Strong Dollar Benefits OFWs But They Must Invest Wisely

While a weaker peso may be wreaking havoc on consumer spending, Go Negosyo founder Joey Concepcion believes there is an upside to it that could help promote inclusive economic growth and job generation in the Philippines.


“OFWs are now seeing 12 to 13 percent more on every dollar they earn,” he said during the Laging Handa Public Briefing last August 14. In addition to remittances softening the blow of a strong dollar, the higher earnings can be leveraged to achieve long-term growth if OFWs (Overseas Filipino Workers) decide to invest in the country and become entrepreneurs.

“Malaki ang kontribusyon dahil marami tayong OFWs (The OFWs contribute a lot because there are so many of them),” he said. Their income is rising in terms of pesos, but they should spend and invest it wisely,” he said. “Hopefully, our OFWs will have enough savings so they can come back and start a small business so that they will not be forever working away from home,” he said.

Concepcion, who is also the lead of the Jobs group of the Private Sector Advisory Council, said that OFWs should be encouraged to become entrepreneurs as this would redound to more jobs for Filipinos, especially in the provinces. The government and private sector also make it easier for OFWs to reintegrate as entrepreneurs by providing mentoring. Concepcion shared that this December 3, the non-profit Go Negosyo will be hosting an OFW Summit geared towards mentoring OFWs on entrepreneurship.

Another event on October 24, the Digital SignUp Now, will explore digitalization as another avenue to make it easier for MSMEs to compete with even the big brands. “Big companies can enter supermarkets and malls, but there is an entry cost,” said Concepcion. “With digitalization, it is all free, but you must know how to put your products on these platforms and market them well,” he said.

The private sector, he said, is trying to make conditions favorable for MSMEs, such as working with the government to secure bivalent vaccines to prevent any more disruptions to the economy. Manufacturing companies, meanwhile, are stocking up on commodities to make sure there Is enough to supply essentials such as sugar and flour throughout the Christmas season and through to the first quarter of 2023. Concepcion explained that the fourth quarter economic activity would be crucial for business as it represents the peak of consumer spending.

“Hopefully, sales for the MSMEs will be good, and they will have enough working capital to let them cross over to 2023,” he said.