Mr. Chair,

Excellencies,

Colleagues,

It is my honour and privilege to be here today to commemorate the International Day of Family Remittances, a day that recognizes and raises global awareness to the link between remittances and sustainable development; and acknowledges the fundamental contribution of migrant workers to the well-being of their families and communities of origin.

I am proud to recall that the Philippines was one of the champions of the resolution that proclaimed June 16 as the International Day of Remittances. This resolution was adopted last year on 12 June – which is also the National Day of the Philippines.  This is fitting because, for my country, this Day is a tribute to the hard work, resilience and sacrifices of our 10 million-strong overseas Filipino workers who are our modern-day heroes.

Mr. Chair,

According to the World Bank’s latest Migration and Development Brief, remittances to low- and middle-income countries, such as the Philippines, reached a record high in 2018. Officially recorded annual remittance flows to these countries reached $529 billion in 2018, an increase of 9.6% from $483 billion in 2017. 

A stronger economy and employment situation in the United States and a rebound in outward flows from some Gulf Cooperation Council (GCC) countries and the Russian Federation drove this increase.  

Excluding China, remittances to low- and middle-income countries ($462 billion) in 2018 were significantly larger than foreign direct investment flows ($34 billion).  In 2019, these remittance flows are expected to reach $550 billion, to become these countries’ largest source of external financing. 

During the 2015 - 2030 period for achieving the Sustainable Development Goals (SDGs), remittances are projected to exceed a cumulative $6.5 trillion to developing countries.

          Among countries, the top remittance recipients in 2018 were India with $79 billion, followed by China ($67 billion), Mexico ($36 billion), the Philippines ($34 billion), and Egypt ($29 billion).

Mr. Chair,

The Philippine Government has long recognized the “human face” of migration and the link between remittances and sustainable development. The SDGs are integrated in our medium to long-term development plans.

These plans give special attention to the circumstances of overseas Filipinos and their families. The objective is to empower them toward inclusive and sustainable development; protect their rights and improve their well-being, whether they are in the Philippines or abroad; strengthen their engagement in governance; and facilitate their reintegration in the Philippine society, upon return.

          Remittances from overseas Filipinos consistently account for 10 per cent of the country’s gross domestic product (GDP).  Data for 2018 shows that personal remittances, consisting of cash and non-cash items that flow through both formal or via electronic wire and informal channels such as money or goods carried across borders rose by 3% to a record high of $32.21 billion from $31.29 billion in 2017.  Cash remittances coursed through banks, on the other hand, rose by 3.1% to $28.94 billion, from $28.06 billion in 2017.

           To complement existing initiatives, policies and programs in support of overseas Filipinos and their families, the Bangko Sentral ng Pilipinas (or the Central Bank of the Philippines) has partnered with Overseas Workers Welfare Administration and the private sector (BDO Foundation) to intensify efforts to encourage beneficiaries of remittances to save and invest more. A survey in 2018 showed that only 35.5% of OFW families are saving a portion of their remittances and only 5.1% are investing. This needs to be addressed.

Mr. Chair,

The development plans of the Philippines emphasize centrality of people in development planning, through a whole-of-government and whole-of-society approach.

In the context of remittances and development, the Philippine Government recognizes the importance of programs that focuses on values formation, forming new and better financial behaviours, and developing positive attitude in dealing with money. There is a need to change or adjust certain cultural perspectives about money.

Strengthening partnerships, in this regard, with local communities, non-government organizations, the private sector, the academe, and the international community is crucial.   

          The transformative potential of the benefits of remittances in the lives of migrant workers, their families, their communities and their countries are huge.  If leveraged, coupled with lower costs for transfers, we could together, as a global community, responsibly and decisively attain our shared commitment to leave no one behind.

Thank you, Chair.