Developing the local employment market is crucial to strengthening the Philippine economy, especially in light of the ongoing conflict in the Middle East that has threatened the livelihoods of many overseas Filipino workers (OFWs), according to former U.S. Executive Director to the Asian Development Bank Ambassador Chantale Wong.

Speaking at a PropertyGuru press briefing on Wednesday, Wong — who is serving as a judge for this year’s PropertyGuru Philippines Property Awards — said the unrest in the Middle East has exposed a deeper vulnerability in the Philippines’ remittance-dependent economy.

“Longer term, I do think that we need to create economies here that are sustainable, where there are job markets here, so that we can have a better economy,” she said.

The Bangko Sentral ng Pilipinas (BSP) recently reported that remittances reached an all-time high of $35.63 billion in 2025. The central bank said the figure represented 7.3 percent of the country’s gross domestic product (GDP) and 6.4 percent of gross national income (GNI).

Historically, many Filipinos have opted to work abroad because wages are often significantly higher than those for similar jobs in the Philippines. Combined with stronger foreign currencies relative to the peso, remittances sent home help fuel household consumption — which accounts for roughly three-quarters of Philippine GDP.

Wong noted that the Middle East conflict could have significant implications for the Philippines, with the region hosting about 40 percent of all OFWs.

“It has a huge impact on the economy. Now, you know, the flights are all cancelled. People are stuck in places,” she said.

“I've actually brought it over to the U.S., where we have a lot of Filipino workers, to really encourage them to come back to the Philippines and really be part of the nation-building effort,” Wong added.

Economists have also flagged potential risks to remittances and the peso as tensions in the Middle East continue. The conflict has pushed global oil prices higher, which is weighing on the Philippine economy and investor sentiment.

“Disruptions in travel, OFW deployment and jobs could reduce business, employment, and other economic activities in some Middle Eastern countries as a matter of prudence and safety, which could reduce OFW employment and remittances,” RCBC Chief Economist Michael Ricafort told Daily Tribune on Sunday.

He added that foreign exchange markets could also see increased demand for the U.S. dollar, which investors typically view as a safe-haven asset during geopolitical crises, as traders “hedge various risk exposures to be on the safe side.”

Meanwhile, BPI Lead Economist Emilio S. Neri Jr. said the overall impact of the conflict on remittances may be more contained unless tensions escalate significantly.

“Nearly 40 percent of overseas Filipino workers (OFWs) are based in the Middle East,” he said.

“However, cash remittances from the region accounted for approximately 18 percent ($6.5 billion) of total inflows ($35.6 billion) in 2025, suggesting that while risks are elevated, the overall impact may be more contained than expected unless the conflict significantly escalates,” Neri added.

Neri also noted that BPI projects the peso to settle at around P59.70 per dollar by year-end in light of current global developments, weaker than the P59.46 record low posted in January.

To date, 299 OFWs have been repatriated following the escalation of the Middle Eastern conflict. However, 1,189 OFWs have already expressed interest in being repatriated from countries such as Bahrain, the UAE (Dubai and Abu Dhabi), Qatar, Kuwait, Israel, and Lebanon. Philippine embassies and agencies have already assisted around 1,824 OFWs on site with shelter, transport, and other support while evacuation plans are prepared.