SATURDAY 7 FEBRUARY 2015KENT RIDGE GUILD HALL NATIONAL UNIVERSITY OF SINGAPORE
©2015 ASKI Global Ltd 352 Tanglin Road #01-04 Strathmore Block Tanglin International Centre Singapore 247671 Tel: (65) 6474 6627 www.askiglobal.com.sg ISBN XXX-XXXX-XX-XXX-X (Paper) All rights reserved. This book, or parts thereof, may not be
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Contents
The Forum Organiser ------------------------------------------------- 1
The Forum Lead Partner --------------------------------------------- 1
The Forum Local Host ------------------------------------------------- 1
The Forum Sponsors -------------------------------------------------- 2
The Forum Supporting Partners ------------------------------------- 3
A. Summary --------------------------------------------------------- 5
B. Background ------------------------------------------------------ 6
C. Opening Session ------------------------------------------------ 9
D. Plenary Sessions
Session 1. Leveraging Remittances for Development ------ 13
Session 2. Financial Capability and Technology ----------- 17
Session 3. Crossborder Microfinancing ---------------------- 20
Session 4. Encouraging Social Entrepreneurship for an
Inclusive Future ------------------------------------------------- 24
E. Closing Session ------------------------------------------------ 27
Appendix
The Forum Organiser
ASKI Global Limited is a non-stock, non-profit organisation that is
focused on the betterment of foreign worker communities in
Singapore. This is achieved through back-to-back coaching and
training of migrant workers as well as their families on
entrepreneurship and financial literacy. To date, the organisation has
trained over 2,000 migrant workers from countries such as the
Philippines, Indonesia, Malaysia and Sri Lanka. For more information,
visit www.askiglobal.com.sg.
The Forum Lead Partner
The Citi Foundation works to promote economic progress in
communities around the world and focuses on initiatives that expand
financial inclusion. We collaborate with best-in-class partners to
create measurable economic improvements that strengthen low-
income families and communities. Through a “More than Philanthropy”
approach, Citi’s business resources and human capital enhance our
philanthropic investments and impact. For more information, visit
www.citifoundation.com.
The Forum Local Host
Chua Thian Poh Community Leadership Programme aims to develop
Singapore’s next generation of community leaders. Each year, a
small number of NUS undergraduates, majoring in various disciplines,
will be admitted into the CTPCLP as fellows. These future leaders will
not only be intellectually engaged in social and community issues,
they will also have the opportunity to work hand in hand with our
partnering social service organizations, social enterprises and
government agencies to address social and community challenges in
Singapore. They will be tomorrow’s change makers, driven by a
sense of true calling to mobilize the community to collectively solve
social problems. For more information, visit www.ctpclp.nus.edu.sg.
The Forum Sponsors
ASKI Global Limited is a non-stock, non-profit organisation that is
focused on the betterment of foreign worker communities in
Singapore. This is achieved through back-to-back coaching and
training of migrant workers as well as their families on
entrepreneurship and financial literacy. To date, the organisation has
trained over 2,000 migrant workers from countries such as the
Philippines, Indonesia, Malaysia and Sri Lanka. For more information,
visit www.askiglobal.com.sg.
Land Bank of the Philippines is a bank that promises to help their
clients grow. Not only concerned with profits, we are about growing
a nation and its people from the ground up. We are about
sustainable development, preserving the environment, empowering
the countryside, and helping farmers, fishers and small entrepreneurs.
LandBank believes the only way to succeed is by growing together.
For more information, visit www.landbank.com.
BPI Foundation is committed to the welfare and sustainability of the
communities we serve. As the Bank of the Philippine Islands’ (BPI)
social development arm, we aim to uplift the social and economic
well-being of the Filipino people. We focus our corporate social
1 2
responsibility efforts on the three areas where we can achieve the
greatest impact: promoting financial inclusion and economic
empowerment through Education and Entrepreneurship and
advancing Environmental sustainability. Our mission is to provide
programmes that promote financial wellness and economic
empowerment. For more information, visit www.bpifoundation.org.
Philippines Airlines (PAL) began life with a noble mission: to serve as
a partner in nation-building. With this in mind, PAL took to the skies
on 15 March 1941, using a Beech Model 18 aircraft amid the
spectre of a global war. It became Asia's first airline. Since then, PAL
deeply involved itself in shaping the course of historic events. With its
every take-off and touchdown, PAL planted the seed of growth. PAL
has become one of the most respected airlines around the world with
a young and modern fleet of aircraft and a route network that spans
35 foreign cities and 29 domestic points. For more information, visit
www.philippineairlines.com.
