Cold Saudi-Iran Ties may Affect Filipinos’ Work Prospects
MANILA: The deteriorating diplomatic ties between Saudi Arabia and Iran may have a bearing on the deployment of workers in the region, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C Guinigundo has pointed out.
“In the past, we had the 1991 Gulf War and the 2003 Second Gulf War, but our OFWs (overseas Filipinos workers) were able to move elsewhere and find alternative employment,” Business World quoted Guinigundo as saying on the sidelines of the annual reception for the banking community. “My concern is if the Saudi and Iran conflict extends beyond their respective borders and affect all the contiguous jurisdictions, then we will have some challenges.”
“Baka magkaroon sila (OFWs) ng problema and they will not be able to exercise the same flexibility as before.”
The first week of January saw Saudi Arabia cutting diplomatic ties with Iran, with Bahrain and Sudan following suit, the report said.
Money sent home by overseas Filipinos stood at $22.83 billion at end-November, up by 3.6 percent from a year earlier and closer to the central bank’s downwardly revised projection of PhP25.3 billion in total cash remittances for 2015, it was pointed out.
On the other hand, the BSP expects OFW remittances to grow by 4 percent this year, slower than the 5 percent rise initially seen in May. In 2014, the central bank reportedly said remittances grew by 5.9 percent to $24.348 billion and accounted for 8.5 percent of the economy.
In the first 11 months, Filipinos based in Saudi Arabia were the second largest source of cash remittances at $2.401 billion, while those employed in the United Arab Emirates were in third with $1.581 billion, said the news portal.
On Tuesday, an analyst from the Hongkong and Shanghai Banking Corp. Ltd. said remittances are still expected to grow in the next five years though at a slower pace, but warned that funds sent home by expatriates may see an erosion of their position as the economy’s buffer against external shocks, the Business World Online report said.