty gap

Study: RP diaspora widens poverty gap

Billions of dollars in remittances by its huge overseas work force are lifting many areas of the Philippines out of poverty but millions more are being left behind, according to a study obtained by Agence France Presse Thursday.

Manila and five other regions that account for most of the labor exports also have the country's lowest poverty levels, and five of these areas showed significant drops in poverty levels between 2000 and 2003, said the paper by University of Santo Tomas professor Alvin Ang.

However, poverty levels increased to between 34 percent to 49 percent in those regions where labor export is not a principal preoccupation, the study said, citing government data.

The government estimates 30 percent of the Philippine population are poor. But World Bank data show nearly 40 percent of Filipinos live on two dollars a day or less.

Ang's paper said the results support the hypothesis "that those who are migrating and working abroad are not poor" and that the remittances, which reached a record 10.7 billion dollars in 2005, "have multiplier effects in terms of education, health, housing, (and) entrepreneurship" among others.

However, "instead of levelling the regional poverty levels, it probably contributes to its worsening" in areas where workers do not have the proper skills as well as the resources to move overseas.

The Philippines started large-scale exports of construction workers and seamen in the 1970s amid a building boom in the oil-soaked Middle East.

Ang said deployments shifted in favor of lower-skilled service workers, including domestics, with the emergence of the so-called "tiger" economies of Asia by the late 1980s.

Since the 1990s, the information technology revolution and the graying populations of much of the developed world opened up job opportunities for highly-skilled Filipino professionals and technical workers.

He said this raised the per capita annual remittance levels by more than 500 percent to nearly 11,000 dollars in 2005 compared to about 2,000 dollars in 1988.

Since most of the migrating workers "are from relatively affluent regions, they may be worsening inequality among regions," Ang concluded.

He also raised concern that the remittance money flows "are causing sharp declines in agricultural production" because "it seems that labor would rather wait for the opportunity to (work abroad) than work in the farms."

He also said the huge capital flow "have yet to be translated to value-added activities and investments which are more foundational sources of development and growth."

The bulk of the remittance money appear to be sucked into consumer spending that has spurred the rise of giant shopping malls across the country, he added. AFP

 

http://www.abs-cbnnews.com/topofthehour.aspx?StoryId=66876 

 

BSP pushes sale of $1-B bonds to OFWs

Move can shift focus from spending to investing

By Doris Dumlao
Inquirer
Last updated 10:07pm (Mla time) 02/11/2007

THE BANGKO Sentral ng Pilipinas has urged the national government to offer this year as much as $1 billion in retail treasury bonds (RTBs) to overseas Filipino workers and their beneficiaries.

In a report to Malacañang on initiatives to improve the environment for offshore workers, the BSP said it had taken steps together with the Department of Finance and the Bureau of the Treasury (BTr) "to finalize the proposed issuance of RTBs for OFWs."

"This is aimed at encouraging them and their beneficiaries to channel their remittances to investment instruments," the BSP reported.

The proposed issuance, targeted within the year but not necessarily in one single sale, aims to divert more OFW inflows for economic development while giving OFW households lucrative investment outlets.

"These savings and investments will help prepare OFWs for future reintegration into the Philippine economy and help provide additional funding for government requirements, including for infrastructure development," the report said.

The offering size proposed by the BSP was based on the assumption that OFWs could set aside about 10 percent of their earnings for investments.

The issuance of RTBs also helps the BSP's monetary policy as a way of siphoning off strong inflows from OFWs.

"For their part, commercial banks have offered OFWs specialized investment products and services related to insurance, pension and real estate," the BSP said. "Direct payment schemes of banks are also available for the added convenience of the OFWs' beneficiaries."

In line with its major advocacy programs, the BSP is conducting financial literacy campaigns (FLCs) for OFWs and their beneficiaries together with the Overseas Workers Welfare Administration.

"The FLCs emphasize the importance of saving and inform the participants of alternative opportunities for their remittances such as placements in financial instruments and investments in business ventures," the BSP reported.

Based on a survey of four rural banks and one cooperative bank in the three regions where the BSP conducted FLCs, microfinance loans attributed to OFWs have risen in their areas, particularly in Tuguegarao, Cagayan.

Microfinance is the provision of small, unsecured loans to the poor to help them start their own businesses.

OFW remittances coursed through the banking system surged to $11.4 billion in the first 11 months of 2006 from $6.1 billion in 2000. These remittances boosted the supply of foreign exchange, helping stabilize the exchange rate and provided valuable support to economic growth, particularly through strong personal consumption expenditures.

