Professional Documents
Culture Documents
WORKERS
STI College
Narciso Street, Surigao City, Surigao Del Norte
ANGELICA C. HAGONOS
______________________________
General Mathematics Adviser
JANUARY 2023
Table of Contents
Chapter 1 Pages
Introduction………………………………………………………………………………....1
Chapter 2
Literature Review……………………………………………………………………………4
Chapter 3
Methodology……………………………………………………………………………….. 5
Gathering of Data………………………………………………………………………… .. 6
Chapter 4
Results.................................................................................................................................... 7
Discussion............................................................................................................................... 8
Chapter 5
Conclusion.............................................................................................................................. 9
Reccommendation.................................................................................................................. 10
CHAPTER 1
INTRODUCTION
Global labour mobility and Overseas Filipino workers have been a topic of interest
due to rapid growth and its apparent links with development goals. Among the 197 countries
in the world, the Philippines has one of the highest rates of migration. A common belief is
that one can find a Filipino in practically every corner of the world (Calzado, 2007) This
migration is spurred by the Filipino's quest for greener pastures, Millions of Filipinos have
gone abroad for decades now in the pursuit of permanent settlement or interim employment
Overseas as an answer to the country's "weak" economy. As of late, more than 10 million
Filipinos are either employed and /or residing overseas (Asis, 2017). Push and pull factors
such as insufficient income levels in the home country, better job opportunities abroad that
give higher compensation, the opening of borders, ease of mobility brought about by better
communication and transportation infrastructure, and the expanding market for services
around the world are what influenced migration (Calzado, 2007), by Habaña(2022), and with
that large number of OFWs what would be the most advantageous loan and investment offers
A loan refers to a type of credit vehicle in which a sum of money is lent to another
party in exchange for the future repayment of the value or principal amount where the lender
also adds interest or finance charges to the principal value in which the borrower must repay
in addition to the principal balance (Kagan, 2021), a investment is an asset or item acquired
over time, when individual purchases a good as an investment, the intent is not to consume
the good but rather to use it in the future to create wealth (Hayes, 2022).
The main purpose of a loan is to help people get out of financial trouble or finance
fixed costs even if they do not have immediate cash available (Push, Et al ,2022), and the
purpose and benefit of investment are for you to invest in the right places, there is a lot of
potential for long term returns, one of the main benefits of investing is that the money you
invest has the potential to grow substantially over time rather than just putting your money
into a saving account to save for the future, investing it can be a much smarter way to make
The researchers aimed to conduct this research to inform OFWs about loan and
investment offers that can help them make the most out of their hard-earned money. Also,
this study would be beneficial to those who work a long distance away from home and their
families, as these informs them about some advantages that financial companies can provide
for them
The purpose of this research is to inform our OFWs about the existence of
loan/investment offers that would be advantageous for those who worked abroad, what
financial companies would help them and give better benefits, as will as how they should
trust those companies. Knowing about the loan/investment offers gives them an
This research paper is created to give even in a small way OFWs can choose to obtain
assets or create assets with their hard-earned money. It aims to provide crucial information
and knowledge regarding OFWs on what loan/investment companies could give them several
benefits that could help them ease their burden and to ensure that their efforts will not go to
waste.
loan/ investment offers and the things that would be the most advantageous for overseas
Filipino workers who worked abroad. And will also cover what helps them ease the burden in
their lives and the needs of their family, and also opportunities they would obtain by invest
their hard earned money. This research would like to find out the best financial company for
overseas Filipino workers, and also some advises for loaning and investing for the future and
present modern day heroes, as well as how the information was obtained and analyzed, and
Global labour mobility has been a topic of interest lately due to its rapid growth and
its apparent links with development goals. Among the 197 countries in the world, the
Philippines has one of the highest rates of migration. A common belief is that one can find a
Filipino in practically every corner of the world (Calzado, 2007). This migration is spurred by
the Filipino’s quest for greener pastures. Millions of Filipinos have gone abroad for decades
country’s ‘weak’ economy. As of late, more than 10 million Filipinos are either employed
and/or residing overseas (Asis, 2017). Push and pull factors such as insufficient income levels
in the home country, better job opportunities abroad that give higher compensation, the
transportation infrastructure, and the expanding market for services around the world are
culture of labor migration spanning more than a century. From the time of the Manila-
Acapulco trade when Filipinos manned Spanish fleets, the widespread migration during the
American occupation, as a response to the need for labour workers in European countries
after the Second World War, to the Marcos administration’s adoption of labour export
In the last three decades, labour export has become the country's main weapon to
combat the high rates of unemployment and strengthen the country's dollar reserve (Cai,
2011). Moreover, there have been shreds of evidence that labour migration has significant
ramifications on the country’s growth and development (Calzado, et al., 2007), so with such a
large number of OFWs what would be the most advantageous loan and investment offers
from a wide number of offers. For starters what is a loan, the term loan refers to a type of
credit vehicle in which a sum of money is lent to another party in exchange for future
repayment of the value or principal amount. In many cases, the lender also adds interest or
finance charges to the principal value the borrower must repay in addition to the principal
balance (Kagan,2021).