The Forum Supporting Partners
Social Enterprise (SE) Association, raiSE, was set up to raise
awareness on social entrepreneurship and raise support for social
enterprises in Singapore. We hope to strengthen the social enterprise
sector in Singapore and encourage the growth of social enterprises
as a sustainable way to address social needs. raiSE provides a
range of services to help social enterprises from start to mature
stages, such as funding, business advisory, training, relevant resources
and networks. We also look to encourage collaboration and sharing
of information between social enterprises and voluntary welfare
organisations. raiSE welcomes the support of corporations and
individuals who would like to contribute or play a role in social
enterprise sector. For more information, visit www.raise.sg.
AIDHA believes in ‘sustainable futures through financial education’ and
that every woman should have the opportunity and choice to
determine her own future. To achieve this goal, we provide a holistic
training programme that includes money management, computer
literacy, leadership and entrepreneurial skills. With these skills, our
students can choose to open businesses of their own or invest in
productive assets like livestock and land in their home countries.
These opportunities enable them to break the cycle of poverty. With
every Aidha student sharing her skills with her family and friends, a
whole community benefits, making the multiplier effect of our
financial literacy programme huge and life-changing. For more
information, visit www.aidha.org.
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A. Summary
The inaugural Inclusive Development and Migration Forum, entitled
“Migrant Empowerment Through Financial and Entrepreneurial
Capabilities” was organized by ASKI Global with Citi Foundation
as lead partner and the National University of Singapore - Chua
Thian Poh Community Leadership Programme as local host. It was
held on 07 February 2015 at the National University of Singapore.
Through this strong support and partnership with Citi Foundation,
there is a platform for Financial Education practitioners and
stakeholders like government agencies, the academe and formal
financial institutions to come together to discuss and share best
practices and challenges on microfinance, financial education,
remittance and social entrepreneurship that can potentially
improve the lives of workers and their families in their home
country. Representatives from Citi Foundation were also involved
in the forum as participants and speakers.
The Forum brought together policy makers, industry thought leaders
and practitioners from across Asia Pacific to discuss financial
inclusion and the economic empowerment of migrant workers and
their families. As a venue for regional collaboration, it sought to
showcase existing initiatives in the field to help widen
understanding, and clarify issues and opportunities that can drive
stakeholders to take effective response towards harnessing the
potentials of migration players for inclusive development.
The Forum identified four development platforms to explore and
encourage coordinated response among concerned stakeholders.
These are:
Leveraging Remittances for Development
Financial Capability and Technology
Crossborder Microfinancing
Encouraging Social Entrepreneurship for an Inclusive
Future
B. Background
"Eradicating extreme poverty continues to be one of the main challenges of our time, and is a major concern of the international community. Ending this scourge will require the combined efforts of all, governments, civil society organizations and the private sector, in the context of a stronger and more effective global partnership for development. The Millennium Development Goals set time bound targets, by which progress in reducing income poverty, hunger, disease, lack of adequate shelter and exclusion can be measured…The Goals are ambitious but feasible and, together with the comprehensive United Nations development agenda, set the course for the world’s efforts to alleviate extreme poverty by 2015. "
United Nations Secretary-General BAN Ki-moon
The Millenium Development Goals (MDG), of which 189 countries
have pledged to, provided the backdrop and framework for
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inclusive development from 2000-2015. Upholding the principles
of human dignity, equality and equity at the global level, the global
community is all too aware of the big challenge it is confronted
with—a globalization trend where “benefits are very unevenly
shared, while costs are unevenly distributed” 1.
Post -2015 MDG agenda, we continue to face the challenge of
poverty and the relevance of inclusive development. “The poverty
situation prevails, as manifested by the widening gap between the
rich and poor, despite economic growth. It has even worsened
through occurrences of extreme weather disturbances, and natural
and social disasters.”2
A new sustainable development agenda is being framed by the
United Nations to guide policy and funding for the next 15 years.
