Trinity University of Asia

REM 144
Real Estate Events and Issues

OFW Remittances

Beltran, Nadine Therese BS Real Estate Management Atty. Rey Cartojano

Dizon, Marielle Gillian
Lansangan, Wendy
 Trinity University of Asia

Historical Data and Figures

Analysis of Data and Figures

Overview Geographic Distribution and
their Contributions

Post Pandemic Projections

References

Q&A
OFW's- Who are they?
- An OFW ( Overseas Filipino Worker) is a Filipino citizen
who works outside of the Philippines, in another country.
They are now at 1.77M OFW around the world.
OFW Remittances
-Their typical jobs are considered to be low skilled or
semi-skilled. Some examples of these jobs are domestic -Remittance is the process of transferring money by migrant workers to their
worker, construction worker or factory worker. Nowadays, families or dependents in their home country. This money is sent through formal or
there already are some who work as skilled professionals informal channels such as wire transfers, money order or check.
such as nurses , doctors and engineers .
-They are a vital part of the Philippine economy. They contribute to the government
- The top countries where these OFW works are the through the taxes they pay and their remittances help to sustain the countr'y
following: Saudi Arabia, Qatar, Kuwait , UAE , Hongkong, economy.
Taiwan, USA and Canada among others
-EO 857 mandates every Filipino contract worker abroad to regularly remit a portion
-They have been around for many years. The first wave of of his foreign exchange earnings to his beneficiary in the Philippines through the
OFW's going abroad in the 1970's Philippine banking system. This mandatory remittance is imposed to protect the
welfare of families, dependents and beneficiaries of Filipino workers abroad and to
-As of June 13, 2022, about 2.24 million overseas Filipino ensure that the foreign exchange earnings of these workers are remitted through
workers (OFWs) had been repatriated due to the authorized financial institutions of the Philippine Government in line with the
coronavirus (COVID-19) pandemic. Of these, 1.4 million country’s economic development program. Foreign exchange remittances ranges
were land-based workers while roughly 808 thousand from 50%-80% of the basic salary
were sea-based
Historical Data & Figures
2010- The 2010 Survey on Overseas Filipinos (SOF) revealed that there were
about 2.0 million overseas Filipino workers (OFWs) who worked abroad anytime
during the period April to September 2010
Total Value of cash remittances sent by OFW's to the Philippines ( in US billion $)
2012- The number of Overseas Filipino Workers (OFWs) who worked abroad at
anytime during the period April to September 2012 was estimated at 2.2 million.
The Overseas Contract Workers (OCWs) or those with existing work contract
abroad comprised 95.0 percent (2.1 million) of the total OFWs during the period
April to September 2012

2015- The number of Overseas Filipino Workers (OFWs) who worked abroad at
anytime during the period April to September 2015 was estimated at 2.4 million.
Overseas Contract Workers (OCWs) or those with existing work contract comprised
97.1 percent of the total OFWs during the period April to September 2015.

2017- money sent rose to $2.54 billion , the highest amount sent in years, data from
the Central Bank of the Philippines obtained by The Filipino Times showed.

-In 2017, the UAE outpaced KSA for the first time with total OFW remittance of
$2.54 billion as against the latter’s $2.50 billion.

2018- Comparing January to April 2018 remittance with the same months the
previous year, meantime, would show a -25 percent decline in OFW remittance from
the UAE – or from $734 million to $547 million.
 Historical Data & Figures
2019 VS 2020 2021 VS 2022

The number of Overseas Filipinos Workers (OFWs) in 2020 Personal remittances, or cash or kind transfers
was estimated at 1.77 million, which was lower than the between families, reached $2.70 billion on May 2022 ,
2.18 million reported in 2019.
which increased by 1.27% from $2.67 billion in April

2022 and 1.99% percent from $2.65 billion in May

The number of Overseas Contract Workers (OCWs)
decreased to 1.71 million in 2020 from 2.11 million in 2019.
2021.

Total remittance sent in 2020 reached 134.77 billion pesos,

which was lower than the 210.40 billion pesos reported in The total amount of remittances for the first five
2019. months of this year (2022) was $14.02 billion, a

pickup of 2.5% increase from $13.68 billion in
On average, about 86.81 thousand pesos remittance per January to May 2021
OFW was sent in 2020, an amount that is much lower than
the 106.62 thousand pesos average remittance sent per
OFW in 2019.
Analysis of Data and Figures

OFWs

The number of OFWs

dropped by 18.6%,
equivalent to 405.62
thousand overseas
workers from 2019
to 2020.
Analysis of Data and Figures

OFWs
In 2020, women accounted for 59.6%
or 1.06 million. While 40.4% or 0.72
million were male OFWs.