The BSP expects the remittances coursed through banks to grow by another 10 percent this year to $13.5 billion.

http://globalnation.inquirer.net/news/news/view_article.php?article_id=48819

 

Surreal: a 'hearing' in the Senate, a briefing at the Palace

Surreal: a ‘hearing’ in the Senate,
a briefing at the Palace

By Butch Fernandez and Mia Gonzalez
Reporters

DESPITE pronouncements by various agencies that the multibillion-peso funds of overseas Filipino workers are intact and ready for their use in the Middle East, Malacañang refused to allow executive officials to testify Monday at the Senate labor committee hearing on government plans to move out overseas Filipino workers affected by the Lebanon crisis.

Senate probers said the Palace action, made amid persistent claims by the Executive that the Overseas Workers Welfare Administration (OWWA) funds are intact, merely fueled suspicion of irregularity.

The snub resulted in the awkward scenario of executive officials briefing reporters in Malacañang while members of the Senate labor committee faced empty chairs just a few kilometers away.

Executive Secretary Eduardo Ermita, in a letter to labor committee chairman Sen. Jinggoy Estrada, declined the Senate invitation because it “does not refer to any possible statute that prompted the inquiry,” among other reasons.

But Sen. Richard Gordon, who filed a resolution that triggered the Senate inquiry, warned that the nonappearance of the invited Palace and OWWA officials “opens up Malacañang to more probing questions on the OWWA fund issue. “This issue will fester because they did not show up,” Gordon added.

The ambassador to Lebanon, Al Francis Bichara, found time, though, to respond to senators’ questions in a videoconference during the hearing. He confirmed that the latest order from Manila is to evacuate all OFWs in southern Lebanon.

Under questioning by senators, Bichara admitted the OFW evacuation encountered funding difficulties with the Philippine Embassy advancing the money for the initial phase of the withdrawal of Filipinos from war-torn areas.

“I had to ask to find out that OWWA released $19,000 for evacuation funds and was told that the money was deposited in the personal account of an OWWA officer,” Bichara said.

This prompted Sen. Joker Arroyo to point out that while the OWWA has collected over P8 billion from departing OFWs, “it sent only $19,000 for evacuation, when under the law they are the ones in charge of situations like this. Where are they hoarding the OWWA money?” Arroyo asked. He also pointed out that under RA 8042, all costs of OFW repatriation shall be borne by the OWWA.

Across town, meanwhile, Foreign Affairs Undersecretary Esteban Conejos said the fate of Ambassador Bichara, who stirred a controversy when he alleged that the embassy in Lebanon has no more funds for evacuation operations, would be determined by the DFA “at the proper time.”

“Right now he is the ambassador. As ambassador he is head of mission. He has prime control of everybody there. We have emphasized that. Just like the military, we follow the chain of command. As long as he stays in his post, he is commander on the ground. And we will hold him to that,” he said.

Conejos also said that while the DFA’s man in Israel, Ambassador Antonio Modena, has submitted a proposal of a standby fund in preparation for a possible evacuation from Israel, “at this time, there is no necessity to evacuate anybody from Israel, and the ambassador is most emphatic about that.”

Still, those familiar with the DFA and OWWA processes noted that a standby fund was exactly being sought by ambassadors because the violence or risk to Filipinos’ safety may suddenly escalate, and there would be little time left for Philippine consular officials to only start looking for funds then.

Debunking Palace officials’ concerns that the senators may just be on a fishing expedition, Gordon shot back that he filed the resolution calling for a Senate inquiry because “nobody was giving us a full answer on what OWWA officials would do for our OFWs if the situation worsens in Lebanon.”

He added, “We need this inquiry because relatives of the 34,000 OFWs affected by the Lebanon crisis need to know what the government is doing for them.”

According to Senator Estrada, the “statutes” that Ermita wanted listed in the Senate invitation were in Gordon’s Senate Resolution 515 calling for an inquiry, particularly Republic Act 8042, also known as the Migrant Workers and Overseas Filipinos Act of 1995.

“The refusal of Malacañang to let its officials attend the Senate hearing is a clear indication of a Palace cover-up of the massive depletion of OWWA funds,” Senator Estrada said.

A pending case at the Ombudsman is questioning an OWWA resolution transferring P500.3 million of OWWA Medicare funds to the Philippine Health Insurance Corp. on February 2, 2004, or barely three months before the May 2004 presidential elections.

Because of the no-show by the Palace officials, senators may decide to first submit a preliminary committee report that the disbursements of OWWA funds, now estimated at P8 billion to P10 billion, cannot be explained.

The senators are still deliberating on whether the no-show officials should be served subpoenas if another hearing is called by the committee.

In a Palace news briefing held at the same time as the Senate inquiry, Press Secretary Ignacio Bunye read a letter sent by Ermita to Estrada, chairman of the Senate labor committee, explaining his nonappearance, together with other government officials.