Migration—by its global scale and wide reach estimated to surpass
250 million migrants in 2015 that regularly remit funds projected
to collectively hit US$454 billion, has much to contribute in the
pursuit for inclusive development. Foremost among its offerings
include possibilities to provide “financing to the implementation of
post-2015 development goals…Migration and remittances can be
leveraged to raise development financing via reducing remittance
costs, lowering recruitment costs for low-skilled migrant workers,
and mobilizing diaspora savings and diaspora philanthropic
contributions. Remittances can also be used as collateral, through
1 The United Nations Millennium Declaration 2 Migration, Social Entrepreneurship and Sustainable Development: Some Notes, Prof. Marie Lisa Dacanay, February 2015
future-flow securitization, to facilitate international borrowings with
possibly lower costs and longer maturities. And they can facilitate
access to international capital markets by improving sovereign
ratings and debt sustainability of recipient countries.”3
Individually, migrant workers can actively build their productive
assets and capacities to establish/ support and improve livelihoods
in their home towns. As migrant-financed enterprises create local
jobs and make jobs more widely available, overseas employment
could become more of a choice than a necessity for people.
3 World Bank Migration and Development Brief 24, April 13, 2015
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C. Opening Session
Guests, speakers and delegates were welcomed to the Forum by
Associate Professor Albert Chu-Ying Teo, Director of the Chua Thian
Poh Community Leadership Programme of National University of
Singapore and Board of Director of ASKI Global Ltd., and Ms. Hsiu-
Yi Lin, Citi Commercial Bank Head for Singapore. Mr. Gil S. Beltran,
Under Secretary of the Department of Finance of the Philippines,
gave the keynote speech.
Albert Chu-Ying Teo provided the context to the forum by turning
on the spotlight to the migrant workers. He cited latest statistics on
migrant population and volume of remittances flowing to
developing countries as a way to highlight the huge potential of
migration – with migrant workers and their families as active
stakeholders, to boost inclusive development. He invited the
delegates to a productive dialogue to explore ways to support and
enable migrant workers build-up their financial and
entrepreneurial capabilities. Mr. Teo alluded to empowered
migrants as vital to development as he posed a question-cum-
challenge to the delegates, “Now, as we move forward from
Millennium Development Goals to Sustainable Development Goals, the
question all of us should ponder on is: ‘how do you unlock the potential
of remittances and channel these funds to support sustainable and
inclusive development?”
Hsiu-Yi Lin elaborated on the huge potential of migration as a
global phenomenon that “continues to grow in scope, complexity and
impact”. She highlighted the significant role of Asia Pacific region
to migration which accounted for 30 million migrants in 2013 (13%
of the global migrant population) with three Asian countries- India,
China, and the Philippines, listed as top 3 recipient countries of
migrant remittances in 2014. Amidst the large and increasing
amounts of remittances flowing across borders, she pointed out
untapped opportunities that limit the impact of migration to
development. One such opportunity relates to the use of
remittances. She cited an ILO study which found that less than 10%
of remittances being used for savings and productive investments.
This could imply either unavailability of appropriate financial
products or lack of access to financial products among migrant
workers. This could also indicate weak financial literacy for many
migrant workers and their families. “Citi and Citi Foundation place a
strong emphasis on financial inclusion, which may be achieved by
providing financial access as well as enabling financial
capability...This Forum is a continuation of our partnership with ASKI
Global, which started with the Citi-ASKI Overseas Workers Financial
Stability Program to help equip migrant workers in Singapore with
the knowledge and skills to build assets and achieve their short and
long-term financial goals.”
9 10
Gil S. Beltran, in his keynote speech presented the experience of
the Philippines at making good use of remittances, i.e. for the
country’s development, and in protecting the welfare of Filipino
migrant workers and their families. He strongly affirmed the
contribution of remittances to the country, stating that “these surges
of remittances have played a vital role in the economy --- reversing
the boom-and bust cycle which has characterized our growth during
the last decade. It led to the national savings rate rising above
domestic investment rate, thus allowing the country to graduate from
IMF support programs that have been there for five decades. It has
led to the accumulation of foreign reserves of the country. It
strengthened balance of payments and bolstered the country’s current
account position, enabling the country to withstand the volatilities of
the world economy. …Remittances have led to an enlarged middle
class, creating an expanding market for goods and services.”
Mr. Beltran highlighted the importance of building strategic
alliances to broaden the scope and impact of development. He
cited the productive partnership between the Philippine
Government and the private sector in the implementation of a
comprehensive program to build the capacity of migrant workers
and their families in increased productive use of remittances. The
program strongly advocates for mobilization of savings and
investing in financial instruments and local enterprises. It covers a
financial learning campaign complemented by access to a range
of products specially developed for migrant workers and their
remittances. Financial instruments fit three categories: 1) human
resource capital investment (pension, health insurance, life
insurance, pre-need plans for children’s education, etc., 2) physical
capital investment (land purchase, home construction, etc.) and 3)
financial capital investment (bonds, other financial instruments,
enterprise credit). On the micro insurance campaign alone, 702,000
migrant workers have benefited from insurance coverage.