The same trend was observed in 2019:

55.4% women | 44.6% men.

age)
OFWs (by

2019: 2020:
30-34 yo - (22.3% 30-34 yo - (22.4%
25-29 yo - (20.3%) 35-39 yo - (20.5%)
35-39 yo - (18.8%) >45 yo - (19.1%)
Analysis of Data and Figures

Cash Remittances
2020 2019
Php 86,810 Php 106,618

18.6%

Php 134.77 Php 210.40

BILLION BILLION
35.9%
These comprised of cash sent home with P113.08 billion from P157.04 billion, cash brought
home (P18.98 billion from P46.20 billion), and in kind (P2.71 billion from P7.17 billion).
Analysis of Data and Figures

Cash Remittances
Analysis of Data and Figures

Cash Remittances
2019 2020 2021
$30.133 $29.903 $31.48
BILLION BILLION BILLION
​Cash remittances sent home by OFWs hit a new high in 2021, rising 5.1% from 2020.
Even exceeding the previous record of $30.133 billion from 2019.

Remittances from the Filipinos in the Americas (7.1%), Europe (5.5%),

Asia (4.5%), and the Middle East (0.7%) increased in 2021.

The United States (40%) was the biggest source of remittances in 2021.
Analysis of Data and Figures

Cash Remittances
2022 (so far)
Data from Bangko Sentral ng Pilipinas showed that OFW remittances reached
P161.2 billion ($2.75 billion) in June 2022, the biggest amount this year.

For the first six months of 2022, cash remittances rose by 2.9% to $15.35 billion,
from $14.91 billion in the comparable period last year.

The central bank also projects remittances to grow by 4% in 2022 as more

OFW-hosting countries reopen their borders and ease restrictions.

BSP data showed first-half cash remittances were driven mainly by higher inflows from the
United States, Saudi Arabia, Japan, Qatar, and Singapore.
Geographic Distribution &
By Sex. Women make up the majority of
Overseas Filipino Workers (OFW), comprising

Contributions nearly 59.6% of them or 1.06 million in 2020.

Whereas male OFWs accounted for 40.4% or
75 0.72 million

Male

Female By Age Group. In 2020, the majority of

OFWs (22.4%) are in the 30 to 34 age group.
50 Male workers made up 21.2% of the
workforce, while female workers made up
23.3%.

25
By Occupation. The large percentage
(46.7%) of OFWs in 2020 worked in
elementary-level occupations. The majority
of the 1.06 million female OFWs, or 70.3%,
0 were employed in elementary occupations,
Sex 30-34 Age Group Elementary Occupation
opposed to only 12% of male employees.
Source: 2020 Overseas Filipino Workers (Final Results) - Philippine Statistics Authority
 By Region. Of the 17 regions of the
Geographic Distribution & country, CALABARZON contributed the
most OFWs, at 18.5% or 185 out of every
Contributions 1,000 OFWs in 2020. Meanwhile, for every
100 OFWs in 2020, around 12 came from
Region III, 9 from Region VI, 8 from the
National Capital Region, and 8 from
Region 1.

By Place of Work. Saudi Arabia employed

roughly 26.6% of the total 1.77 million
OFWs, with the United Arab Emirates
coming in second at 14.6%. Other Asian
nations with significant numbers of OFWs
are Kuwait (6.4%), Hong Kong (6.3%),
Qatar (5.4%), and Singapore (5.3%)

Of the country’s total OFWs, 83.6% are

working in Asia.
Source: 2020 Overseas Filipino Workers (Final Results) - Philippine Statistics Authority
How OFW Remittances
Contribute to the PH Economy
Balance of Payments. It is one of the most important economic
health indicators of a country. Remittances make up a significant
portion of the revenue many Filipinos who work overseas send home
to their families and the Philippine BOP. Remittances sent through the
legal financial system are instantly recorded in the country's balance
of payments, which is monitored by the Bangko Sentral ng Pilipinas
(BSP), the country's central bank .
Exchange Rates. An exchange rate defines the health of a nation's
currency versus the currency of another nation or an economic zone.
With a stronger currency, the cost of imported goods decreases which
lowers the prices for consumers. This can aid in the settlement of the
country's debts and liabilities.The Philippine Peso gets stronger with
higher OFW remittances, which means it is worth more relative to
other currencies. The steady inflow of remittances empowers the
country to buy more foreign goods and services.
Source: Contribution Of The OFW To The Philippine Economy - Compare Remit
Foreign Reserves. Foreign Reserves or Gross
International Reserves (GIR) is the sum of all foreign
exchanges, including foreign investments, foreign
exchanges, gold, and special drawing rights (SDR).
The GIR is a crucial component of the economy as it
is often used to manage the country's foreign
exchange rate against excess volatilities. OFW
remittances are the second-largest source of
foreign reserves after exports, even surpassing the
foreign direct investment flows.
Household Income. Household income refers to the
combined gross income of all members of a
household or family. It is an indicator of the financial
health of a region. Remittance forms a large portion
of the fixed monthly income of many families in the
Philippines. The receipt of remittances adds up to
the incomes of the recipient households.
How OFW Remittances Standard of Living. Where there are recipient
households, entire communities benefit from
Contribute to the PH Economy remittance inflows as OFWs represent a
diverse cross-section of the country's regions.
As a result, improvements in living standards
are visible at the level of small towns and
barrios as well as major cities and provinces.
Additionally, there is a strong link between
remittances and better healthcare, education,
and even business endeavors, according to
several economists.

