Metro Manila (CNN Philippines, October 29) — A lawmaker filed a bill that aims to encourage overseas Filipino workers to invest more in local capital markets as a way of taking a vital role in the country’s recovery from the crippling effects of the global health crisis.
House Bill No. 7932, or the OFW Investor Protection Act, proposes to give additional mandate to the Overseas Workers Welfare Administration “of providing investment counselling services and protection against fraud.”
Albay Rep. Joey Salceda, who filed the said bill, noted in a statement that OFW remittances account for 8-12% of the country’s gross domestic product, which are mostly invested in the property market as this is seen as a safe investment.
“OFW remittances are a sleeping giant as far as investments are concerned,” Salceda said.
He explained that these remittances, when enhanced, can generate additional 2-3% of GDP growth that is crucial to the recovery of the country from the COVID-19 pandemic.
The proposed measure generally aims to achieve this through the creation of the Office of OFW Investor Advocacy that will protect workers from fraudulent investment schemes, and provide them with free advice on where to put their money without sacrificing safety, as well as ensure reasonable returns.
An investor hotline will be made available so that OFWs can easily raise their concerns with the office.
The body will also work with the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas for the promotion of financial literacy among OFWs.
After two straight months of increases, the BSP said cash remittances from abroad stood at $2.756 billion in August, a 4.2% decline from last year, due to lower amounts sent home by both land and sea-based OFWs. The global health crisis has also pushed more OFWs to go back home.
In 2019, cash sent home by overseas Filipinos totaled $33.47 billion, 3.9% higher than the previous year.