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D. Plenary Sessions
Session 1. Leveraging Remittances for Development
How do we reduce the transaction costs of remittances? (A reduction in
the cost of remittance services would generate a net increase in income for
migrants and their families in the developing world, estimated at US$15
billion.4) How can remittances be directed towards increasing savings
and investment levels of migrant workers and their families? These
were some of the questions and issues that Session 1 explored and
discussed.
4 Payment Systems Development Group of WB
http://siteresources.worldbank.org/INTECA/Resources/June2ECARemittance.pd
f
Imelda M. Nicolas initially provided an overview of the state of
international migration, remittances and development in Asia. She then
went on to share the Philippine experience from the unique perspective
of a government institution created primarily for Filipino international
migrants. She pointed out the positive development in the remittances
with the reduction of average cost of remittance services in East Asia and
Pacific to 9% in 2014. She likewise shared the good news with the so-
called diaspora savings which showed an increasing trend in East Asia
and Pacific from 2009-2012. The Philippine case is one where
partnership with migrant workers in nation building is integrated in the
country’s development plan. This ensured the provision of appropriate
policies, structures and resources to move the agenda forward. At the
policy level for instance, a Remittance for Development Council is created
to serve as a forum for regular dialogue on remittance issues. At the
operational level, activities are in place to advocate and lobby for
support to migration and development efforts at the local level. Other
activities being pursued include the pooling of development funds among
migrants and allies, financial literacy, and making information widely
Presenters:
- Secretary Imelda M. Nicolas, Chairperson, Commission on Filipino Overseas
- Mr. Pedro De Vasconcelos, Manager, Financing Facility for
Remittances, International Fund for Agricultural Development (IFAD)
- Ms. Leila Rispens-Noel, Director and Co-Founder, WIMLER Foundation Hong Kong
Moderator: Mr. Peter Harkin, Chief Finance Officer, Fastacash
13 14
available through a one-stop online portal. “All these help create the
enabling environment for the mobilization of diaspora investments,
encouraging returned migrants and their families left behind to undertake
business and livelihood activities, philanthropy and volunteerism for local
development.”
Pedro De Vasconcelos focused his talk on strategic approaches and
operational considerations to better leverage remittances for greater
development impact and to break the cycle of migration dependency.
Affirming the positive trend reflected in a decreasing remittance cost,
down to a global average cost of around 8%, he was quick to point out
that such low costs are still not realized in other areas, especially in rural
areas of least development countries where costs still range from 14-20%
on average. He enumerated four challenges to overcome: access,
competition and intermediation, regulation, and investment in technology.
To respond to these challenges, Mr. Vasconcelos shared the five strategic
approaches identified by United Nations- G20 that involve pursuit of
efficiency, effectiveness, innovation, financial inclusion and impact. He
also presented IFAD’s 4-step operational approach to achieve scale:
advocacy and policy, market strengthening (includes innovation and
technology), financial inclusion (covers financial literacy), and investment
promotion (mechanisms and opportunities).
Leila Rispens-Noel presented a study which gave a financial and
remittance profile of 300 Filipino migrant workers in Hong Kong. It
showed nearly 30% of the sample with no savings habit and where most
of the remittances still go to cover basic needs of migrant families. From
years of direct engagement with migrant workers through provision of
capacity building training and networking support, she affirmed the value
of financial literacy to support migrants’ in their pursuit of migration goals.
She stressed that “financial literacy by itself is not enough” and strongly
advocated for availability of a wide-range of financial support and an
enabling “environment for migrants to start businesses”. She particularly
recognized the role that microfinance institutions can play to provide the
varied capacity building and resource requirements of migrant workers.
At the Open Forum, the discussion focused on ways to further bring down
the remittance cost which has remained in many countries above the 5x5
objective of 2009 (from 10% remittance cost to 5% in 5 years). Cited
among the barriers are the high cost of compliance to regulatory
requirements that have been put in place to mitigate risks such as money
laundering, and low priority accorded to migrant workers’ issues by some
destination countries. Among the enablers cited are availability of
technology such as use of mobile phones in financial transactions,
increasing number of service providers that help drive costs down, and
increasing transparency and accountability by some governments that
commit to the 5x5 objective.
The issue of ‘last mile’ was also discussed which brought center stage to
the need to bring the cost down not only in the urban centers but more
importantly, in the rural and remote areas. Especially meaningful to
migrant workers, the ‘last mile’ may also be interpreted as long-term
sustainability, which is their final reason to come home where a secure
and thriving family business awaits the migrant worker.
