Filipinos send back sizeable US$2.2b from Singapore

FILIPINOS working in Singapore remitted a sizeable US$2.2 billion home last year. Singapore has been the second-biggest source of remittances for the Philippines for the past five years. This is as the people-to-people ties between the Philippines and Singapore are strong with a sizeable presence of Filipinos here.

The Embassy of the Republic of the Philippines in Singapore estimates that there are about 200,000 Filipinos working and living in Singapore, reflecting the mutually beneficial labour and commercial ties between the two countries.

Overseas Filipino workers (OFWs) in Singapore augment and complement Singapore's workforce - both professionals (from the high-end to semi-skilled workers) and domestic workers.

These OFWs send money back to the Philippines, and in the last five years ranked as the second-highest source of remittances for the Philippines, with the United States being the top source of remittances.

According to the Philippine Overseas Labor Office in Singapore, there are 180,605 OFWs in the Republic, of which 55 per cent are professionals and skilled workers, and 45 per cent domestic workers.

The professionals and skilled workers are mainly in the healthcare, academe, construction, aviation, food and beverage (F&B), tourism, and entertainment sectors.

Besides the large number of Filipinos working here, there are 50 Philippine companies doing business in Singapore, and the number is expected to grow considering the strong trade and investments ties between the two countries and the proposed setting up of the Philippine Chamber of Commerce in Singapore.

These 50 Philippine companies in Singapore are majority-owned by Filipinos and represent the Philippine brands present in the mainstream market here, available data from PTIC-Singapore shows.

PTIC-Singapore, which stands for the Philippine Trade and Investment Center in Singapore, is the representative office of the Philippines Department of Trade and Industry in Singapore.

These companies' major areas of business include F&B, including popular Philippine food chains; finance, including Philippine banks and remittance facilities catering to both Filipinos and Singapore residents; real estate, including prominent Philippine property developers, primarily doing marketing; and transport, primarily Philippine-owned airlines.

Other Philippine companies doing business in Singapore include manufacturing, and information technology and business process management (IT-BPM) firms. Singapore, meanwhile, has considerable investments in the Philippines. From 2016 to 2020 (preliminary data), net foreign direct investment (FDI) flows from Singapore was recorded at US$2.55 billion.

PTIC-Singapore's main mandate is the mutual promotion of trade and investment between the Philippines and Singapore.

Trade promotion: PTIC-Singapore contributes to the promotion of Philippine exports to Singapore. Through trade shows, activities, and business-to-business matching, it assists Philippine companies in mainstreaming their products and identifying suitable partners in Singapore.

Investment promotion: PTIC-Singapore is involved in the mutual promotion of investment from Singapore to the Philippines, and vice versa. As a first touch point for businesses in Singapore, it ensures ease of doing business in the Philippines for those looking to invest in the country. For more information and for assistance, contact Singapore@dti.gov.ph.

PTIC-Singapore also organises activities in partnership with different posts, agencies, and organisations from the Philippines, Singapore, and the region. The goal is to encourage fellow kababayans (compatriots) to be entrepreneurs in the Philippines.

Katrina Banzon, commercial attache, Philippine Trade and Investment Center for Malaysia and Singapore says in an interview with The Business Times that the proposed setting up of the Philippine Chamber of Commerce in Singapore will give a big boost to bilateral business ties. "The main objective of the Philippine Chamber of Commerce (PhilCham) in Singapore is to provide an organised forum for Filipino businesses in Singapore, where they can engage, discuss, and promote relevant economic and commercial interests in Singapore, the Philippines, and the wider region."

Ms Banzon notes: "PhilCham aims to be a touch point for seasoned and aspiring businessmen and entrepreneurs who are interested to invest in the Philippines and/or export Philippine-made products to Singapore. The creation of PhilCham is aligned with the economic priorities of the Philippines' diplomatic mission in Singapore. It is envisioned to be instrumental in further accelerating the already strong business ties the Philippines has with Singapore...

"At present, the working committee, composed of Filipino business leaders and representatives of the embassy and PTIC-Singapore, is in the process of registering PhilCham with Singapore's Registry of Societies. Everyone is excited about this long-awaited and milestone launch this year."