Purchasing Power. Purchasing power is the

value of a currency pegged against the amount
of goods or services that one unit of currency
can buy. Remittances have been referred to as
the primary drivers of domestic demand since
they contribute to funding private consumption
by raising the purchasing power of the Filipino
population.

Source: Contribution Of The OFW To The Philippine Economy - Compare Remit

How OFW Remittances
Between April and September 2020, OFWs
sent a total of 134.77 billion pesos in

Contribute to the PH Economy remittances. These consist of cash sent

(PhP113.08B), cash taken home (PhP18.98B),
and in kind (PhP2.71B).

On average, about 86.81 thousand pesos

remittance per OFW was sent in 2020, an
amount that is much lower than the 106.62
thousand pesos average remittance sent per
OFW in 2019.

According to Bangko Sentral ng Pilipinas

(BSP), the country's Gross International
Reserves (GIR) reached a record high of
$109.8B by December 2020.

Banks are most preferred in sending cash

remittances. About 51% of the cash
remittances were sent by the OFWs thru
banks amounting to PhP57.68B.
Source: 2020 Overseas Filipino Workers (Final Results) - Philippine Statistics Authority
Source: OFW Remittances See An Increase As Travel And Employment Improves - Compare Remit
 Overseas demand for properties in the Philippines remained

Impact of OFW Remittances on

strong even amid the height of the pandemic in 2020. With
The projected growth of OFW remittances, along with the law

the PH Real Estate Industry

to protect it, will contribute to increased interest and better
buying power on hard assets, such as real estate.

Even amid the height of the pandemic, overseas demand for

properties in the Philippines remained strong: The top
sources of overseas interest were Singapore, Dubai, London,
Sydney, and Doha, places with a high concentration of Filipino
workers.

Millennials (aged 25 to 34) were the most active international

market in terms of pageviews. They could be looking at
properties to house their families back home or to invest in
passive income assets. Meanwhile, older generations, those
aged 45 to 54, may be exploring real estate for their
retirement when they return home, indicating that they were
the market most eager to buy properties since they
represented the biggest share in inquiries.

Mid-income developments are a popular type of real estate

among OFWs. The desire for house and lot projects in this
price segment was spurred by their preference for outdoor
spaces, and the demand will peak as the flow of remittances
Photo Credit: Lumina Homes
stabilizes.

Source: Projected Growth on OFW Remittances Will Fuel Property Purchases - Lamudi
Post- OFW remittances
Pandemic rise 4.4% in June
2022
Projections
Cash remittances from OFWs sent to the Philippines
through banks grew by 4.4% to reach $2.8 billion last
June.
Both land-based and sea-based OFW inbound
money transfers have increased, according to the
Bangko Sentral ng Pilipinas.
As per June data, the total for the first semester
increased to $15.3B from $14.9B from January to
June 2021, a growth of 2.9%.
Receipts came primarily from the United States,
Saudi Arabia, Japan, Qatar, and Singapore.

Source: OFW remittances up 4.4% in June - Inquirer.Net

Post- PH real estate
business positive
Pandemic growth in the next
Projections 6 to 12 months

Triggers
Reopening of the economy

Purchase of houses and real property investments of

Overseas Filipino Workers (OFWs) who are starting to
be redeployed to other countries.

Change in their priorities, showing interest in long

term investments such as that of real properties.

Source: Experts forecast a rise in PH real estate industry fueled by OFW remittances -
Inquirer.net
 Affordable and
Post- mid-income
Pandemic projects eyed by
OFWs
Projections
OFW remittances are among the primary demand drivers in the horizontal
market, particularly projects that are within the affordable to mid-income
(PHP1.7M to PHP6 million) price segments.

According to Colliers' Residential Survey, 22% of respondents plan to buy a

condominium unit in Metro Manila within the next two years.

House and Lot or Lot-only unit outside of Metro Manila are also popular to
OFWs. At the end of 2021, sustained take-up for horizontal units in north
and south of Luzon, including Pampanga, Tarlac, Bulacan, Cavite, Laguna,
and Batangas, where projects are between 86% to 97% sold.

Colliers recommends that developers look at the viability of launching more

horizontal projects in these key provinces. They should also continue
offering innovative and flexible payment terms to attract potential investors.

Source: Market Intelligence | Philippines March 1, 2022 - Colliers

References
2020 Overseas Filipino Workers (Final Results) - Philippine Statistics Authority

Contribution Of The OFW To The Philippine Economy - Compare Remit

OFW Remittances See An Increase As Travel And Employment Improves - Compare Remit

OFW remittances up 4.4% in June - Inquirer.Net

Experts forecast a rise in PH real estate industry fueled by OFW remittances -

Inquirer.Net

Market Intelligence | Philippines March 1, 2022 - Colliers

OFW remittances up in May – BSP | The Manila Times

OFW remittances up by 2% in May | Philstar.com

What is the Meaning of OFW - Overseas Filipino Worker - OWWA Member

Projected Growth on OFW Remittances Will Fuel Property Purchases - Lamudi

 Trinity University of Asia

Q&A Session
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