MANILA, Philippines — Malacañang on Thursday said the ongoing conflict between Israel and Iran would not affect the remittances of overseas Filipino workers (OFWs) to the Philippines.
Citing a statement from the Department of Finance, Palace Press Officer Claire Castro said the impact of the conflict on OFW remittances was “limited for now” but it might become serious if the situation escalates.
“The impact on remittances remains limited for now, given the remittances from Israel and Iran amounted to $106.4 million in 2024.03 percent of total remittances,” Castro said during a press conference.
“However, an escalation that could include the rest of the Middle East will have a substantial effect on overall remittances,” she added.
But Castro acknowledged that the conflict in the Middle East could trigger an increase in crude oil prices.
She also said the tensions could also affect household consumption and economic growth prospects.
“Usually, when the price of crude oil rises, market prices also increase,” the Palace official said.
On Wednesday, President Ferdinand Marcos Jr. said there was no need yet to impose the mandatory repatriation of Filipinos amid the escalating tension between Israel and Iran.
Marcos said the government has contacted OFWs in Israel and Iran and asked them if they already wish to leave.
He also gave reassurance that the government would extend fuel subsidies to the public transport sector in the event of a spike in fuel prices due to the renewed Middle East conflict.
“If you remember, during the pandemic, we gave fuel subsidies to public transport drivers. Now we will have to do the same for those who are severely affected, stakeholders, by any instability in the price of oil. Yes, it’s a serious problem,” Marcos said.
