KUALA LUMPUR: Easing restrictions on labour migration can boost workers’ welfare and deepen regional economic integration, says a new World Bank report.
Intra-regional migration in ASEAN increased significantly between 1995 and 2015, turning Malaysia, Singapore, and Thailand into regional migration hubs with 6.5 million migrants – 96 percent of the total number of migrant workers in ASEAN, according to the report, entitled Migrating to Opportunity.
Approximately US$62 billion in remittances were sent to ASEAN countries in 2015. Remittances account for 10 percent of GDP in the Philippines, 7 percent in Vietnam, 5 percent in Myanmar, and 3 percent in Cambodia.
Low-skilled, and often undocumented, ASEAN migrants move in search of economic opportunity, mainly in the construction, plantation, and domestic services sectors. Higher-salary jobs are available, yet workers are not always able to take advantage of these opportunities, the World Bank said in a statement.
The ASEAN Economic Community has taken steps to facilitate mobility, but these regulations only cover certain skilled professions — doctors, dentists, nurses, engineers, architects, accountants, and tourism professionals — or just 5 per cent of jobs in the region.
“With the right policy choices, sending countries can reap the economic benefits of out-migration while protecting their citizens who choose to migrate for work. In receiving countries, foreign workers can fill labour shortages and promote sustained economic growth, if migration policies are aligned with their economic needs. Inappropriate policies and ineffective institutions mean that the region is missing opportunities to gain fully from migration,” said Sudhir Shetty, World Bank Chief Economist for the East Asia and Pacific region.