OFW INVESTMENTS

Senator Edgardo J. Angara today said that crash courses on investing money and financial literacy should be included in the pre-departure briefings for overseas Filipino workers (OFWs) so the OFWs can really make better investment choices with their earnings abroad.

"Money in the $12 billion or $14 billion range a year constitutes an awesome money pool which can be partly channeled into sound investments . And this can only be done by the OFWs wisely if they are financially literate and they are well-versed with various investment choices," Angara, chairman of the senate committee on banks, said.

The country's OFWs remitted more than $12 billion last year and this year they are expected to remit more than $14 billion through formal sources.

Angara said that the remittances of the OFWs is much higher than the country's foreign direct investments and the move of the Bangko Sentral ng Pilipinas and other state institutions to find investment outlets for OFW money "is a step in the right direction."

Angara said that familiarity with investment opportunities and their rates of return will push the OFW into investing more money into sound investment schemes.

"Are there agri-businesses available? Are there contract-growing offers from the various agri-integrators? Can they lease lands for sugar and yellow corn production? Can they buy government bonds which can yield better returns? What are the economics of operating school buses? These and many more can be studied by OFWs if they have a menu of investment options," said Angara.

Angara said that OFW money has been funding several business enterprises in the countryside, from trucking and transport, small-scale garments production, food processing and feed mill operations.

"Trace the history of profitable enterprises in the rural areas and you will find out that these started with OFW remittances," said Angara.

Angara said that other than investing in businesses, the OFWs can buy government bonds, invest in the stock market and invest wisely in real estate.

"The OFWs should realize that they are an investment powerhouse and they should acquire investment skills and training commensurate to the big money they invest," said Angara.