Loans may be for a specific, one-time amount, or they may be available as an open-
ended line of credit up to a specified limit. Loans come in many different forms including
secured, unsecured, commercial, and personal loans, Loans are advanced for several reasons
including major purchases, investing, renovations, debt consolidation, and business ventures.
Loans also help existing companies expand their operations (Kagan, 2021).
Loans allow for growth in the overall money supply in an economy and open up
competition by lending to new businesses, An example of loans for OFWs if they need a loan
is a SSS Salary Loan for OFWs, OFWs are eligible for an SSS salary loan if they're below 65
years old with at least 36 posted monthly contributions, including six contributions paid
within the last 12 months before the month of the loan application (Zoleta, 2021).
The annual interest rate is 10% based on diminishing principal balance, a loan
computation method that leads to lower interests as the loan is repaid over time before the
salary loan amount is released, a 1% service fee is deducted from it, a 1% penalty fee is also
charged for every month that the loan is not repaid by the due date (Zoleta, 2021).
appreciation, appreciation refers to an increase in the value of an asset over time. When an
individual purchase a good as an investment, the intent is not to consume the good but rather
money, or an asset—in hopes of a greater payoff in the future than what was originally put in.
For example, an investor may purchase a monetary asset now with the idea that the asset will
provide income in the future or will later be sold at a higher price for a profit (Hayes, 2022).
And for OFWs, It is advised that a portion of the significant remittances that Filipino
expatriate workers contribute be set aside for investments, the good news is that OFWs have
a variety of investment possibilities at their disposal, four things can influence the decision of
investment you make, any investment should considerably aid an OFW in achieving a
particular and challenging objective, this objective might be a monetary one that leads to a
brighter future. The temporal horizon is the second element, the time that each OFW would
aim to return to the country and the period that they plan to retire are some pertinent time
The risk profile comes in third, Undoubtedly, larger risks come with higher returns,
For investors that are risk-averse or aggressive, there are many investment possibilities
available, The fourth factor is purpose, Every investment made must ultimately contribute to
the OFW leaving a lasting impact, Advertisement Pooled funds are one alternative for
investing. These are a few examples of mutual funds, unit investment trust funds, and
variable unit-linked funds, These funds are managed by devoted, experienced professionals
that mostly invest in bonds and stocks, Variable unit-linked funds also offer insurance
According to Chen (2022), an OFW must consider the fund's performance and profile
while selecting the best pooling fund, To evaluate performance, both long-term and short-
term data are important. To further such information, direct stock market investment is one
type of investment. Also, to make better decisions than pooled money, the OFW would need
to devote more time and effort to learning about techniques like fundamental analysis and
technical analysis, Guarantee that volatility in the stock market is a given, an aggressive risk
profile would be required, Diversification is crucial since various equities operate differently,
A stock portfolio that includes both established and emerging companies can be considered to
be strong. Real estate is one possible investment, Investments of this kind may result in gains
through price growth and rental income, The location would be a key factor in deciding On
the type of real estate. Different regions have various trends in development (Chen, 2022)
CHAPTER 3
METHODOLOGY
Research Design
By researching literature, related to the topic on the internet, books, articles, and many
more to find the qualitative data that the researchers were looking for and after sufficient data
was gathered. And after, a deductive method to sort the data based on there publish date,
author, relevance, the authors reputation, validity, the many data that was collected which
other method would not suit, this approach helped to make it easier for the researchers to find
the data because the researchers have already found it for them, because the data is a
culmination of many different data gathered into one singular research paper.
Research Tools
The tools the researchers used to collect all the data were simply just devices like cell
phones and laptops and some books, and through those methods a large amount of data was
gathered.
Gathering Of Data
The data was gathered by the researchers through the usage of devices and the
internet, the researchers gathered as much as possible and then when the data was adequate. It
will be sorted through a process deduction on which the age of the data, its validity, validity
of the author, and its relevance to the research was the bases of sorting the data gathered.
And then, the data will be compared to each other to find out the most suitable data to
place on the research paper, and when the suitable data was selected it was then further
researched on because the data gather only covered some parts of the whole and when as
much as possible data was gathered about the topic, that is how it was found out that the most
CHAPTER 4
With some research, the researchers found out the reason why Filipinos work abroad
is to further their career and get more opportunities to earn money (owwamember, 2022). In
order to uplift their financial condition and to give a better future for their loved ones that is
why OFWs swallow the bitter pill to give their loved ones a good future and knowing the
theirs(owwamember, 2022).
companies in the Philippines amongst the many that exist, by bangko sentral ng Pilipinas’s
assessment BDO has been the most biggest a most popular bank in county as of September
30 2022, as will as by most OFWs do to the benefits they provide for OFWs. )
According to the website of Banco De Oro (2022), theirs banks have a total of 71.08
billion U.S. dollars in assets by the Statista Research Department in September 16 2022, the
Bank has the largest distribution network with over 1,500 operating branches and offices, and
more than 4,500 ATMs nationwide, and add to that BDO has 16 international offices
(including full-service branches in Hong Kong and Singapore) all across the globe as will as
While according to the company of Sun Life Financial, they have a total of 345.4
billion CAD in 2021, and with over 70 branches nationwide (kalibrr, 2022).
unfortunately they do not have a bank as will as ATMs, with 6 million users.
