NMI sees entry of another remittance firm

While the prevailing economic slowdown persistently makes almost all business sectors in the Northern Marianas frown, the money-transfer industry continues to indicate growth as manifested by the entry of yet another remittance company on Saipan.

Winfield Corporation began accepting remittance transactions from a good slice of the Filipino community on Saipan in the third quarter of the year, sending close to $350,000 in total greenback to the Philippines in its first three months of operation.

Entry of Winfield Corp. into the money-transfer sector brought to 13 the total number of remittance companies serving about 40,000 nonresident workers throughout the Northern Marianas, indicating continued growth in the sector.

Of the 13 remittance companies in the CNMI, at least 10 exclusively cater to Filipino workers who comprise almost half of the total population of nonresidents in the Northern Marianas.

In August, U.S.-based UniTeller commenced remittance operations between Saipan and the Philippines, making it the ninth company in the roster of existing money-transfer companies providing services to the Filipino community on the islands.

Of these 10 remittance companies, however, Asia Pacific Corporation has yet to start operations although it has already secured its permit to do business since the beginning of the year, according to the Banking and Insurance Division of the commerce department.

Remittance companies serving Filipino workers that are presently in active operations include Conor Express, Micronesia International Jewelry, LBC Mabuhay, Limco Corporation, Pinoy Express, PNB Corporation, Rustan’s Foreign Exchange, UniTeller and Winfield.

Two companies — Far East Financial Company and Universal Group Development Inc. — exclusively serve the Chinese community while Thai workers course their remittances through Thailand Food Store.

About 40,000 foreign workers in the Northern Marianas send a portion of their earnings to families and relatives back home, making the CNMI a paradise to remittance or money-transfer companies which mostly cater to Filipino and Chinese contract workers.

In fact, the volume of remittance transactions by nonresidents in the Northern Marianas reached more than $50 million in the first three quarters of the year, jumping by over 18 percent in comparison with last year of the same period’s $45.190 million.

Remittances to Thailand totaled $733,507 while those sent out by thousands of workers from the People’s Republic of China, who are mostly concentrated in the apparel manufacturing industry, reached $17 million from January to September 2000.

This represents a 53-percent increase from the year ago’s $11 million, which commerce officials attribute to the celebration of the Chinese Golden New Year in February this year.

During the second quarter of the year, remittances by Chinese workers went up by 39 percent from $3.8 million in calendar year 1999 to $5.3 million.

However, Filipinos continue to hold the largest market in the CNMI’s foreign exchange sector as they sent out more than $36 million in total greenback to the Philippines in the first nine months of the year.

Remittances to the Philippines soared five percent this year from the first three quarters of 1999’s total of about $34 million, according to the Quarterly Remittance Report prepared by Jesse Palacios of the commerce department’s Banking Division.

Business analysts said the escalating value of the United States dollar against the Philippine peso is driving Filipino workers to remittance centers to apparently take advantage of their earnings’ stronger buying power when sent to their families back home.

The Commonwealth’s flourishing money-transfer industry is characterized by an exciting trend — when a company folds up, a new establishment contiguously emerges.

Commerce officials attribute the entry of new players in the money industry to the volume of remittances to the Philippines and mainland China, which has been manifesting steady increase each year.