Workers’ or migrant remittances occur when migrants return home a portion of their earnings in the form of cash or products to assist their families. They have grown quickly in recent years and are now the primary source of foreign revenue for many emerging nations. The actual quantity of remittance movements is difficult to ascertain because many take place through unauthorised routes. Remittances are not only significant but are also spread more equitably across emerging economies than capital flows, including foreign direct investment. But you must be thinking about why you should try remittance services, Singapore. So, let’s find out.
Why is it important?
- Remittance flows have increased fivefold in value over the previous 20 years. These flows frequently have a counter-cyclical function and are sustained in recipient nations after severe shocks.
- One billion individuals, or one in every seven persons in the world, are involved in remittances, either sending or receiving them. These flows help one in every seven persons on the planet or around 800 million people in total.
- Remittances account for more than 4% of the GDP in more than 70 nations. Remittances are a driving force behind the country’s socio-economic prosperity.
- The use of digital technologies by migrant workers and their families is one of the key reasons for the continual flow of official remittances reaching the last mile. Online and mobile digitalization proved to be a driver and facilitator of remittance flows.
- Over half of all remittances are transferred to rural homes, which contain 75% of the world’s impoverished and food-insecure people. Rural families rely on these flows to improve their livelihoods, build resilience, and meet their own SDGs.
- Approximately 75% of remittances are used to put food on the table and support medical, school, or housing needs. During a crisis, migrant workers may send extra money home to compensate for agricultural losses or family difficulties. Around 25% of remittances, or more than $100 billion each year, maybe saved or invested in asset creation or activities that produce income and jobs and alter economies, particularly in rural regions.
Migrants contribute significantly to the Sustainable Development Goals through remittances and investments. They help to eradicate poverty, promote zero hunger, excellent health, quality education, clean water and sanitation, decent employment and economic growth and decrease disparities. Their contribution to development through remittances and investments is also acknowledged in Goal 20 of the Global Compact on Safe, Orderly, and Regular Migration, which was endorsed by the United Nations General Assembly in December 2018. I hope you can see many reasons to try remittance services Singapore.