The Philippines is among the world’s top migrant countries of origin. As estimated by the Commission of Filipinos Overseas (CFOs), the Filipino diaspora amounts to 10.5 million, and is composed of permanent, temporary and irregular migrants spread across 200 countries. Temporary foreign workers make up 40 per cent of the Filipino diaspora, permanent migrants constitute roughly 47 per cent and 13 per cent hold irregular status. The annual remittances sent by migrant workers make up eight to ten per cent of the country’s GDP. In 2014 alone, Overseas Filipinos sent USD 24.3 billion in remittances. The daily deployment of migrant workers, including hires and rehires, is averaged at 5000. The leading countries of destination for male and female hires are Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Qatar.
The sending of remittances to the Philippines has increased over the past 40 years, and continues to be key for economic growth in the country. In 2014, the Philippines was the world’s third highest receiver of remittances, coming largely from overseas Filipino workers (OFWs). Of the approximate five million OFWs, the proportion between males and females is equal, though the percentage of female migrants leaving the country has increased as part of the feminization of migration, referring not only to the number of female migrants leaving, but their shifting autonomy as bread- winners. Remittances in receiving countries have multiple potential uses and applications, and the impacts and outcomes of such processes are highly varied and context dependent. In certain instances, remittances can present a financial burden for migrant women, foster the dependency between family members and migrants, or further entrench the traditional role of men and women within society. In other instances, these funds can elevate the position of women within society and change long-standing ideals.
The money transfer industry in the Philippines is characterized by partnerships, alliances and tie-ups among banks and other financial institutions. There have been several initiatives to lower remittance transfer charges among the public and private sectors. These include the usage of automated teller machines, online bank transfers, as well as internet and mobile based remittance systems which have lowered remittance transfer charges through increased competition. Government financial institutions including the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth) and the Home Development Mutual Fund (HDMF) have enhanced their services to migrants. Regulations from the Banko Central ng Pilipinas (BSP) encourage lessening remittance rates, enhancing access to remittance networks within the Philippines and internationally and multi-stakeholder collaboration to shape remittances for development policy.
The Philippines provides a range of services for migrant populations living abroad, including door- to-door services so that cash is delivered from the destination country directly to the origin country. In a study undertaken by UN-INSTRAW (2008), 75 per cent of Filipina WMWs surveyed in Italy remit at least some of their earnings through bank transfers and bank door-to-door services. This is likely due to the high numbers of Filipina domestic workers in Italy who are primarily employed in cities. According to IOM (2013), bank transfer fees are relatively inexpensive from Italy to the Philippines, and banking fees are regulated and kept low by the Banco d’Italia. Banks and financial institutions from the Philippines have also established a presence abroad to facilitate the transfer of funds from countries of destination back to the Philippines. In 2013, the banking system in the Philippines had 45.4 million deposit accounts with an estimated PhP 7.6 trillion (1PhP=0.02USD). E-money accounts are a popular mode of finance, with currently 26.7 million e-money accounts that account for PhP 348 billion worth of transfers coming from 217 million e-money transactions. While 1,030 cities (63 per cent) in the Philippines have active banking services, 604 cities still do not have a banking presence. However, there are 398 cities with alternative financial access points, and these combined with cities with financial services mean that 1,428 cities have at least one centre to access financial services.
Sources
Hennebry et al. (2017): At what cost? Women migrant workers, remittances and development.