The market for Filipino workers in the Middle East is reaching saturation point, a senior legislator said Friday, at the same time that he urged the government to rethink the policies on the deployment of workers to other countries.
Rep. Henry Ong of Leyte, vice chairman of the House of Representatives Committee on Banks and Financial Intermediaries, cited the latest Bangko Sentral figures on remittances released on Aug. 15, indicating that cash remittance from the Middle East dropped by 15.3 percent or $601.856 million in the first half of the year.
However, Ong said second half cash remittances were expected to be stronger because of the Christmas Season.
Ong said: “It is time for a major but gradual shift in the policies on worker deployment. Those who want to stay in the Middle East can of course do so.
“Filipinos working in the Middle East will remit anywhere from $8 billion to $9 billion annually in the coming several years—near-term to medium term—but the growth rates will be slower and slower.”
He added: “To prepare for slowdown of remittances from the Middle East as early as now the Philippines should start more new deployment to other countries where Filipino workers are welcome, needed, respected, and cared for.
“We should have bilateral labor agreements with them. They should be signatories to and have ratified international conventions on migrant workers.”
Ong said remittances from Filipinos in the Middle East would not see drastic increases unless crude oil prices returned to more than $100 per barrel.
He said this was not possible because of the pressure exerted by the world community on the Organization of Petroleum Exporting Countries.
“Based on the cash remittances data of the Bangko Sentral, it looks like the saturation point will be well below $9 billion annually and this saturation point will be reached within the next four to five years,” he added.
“After that, remittances from the Middle East will either stay on that plateau or go downhill, but it will not climb another mountain anymore. The world community will not let crude oil prices skyrocket to above $100 again because of the adverse effect on the global economy.”
He predicted that the single-digit increase of the remittances from the Middle East is the proof of the nearing saturation point.
He said:
• From Saudi Arabia, cash remitted were down by 12.9 percent or $172.11 million.
• From Kuwait, cash wired back home to dependents here in the Philippines dropped by 15.8 percent or $65.79 million.
• From Israel, cash sent home plunged by 58.9 percent from $71.682 million to $29.263 million. President Duterte is scheduled to visit Israel early September next month.