Besides claiming they were not told what statutes are proposed to be covered by remedial legislation, he added that “all of the government officials invited to the inquiry are currently engaged in critical operations to get our OFWs in Lebanon out of harm’s way, and bring them home to the Philippines.”

He also said that Ermita is expected to send a similar letter to the House of Representatives when the latter sends an invitation to for a similar inquiry. OWWA Administrator Marianito Roque, among those asked to appear in the Senate hearing, said in the Palace briefing he is prepared to face the inquiry at a later date when the evacuation process in Lebanon slows down.

---With C. Jimenez

http://www.businessmirror.com.ph/front01.php

New System for Tourist Visas in the Process

The Middle East's Leading English Language Daily       Friday, 14, April, 2006 (16, Rabi` al-Awwal, 1427)     New System for Tourist Visas in the Process Galal Fakkar, Arab News —   JEDDAH, 14 April 2006 — The Supreme Commission for Tourism (SCT) is in the process of implementing the tourist-visa system through a limited number of tourist companies in the Kingdom in a bid to promote the country's tourism industry. According to informed sources, the SCT has authorized seven tourism companies in the Kingdom to bring in foreign tourists, who will be allowed to visit all places in the Kingdom except Makkah and Madinah. They said the two holy cities were excluded in order to avoid any possible conflicts between tourist visas and Haj and Umrah visas for pilgrims. The disclosure came following the opening by Prince Sultan ibn Salman, secretary-general of the SCT, a three-day expo to showcase various aspects of international travel market at Jeddah's International Exhibition Center on Wednesday. The exhibition ends today. "The SCT has prepared a number of programs to be marketed soon locally and internationally," Sultan told reporters. He said the SCT has undertaken various tourism projects in the Kingdom as part of its efforts to expand the country's tourism infrastructure facilities. The opening function was attended by nearly 2,000 experts in the industry representing 150 companies in 20 countries, including Spain, France, Britain, South Africa, Australia, Singapore Turkey, Egypt, Morocco and India. "The expo is being held in line with the Supreme Commission for Tourism's preparation to launch a strategic plan for the promotion of tourism conferences and expos in the Kingdom with the cooperation of the Council of Saudi Chambers of Commerce and Industry", Prince Saud Al-Abdullah Al-Faisal, chairman of Tradex, which is organizing the event said. Stressing the significance of "conference tourism" Prince Saud said: "Various activities such as commercial, industrial and technological exhibitions and conferences apart from academic forums will be held in the period ahead in various places in the Kingdom. The SCT intends to make 'conference tourism' a boost for the national economy with more employment opportunities for Saudis". The aim of holding the event in Jeddah is to familiarize the Kingdom's tourism industry to the outside world and discover areas of cooperation with foreign tourism companies as well as open channels of communication between the tourism industry in the Kingdom and its counterparts abroad. The expo is also going to be an annual event in Jeddah.

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DFA dusts off contingency for Mideast OFWs

By Estrella Torres

Reporter

THE Philippines is once again trying to update plans on how to protect the estimated 1.8 million Filipinos in the Middle East because of war jitters arising from the capture by Iran of 15 British navy sailors and its hostile response to mounting pressure from the international community to abandon its nuclear military program. Foreign Affairs undersecretary for migrant workers affairs Esteban Conejos Jr. told journalists, “My task is to make sure that these [individual country] plans are updated to withstand a new crisis that may arise. [The new plan] has to be coordinated because when we’re talking of a regional threat, the contingency plans have to be regionally coordinated with each other.”   Iran is facing worldwide sanctions for its refusal to suspend its uranium-enrichment program. The United Nations Security Council has passed a resolution on March 24 imposing sanctions on Tehran. But Iranian President Mahmoud Ahmadinejad has dismissed the new UN sanctions, saying it is illegal to impose sanctions on a sovereign nation. Through the state-owned Iranian News Agency, he averred his country’s nuclear activities were “legal and based on the country’s legal and inalienable rights” and that the program would “continue without hesitation.” The British government plans to impose additional sanctions on Iran following the kidnapping of the 15 British sailors. The Iranian government argued that the British sailors were caught in Iranian waters. Conejos said other governments have also been attending to their respective contingency plans for their nationals in response to Iran’s growing hostilities. Of the 1.8 million Filipinos in the Middle East, almost one million are in Saudi Arabia.

