More PH families investing OFW money, BSP says

MANILA, Philippines—The number of Filipino households investing a portion of the money they receive from loved ones based abroad is steadily increasing, according to the Bangko Sentral ng Pilipinas.

The BSP survey conducted from Jan. 23 to Feb 8 this year showed that 8.5 percent of households that depend on remittances invested a portion of the money, usually in small businesses.

This is higher than the 6.4 percent recorded in the survey conducted the previous quarter and the 5.7 percent registered in the first quarter of last year.

The BSP said putting money in investments creates a higher multiplier effect for the economy, given that micro businesses generate employment and contribute to the increase in overall incomes.

BSP data also showed that 42.7 percent of remittance-dependent households put the money in savings, indicating greater consciousness of the need to secure their future.

This is slightly higher than the 42.6 percent registered in the previous quarter and the 41.4 percent recorded in the first quarter of last year.

The survey covered 589 households all over the country.

The BSP said that it is promoting savings and investments among Filipino households dependent on remittances through its financial literacy program, which it conducts in various parts of the country.

As part of this thrust, the central bank last week inked a partnership deal with the Commission on Filipinos Overseas (CFO) to further promote investments and entrepreneurship among overseas-based Filipinos and their families.

Led by the BSP and the CFO, together with assistance from other government and non-government entities, the Remittances for Development Council (ReDC) was recently established.

ReDC is mandated to craft policy recommendations that cater to the welfare of overseas-based Filipinos and their families, and to conduct various programs on entrepreneurship and investments.

The Philippines is the fourth-biggest recipient of remittances, next to China, India, and Mexico.

Last year, remittances sent to the Philippines amounted to $20.1 billion, rising by 7.2 percent from $18.8 billion the previous year.