Reference: Arman Hernando, Chairperson, Migrante Philippines, 0932-509-50-54

NEWS RELEASE

OFWs call for immediate scrapping of TRAIN Law:

TRAIN reduces value of monthly OFW remittance by P3,000, reinforces
government use of Filipino migrants as cash cows – Migrante study

Global alliance of overseas Filipinos Migrante International joined calls challenging the
Duterte government to stop the TRAIN-induced price increases saying that the new taxation
scheme “hits the OFWs and families hard” because it reduces the value of OFW remittances
while the government gains more income from TRAIN-related new fees imposed on OFWs
and their families.

Based on their recent study, the average OFW monthly remittance of P20,000 will have a
reduction in value of P3,000 because of the decrease in the purchasing power of the peso
due to record-high inflation and currency depreciation. According to government data, the
value of P1.00 is now only 0.85 cents compared to its value in 2012.

Economic analysts revealed that the Philippines registered the fastest inflation rate ever in
nearly a decade. The peso’s depreciation also increased the value of its foreign debts. The
currency sank to its lowest level in 12 years, a massive blow to a country like the Philippines
dependent on imports which are paid in dollar terms.

“Duterte’s TRAIN will force OFWs and their families to tighten their belts further and take on
severe austerity measures to conserve their remittances. Many will be forced to do
overtime and do side jobs to increase their earnings while their families in the Philippines
will have to reduce their spendings or find additional sources of income,” said Arman
Hernando, Chairperson of Migrante Philippines.

According to Migrante, OFWs and applicants looking for overseas work will also suffer the
brunt of increased fees of government-issued certificates, particularly those issued by the
Philippine Statistics Administration (PSA) and the National Bureau of Investigation (NBI)
which are essential documents for overseas employment. PSA and NBI imposed their new
schedule of fees due to TRAIN last February 2 and March 12 accordingly increasing their
charges by P15.
Migrante’s study also revealed that the Duterte administration, from OFWs alone, will
generate P9 billion annually from the increased rate of the documentary stamp tax and at
least P100 million every year from the increased charges for birth certificate, NBI clearance,
CENOMAR and various other clearances.

According to Migrante, the new tax impositions and price hikes will reinforce the
longstanding government practice of exploiting OFWs as their cash cows. “For sure, the
Duterte administration is salivating from the wealth that they will amass from OFWs and
their families,” said Hernando.

Hernando also maintained that “no long-term jobs will be generated since these projects
will bring in Chinese laborers at the behest of Chinese private contractors and lenders. It will
only induce more resentment from our large local labor pool at a time when the Philippines
has already cemented its position as having the highest unemployment rate in the entire
ASEAN region.”

Migrante also named some of the private contractors who will rake in profits from Duterte’s
Build, Build, Build. Among those companies identified are San Miguel Corporation,
Megawide Construction Corporation, Japan International Cooperation Agency, China
National Machinery Industry Corporation and China CAMC Engineering Corporation. The
document also argued that more communities will soon be forcefully evicted and more
farms will be wiped out to give way to the interests of big developers. “Expect more
scenarios like those of Marawi and Boracay,” Hernando warned.

The group joined the petition drive spearheaded by the STOP Train Network and initiated a
sign-up campaign at the Philippine Overseas Employment Administration. Their
preparations are now in full swing as they gear to join next week’s United People’s SONA to
protest against what it calls “Duterte’s neoliberal and fascist attacks on the people.”

“We can no longer expect the adversary to work on improving social services and spurring
countryside development through genuine agrarian reform since the bulk of the budget
goes to debt-servicing, importation of construction materials for his pro-elite projects such
as the Build, Build, Build. Duterte has already allocated hundreds of billions more from the
national budget to intensify his atrocious wars against the urban poor, peasants, Lumads
and Moros.”

“Sobra na! Tama na! Wakasan na ang TRAIN Law at lahat ng anti-migrante at
anti-mamamayang patakaran ng rehimeng US-Duterte," Hernando stated.

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