Pandemic is pulling down Philippine remittances

About 410 overseas Filipino workers got repatriated from Lebanon last July 12 in what Philippine government authorities call the ‘largest single mass repatriation’ of Filipinos in history. Their arrival comes as four-month remittances from overseas Filipinos were lower over the same period last year (photo from the Philippine Embassy in Beirut) 

MANILA and ADELAIDE — Remittances from overseas Filipinos expectedly dipped during the first four months of 2020, including the first full month of a pandemic’s havoc on the incomes of the world’s migrant workers.

“Cash remittances” from overseas Filipinos amounted to US$9.448 billion, which is three percent less than the US$9.739 billion over the same four-month in 2019, data from the Bangko Sentral ng Pilipinas (the Philippines’ central bank) show.

Over the same four-month period year-on-year, cash remittances from land-based overseas Filipinos plunged by some 3.5 percent (US$7.334 versus US$7.597 billion); those remittances from seafarers also declined by 1.3 percent (US$2.113 versus US$2.142 billion).

The decline in four-month remittances year-on-year comes as the Philippine government announced last July 16 the “largest single mass repatriation flight in Philippine history:” 410 OFWs were repatriated last July 12 from Lebanon via a Qatar Airways flight.

Declining remittances as well as repatriations, job displacements and health issues will all hit overseas Filipinos in this pandemic year.

Multilateral institutions and Filipino economists had predicted declines in remittances to developing countries and to the Philippines, respectively, because of COVID-19. (The Philippines received US$30.133 billion of cash remittances in 2019.)

The World Bank estimated 20 percent declines in remittances to all countries (from US$714 billion in 2019 to US$572 billion this year) and to developing countries (from US$554 billion in 2019 to US$445 billion this year).

As for Philippine remittances, Congressman Joey Salceda of Albay province predicted last April a US$5 billion decline year-on-year for these cash remittances. Also last April, Economist Alvin Ang of Ateneo de Manila University projected a base estimate of US3 billion and a worst estimate of US$6 billion of lesser remittances for 2020.

Many countries began their lockdowns and quarantine measures mid-March, as local and foreign workers started being retrenched late March to April. Some host countries gave stimulus packages to displaced workers and businesses, on top of unemployment insurance for those migrants who are already permanent residents.

But overseas Filipino workers (OFWs) or temporary migrant workers felt the wrath of the health impacts and economic disruptions brought about by the pandemic. Around 8,915 temporary and permanent overseas Filipinos from 64 countries have or had contracted SARS-CoV-2, says the Department of Foreign Affairs (DFA) as of July 15.

About 82,057 OFWs had been repatriated, DFA said in a July 13 update. The number covers some 43,749 land-based OFWs and 38,308 seafarers, the latter mostly working in cruise ships.

There have also been reports of some nine seafarers who had committed suicides while on quarantine or waiting to be repatriated home by their shipping companies.

The Department of Labor and Employment (DOLE) projected more OFWs to be repatriated in the coming months. DOLE had also provided P10,000 (or US$200) in cash assistance to majority of the 224,756 OFWs who had lost their jobs, whether they were repatriated or who are still in host countries.

As for returned migrant workers, many of them were being driven away by residents in Philippine rural communities even if they had registered negative tests results for COVID-19.

The April remittance figures from BSP registered historic lows for monthly declines in not just “cash remittances” but also in “personal remittances.” Personal remittances not just include the cash remittances but also in-kind remittances, household-to-household transfers between naturalized Filipinos abroad to families in the Philippines, and “capital transfers” between these transnational Filipino households (like money for house constructions).

The 3.0 percent decline year-on-year of overseas Filipinos’ cash remittances as of this April covers the cumulative totals of cash remittances.

However, on a month-on-month basis, both “personal” and “cash” remittances declined by 16 percent —being historic lows.

“Personal remittances” amounted to US$10.494 billion as of April 2020.

