PIDS report urges better support for OFWs' financial literacy

The Philippine Institute for Development Studies (PIDS) has released a discussion paper highlighting the need for government programs to enhance financial literacy and social protections among overseas Filipino workers (OFWs).

According to the report, young OFWs aspire to retire early but may not be provided systematic support for financial literacy.

Researchers found that remittances from OFWs represent at least 10% of the Philippines' gross domestic product (GDP), with 47.4% allocated for consumption and 24.8% for savings.

The study emphasized that better communication is needed to ensure government initiatives such as PiTaKa by the Bangko Sentral ng Pilipinas and digital banking solutions offered by Overseas Filipino Bank reach OFWs effectively.

On January 31, the House committee on overseas workers affairs held a hearing to discuss proposed measures for enhancing OFWs' financial literacy, including free training programs.

Committee chair Ron Salo noted that while existing programs are in place, awareness and implementation need improvement to protect OFWs from scams and ensure financial stability.