Manila-based 123 Finance Corporation predicts growing oil inflations will cause a huge increase in migration workers abroad.

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May 09, 2022, 10:00 ET

MANILA, Philippines, May 9, 2022 /PRNewswire/ -- Manila-based 123 Finance Corporation, a securities approved financing firm listed among the official Philippines financing companies, with a Certificate of Authority (CA) is currently facilitating more than 51% of the Overseas Filipino Workers (OFWs) in foreign countries such as Hong Kong and Saudi Arabia. Currently one in three Filipinos uses the services of a multifunctional loans to facilitate both education and working abroad today to finance their families in Philippines due to the high living cost and low income in Philippines. The Philippines has seen an increase in demand for migrant workers loans since the Corona Virus alerts begun to be lifted in many countries in recent months as media reports.

The latest figures indicates that the number of Overseas Filipinos Workers (OFWs) in 2019 was considerably higher estimated at 2.18 million compared to the reported 1.77 million of 2020, however, since 2021 it's been on the sharp rise again estimated currently at 2.3 million OFWs. 123 Finance Corporation that consist of several branches including more than 170 staff indicated that although Coronavirus pandemic was tough, 123 Finance Corporation is expanding its staff and pubic presence. National records indicate that the total transfer of funds sent in 2020 reached 134.77 billion pesos, which was lower than the 210.50 billion pesos reported in 2019. National Statistician and Civil Registrar General reported.

Due to the growing market trends, 123 Finance Corporation is considering digital payments through financial apps and the use of crypto coins as lending method in near foreseeable future. There is a strong indication that financial apps are gaining popularity in Southeast Asia in recent months after the beginning of the Coronavirus Pandemic. From digital payments like e-wallets to banking applications, financial apps enable users to get services done a lot faster with minimal complications. Migration workers could benefit from such development as finance transfers can often be complicated and lengthily from certain countries where they work.

The Philippine Labor Diaspora is one of the largest around the world with around 9 million people or an estimated 10 percent of the Philippine population is currently working abroad and sending roughly $33.5 billion (USD) a year back home, a massive remittance that contributes to the national economy annually.

The current CEO Mr. Reuben Fischer of 123 Finance Corporation said: "We are seeing a strong rebound in financial services for OFWs. Robust global demand for workers in higher income countries and the easing of travel restrictions is providing new opportunities for Filipinos to work abroad. The rising cost of basic commodities is a further incentive for Filipinos to seek higher wages abroad with remittances helping to bridge the financial gap for their families in the Philippines."

Saudi Arabia is currently the leading destination of Overseas Filipino Workers (OFWs) from Philippines.

Philippines OFWs working in Asia were accounted at 84 percent of the Philippines total OFWs. About 27 percent of the total 1.77 million Overseas Filipino Workers worked in Saudi Arabia, followed by United Arab Emirates at 15 percent in the past year. Other countries in Asia with large number of OFWs include: Kuwait (7%), Hong Kong (6%), Qatar (5%), and Singapore (5%).

OFWs working in European Union registered at 7 percent, while OFWs in North and South America and in Australia were reported at 5 percent and 3 percent respectively.

Deputy Speaker Bernadette Herrera recently urged the Department of Trade and Industry (DTI) to present the Philippines as the new alternative finance hub of the Western Pacific as more foreign businesses in Asia are considering moving out due to the government's strict Covid-19 protocols in Asian countries.

123 Finance Corporation reported that the Philippines is among emerging markets likely to suffer the most from expensive oil after the beginning of the recent Ukrainian war that will spark many more migration workers from Philippines in the month to come. High costs of living and low income drives the demand for working abroad and more likely will expand the growing number of OFWs from Philippines abroad.

The official website of the Manila-based 123 Finance Corporation, securities approved Financing firm's website can be found on is on www.123finance.ph

About 123 Finance Corporation:

Manila-based 123 Finance Corporation, a securities approved financing firm listed among the official Philippines financing companies, with a Certificate of Authority (CA) is currently facilitating more than 51% of the Overseas Filipino Workers (OFWs) in foreign countries such as Hong Kong and Saudi Arabia. 123 Finance Corporation Certificate of Authority (CA) can be found on the government website in the list of financing companies as of November 30, 2021 this list of Financing Companies, with Certificate of Authority (CA), subject to amendment/updates.

https://www.sec.gov.ph/lending-companies-and-financing-companies-2/list-of-financing-companies/

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SOURCE 123 Finance Corporation