Number still small, however, at just 8.5% of households
By Michelle V. Remo
Philippine Daily Inquirer
9:24 pm | Sunday, April 1st, 2012
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.
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