So OFW Program is Better Than FDI Because of the Dollar Remittance?!

Philippine Star

It's Christmas again, right? Two years ago, I wrote an essay discussing that Filipinos can't be home for Christmas, thanks to the lousy Filipino First policy. I did some research and landed on the Philippine Star. The data presented seems to suggest that the OFW program is feasible:

MANILA, Philippines — Remittances from overseas Filipino workers (OFWs) continued to climb in September, increasing by 3.3 percent amid the anticipated seasonal holiday surge and currency gains from favorable exchange rates.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that personal remittances reached $3.34 billion in September, $107 million higher than the $3.23 billion recorded in the same month last year.

Of the total amount, cash remittances coursed through banks amounted to $3.01 billion, $96 million higher than last year’s $2.91 billion.

An old fool I ran into on Facebook said, "OFW program is better because they bring in dollars. FDIs will just bring in peso." The idea is stupid on several levels. An MNC must adjust and adapt to the country's local customs. An American MNC must convert the starting capital from USD to PHP. Some countries where Filipinos go as OFWs have lower monetary value. The Vietnamese Dong (VND), South Korean Won (SKW), and the Japanese Yen (JPY) are weaker than the PHP! South Korean and Japanese companies would convert their weaker currecies in favor for the stronger PHP, when doing business in the Philippines!

There's that destructive obsession with OFW remittances (read here). I'd like to ask this question, "How has OFW remittances actually helped pay back the national debt?" I always find it annoying when people confuse FDI with foreign loans (read here). Even the differences between loan and investment are clear as day and night. FDI means letting a foreigner invest in the country, which in turn, that they're required to pay taxes to the country. A foreign loan means borrowing money from another country. Saying FDI was ruined by Chinese FDI is something. Did the person realize that borrowing money from another country isn't the same as letting another country invest in your country?

Even worse, some OFWs believed that they were supposedly "conquering the world". However, if you get the job, you're under a boss! The idea that people will conquer nations by getting jobs is stupid. It's because getting a job in another country is different from doing business in another country. When a person gets the job, he or she doesn't conquer the country. Instead, the person must follow the rules and regulations of the country he or she works for. If one works in a Muslim country, don't bring pork products or do anything forbidden in Islam. If one works in Singapore, expect strict justice to be implemented as happened to the late Flor Contemplacion.

Talks about separation aren't drama. Families get torn apart by the OFW program. It's something to think about when that problematic The Flor Contemplacion Story (read review here) was uploaded on YouTube. If only Migrante International understood that the equity restrictions against FDI led to the Flor tragedy. However, it seems they're still more focused on being bitter against Singapore, unable to accept that Flor was indeed guilty. That movie wasn't even worth a rewatch. I decided to rewatch it so I could at least do a proper review rather than recall everything by memory. Even worse, some OFW families remain poor because of

Do I need to mention the hassle of OFWs having to pack their things and leave? Do I need to mention the hassle of converting foreign currency to local currency for OFWs? It would be different if MNCs brought in their capital, converted the currency to the local currency, and employed Filipinos to work for them. Worried about exploitation? MNCs are still subjected to local laws such as labor laws and environmental laws. They will still need to pay Value Added Tax (VAT) and income tax. They may also be paying withholding taxes. They may want to deposit money they use for their expenses in a local bank. They may need to send back profits to the host country. However, they would still need to leave some money in the Philippines for operational use.

As said, let's stop romanticizing OFWs as "new heroes" and stop demonizing FDIs as invaders. It's already the 21st century. Please, we're no longer operating under a conquer or be conquered. This is all about business and economics!

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