15 16
Session 2. Financial Capability and Technology
How do we build-up the financial capability of migrants and their
families? What are best practices and lessons in pursuit of financially
literate and capable migrant workers? How has technology been
harnessed to build financial capability? These were some of the
questions and issues that Session 2 explored and discussed.
Karen Fernandez presented Aidha’s program and impact with migrant
workers based in Singapore. Financial literacy, computer skills, leadership
and entrepreneurship skills classes are the regular interventions provided
to migrant worker-students coming from Philippines, Indonesia, Myanmar,
Sri Lanka and India. Aidha graduates have been noted to spread the
knowledge where 9 in 10 have reported to teaching their family and
community of what they have learnt. Other results from education include:
4 in 10 start business, 7 in 10 invest in land, livestock and buildings, and
8 in 10 start saving money. The latter result is considered a substantial
visible change seen among the migrants. Due to a preference for a
relational and interactive type of communication by migrant workers,
Aida found the impact of technology to be only used to communicate with
family members back home and SMS system to disseminate updates to
the migrant workers. However, it is not significant to the delivery of their
services where “email is not a medium of choice [by migrant workers], nor
website as a main source of information, and where the mobile app for
remittance has little take up.”
Dr. Rashmi Barua talked about several research projects that looked at
the effect of financial education involving a variety of samples (Indonesia,
India, foreign domestic workers in Singapore, etc.) and type of migrants-
international (from one country to another in search of employment and
higher income) and internal (from rural to urban to earn money). Results
were variable and non-conclusive due to limited sample—for example,
one study found savings to have declined despite attendance to a 9-
month financial education class, while another study found financial
education to have a positive effect on savings. However, the former may
be alluding to the “good-mom hypothesis”, whereby savings decrease
because they would rather invest in their children and tend to spend more
on education. Some key take-aways from the presentation are: “financial
literacy is an important step even if only for improving financial product
awareness and individual attitudes towards making financial decisions”, and
as people are not too keen or are hindered to go for training, “technology
may be important to provide financial education remotely”.
Emily Halsall shared Enrich’s programs with migrant workers in Hong
Kong with focus on experiences and results in the use of technology. They
Presenters:
- Ms. Karen Fernandez, CEO, Aidha Singapore
- Dr. Rashmi Barua, Assistant Professor, Centre for International
Trade and Development, Jawaharlal Nehru University
- Ms. Emily Halsall, Director of External Relations, Enrich, Hong
Kong
Moderator: Ms. Joanne Yoong, Director, Center for Economic and
Social Research (East), University of Southern California
17 18
found online workshops to be not effective to motivate and engage
migrant worker-students to complete the courses and adequately
understand knowledge shared; the same is true for email blasts and
posting of resources on the website which were underutilized. Traditional
media for teaching is found more effective. Ms. Halsall was quick to point
out that they have not given up on technology and have used it
successfully in the following areas: sending timely and topical messages
via Facebook, conducting impact evaluation and data analytics using
laptops and ipads, and sending reminders about review of savings goals,
for example, through SMS blast. Opportunities abound to develop and
test interactive apps tailor-fitted to migrant workers and their families
such as in planning and monitoring of shared financial goals.
At the Open Forum, the discussion focused on the importance of allocating
time and resources to impact evaluation. The speakers affirmed that it is
not enough to know that migrant workers find value in the training by
paying for it, but that the training has been used to bring about positive
change in their lives. Moreover, it can provide soft and hard measures to
know the relevance of the programs to the migrant-students and to show
accountability to the institutional mission and donors. A call was made for
more substantive studies to assess and increase the effectiveness of
financial literacy to improve lives. How to effectively scale –up the reach
of financial literacy to the larger migrant population – especially to the
extreme poor in the community – using appropriate technology is an issue
that merits attention and resources as well.
Session 3. Crossborder Microfinancing
How do we facilitate crossborder financing—tapping microfinance to
leverage remittances in a way that supports and protects migrants and
their families as they set-up, manage and grow micro enterprises into
small and medium scale? How can financial institutions – bank and
non-bank, and other support institutions provide an enabling
environment for inclusive finance built around the migrant workers,
their families and communities? These were some of the questions and
issues that Session 3 explored and discussed.
