Despite the anticipated reduction in the deployment of new overseas Filipino workers (OFWs) in Kuwait and Oman this year, the country’s overall remittance figures from abroad is unlikely to be affected, according to an expert.
Ateneo Center for Economic Research and Development (Acerd) Director Alvin P. Ang said OFW remittance from Oman is not as high compared to other Middle East countries.
“Only a small portion of the total remittances come from there. We should be more concerned if the ones affected are the remittances pouring in from the Kingdom of Saudi Arabia [KSA] or UAE [United Arab Emirates],” Ang told the BusinessMirror in an interview.
Bangko Sentral ng Pilipinas (BSP) data showed that total remittances from Oman in 2017 was pegged at $345 million. This is significantly smaller compared to $2.5 billion each from KSA and the UAE in the same period.
Ang said he is also confident remittances from Kuwait will remain strong since the deployment restriction there will not affect the remaining 250,000 plus OFWs in the Arab country.
“Although a substantial amount of remittances come from Kuwait, the ban there will not result to repatriation of all OFWs there. The ban will only stop the entry of new OFWs,” Ang stated.
Around $800 million of the total $28.1 billion remittances registered by BSP in 2017 came from Kuwait.
Although total remittances continued to increase since 2010, Ang said he anticipates a slowdown in the growth of remittances due to the changing nature of Filipino seeking employment abroad.
“It is decreasing because those who are going abroad no longer earn a big salary. So on per capita basis, [remittances] are decreasing,” Ang said.
This, he added, should prompt the government to search for source of revenues aside from remittances from OFWs.
“We should not be dependent on that [remittances] alone. We should also develop other industries like exports of goods instead of services,” Ang said.
Fewer OFWs are expected to be deployed in Oman this year after the Omani government implemented a six-month suspension in the issuance of visas to foreign workers, including Filipinos as part of its nationalization efforts of its work force.
The suspension, which took effect on January 24 this year covers 87 professions in the following employment sectors: information and technology; accounting and finance; marketing and sales; administrative and human resources; insurance; information/media professions; medical professions; airport professions; engineer professions and technical professions.
According to an advisory from the Philippine Overseas Employment Administration (POEA), the measure aims to provide 25,000 jobs to Omani nationals.
Likewise, a lower deployment of OFWs is also projected in Kuwait after the Department of Labor and Employment (DOLE) imposed a deployment ban for new hires in Kuwait in February.
The ban is not expected to be lifted until the new Philippine-Kuwait labor agreement is signed by next month.
“The signing may take place in the first week of April, while the venue is yet to be determined,” Labor Secretary Silvestre H. Bello III said in a news statement.
Among the salient provisions of the accord is the prohibition of the surrender of Filipino passport to Kuwaiti employers, the binding effect of the Philippine-crafted employment contract, the guaranteed payment of minimum monthly net pay of $400 paid through the bank, and non-confiscation of mobile phones and other communication gadgets.
The POEA’s latest deployment data showed that both Oman and Kuwait remain among the top 10 destination countries for land-based OFWs.
In 2016 POEA deployed 109,615 OFWs in Kuwait, and 27,579 in Oman.