Since the central bank adopted a sixth edition of a reporting tool to record the Balance of Payments (a summary of country’s transactions with the rest of the world) in June 2012, BSP is recording both “personal” and “cash” remittances from the year 2010.

According to the major destination countries of Filipinos for work and permanent settlement, those countries whose Filipino migrants sent lower monies year-on-year were: Canada (-15.5%), Hong Kong (-0.5%), Malaysia (-30.2%), Australia (-34.2%), New Zealand (-59.1%), Germany (-32.3%), Italy (-9.7), the United Kingdom (-17.8%), Kuwait (-24.6%), Saudi Arabia (-23.2%) and the United Arab Emirates (-17.8%).

However, remittances from Filipinos working and living in the United States (7.1%), Singapore (4.7%), Taiwan (11.3%), Oman (54.7%), Japan (9.0%), and Qatar (5,.6%) were still on positive territory year-on-year as of April.  

The Philippines has an estimated 10.3 million overseas Filipinos in some 200 countries and territories.

As of July 14, the Philippines has 57,545 COVID-19 cases (including 1,603 deaths), says the Department of Health.

Freelance journalist Kristine Anne Macasiray is a 2019 product of the University of Santo Tomas (UST) Journalism program. Jeremaiah Opiniano teaches journalism at the same university.

Mary Mediatrix Hospital temporarily stops admitting patients

Lipa City, Batangas – The Mary Mediatrix Medical Center announced it would temporarily stop admitting patients beginning April 2.

The hospital’s emergency department, however, will remain open 24/7 to provide emergency for those in need.

In a statement issued at the hospital’s Facebook page Wednesday, medical director Dr. Asis Encarnacion said the COVID 19 pandemic has placed a great strain in the hospital and its whole health care system.

Hospitals have been swamped in the deluge of cases, which he said placed MMMC’s medical personnel, medical services and resources in a “critical situation.”

 “While we would like to keep on providing service to you, sadly we have reached the limits of our capability to render care that befits you,” Encarnacion said, adding that they want to ensure that the hospital’s level of patient care will not be compromised.

“That being said, it is with heavy heart that the management of the Mary Mediatrix Medical Center has come to a painful decision to stop admitting Patients temporarily.”

There’s no determined time frame yet when the temporary lockdown would be lifted.

Encarnacion however said they will be reassessing the situation on a “day to day basis” and will lift the advisory “once we have regained our capability to provide service.”

Aside from the emergency room, operations of the dialysis unit, chemotherapy and blood transfusion will continue. The Ancillary OPD Services specifically pathology, radiology and cardiovascular unit will still be open and the hospital will continue to institute measures to safeguard their patients.

MMMC likewise urged the public to to continue staying at home, practice social distancing and frequent hand washing. It said this is the only to reduce the spread of the virus.

Public warned vs non-accredited travel biz

MANILA — The Department of Tourism on Tuesday warned the public anew against non-accredited entities engaged in travel and tours, airline ticketing and other travel businesses.

In a press statement, the department said it has been receiving reports on the proliferation of said entities advertising services on different social media platforms for airline ticketing, travel and tours arrangement, hotel booking, and training offerings for travel business management.

It likewise warned the public to be vigilant in dealing with these entities as there can be no guarantee on the reliability and legitimacy of their products and services,” it reminded.

The DOT said there are only select training centers that accredited to offer courses on putting up travel agencies and other tourism-related services.

It noted further that all travel agencies/ tour operators, including online bookings, are covered under the DOT Accreditation Law requiring accreditation before issuance of business permits.

“Non-compliance to the provisions thereof is punishable by law,” it warned.

The DOT further said that entities with valid and existing accreditation with them have informative websites and/or online pages bearing the DOT’s Quality Seal and their corresponding Accreditation Number with validity.

For a complete list of DOT-accredited enterprises, individuals may visit the DOT’s website at www.tourism.gov.ph.

For further information, concerned individuals may also contact Jose Tolentino, DOT Standard Monitoring and Enforcement Division at (02) 459-5200 loc. 216.

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