Presenters:
- Mr. Rolando B. Victoria, Chairman, ASKI Global Ltd., and
Executive Director, ASKI Philippines
- Mr. Mark Daniels, Philippine Country Director, Opportunity
International
- Mr. Alfie Othman, Executive Director, Social Enterprise
Association, Singapore
Moderator: Ms. Aneth Ng-Lim, Director for Public Affairs &
Corporate Citizenship, Citi Philippines
19 20
Rolando Victoria presented a working model that integrates and
leverages remittance and microfinance for productive investments in home
towns of Filipino migrant workers based in Singapore. Starting with a
market study to understand the needs of migrant workers, ASKI
Philippines and ASKI Global came up with the 5S to model design:
stability, security, shared responsibilities with family members, sound
financial decision making, and support system in the home country. ASKI
Global went on to develop and offer training and coaching on financial
literacy and entrepreneurship to migrant workers. ASKI Philippines, on its
part came up with a customized microfinancing product package which
includes loan, savings and micro insurance. The loan is designed to initially
receive payment out of remittances until a specified period of time when
the financed enterprise can generate the needed income to pay for its
operations including loan liabilities. The partnership has reached a loan
portfolio of US$350,000 with increasing demand for the services from a
huge market base of 400,000 Filipino migrant workers in Singapore and
Hong Kong alone. ASKI has set its sights to scaling up which brings along
another set of challenges notably going into partnership with other
microfinance institutions (MFI) operating in geographies beyond the
service areas of ASKI, and developing and using technology to provide
assisted migrants with needed information to track progress of enterprises
back home and be engaged in problem solving and making management
decisions.
Mark Daniels introduced and shared the experience of OK Remit, a
newly –established remittance company that brought together
Opportunity International MFI-partners in the Philippines to launch and
operate a shared remittance service. Tapping the wide network of
branches of MFIs is meant to bring about increased accessibility and more
affordable remittance services, initially, to lower income groups
particularly in rural areas for wider and meaningful financial inclusion.
Mr. Daniels elaborated that “by acting as a remittance pay out centres,
MFIs will be able to track the remittance history of recipients. MFIs can use
this information to assess the payment capacity of remittance recipients and
use it as a basis to extend loans to them. Offering loans to remittance
recipients will help them invest in income generating assets. Over a period
of time, OK Remit’s network of remittance centres can be transformed into
a financial supermarket offering savings, loans, deposit schemes, micro-
insurance products and micro-pension products”. Amidst the opportunities,
he also raised a set of reminders about vulnerabilities that may result
from the interplay of migration and microcredit. Indiscriminate loans
extended to migrants and their families, for example, might generate
“pressures to remit more, spend less or save less”.
Alfie Othman showed the relevance of financial inclusion anywhere in
the world even in a developed economy like Singapore. He shared the
work of his institution which reaches out to disadvantaged Singaporeans
characterized as those who earn less than $30,000 a year and
considered unbankable by local banks, and those who are middle-aged
who find it hard to get jobs. Those who are interested to go into
entrepreneurship—“to make money and do good at the same time”, can
avail of financing and continuing guidance and support. He stressed that
Social Enterprise Association (SEA) is not just concerned in providing access
to microfinance but in developing a long-term relationship with the
entrepreneur, providing support where needed as the entrepreneur
operates within the “entrepreneurial ecosystem”. To elaborate his point,
he shared the story of BMT of Indonesia which has managed to reach
scale of 2.2 million members. The Indonesian model entails a profit
sharing scheme which enjoins a continuing engagement by BMT with the
entrepreneur, long past the release of loans, to help bring financed
enterprises to financial viability and sustainability. He refers to this model
as responsible and communal microfinance. For this model to grow in
Singapore, he sees a big role for advocacy and lobby work to get
concerned stakeholders such as regulators and social investors to actively
21 22
support the development of the social entrepreneurial ecosystem. He
highlighted the pressing need to reach out to the unbanked. If the
remittance recipient does not have a bank account, are there ways to
enable money transfer and crossborder microfinancing? Innovative
partnerships involving telecommunication companies and financial
institutions were suggested, with much room for improvement in terms of
access to new financial products and services for the migrant community
and their families.
At the Open Forum, the discussion focused on the issues and challenges
to bring about a productive interplay of remittance and microfinance for
long-lasting impact and widespread reduction of poverty in communities.
One of the issues highlighted is the prevailing phenomenon of the ‘missing
middle’ comprising small and medium scale entrepreneurs in poor
communities. The speakers admitted that the number of micro enterprises
transitioning to small and medium scale is yet too few. Studies show that
most of the income from financed micro enterprises are still used for
consumption smoothing such as provide food, education for the children,
housing, pay for utilities, buy household assets, and cover medical care.
