Solon: PHL could lose $1.5-B OFW remittances over 'Saudization …

The Philippines could lose some $1.5 billion in remittances of overseas Filipino workers (OFWs) should the Saudization or “Nitaqat” program become fully implemented this year, a lawmaker said.

Citing Bangko Sentral ng Pilipinas statistics, LPG Marketers Association (LPGMA) party-list Rep. Arnel Ty said remittances from Saudi Arabia reached $1.544 billion in 2010, or around 8.2 percent of the $18.763 billion of all OFW remittances.

From January to May this year, remittances from Saudi Arabia amounted to $616.19 million, higher by less than one percent from $611.03 million in the same five-month period in 2010.

According to Ty, up to 150,000 OFWs in Saudi Arabia could be displaced by the Nitaqat.

Under the Nitaqat program, companies in Saudi Arabia that are not employing enough locals would not be able to renew the work visas of their foreign workers.

“There’s no question Nitaqat is a potential threat to the job security of some Filipinos in Saudi Arabia, particularly those whose skills can be readily replaced by locals there.”

“Once Nitaqat becomes effective, Saudi citizens must comprise at least 10 percent of the labor forces of all construction companies, and a minimum of 70 percent of the staff headcount of all financial firms there,” Ty said.

Large sources of remittances

“Saudi Arabia is one of only three countries in the world where more than $1 billion worth of annual remittances from OFWs come from. The two others are the United States and Canada,” Ty said.

OFWs in the US and Canada sent $7.862 billion and $2.022 billion respectively in 2010.

Ty said remittances from Saudi Arabia accounted for 52 percent of the $2.964 billion in cash received by the Philippines from all OFWs based in the Middle East in 2010.

The other large sources of remittances from the Middle East in 2010 were the:
United Arab Emirates ($775.24 million);
Qatar ($246.81 million);
Bahrain ($157.23 million);
Kuwait ($106.48 million);
Israel ($57.28 million); and
Oman ($55.76 million).
- VVP, GMA News

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