 

http://www.businessmirror.com.ph/04032007/headlines03.html

Remittances soar 25% in February

 

 

By LEE C. CHIPONGIAN Remittances from overseas Filipino workers (OFWs) continue to register strong growth as the Bangko Sentral ng Pilipinas recorded $ 1.085 million in February, for an increase of 25.4 percent over the level in the same month last year. Total remittances for the first two months of 2007, amounted to $ 2.184 billion, up 22.55 percent compared to the same period last year of $ 1.562 billion. BSP Governor Amando M. Tetangco Jr. said remittances coursed through banks will grow by 10 percent to $ 14.0 billion this year. "Remittances remained strong even as the number of deployed Filipino workers overseas recorded a decline in the first two months of 2007 from the year-ago level," he said. Based on initial data from the Philippine Overseas Employment Administration (POEA), total deployment declined by 12.1 percent year-on-year to 170,072. Classified by type of worker, the number of land-based and sea-based workers was lower by 10.1 percent and 18.8 percent to 134,644 and 35,428, respectively. BSP said the United States, Canada, the United Kingdom, Italy, Saudi Arabia, United Arab Emirates, Japan, Hong Kong, and Singapore are the major sources of OFW remittances. "It was noted that 47.1 percent of remittances emanated from the US even as more than 80 percent of OFWs are deployed in the Middle East and Asian countries due to the common practice of remittance centers in various cities abroad to course remittances through correspondent banks mostly located in the US," said Tetangco. Banks’ wider network, improved financial services to OFWs and their beneficiaries continue to encourage migrant workers to remit their hard-earned foreign exchange via the formal channels. Tetangco said financial intermediaries, acting as channels to facilitate the delivery of remittances and financial services to OFWs and their beneficiaries, "continued to capture a large segment of the growing remittance market." The banking sector’s share of total remitted funds from OFWs is advancing faster than the central bank has anticipated. From $ 3 billion in 2005, the amount of transactions lost to banks is expected to come down to just $ 1.2 billion. The BSP include OFWs’ non-bank remittances in its accounting of balance of payments figures under personal and transfer accounts. The approximate number is that 10-15 percent of these fund transfers go through the informal channels but the BSP said outside of the BOP estimates, actual non-bank OFW cash is 20 percent of total, while 80 percent are bank transfers. This is expected to increase to 90 percent this year. BSP sees money transfers from OFWs increasing this year after banks channel more of these cash through formal networks and show higher OFW monthly reports. The BSP has been encouraging Filipino migrant workers to send fund transfers through banks, which is cheaper and safer than door-to-door or other informal channels of remitting their hard-earned cash. The BSP also intensified efforts to reduce the cost of remitting funds, which is a positive development for the banking system.

 

http://www.mb.com.ph/BSNS2007041791986.html

OFW inflows surge 25% to $1.09B in Feb

By Des Ferriols
The Philippine Star 04/17/2007

Growth in remittances from Filipinos working overseas accelerated in February as expanding networks by domestic banks made it easier for relatives back home to access funds, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

Remittances from overseas Filipino workers (OFWs) surged by 25.4 percent to $1.09 billion in February, bringing the two-month total 22.6 percent higher at $2.2 billion.

In the first two months of 2006, remittances amounted to $1.8 billion.

BSP Governor Amando M. Tetangco Jr. said the robust growth of remittances was due mainly to the expansion of bank networks that serve OFWs and their beneficiaries.

According to Tetangco, banks have systematically lured OFW remittances away from informal channels. Because of this, remittances coursed through banks are expected to grow by 10 percent this year and reach $14 billion. However, Tetangco said there was also a sustained demand for higher-skilled, thus better-paid, Filipino workers by host countries.  Consequently, Tetangco said remittances remained strong even as the number of deployed Filipino workers recorded a decline in the first two months of 2007 from the year-ago level.

Preliminary data from the Philippine Overseas Employment Administration (POEA) showed that total deployment declined by 12.1 percent year-on-year to 170,072.

Classified by type of worker, the number of land-based and sea-based workers went down by 10.1 percent and 18.8 percent to 134,644 and 35,428, respectively.

The BSP reported that the US, Canada, the United Kingdom, Italy, Saudi Arabia, United Arab Emirates, Japan, Hong Kong, and Singapore remained to be the major sources of remittances.

The BSP said that 47.1 percent of remittances came from the US although this was largely due to the common practice of using correspondent banks located mostly in the US. The BSP said the majority of OFWs were still deployed in the Middle East and Asian countries. Rising remittances may fuel spending on homes, cars and mobile phones, helping the government achieve its 2007 growth target of between 6.1 percent and 6.7 percent.

Growth in consumer spending in the Philippines accelerated to the fastest pace in three quarters in the three months ending Dec. 31, increasing 1.6 percent from the previous quarter.

Growth in remittances may slow this year amid a global economic slowdown.

The BSP expects remittances passing through banks will increase 10 percent this year to $14 billion after surging 19.4 percent last year.

Gains in the peso also reduce the value of foreign earnings when converted to the local currency, trimming cash available for spending.