The ability of customers and service providers to fill-up the ‘missing
middle’ entrepreneurs where savings and productive investments can be
generated, may just provide the boost to fuel community development
and transformation in a sustained manner.
This session further emphasized a holistic and systematic approach that
must be adopted for cross border microfinancing, anchored on migrants
and their families becoming social and small-medium scale entrepreneurs
in their home countries, to effect inclusive and sustainable growth. Ideas
did not stop at the development of the entrepreneurial ecosystem for the
entrepreneur; another idea presented involved the development of the
entrepreneurial mindset at an early age of the population through the
inclusion of entrepreneurship in the high school curriculum.
Session 4. Encouraging Social Entrepreneurship for an Inclusive Future
What is social entrepreneurship and how can it support and strengthen
migration for sustainable and inclusive development? How do we
engage and empower migrant workers and their families as
stakeholders in social entrepreneurship? These were some of the
questions and issues that Session 4 explored and discussed.
Marie Lisa Dacanay presented several ways to look at and appreciate
social entrepreneurship (SE). In terms of philosophy, SE adopts a
“distributive enterprise philosophy that involves wealth creation and its
Presenters:
-Professor Marie Lisa Dacanay, President, Institute for Social
Entrepreneurship in Asia
- Ms. Anna de Chavez, Investment Manager, Peace & Equity
Holdings, Inc., Philippines
Moderator: Mr. Kevin Teo, Managing Director, Asian Venture
Philanthropy Network, Singapore
23 23
24
distribution to the poor” where the surplus or profit may be distributed as
dividends, used to support services for the poor, or invested to fulfil a
social mission. From a strategic perspective, SE offers “innovative solutions
to social problems” with products, services and processes in place that are
meant to improve the poor’s well-being and where the poor actively
participate as actors in their own development. SEs may take three forms:
1) social mission driven organisations that explicitly pursue poverty
reduction objectives, 2) wealth creating organizations engaged in
provision of goods and services adopting a double or triple bottom line
(social, financial and environmental), and 3) distributive philosophy
enterprises that distribute surplus to benefit the poor as primary
stakeholders. These SE elements that revolve around the poor as primary
stakeholders and active agents of their own development make SE stand
out as a key “strategy for sustainable development”.
She shared the initiative of 13 Asian countries that have come together
and issued a SEAL Asia Conference Declaration 2014 to build a vibrant
SE sector in the region in support of the post -2015 development agenda.
Follow-up activities entail lobby efforts for state incentives to support SE
growth. Mobilization of SE development fund from the migrants for
match-up by the private sector is also being explored.
Professor Dacanay states that social enterprises particularly in
developing countries where poverty and equality are stark realities,
needs to be more specific in their products and services. Not only do we
need to focus on social enterprises as a whole, but we also need to
appreciate Social Enterprises with the Poor as Primary Stakeholders
(SEPPS) so as to address the poverty and inequality in developing or
migrant-sending countries.
She went on to offer two possible ways for involve migrant workers to be
active SE stakeholders: 1) support SEs that address rights and welfare
issues of migrant workers and their families (for example, enrol in
capacity building courses) and 2) invest in SEs such as establish and
manage own SE or become a social investor to existing SEs.
Anna de Chavez shared the work of Peace and Equity Foundation in
supporting the growth of competitive and inclusive SEs. This involves
putting a lot of effort in capacity building to make SEs investment-ready.
Their experiences with 56 SEs have shown that while attaining success as
a typical entrepreneur is a big challenge, becoming a successful social
entrepreneur is a bigger challenge. One has to contend with double or
triple bottom lines and employ pro-poor strategies and processes in
producing social goods. In the works is the establishment of a Social
Enterprise Academy that will build SE capacities on three areas:
leadership, governance, and business /technical operations and
management. Graduates will be nurtured in an entrepreneurial culture
that encourages innovation and commitment to the pursuit of sustainable
social impact. Ms. De Chavez and PEF support the vision of migrant
workers as social entrepreneurs or as investors to SEs.
At the Open Forum, further discussion was made to expand the concept
of inclusive development to that of sustainable and inclusive development
with the adoption of SE as the development strategy. Doing business for
SEs is not just about social inclusion but also about social equity (for
example between gender), and where economic growth goes hand in
hand with quality (for example improving conditions of employees) and
integrity in use of natural resources. Since SE goals entail soft measures
on social impact such as improving well-being or empowerment, speakers
stressed the need to devote time and resources to SE impact assessment.
