Overseas remittance less of a flood than depicted

By TRIBUNE STAFF REPORTERS

Despite the perception that money flows out of the CNMI in a deluge of remittances by its nonresident workers, a large part of the salaries and wages being earned by these workers actually stay in the Commonwealth and circulate within the economy in the form of savings, consumer purchases, rentals, and other expenses.

Sisi Chen, a hairdresser, said she sends money to her family in China only once or twice a year, mostly on special occasions. Chen, who has been on Saipan for 12 years, said she does not make enough to be able to remit money on a regular basis.

Mali Pongtaisong, a waitress at Wild Bill’s Bar and Restaurant, also said she sends financial support to her family in Thailand, but only whatever amount she can spare.

“Only sometimes, if I have some extra money,” said Pongtaisong, who has been working on Saipan for eight years.

According to remittance centers, guest workers remit an average of $400 to $500 a month to their relatives abroad—representing a little over half of what they earn.

PNB Foreign Exchange, a leading remittance company to the Philippines, said customers’ remittance reflects about 60 percent of their net income.

MIXED DATA

Many customers usually bring their paychecks directly to PNB every pay period. They remit $150 to $250 every pay period. These are the people who earn a monthly salary of $500 to $1,200.

“Some are giving almost everything of their pay, but the average remittance is about 60 percent of their net income,” said PNB manager Con Pobre.

He said there are some who remit huge amounts of money but not frequently.

PNB has about 5,000 clients who send money to their families in the Philippines.

APEX corporate secretary Aracelli Lizama, meantime, said that contract workers usually send small amounts of money—$100 to $200—but frequently, which is every pay period.

“It’s a small amount but we have customers who remit almost the entire paycheck. I’d say that on average, most of them send home 80 percent of their net income,” said Lizama.

APEX has been operating on Saipan for 17 years now.

Malou Berueco, the manager of Micronesian Money Exchange, which has been operating since 1991, said the remittance amount varies.

“For those getting minimum wage, they remit about $150 per pay period,” she said, adding that some people send a bigger amount but not as often as most workers.

NO REMITTANCES

Most nonresident workers who have families on island do not send out money unless they have to—for family emergencies or special occasions. This means that most of their money is spent in the CNMI.

Many Bangladeshi nationals do not remit money back home because they have families in the CNMI. Majority of them married locals and operate taxicabs. Much as they want to help their parents, the bad economy prevents them from sending money.

But for those who don’t have families in the CNMI, they have been sending money, but not on monthly basis. This is so mainly due to expensive remittance charges and other factors. They instead remit money every three to five months to their parents or families.

There are an estimated 800 to 1,000 Bangladeshis on Saipan, Tinian, and Rota. About half of them have families in the CNMI and mostly hold Immediate Relative status. Majority of those having IR status have ventured into the taxi business.

Those who didn’t get married in the Commonwealth are working as security guards, garment factory workers, construction workers, and other jobs.

DEPENDENT ON WAGE LEVEL

A president of a leading remittance center in the CNMI said remittances depend on the salaries of the workers. Most Filipino workers send more regularly at an average of $200 per payday or $400 a month.

Elisa Salcedo, a Filipino houseworker since 1990, said she has been sending money to her family twice a month, ranging from $100 to $150 monthly—almost half of what she earns in a month.

Corey Borja, who is married to a local and works as a manager at R&C Saipan, said she sends half of her salary every month to the Philippines, while Malou Malasarte, a housewife, remits more than $100 every month, less than a fourth of what her household earns monthly.

Chinese workers, on the other hand, send their money on a quarterly basis, said a remittance center president, who requested anonymity. He said Chinese workers send an average of $7,000 on a quarterly basis.

“The Chinese are the biggest senders but not as frequently as Filipinos,” he said.

Zhi Rui Kai, a waitress at Guangzhou Restaurant, said she does not send money back home in China. Rather, she keeps her money in the bank and withdraws her savings when she goes on vacation. The intervals between her trips home are not regular, ranging from six months to two years. Zhi and her husband have two children: a 14-year-old born in China and a seven-year-old born on Saipan.

Most Chinese in the CNMI work at garment factories earning $3.05 an hour. They work an average of 50 hours a week, including an overtime of 10 hours.

There are some 10,000 garment workers in the CNMI, whose wages amount to approximately $10 million a month or $120 million a year.

Filipino workers, who are found in almost all offices in the private sector, remit an average of $200 to $250 per pay period.

Violeta Centeno, an assistant manager at the Perfect Setting, said she remits at least $500 a month, almost 50 percent of what she is earning. Rio Laniyo, meanwhile, sends $200 every 15th and 30th of each month, saying that almost nothing is left for her.

There are nearly 20,000 Filipino workers in the CNMI.

Fijians likewise send consistently to their families back home, said the remittance company official.

A number of Fijians work as midwives at the Commonwealth Health Center.

$114M REMITTANCES IN 2005

Data from the Department of Commerce showed that remittances or money that flowed out of the CNMI totaled $114 million in 2005.

America Joint-Partner Corp., cornered $22.6 million of this, or 20 percent of the market, while Western Union received $17.7 million or 15 percent.

Other top remitters in 2005 were LBC Mabuhay, with 11 percent or $12.9 million; PNB Corp. and Rustan’s Foreign Exchange, 10 percent each or $11.5 million and $11.8 million, respectively; Apex Remittance, 8 percent or $8.7 million; Universal Group Dev. Inc. and Xiong Wai Company, 6 percent or $7.4 million each; and PQ Corp., 5 percent or $5.8 million.

Other remittance centers posted a 2 percent and below market share.

The CNMI has some 40,000 nonresident workers—mostly Filipinos and Chinese.

Other workers are from Bangladesh, Nepal, Pakistan, India, Thailand, Russia, Japan, and Korea.

BAD ECONOMY

Many IR Bangladeshis claimed that because of the bad economy, actually those who are married here are earning much than them. The lives of their families in Bangladesh are also getting better.

MD. Mostafa Kamal, 37, came to Saipan as a construction worker in 1995. In 2004, he married a local. He eventually became a taxi owner-driver stationed at Hyatt Regency Hotel.

Kamal has no children. He and his wife spend $300 a month for food and housing. Sometimes he sends money to his brother, but not every month.

“If my father or my brother called and asked for money, I sent $500 and sometimes $100,” Kamal said.

He explained that most Bangladeshis who don’t have families here keep the money and send once or twice a year because the charge is expensive.

The remittance charge is $15 to $16. One U.S. dollar is equivalent to 70 Taka, he said.

Ataur Rahman, 31, has been on Saipan for 10 years now. He used to work as an electrician, poker attendant, and garment worker. After he married a local resident in 2001, he started a taxi business and has been stationed at Duty Free Shoppers in Garapan.

Rahman wants to send money to his parents back home, but cannot afford to because his earnings are not even enough to support his wife, son, and himself.

He said for the last six years he only managed to send $600 to his parents.

Md. Shahidul Hassan, 58, has been a security guard since 1995. He has been employed with Norita Security Agency since 2002. He has no family here. He is assigned at Joeten Hafa Adai in Garapan earning $300 to $400 a month.

He said he sends money only once in a while and not much because the money might not be spent wisely by his family.

Hassan said for this month he sent $1,400 and the last was in September 2005 when he remitted $1,000.