The world economy is expected to expand 4.9 percent this year, decelerating from a 5.4 percent pace in 2006, the International Monetary Fund said in a report last week. The Washington-based lender cut its forecast for US growth in 2007 to 2.2 percent from a September estimate of 2.9 percent.

The Philippine peso has gained seven percent in the past year, the fourth biggest increase of 15 Asia-Pacific currencies tracked by Bloomberg.

 

http://www.philstar.com/philstar/news200704170701.htm

OFWs urged to invest in RP dev't

 

 

Finance Secretary Margarito B. Teves told foreign investors participating in the Philippine non-deal roadshows in the US that economic growth is "sustainable and stable" but the government needs migrant workers to actively invest in their own country to meet "long-term economic goals."

In a statement, Teves, who is still in San Francisco, said: "With remittances averaging $ 1 billion a month, the role of overseas workers is very different today than it was then years ago. Today, overseas workers are more than a source of income – they are an important part of our national development agenda." In the state of California there is an estimated three million Filipinos, more than half of the total Filipino population in the US. A bulk of the $ 13 billion remittances last year came from the US-side.

"Overseas remittances are providing more funds for bank lending to help grow small and medium enterprises – the backbone of our economy and also raising the foreign exchange reserves required to support our country’s robust economic growth," said Teves. He added that overseas Filipino workers’ investments will "drive the nation forward."

"(The government) can only meet long-term goals if there is a sharing of responsibility between the government and business, and a commitment of higher levels of private sector investment in our economy."

The Bangko Sentral ng Pilipinas has long proposed the issuance of retail treasury bonds exclusively for OFWs to raise more funds to fund infrastructure programs. The BSP said a $ 1-billion offering of Treasury bonds can be easily absorbed by the OFW community.

The non-deal roadshows in the US and Europe is an opportunity for government officials to brief investors abroad about the Philippines’ fiscal and financial position.

With Teves are Budget Secretary Rolando Andaya Jr. and BSP Managing Director Cyd Tuano-Amador.

The purpose of these non-deal road shows is to update international markets of developments in the country, including fiscal positions, the new budget, higher growth targets and improvements in tax administration.

The National Government went back to the global bonds market last January raising $ 1 billion, the first and last commercial borrowing for the year. Governments borrow from the international markets in aid of fiscal deficits. The financing requirement this year is $ 3 billion. The rest of dollar sources will come from official development assistance (ODA) funds.

The country’s sovereign credit is still below investment grade, which means Philippine bonds are speculative buys. For example, credit rating agency Moody’s ratings for both long-term and short-term ROPs (sovereign bonds) is "B1" while Fitch has a "BB" rating for foreign currency and a "BB+" for local currency issues. In the meantime Standard & Poor’s credit score is "BB-" for foreign currency and BB+ on peso bonds. Moody’s, S&P and Fitch Ratings each attached a "stable" outlook on RP credit.

Teves will also visit Washington to meet IMF and World Bank officials. The roadshows are sponsored by JP Morgan, Citigroup, Deutsche Bank and Credit Suisse First Boston.

 

http://www.mb.com.ph/BSNS2007041491799.html

 

DFA: 88 foreign posts ready for OAV starting Saturday

April 12, 2007
Updated 17:38:03 (Mla time)
Veronica Uy
INQUIRER.net

MANILA, Philippines -- Eighty-eight Philippine posts abroad are ready to implement the 30-day Overseas Absentee Voting (OAV), starting Saturday, April 14.

Generoso Calonge, vice-chairman of the Department of Foreign Affairs’ Overseas Absentee Voting Secretariat (DFA-OAVS), said the bodies that will be assisting the voters -- the Special Board of Election Inspectors and Special Board of Canvassers -- have already been constituted.

The voting will be continuous, even during weekends and holidays, and will end at 3 p.m. Philippine time on May 14.

Of the 88 posts, 54 will be implementing voting by mail. These are: Abuja, Agana, Ankara, Baghdad, Bangkok, Berlin, Berne, Bonn, Brasilia, Brunei, Brussels, Bucharest, Budapest, Buenos Aires, Cairo, Canberra, Caracas, Chicago, Dhaka, Dili, Hamburg, Havana, Honolulu, Islamabad, Jakarta, Kuala Lumpur, London, Los Angeles, Madrid, Manado, Taipei, Kaohsiung, Taichung, Mexico, Moscow, New York, Osaka, Ottawa, Paris, Prague, Pretoria, San Francisco, Santiago, Singapore, Stockholm, Sydney, Tel Aviv, The Hague, Tokyo, Toronto, Vancouver, Vienna, Washington, and Wellington.