Disseminating good results of SEs is one way to widen understanding and
recognition of the importance of SEs. Such understanding is crucial to bring
SE at the global agenda for sustainable and inclusive development, and
from which, much needed support may be drawn.
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E. Closing Session
A synthesis of ideas, issues and initiatives presented and discussed at the
Forum was given by Mr. Eduardo Jimenez, former Regional Associate,
Alliance for Financial Inclusion. To pave the way forward and in answer
to the question of how to unlock the huge potential of migrant workers to
support sustainable and inclusive development, the following cross-cutting
points were raised:
1. Invest in Research and Development -Evidence based research to assess impact and transformation -Appropriate technology to make products and services cheaper,
faster, and better -Consumer rights and effective delivery of messages to drive action
2. Lobby to Strengthen the Environment for Increased Participation by the Private Sector and Migrants -State incentives to make formal remittance channels more attractive, operate or invest in a social enterprise, etc. -Appropriate policies to encourage innovation, consumer protection,
risk mitigation, scale-up -Financing for development, i.e. explore options of diaspora bonds to mobilize additional external finance for developmental projects with high social returns such as infrastructure
3. Reinforce coordination across stakeholders who engage in programs
and activities for migrant workers and their families -Regular dialogue among stakeholders to address issues, share and learn from best practices and failed interventions, and explore partnerships -Regional collaboration possibly under the ASEAN economic
integration platform
4. Scale-Up Outreach of Appropriate Products and Services -Financial Inclusion -Financial Literacy/Capability
-Entrepreneurship/Social Entrepreneurship Education
5. Deliver Holistic Development Packages to Migrants and their Families -Financial literacy with entrepreneurship education, microfinance, and sustained support -Social entrepreneurship education with investment, and sustained support.
Master of ceremonies, Ms. May Garlitos, thanked all the guests, speakers
and delegates for their presence and active participation.
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Appendix: Programme Outline
SATURDAY 7 FEBRUARY 2015
TIME ACTIVITY
8:00 AM Registration
9:00 AM
Opening Address
Associate Professor Albert Chu-Ying Teo, Director, Chua Thian Poh Community Leadership Programme, National University of Singapore
Hsiu-Yi Lin, Head of Citi Commercial Bank, Citi Singapore
9:20 AM
Keynote Speech
Mr. Gil S. Beltran, Undersecretary, Department of Finance, Philippines
10:00 AM Tea Break
10:30 AM
Plenary Session 1: Leveraging Remittances for Development
Moderator: Mr. Peter Harkin, Chief Financial Officer, fastacash, Singapore
Speakers:
1. Secretary Imelda M. Nicolas, Commission on Filipinos Overseas
2. Mr. Pedro De Vasconcelos, Manager, Financing Facility for Remittances, International Fund for Agricultural Development
3. Ms. Leila Rispens-Noel, Director and Co-Founder, WIMLER Foundation Hong Kong
11:30 AM Lunch and Networking
12:30 PM
Plenary Session 2: Financial Capability and Technology
Moderator: Ms. Joanne Su-Yin Yoong, Director, Center for Economic and Social Research (East), University of Southern California
Speakers:
1. Ms. Karen Fernandez, Chief Executive Officer, Aidha, Singapore
2. Assistant Professor Rashmi Barua, Centre for International Trade & Development, Jawaharlal Nehru University, India
3. Ms. Emily Halsall, Director of External Relations, Enrich, Hong Kong
1:30 PM
Plenary Session 3: Crossborder Microfinancing
Moderator: Ms. Aneth Ng-Lim, Director for Public Affairs & Corporate Citizenship, Citi Philippines
Speakers:
1. Mr. Rolando B. Victoria, Executive Director, ASKI Philippines
2. Mr. Mark Daniels, Regional Director, Opportunity International Australia
3. Mr. Alfie Othman, Executive Director, Social Enterprise Association, Singapore
2:30 PM Tea Break
3:00 PM
Plenary Session 4: Encouraging Social Entrepreneurship for an Inclusive Future
Moderator: Mr. Kevin Teo, Managing Director, Asian Venture Philanthropy Network, Singapore
Speakers:
1. Ms. Anna de Chavez, Investment Manager, Peace & Equity Holdings, Philippines
2. Professor Marie Lisa M. Dacanay, President, Institute for Social Entrepreneurship in Asia
4:00 PM
Synthesis and Closing Remarks
Mr. Eduardo Jimenez, Former Regional Associate, Alliance for Financial Inclusion
4:30 PM Networking