THIRTEENTH CONGRESS OF THE 
First Regular Session 
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REPUBLIC OF THE PHILIPPINES 
I 
-' 
S. No. 
4 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
EXPLANATORY NOTE 
The Filipino overseas workers are aptly called the economic heroes of our times. Indeed, 
the Philippine economy would be very bleak without the support of the Filipino worker who 
toils, separated from his home and country, in his desire to provide a better life for his family. 
The foreign exchange that he sends to the country serves as a life rope to the economy. 
Remittances from abroad when totaled averaged more than $5 billion. However, despite 
the big contribution of the overseas workers to the economy, very few incentives are accorded to 
them. There are very few measures to ensure that the fruits of their labor are safely guarded and 
managed so that eventually they need not be separated from their loved ones anymore in order to 
survive. 
It is a sad but common plight to see overseas workers who, after long periods of working 
away from home, come back to the Philippines with only a few pesos and perhaps a few pieces of 
small appliances to show for their long years of work abroad. 
It is in this light that we are proposing the passage of this Bill which seeks to provide 
investment opportunities and incentives to the overseas workers and their families by allowing 
OCWs and their beneficiaries to purchase participatory stocks from an investment fund that will 
manage their money under a trust arrangement. Under the proposed Bill, the overseas contract 
workers will likewise be given priority in subscribing to government-owned or controlled 
corporations (GOCCs) in a privatization program by mandating that these GOCCs reserve at 
least twenty percent (20%) of their total initial public offering (PO) of shares for overseas 
workers. 
This Bill hits two birds with one stone: first, it enables business to harness an erstwhile 
untapped yet rich source of investment capital; and second, it gives overseas contract workers an 
investment alternative so that they may increase their income and at the same time manage their 
hard-earned money wisely. 


It A high time that we acknowledge the importance and contribution of our new economic 
heroes, not only in words or in plans but in concrete programs. It is for this reason that we seek 
the immediate passing and implementation of the Bill. 
MANUEL B. VI LAR, JR. 
I 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
/ 
S. No. 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN ACT REQUIRING GOVERNMENT-OWNED OR - CONTROLLED 
AT LEAST TWENTY PERCENT (20%) OF THEIR TOTAL INITIAL PUBLIC 
CORPORATIONS (GOCC's) ON THE PRIVATIZATION PROGRAM TO RESERVE 
OFFERING (IPO) OF SHARES TO OVERSEAS WORKERS, AUTHORIZING THE 
OVERSEAS WORKERS INVESTMENT (OWI) FUND UNDER R.A. NO. 7111 TO 
MANAGE AN INVESTMENT FUND PORTFOLIO FOR OVERSEAS WORKERS AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Declaration of Policy - It is hereby declared the policy of the State to protect 
and promote the welfare of the Filipino of overseas workers; to develop ways to encourage them 
to prudently manage their hard-earned income from abroad by providing them with opportunities 
and institutional mechanisms for a healthy return of their savings and investments and by 
educating and enlightening them with presently-available financial tools and opportunities for the 
best returns of their investments. 
SECTION 2. Reserved Shares for Overseas Workers. - Privatized government and 
government-owned corporation (GOCC) are hereby required to reserve at least twenty percent 
(20%) of their initial public offering of shares for subscription to overseas workers: Provided, 
that if such shares are not subscribed within thirty (30 )days from date of formal offer, said 
shares may be offered to the public: Provided, further, That the Board of Directors of 
government-owned or -controlled corporations (GOCCs) to be privatized may extend the period 
of subscription at their discretion: Provided, finally, That the GOCC's may formulate rules 
limiting the number of shares that may be subscribed by an individual overseas worker. 


SECTION 3. Modes of Investment - Investment by overseas workers in privatized 
GOCCs may be in either fo the following investment modes: 
(a) Individual investment- Overseas workers may subscribe or purchase shares directly 
from the GOCCs upon presentation of a certification of eligibility from the Philippine Overseas 
Employment Administration (P OEA). 
(b) Institutional investment - Overseas workers may purchase units of participation from 
an "Investment Fund as created under Republic Act No. 71 11. The Investment Trust Fund may 
be invested in subscription or purchase of shares of stocks of GOCCs, stocks of private 
companies, bonds, treasury bills, commercial papers, common trust funds, treasury shares, 
convertible stocks, and other investment-grade commercial papers. 
SECTION 4. Funding for Investment Trust Fund - Initial funding for the Investment Trust 
Fund shall be sourced from the Overseas Workers Investment (OWI) Fund as provided for under 
Section I1 of Republic Act No. 71 11. Thereafter, the OW1 shall charge reasonable management 
fees to the Investment Trust Fund. 
SECTION 5. Submission of Reports - The overseas Workers Investment (OWI) Fund 
shall issue quarterly reports on the Investment Trust Fund to members on its investment 
performance, portfolio distribution income to date, expenses and other pertinent matters on the 
Investment Fund. The O W  Fund shall likewise submit comprehensive yearly reports to 
Congress. 
SECTION 6. Rules and Regulations - The Overseas Workers Investment Fund shall issue 
pertinent and regulations as the nature, composition, structure and make-up of the Investment 
Trust Fund, its convertibility options, maturity periods, surcharges and other fees for pre- 
termination, and other relevant features of the Investment Trust Fund. 
SECTION 7. Repealing Clause - Any provision of law, decree, order or rules and 
regulation inconsistent with the provision of this Act is hereby repealed or modified accordingly. 
SECTION 8. Separability Clause- If for any reason, any provision of this Act is declared 
invalid or unconstitutional, the remaining provisions not affected thereby shall continue to be in 
full force and effect. 


SECTION 9. Effectivity - This Act shall take effect upon its approval. 
Approved,