Aggregate remittance cost and diaspora financing of overseas Filipino teachers in the kingdom of Thailand

Abstract

The fundamental of this research is centered on determining the aggregate remittance cost and diaspora inancing of Overseas Filipino Teachers (OFTs) in the Kingdom of Thailand. The Philippines is second to India with the highest total remittances from 1995 -1999(Gammeltoft, 2002. Given the fact that the Philippines ranks second in terms of remittances, the researcher is interested in determining the aggregate cost of sending remittances to the Philippines and propose the most cost-ef icient and cost-effective remittance service provider. This is a related study to the previous research on Working Capital Management Practices of OFTs which was presented in Johor Bahru, Malaysia in 2017. The researcher employed descriptive and comparative research using a mixed method -partly quantitative and qualitative in order to address the statement of the problem. In "descriptive research, it involves collecting information through data review, surveys, interviews, and observation" subjected for a data analysis (Kefela, 2011). The researcher used a survey questionnaire and interview schedule in obtaining information relevant to this study. Primary data were provided by the OFTs who are legally teaching in Thailand for at least one year. There were 120 plus OFTs who were suryveyed and interviewed but only 53 were quali ied respondents because they were out of scope and delimited from this study. Secondary inancial data were also utilized. One of the momentous indings in this study is the signi icant switch of OFTs just recently in terms of their preferred remittance service provider. Ria remittance becomes the most preferred remittance agent of OFTs. Ria, a money transfer company has recently partnered with the Government Savings Bank (GSB) in Thailand. Ria offers a cost savings of more than 50% compared to prominent remittance agents such as the Western Union (WU). Ria and Money Gram both charge ฿150.00 per transaction. However, Ria offers higher exchange rate. The study also revealed that 69.82% of the OFTs have a salary range of ฿20,000 to ฿30,000 and cash remittance ranges from ฿5,000 to ฿15,000 which is 25% of their salary. Policy makers of the Philippine government are encouraged to revisit the current inancial literacy programs concerning OFWs in general. Further study may deal on the threats faced by WU and other remittance agents resulting to the partnership of Ria Remittance with GSB.