There are 27 posts where voters will have to personally appear to cast their ballots are: Abu Dhabi, Amman, Athens, Beijing, Beirut, Doha, Dubai, Guangzhou, Hanoi, Hong Kong, Jeddah, Koror, Kuwait, Manama, Muscat, Nairobi, New Delhi, Al-Khobar, Macau, Port Moresby, Riyadh, Saipan, Shanghai, Tripoli, Vientiane, Xiamen, and Yangon.

There are also seven posts where modified voting by mail will be done: Geneva, Holy See, Milan, Phnom Penh, Rome, Seoul, and Tehran.

In voting by mail, ballots are mailed from the Commission on Elections to the voters’ addresses. In modified voting by mail, the ballots are mailed from the embassy, consulate, labor office or economic office to the voters. In both cases, the voters mail their accomplished ballots to the Philippine posts, where these will be counted and canvassed.

Although more posts will oversee voting by mail, more than a third of the 504,122 total registered overseas voters will still be casting their ballots in person.

Calonge admitted that a number of these voters stand to be disenfranchised because of the “fluidity” of migrant work. However could not give an estimate of how many these would be.

“Some would have gone home after their contract expires. By nature, [the] migrant workers’ situation is very fluid especially for those in Hong Kong, Saudi, and Singapore. It is possible that many of them would not be able to exercise their right [to suffrage],” he said.

“When an opportunity presents itself for them to move to a better job, they will. Changing their OAV registration address would be the last thing in their mind,” he added.

http://services.inquirer.net/express/07/04/13/html_output/xmlhtml/20070412-60022-xml.html

 

 

ASEAN members violating declaration on migrant workers

By Veronica Uy
INQUIRER.net
Last updated 10:55pm (Mla time) 02/22/2007

MANILA, Philippines -- Advocacy groups said the non-binding nature of an Association of Southeast Asian Nation (ASEAN) declaration intended to protect the rights of migrant workers made it possible for members of the regional bloc to continue violating these rights.

At the Dr. Alfredo J. Ganapin Advocacy Forum at the University of the Philippines, Ashley William Gois, regional coordinator of the Migrant Forum in Asia, called the ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers “regressive” and fell short of the call made in the Vientiane Action Plan for a binding instrument.

Gois cited the current crackdown and imposition of harsher restrictions on migrant workers by Malaysia, which he said violates the spirit of the declaration.

“By now we should be talking about what work has been done,” he said. “The declaration is very regressive considering the human rights violations committed by governments.”

Last month, Malaysia went after undocumented domestic workers in violation of the United Nations International Convention on Human Rights and announced plans to restrict the movement of migrant workers, purportedly to control crime, Gois said.

Thailand, he added, also goes after Burmese migrant workers with regularity.

“The promises of the declaration are not being delivered in substance,” he said.

Noel Esquela of the Center for Migrant Advocacy made the same point.

He said his group welcomed the declaration signed at the 12th ASEAN Summit in January as a positive statement of intent which recognizes the contributions of migrant workers and the need to address abuses against them.

However, he said, the declaration is “non-binding, subject to existing national laws and policies in each ASEAN member-state, and limited to cover only documented migrants and their families already residing with them.”

Of the estimated 2.5 million migrants who work in Malaysia's plantations, construction, and domestic service, some 80,000 to 200,000 are believed to be Filipinos but most are either Indonesian or Nepalese.

Malaysia recently announced plans to introduce new legislation that would restrict migrants to their workplace or living quarters.

The New York-based Human Rights Watch on Wednesday criticized this proposal as a violation of people's right to freedom of movement.

“The resulting isolation would also put them at risk of other abuses, as demonstrated in the case of approximately 300,000 migrant domestic workers in Malaysia,” it said.

http://globalnation.inquirer.net/news/breakingnews/view_article.php?article_id=50996

