Sponsored by Global Affairs Canada, a study was done by Statistics Canada on International Money Transfers from Canada in 2017. It showed that Filipinos in Canada transferred a whopping $1.2 billion to friends and family living abroad in 2017. This is more amount of money than any other groups.
The study had 23,000 respondents, comprised of Canadian residents born in Official Development Assistance (ODA)-eligible countries, or low and middle income countries as published by the World Bank. Statistics Canada asked participants these questions:
- Where the recipients live?
- How much money they send them?
- Why they transferred the funds.
Based on the recently published study, the total amount sent abroad reached $5.2 billion in 2017. The top five countries to which Canadian residents transferred money were the Philippines ($1.2 billion), India ($794 million), the United States ($390 million), China ($292 million) and Pakistan ($236 million).
Pinoys sending the most amount of money abroad has been associated to the following reasons:
- The Filipino culture is very family-centered.
- Training and the deployment of young adults to work abroad and send back remittances have been encouraged in the Philippines.
- The Philippines is a top source of immigrants to Canada.
As for why Canadian residents sent money to relatives or friends abroad that year, the majority of the remittances were to help pay for living and medical expenses.
- 59% of remitters sent funds to pay for others’ food, housing, utilities, electricity and heat
- 43% of respondents said the money was for medical costs
- 35% of residents said they sent money as a gift
The study was conducted as part of an effort to reduce the cost of sending money abroad as per the Sustainable Development Goals set by the United Nations. The average amount of transaction fees is 6% of the total amount sent in 2017. Developed countries have committed to reducing transaction costs of to less than 3 per cent of the total amount.
While the transaction costs may be irrelevant for Pinoys when they send remittances home, it will be very beneficial for everyone if the costs will be cut to half. Right Kababayans?
Meanwhile, join our FB groups here for those Filipinos Living in Canada. Buyers and Sellers are welcome to join!