THE government and the private sector have joined forces to encourage more overseas Filipino workers (OFWs) to save, as only 3 out of 10 workers and their families are able to allot a portion of their funds for savings.
On Monday, the Bangko Sentral ng Pilipinas (BSP) signed a memorandum of agreement (MOA) with the Overseas Workers Welfare Administration (Owwa) and the BDO Foundation, which aims to strengthening financial literacy efforts among OFWs and their families.
The MOA is in line with the launch of the BSP’s Pinansyal na Talino at Kaalaman, or “PiTaKa” program. It seeks to educate OFWs and their families on how to better manage their finances—handle remittances, get out of debt, set aside savings and make prudent investments.
BSP Deputy Governor Chuchi G. Fonacier, who read the speech of Central Bank Governor Nestor A. Espenilla Jr., said that around 35.5 percent of OFWs are saving a portion of their funds, while only 5.1 percent of them are able to invest their money.
Meanwhile, 98 percent of the expenses of the families of the OFWs spend their funds on food and personal consumption. Fonacier pointed out that around 10 million Filipinos are already working or living abroad.
“A lot of Filipinos really go abroad, so if you get the percentage of those saving, it still doesn’t breach 10 percent of the total … When it comes to savings, it’s really low…,” Fonacier said.
Furthermore, the BSP reported that 2.3 million OFWs went abroad from the period of April to September 2017.
The OFWs’ earnings averaged around $26 billion, with remittances accounting for 10 percent of the Philippines’s gross domestic product.
If the OFWs can save just 10 percent of their income on a regular basis, coming from the average earnings of $26 billion, around $2.6 billion is seen to be saved by OFWs.
“So $2.6 billion, that’s the potential [savings]…so that’s how big it is really. And it will help of course the economy. But if they can save more, then there are other more uses for it, they can also contribute to funds that can in turn serve other purposes,” she added.
The launch of PiTaKa showcased three videos, which will be used as tools in the financial literacy sessions to be incorporated in Pre-Departure Orientation Seminars (PDOS) and Post-Arrival Orientation Seminars (PAOS) that all OFWs are required to attend. It will also be used during the General Orientation for OFW Families.
Session guides, as well as training kits, will be developed, and a Training of Trainers will be conducted for Owwa trainers and OWWA-accredited PDOS and PAOS providers, to ensure sustained and effective delivery of financial literacy lessons.
“This year, in collaboration with BSP and Owwa, we are expanding the scope of our advocacy through a corporate citizenship initiative that benefits millions of migrant workers and their families in the Philippines,” said BDO Foundation President Mario A. Deriquito.