Next Mobile eyes OFWs as its market

By Lenie Lectura

Reporter

THE Philippines’ newest mobile- phone system network, Next Mobile, Inc. (NMI) and its partner, US telecommunications giant Sprint Nextel, intends to make overseas Filipino workers (OFWs) a captive market, luring them with unlimited calls at domestic rates in host countries, NMI said in a statement Monday. Philippine-based businesses with international partners or branches, as well as foreigners working for multinational companies are also the market Next Mobile and Sprint are eyeing for its network. Through Myworld phone, according to the Philippines’ newest mobile- telephone system operator, Next Mobile and Sprint can give subscribers unlimited service and virtual presence in a number of countries around the world. NMI chief executive officer Mel Velarde said in the statement that this is just the first in a series of collaborations between NMI and Sprint that would allow NMI to expand its range of products and services. Utilizing Motorola’s iDEN (Integrated Digital Enhanced Network) technology through its partnerships with other iDEN operators around the world, such as Sprint Nextel, NMI would pursue the burgeoning market created by the millions of overseas Filipinos who stay abroad permanently as immigrants, or temporarily as overseas workers. “This service intends to benefit Filipinos working and living abroad and their relatives in the Philippines, local businesses with international partners or branches, and also foreign nationals of multinational companies,” said Velarde. Myworld Inbound would allow the subscriber here in the Philippines to be reached by their loved ones or business associates from abroad by calling their very own US number (or other numbers from a choice of over 30 countries), and avoiding the high cost of international calls. Myworld Outbound, would allow the party in the Philippines to enjoy making unlimited calls from his Myworld phone to a preferred destination. The service is initially available to any landline or mobile phone in the US, Canada , Hong Kong, Singapore. In the case of Taiwan, only landlines will be available at first. The package also includes 100 minutes of free IDD calls to Australia, Canada, China, Denmark, France, Germany, Hong Kong, Israel, Italy, Mexico City, Moscow, Netherlands, Norway, Poland, Portugal, St. Petersburg, Singapore, Spain, Sweden, Switzerland, Taiwan (landline for the meantime) , UK and US. A third option—Myworld Two-Way—combines the features of the first two options. Still, a fourth option—Myworld US roaming—enables the  subscriber to bring his Myworld phone to the US and get billed at local rates. The NMI network covers Metro Manila, Baguio in northern Luzon and Batangas in southern Luzon. The company is eyeing to expand its network and include the Visayas region, with Cebu expected to be ready by next month. NMI also plans to include the Mindanao island in its service area. Sprint Nextel is the third largest wireless telecommunications network in the US, behind Cingular Wireless and Verizon Wireless. It has 53.7 million subscribers.

 

http://www.businessmirror.com.ph/02132007/companies04.html

BPI eyes setting up new remittance centers in Europe

By Estrella Torres

Reporter

THE Bank of the Philippine Islands (BPI) is eyeing Europe, specifically London, Milan, Rome and Paris, in setting new remittance centers to dissuade Filipino workers from using backdoor channels in sending money to their families in the Philippines. The BPI remittance service with 17 centers tied up with commercial banks abroad has remitted $2.8 million in 12 months last year with 15-percent growth from the amount in 2005. "Europe is a promising region for remittance centers because of the presence of Filipinos with good earnings. We intend to increase our services there in partnership with commercial banks," said BPI vice president Raul Dimayuga. In France, where there are a total of 65,000 Filipino workers, mostly domestics, the BPI has a current partnership with Banque D' Escompte. The BPI launched on Friday its search for 10 outstanding Expat Pinoy Children as part of the bank's recognition of the contributions of the investments and remittances of Filipino workers. He also said that remittance centers coursed through banks could also address the proliferation of underground remittance centers in Europe that usually put the Filipino workers' money in danger of being lost or laundered. The current rate in sending remittance in commercial banks is at $7 to $8 per transaction and €7 to €8 euros regardless of the amount. "The cost of sending money is even expected to be lower in the next few years because of the opening of new remittance centers. It's really market-driven and the Filipino workers will benefit from it," said Dimayuga. Money being sent by Filipino seafarers represents the largest bulk of total remittances coursed through BPI, with 60-percent total share. The BPI official also said that 20 percent of the total remittances come from the US, while 5 percent to 10 percent come from those in the Middle East.

 

http://www.businessmirror.com.ph/02132007/economy04.html

Bahrain upbeat on RP construction sector

By Estrella Torres
Reporter

THE Prime Minister of Bahrain, Shaikh Khalifa bin Salman al-Khalifa, was upbeat in exploring business potentials with the Philippine architects and engineers for the construction and services sector in the oil-rich nation.
           
The Philippine ambassador to Bahrain, Eduard Pablo Maglaya, said the optimism of the Bahrain leader was expressed after a team of Filipino engineers and architects ended a trade mission for the construction-materials and services sector.
           
The Philippines’ services sector is eyeing the Middle East market for services trade in the construction of high-rise buildings and infrastructure. This is due to the policies of Western countries that restrict the entry of foreign workers as part of their counterterrorism measures.
           
The nine-member delegation met with Prime Minister of Bahrain, Shaikh Khalifa bin Salam al-Khalifa, at the Gudabaiya Palace last week.
           
“His Highness hoped for an increase in the exchange of visits of businessmen between the Kingdom and the Philippines, and expressed his fondness for the Philippines as shown by the several visits His Highness has made to the country from 2001 to present,” said Maglaya. He said the delegation also met with Samir Nass, chairman of the construction committee of the Bahrain Chamber of Commerce and Industry (BCCI). The group also visited landmark sites like Ritz Carlton, Gulf Hotel, Bahrain Investors Center, Aluminum Bahrain, Bahrain International Circuit, Bahrain Financial Harbor and the World Trade Center.
           
