A recent study conducted by the Philippine Institute for Development Studies or PIDS showed that the government's financial literacy program among the Overseas Filipino workers are falling short.
The PIDS study on the enduring consequences of labor migration in the Philippines highlighted that the communication of government initiatives for improving OFWs' financial literacy and stability lacks the necessary systematic approach to create a substantial impact.
“Results of primary data collected from interviews with select OFWs and their family members suggest that young OFWs dream of retiring early but may not be provided systematic support for financial literacy,” PIDS stated in a study published.
According to the PIDS study, remittances from OFWs represent at least 10 percent of the Philippines’ gross domestic product (GDP).
Researchers said 47.4 percent of the remittances were allocated for consumption, while 24.8 percent were for savings. Around 12.6 percent were reserved for investment in properties, business ventures, and financial instruments.
The government's financial literacy initiatives include PiTaKa by the Bangko Sentral ng Pilipinas, aimed at fostering financial knowledge and accessibility to financial information for OFWs. This involves conducting informational sessions on the Personal Equity and Retirement Account or PERA.
Meanwhile, the Overseas Filipino Bank or OFBank, a subsidiary of the Land Bank of the Philippines, is specifically created to address the financial requirements of OFWs by offering tailored banking services.
“By empowering OFWs with the knowledge and tools to manage their finances responsibly and to obtain more competencies, especially in this digital age, we can help them achieve their aspirations of becoming successful entrepreneurs, financially secure and future-proofed individuals,” the study said.
“This holistic approach to reintegration support is not only an investment in their individual well-being but also a part of the country’s paying back to these modern-day heroes for their contributions to the Philippines' continued economic growth and prosperity,” it added.
According to the Philippine Statistics Authority, periods from April to September 2022 reported a total of 1.96 million Overseas Filipino Workers (OFWs).
In 2022, the primary destinations for OFWs were Asia (80.8%), Europe (9.0%), North and South America (6.3%), Australia (2.9%), and Africa (1.0%).