Workers' Remittance Flows in Southeast Asia
This report examines remittance fund flow from a regional perspective to understand its trends, as well as to identify policies that can leverage remittance.
To understand the trends, the study looks into a range of issues relevant to donors and development players:
- Migration trends as well as their social and economic features;
- Remittance flows - official and estimated figures;
- Regulatory framework that oversees international worker transfers;
- Marketplace of remittance flows- rules, players, and competition;
- Role of financial intermediation;
- Transnational landscape among remittance senders.
In attempting to identify trends and patterns in regional remittance flows, the report finds that:
- Indonesia, Malaysia, and Philippines are the remittance recipient countries;
- Hong Kong, China, Japan, Malaysia and Singapore are the source of remittance outflow;
- Malaysia is peculiar as it is both a source and a recipient country.
Finally, the study lists the following recommendation and conclusions:
- Existence of differences in regulatory environments among the Southeast Asian countries;
- Requirement of more accurate data collection and analysis to have a better picture of the remittance transfer universe;
- Necessity of studying more closely the sources of informality in the various corridors, and possible strategies for reducing it;
- Need for expanding the availability of banking services to companies employing migrant workers;
- two specific strategies to strengthen the link between financial intermediation and remittances;
- the formation of a regional task force to discuss a development agenda on remittances.