THE House of Representatives has been churning out many mediocre legislative measures that only erode the people’s trust in their district representatives, contributing further to the southward trend in this chamber’s public reputation. But once in a while, the House steps forward to propose a bill that if passed and implemented as law, would benefit a big segment of the local economy — the overseas Filipino workers (OFWs) and their families.
We refer to House Bill 10914 which seeks to require all OFWs to undergo financial education or literacy seminars which will be an integral part of the Pre-Departure Orientation Seminar (PDOS) of outbound overseas workers.
Likewise, the OFWs are mandated to undergo a Post-Arrival Training Seminar (PATS) within a reasonable time upon their arrival in their respective countries of destination on their first employment contract, or those who transfer from one place of work to another without stopping by the Philippines.
‘The proposed legislation will protect all OFWs — either land-based or sea-based, documented or otherwise, and their families — from investment scams…’
According to Investopedia, financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.
“When you are financially literate, you have the essential foundation for a smart relationship with money. This can help start a lifelong journey of learning about the financial aspects of your life. The earlier you start to become financially literate, the better off you’ll be because education is the key to a successful financial future,” it said.
The proposed financial literacy program for OFWs under the bill includes specific topics such as consumer protection, protection on mortgaged or collateralized properties, avoidance of exorbitant interests on loans or debts, and credit information on micro- and small-scale enterprises to prospective lenders.
“This [measure] will give substance to the policy of the state to adopt measures that will take care of the welfare and benefits of OFWs and their families,” the committee report on the bill read.
We note the practical value of such a program to the people, especially to the OFW sector which is one group of Filipinos who really have the buying power in the market and the investible funds or savings. In 2023, the total value of remittances sent by Filipinos abroad to the Philippines was about $33.5 billion, a 2.9 percent increase from the previous year. These funds should be used and enjoyed through legal spending and investing by their families, and not wasted on various online scams that now proliferate in the social landscape.
The proposed legislation will protect all OFWs — either land-based or sea-based, documented or otherwise, and their families — from investment scams and provide them with the proper knowledge to save their money and avoid being victims thereof, and, if possible, make their money grow so that they and their families will enjoy a bright and worry-free future through appropriate education and training on financial literacy.
The free mandatory financial education for OFWs and their families will be led by the Department of Migrant Workers (DMW), in coordination with the Overseas Workers Welfare Administration, the Department of Finance, the Bangko Sentral ng Pilipinas, the Department of the Interior and Local Government.
We are confident that the bill which offers a practical solution to financial illiteracy would soon become a law.
