Direct investments from Overseas Filipinos surge 12.5% in February

MANILA, PHILIPPINES — Dollar investments from Overseas Filipinos posted double-digit growth rates in February, according to the Bangko Sentral ng Pilipinas (BSP).

Based on reports by the banking industry, dollar investments reached $866 million in February, (11.6 percent growth year-on-year). For 2006, total repatriated dollars reached $1.8 billion, up 12.5 % from last year's $1.6 billion.

Of the 8 million Filipinos overseas (10 percent of the Philippine population), 3 million are permanent residents abroad.

Overall, the majority of dollars repatriated came from the US, Saudi Arabia, Italy, Japan, Hong Kong, UK, United Arab Emirates and Singapore.

According to the BSP, the increase was due mainly to the technological expansion within the banking industry that enabled banks higher efficiencies in capturing transactions done through informal channels.

For example, commercial banks, aggressively promoted new innovative services to allow Filipinos abroad to use banks instead of couriers.

According to the BSP, banks were providing more "telemoney" products and faster, more secure services such as phone-banking, Internet/online banking, bills payment services, specifically in Hong Kong, USA, Italy and the UK.

Furthermore, Philippine banks are strengthening their relationships and collaborative efforts with foreign money transfer agents and non-bank channels. According to the BSP, these activities by commercial banks encouraged more Filipinos abroad to send more money back home.

The increased deployment of highly skilled and higher-paid land-based workers and sea-based workers (6 percent rise) could increase oversears Filipinos' direct investments even further.

The BSP said deployed labor were mainly engineers, teachers, ship and pilot/aircraft officers, production-related workers and service providers.

Overall, the government has ongoing programs that would strengthen workers' technical training and education to enhance job skills.

4/13/06

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