Filipino household workers, who were repatriated from Kuwait by their government, arrive in Manila in 2018. EPA
Filipino household workers, who were repatriated from Kuwait by their government, arrive in Manila in 2018. EPA
Filipino household workers, who were repatriated from Kuwait by their government, arrive in Manila in 2018. EPA
Filipino household workers, who were repatriated from Kuwait by their government, arrive in Manila in 2018. EPA

Kuwait reverses ban on Philippine workers after row over labour rights


Ismaeel Naar
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Kuwait and the Philippines have reached an agreement to lift a ban imposed by the Gulf state on receiving workers from the East Asian country and to resume issuing tourist and work visas for Filipinos.

The move follows a year-long diplomatic crisis over labour rights.

The latest agreement allows only the recruitment of experienced domestic workers and those who have previously worked abroad.

Kuwait suspended all new visas for citizens of the Philippines last year after relations soured over the murder of domestic worker Jullebee Ranara. After her death, the Philippines prevented first-time workers, especially domestic helpers, from being sent to Kuwait.

The latest bilateral agreement was announced on Monday by Sheikh Fahad Yusuf Al Sabah, First Deputy Prime Minister, Defence Minister and Interior Minister, after meeting Bernard Olalia, Administrator of the Philippine Overseas Employment Administration (Poea) to resolve the issue.

“The two sides agreed to establish a joint technical working committee consisting of competent authorities from the two countries to meet periodically to address employment-related issues and other concerns that may arise in the future,” an Interior Ministry statement said.

In a statement to The National, the Philippines embassy in Kuwait said it welcomed the lifting of the visa ban on Filipino citizens.

Jessica Demafelis, sister of Filipina maid Joanna Demafelis, whose body was found inside a freezer in Kuwait, is distraught as the coffin arrives in Manila in 2018. AFP
Jessica Demafelis, sister of Filipina maid Joanna Demafelis, whose body was found inside a freezer in Kuwait, is distraught as the coffin arrives in Manila in 2018. AFP

“The embassy looks forward to the enhancement of the bilateral relationship between the two friendly countries with forthcoming meetings and discussions that will take up and address the outstanding labour issues and concerns to the satisfaction of both parties and to the mutual benefit of workers and employers,” ambassador Jose A. Cabrera III said.

The Philippines and Kuwait signed a labour agreement to regulate domestic workers in 2018, when a dispute between the two countries led to a two-month diplomatic crisis after the murder of another domestic worker, Joanna Demafelis, whose body was found in a freezer.

In February last year, the Philippines imposed a ban on sending first-time domestic workers to Kuwait in protest over the murder of Ms Ranara after her body was found burnt in the desert. An autopsy conducted by Kuwaiti authorities also found she had been pregnant at the time of her death. The 17-year-old son of her employer was sentenced to 16 years in jail, as a minor.

Ms Ranara's murder came nearly five years after the killing of Joanna Demafelis, the Filipino domestic worker whose body was found in a freezer after she was killed by her employers.

It sparked a diplomatic rift and led then-president Rodrigo Duterte to impose a temporary ban on workers from the Philippines moving to the Gulf country.

Both murders prompted the Philippines' government to review the 2018 agreement.

In 2018, Kuwait said two Filipino embassy staff who appeared in viral videos “rescuing” Filipina domestic workers “were enticing female housemaids of the same nationality to escape from their employers’ households”.

At the time, the review of the agreement angered the Kuwaiti government, which told their Filipino counterparts to “respect its sovereignty”.

Kuwait then listed nine actions by the Philippines embassy it said were in breach of the bilateral labour agreement, including accommodating workers in a private residence or a shelter linked to the embassy.

There are about 270,000 Filipinos in Kuwait, many of them working as domestic helpers. They represent 7 per cent of the total Overseas Filipino Workers (OFW) abroad, most of whom work in Gulf Arab countries such as the UAE and Saudi Arabia.

Of the estimated 1.96 million OFWs in 2022, 1.13 million (57.8 per cent) were female, according to the Philippines Statistics Authority.

According to the Philippine Central Bank, personal remittances from Filipinos abroad reached an all-time high last year due to increasing numbers of overseas workers. Data from the central bank showed personal remittances from overseas Filipino workers amounted to $37.2 billion in 2023, up by 3 per cent from the $36.1 billion in 2022.

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: June 25, 2024, 1:11 PM