Remittances can be defined as the monies migrants workers send back to their native countries, usually with friends or family members as the recipients. With over 200 million people living and working outside their homelands, regular transferences of even small amounts of money (and in some cases, of course, highly significant amounts) adds up to stunning monetary figures. Official statistics compiled by the World Bank put the total flow of global remittances at US$300 billion in the year 2006, with the International Fund for Agricultural Development (IFAD) estimating an even more impressive US$401 billion.
Mainland China is the third highest receiver of remittances in the world. Hong Kong, with an immigrant stock of nearly 3 million (42.6% of the total population), also sees a significant amount of remittances activity. However, much of Hong Kong’s remittance activity flows in an outward direction—i.e., is sent by overseas workers in Hong Kong who are sending funds to their home countries, most often other Asian Pacific countries. It has been said, in fact, that remittances from Hong Kong are largely responsible for fueling the economy of the Philippines. Inflows, however, are also significant. All-in-all, 2006 figures fall out as follows:
- inward remittance flows: US$297 million
- outward remittance flows: US$365 million
Currently, remittance services are offered throughout Hong Kong, primarily through mainstream financial institutions. HSBC widely advertizes its remittance program, as do the Bank of the Philippines and the Bank of China. Most banks, however, charge high fees for remittances and/or require senders and receivers to open accounts at the participating institutions.
Given Hong Kong’s status as a high-tech city with major telecommunication penetration, this is a situation that has a great potential for remedy through more innovative remittance programs using ebank and card-based remittance programs. |
