Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia

Malaysia has been grappling with understanding how many foreign workers reside in the country and thus faces challenges in formulating evidence-based foreign worker policies. This paper uses micro-level remittance transaction data collected from mo...

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Main Authors: Ahmad, Zainab Binti Ali, Simler, Kenneth, Yi, Soonhwa
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/788601595507343857/Using-Remittance-Transaction-Data-for-Timely-Estimation-of-the-Foreign-Worker-Population-in-Malaysia
http://hdl.handle.net/10986/34249
id okr-10986-34249
recordtype oai_dc
spelling okr-10986-342492022-09-20T00:11:57Z Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia Ahmad, Zainab Binti Ali Simler, Kenneth Yi, Soonhwa MIGRATION IMMIGRATION MIGRANT LABOR REMITTANCES FOREIGN WORKERS Malaysia has been grappling with understanding how many foreign workers reside in the country and thus faces challenges in formulating evidence-based foreign worker policies. This paper uses micro-level remittance transaction data collected from money transfer service providers to estimate the number of foreign workers. Most foreign workers remit a large portion of their earnings to support family members back home. They are low-income earners, sensitive to remittance costs, and opt for money transfer service providers to remit money rather than regular banks, where transfer services are more expensive. Therefore, the remittance data provide a useful source to conduct the investigation. Existing estimates range from two million to five million foreign workers; our results narrow that range to between 2.99 million and 3.16 million foreign workers in Malaysia as of 2017-18. The estimated state and nationality distributions of foreign workers are consistent with the Ministry of Home Affairs data, lending support to the validity of the estimates. Nevertheless, the Bank Negara Malaysia remittance data could potentially underestimate the number of workers in states with low access to money service providers and nationalities that have access to alternative money transfer mechanisms such as commercial banking and informal transfer channels. 2020-07-30T14:24:03Z 2020-07-30T14:24:03Z 2020-07 Working Paper http://documents.worldbank.org/curated/en/788601595507343857/Using-Remittance-Transaction-Data-for-Timely-Estimation-of-the-Foreign-Worker-Population-in-Malaysia http://hdl.handle.net/10986/34249 English Policy Research Working Paper, No. 9331 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Malaysia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic MIGRATION
IMMIGRATION
MIGRANT LABOR
REMITTANCES
FOREIGN WORKERS
spellingShingle MIGRATION
IMMIGRATION
MIGRANT LABOR
REMITTANCES
FOREIGN WORKERS
Ahmad, Zainab Binti Ali
Simler, Kenneth
Yi, Soonhwa
Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia
geographic_facet East Asia and Pacific
Malaysia
relation Policy Research Working Paper, No. 9331
description Malaysia has been grappling with understanding how many foreign workers reside in the country and thus faces challenges in formulating evidence-based foreign worker policies. This paper uses micro-level remittance transaction data collected from money transfer service providers to estimate the number of foreign workers. Most foreign workers remit a large portion of their earnings to support family members back home. They are low-income earners, sensitive to remittance costs, and opt for money transfer service providers to remit money rather than regular banks, where transfer services are more expensive. Therefore, the remittance data provide a useful source to conduct the investigation. Existing estimates range from two million to five million foreign workers; our results narrow that range to between 2.99 million and 3.16 million foreign workers in Malaysia as of 2017-18. The estimated state and nationality distributions of foreign workers are consistent with the Ministry of Home Affairs data, lending support to the validity of the estimates. Nevertheless, the Bank Negara Malaysia remittance data could potentially underestimate the number of workers in states with low access to money service providers and nationalities that have access to alternative money transfer mechanisms such as commercial banking and informal transfer channels.
format Working Paper
author Ahmad, Zainab Binti Ali
Simler, Kenneth
Yi, Soonhwa
author_facet Ahmad, Zainab Binti Ali
Simler, Kenneth
Yi, Soonhwa
author_sort Ahmad, Zainab Binti Ali
title Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia
title_short Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia
title_full Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia
title_fullStr Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia
title_full_unstemmed Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia
title_sort using remittance transaction data for timely estimation of the foreign worker population in malaysia
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/788601595507343857/Using-Remittance-Transaction-Data-for-Timely-Estimation-of-the-Foreign-Worker-Population-in-Malaysia
http://hdl.handle.net/10986/34249
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