Maglaya also said the Bahraini leader also conveyed appreciation of the great contribution of the 30,000 Filipino workers in the development of the Kingdom.
           
The delegation is composed of members of the Bahrain-Philippine Business Council and officers of several companies like TMC International Corp., Grace Park International and Mardeka Stone Development Corp.
           
At the UN Committee on Trade and Development (Unctad) in Geneva, the Philippines was elected as chairman of the Expert’s Meeting on Universal Access to Services.
           
Jose Victor Chan-Gonzaga of the Philippine Mission to the World Trade Organization (WTO) underscored “that services liberalization should be accompanied by sound macroeconomic management and appropriate regulation and supervision.”
           
Philippine permanent representative Enrique Manalo, meanwhile, said access to essential services would also be crucial for reducing economic gaps between countries and between the different segments of the population as well as easing poverty.

Business Mirror

November 22, 2006

Record OFW remittances

Vol. XX, No. 144
Friday, February 16, 2007 | MANILA, PHILIPPINES

Today’s Headlines

$12.76-billion tally for 2006 tops government expectations

Dollars sent home by overseas Filipino workers (OFWs) hit a record $12.76 billion last year, almost half a billion dollars more than forecast by the government.

SEAMEN looking for work overseas check out salaries offered during a job fair yesterday. — AFP

Actual remittances could be significantly higher, as the Bangko Sentral ng Pilipinas (BSP) data only captured money sent by the nation’s over eight million OFWs through banks, not informal channels.

The release of the data also came as a study indicated that OFW money is fostering inequality in the country, with developed regions - the source of most workers - cornering the bulk of remittances.

The study, conducted by a University of Santo Tomas (UST) economist and reported by BusinessWorld on Thursday, also said OFW deployment was cutting into agricultural worker numbers.

Bangko Sentral Governor Amando M. Tetangco, Jr., in a statement, said the remittance figures reflect "the higher deployment of Filipino workers abroad and to financial institutions’ adoption of innovative ways to improve delivery of financial services, expand their network and enhance their infrastructure to reach a greater number" of clients.

Money transfers for December alone rose 37.2% to $1.319 billion, another record.

The full-year tally of $12.76 billion was some $460 million higher than the BSP’s $12.3-billion forecast.

The average monthly remittance last year was $1.063 billion, higher than 2005’s $890.75 million.

OFWs sent home $961.867 million in 2005.

Last year’s remittances were sent mainly from the US, Saudi Arabia, Canada, Italy, the United Kingdom, Japan, United Arab Emirates, Hong Kong, Singapore, and Taiwan.

Mr. Tetangco, quoting preliminary data from the Philippine Overseas Employment Administration (POEA) said annual deployment went up by 10.5% to 1.1 million last year.

He added that the number of land-based workers was 12.2% higher at 831,318. The number of sea-based workers reached 260,737, 5.2% higher than a year ago.

"The demand for OFWs is expected to increase further as the government intensifies its human resource development and training programs for potential workers, improving their competitive advantage over those from other labor-providing countries," Mr. Tetangco said.

With this, the central bank expects remittances to hit a fresh record of $13.2 billion this year.

Mr. Tetangco also said remittance channels have improved, with banks adopting advanced technologies, including Internet-, phone- and mobile-based banking.

Banks have also enhanced their payment arrangements and have expanded their tie-ups with host countries, he said.

The Philippines began large-scale deployment of construction workers and seamen in the 1970s amid a building boom in the oil-soaked Middle East.

Service workers became in demand with the emergence of the so-called "tiger" economies of Asia by the late 1980s.

By the 1990s, the information technology revolution and the graying populations of much of the developed world opened up job opportunities for highly-skilled Filipino professionals and technical workers.

The UST study said the huge cash flows are lifting many areas of the Philippines out of poverty but warned that millions more are being left behind.

Manila and five other regions that account for most of the labor exports also have the country’s lowest poverty levels, and five of these areas showed significant drops in poverty levels between 2000 and 2003, said the paper by UST economist Alvin Ang.

However, poverty levels increased to between 34% to 49% in those regions where labor export is not a principal activity, the study said, citing government data.

The government estimates 30% of the population is poor. But World Bank data show nearly 40% live on two dollars a day or less.

The study also said the huge capital flow "have yet to be translated to value-added activities and investments which are more foundational sources of development and growth."

The bulk of the remittance money appears to be sucked into consumer spending that has spurred the rise of giant shopping malls across the country, the study said. — reports from P. J. L. Lising and AFP

http://www.bworldonline.com/BW021607/content.php?id=001&src=1