Also, the Bank of the Philippine Island (BPI), the company stated that they have a
total assets of 40.73 billion U.S dollars, and having 1,173 branches as well as 2,700 ATMs
Based on the data being gathered by the researchers, Banco de Ore or commonly
called BDO, is the number one (1) bank in the country and the largest bank by assets. The
bank is also a full-service (explain what service), universal bank offering an array of services
such as (explain and put some example). Their services also includes corporate and retail
banking, treasury, trust, credit cards, corporate cash management, and remittances. Through
its subsidiaries, and accept all major credit and debit card branch it also offers leasing
The researchers have reached to the conclusion that the most advantageous
loaning/investing(financial) company for Overseas Filipino workers is BDO due to their large
size of 1,500 operating branches and offices which is able to accommodate a large number of
people without any problem. In terms of company’s reputation, as being the leading number
one bank in the country for 2 years in a row and its reputation has also increased in the past
year specially amongst Overseas Filipino workers for the benefits the company provides.
they have many branches (1,500) around the country as well machines like ATMs (4,500).
Another advantage are their substantially high rate, because of their large amount of loyal
investors ( 12 million) the rates of BDO are substantially high (0.25%). Also, the majority of
Overseas Filipino workers use BDO as a go-to financial company due to the benefits that
RECOMMENDATION
Bankbazzar (2023) and Execter (2016) for what overseas Filipino workers to do when
loaning/investing. For Overseas Filipino Workers(OFWs) who are looking for a loan you
must first evaluate your needs before taking loans, this includes the following:
1. Do your research before you take a lone on all other available Options to you (Don’t just
2. Make sure your credit score are 750 and above because it will land you a good chance of
getting an offer.
3. make sure your credit score are low because less chances of getting an offer and with a low
interest rate because low credit score equals higher interest rates.
5. check the eligibility and reputation of the lender, don’t apply for multiple loans because
These might not sound like much but knowing will help even in a small way the
modern day heroes how to get the most of a loan and to avoid some problem that may arise.
For Overses Filpino Workers(OFWs) who are thinking of investing the researchers
1. Establish a plan on how you’d like to invest your money on how much can I invest, what
kind of investment do I want, what can I afford to lose, what are the goals of the investments,
2. Understand the risk because the higher the reward the higher the risk and also understand
3. Be tax efficient because if not you might have to pay some of the money that could have
4. Diversify because in these ever changing world the market also changes diversifying your
5. don’t look for tips on how to invest on random because there are a lot fakes out there,
6. Invest don’t speculate, like what one of the most influential investors of history Warren
Buffet said its far better to buy a wonderful company at a price than a fair company at a
wonderful price.
7. Invest regularly because investing little and often is sometimes better than investing larger
lump sums
8. Reinvest unless you are looking for a specific period income from your investment, it
would be good to consider reinvesting the capital return from your funds or dividends.
10.stick to your plan because its a laid plan that you yourself created
These might not sound like much but knowing will, even in a small way help the
modern day heroes how to get the most of an investment and to avoid some problem that may
arise, the researchers hopes that even in a small way that the work that we conducted could
Reference
Finance and Accounting Studies. (2022c, January 15). The Effects of Labor Migration and
OFW Remittances on the Level of Poverty in the Philippines | Journal of Economics, Finance
and Accounting Studies. Journal of Economics, Finance and Accounting Studies. Retrieved
https://alkindipublisher.com/index.php/jefas/article/view/2695
Garcia, K.L., Habaña, K. and Canto, D. (no date) The effects of labor migration and OFW
remittances on the level of poverty in the Philippines, Journal of Economics, Finance and
Kagan, J. (2022, September 14). Loan. Investopedia. Retrieved January 9, 2023, from
https://www.investopedia.com/terms/l/loan.asp
Hayes, A. (2022, November 21). Investment Basics explained with types to invest
https://www.investopedia.com/terms/i/investment.asp
Lessandra, L. (2021, August 13). OFW Investment opportunity: Best ways to grow your
opportunities
Why ofws need to seek investment opportunities. Why OFWs Need To Seek
https://www.prulifeuk.com.ph/en/explore-pulse/health-financial-wellness/ofwsneed-
to-seek-investment-opportunities/
Chen, J. (2022, September 27). Risk averse: What it means, investment choices and
https://www.investopedia.com/terms/r/riskaverse.asp
About: BDO Unibank, Inc.. (2014) About | BDO Unibank, Inc. Retrieved from
Top ten tips for first time investors from Strawberry Invest. Strawberry Invest. (2016, February
hub/top-10-tips-for-first-time-investors/