Malaysia-Indonesia Remittance Corridor Making Formal Transfers the Best Option for Women and Undocumented Migrants

• Main Authors: Hernandez-Coss, Raul, Brown, Gillian, Buchori, Chitrawati, Endo, Isaku, Todoroki, Emiko, Naovalitha, Tita
• Format: eBook Book
• Language: English
• Published: Herndon World Bank Publications 2008; The World Bank; Washington, DC : World Bank
• Edition: 1
• Series: World Bank Working Papers
• Subjects: AMOUNT OF REMITTANCES; ANTI-MONEY LAUNDERING; ANTI-TERRORISM; AVERAGE REMITTANCE; AVERAGE TRANSFER; BALANCE OF PAYMENT; BALANCE OF PAYMENT STATISTICS; BALANCE OF PAYMENTS; BALANCE OF PAYMENTS STATISTICS; BANK ACCOUNTS; BANK FINANCING; BANKING SERVICES; BANKS; BORDER TRANSFERS; CHOICES OF CHANNELS; CITIZENS; CITIZENSHIP; COMPENSATION OF EMPLOYEES; COSTS OF TRANSFERS; COUNTRY OF DESTINATION; COURIER SERVICES; DEPOSIT INSURANCE; DESTINATION COUNTRY; DEVELOPING COUNTRIES; DEVELOPMENT PLANNING; DEVELOPMENT POLICY; DEVELOPMENT POTENTIAL OF REMITTANCES; DEVELOPMENTAL IMPACT; DISSEMINATION; DISTRIBUTION OF REMITTANCES; DUE DILIGENCE REQUIREMENTS; ECONOMIC GROWTH; ECONOMIC IMPLICATIONS; ECONOMIC INDICATORS; ECONOMIC OPPORTUNITY; ECONOMIC TRENDS; ELECTRONIC PAYMENT; ELECTRONIC TRANSFERS; EMPLOYER; EMPLOYMENT OPPORTUNITIES; EXCHANGE RATE; FAMILIES; FAMILY MEMBERS; FEMALE MIGRANTS; FINANCIAL FLOWS; FINANCIAL INSTITUTION; FINANCIAL INSTRUMENTS; FINANCIAL LITERACY; FINANCIAL LITERACY TRAINING; FINANCIAL MARKETS; FINANCIAL PRODUCTS; FINANCIAL SERVICES; FLOW OF MIGRANTS; FLOWS OF REMITTANCES; FOCUS GROUP DISCUSSIONS; FOREIGN DIRECT INVESTMENT; FOREIGN EXCHANGE; FOREIGN EXCHANGE BUREAUS; FOREIGN WORKERS; Foreign workers, Indonesian; FORMAL TRANSFER SYSTEMS; GLOBAL REMITTANCE; GLOBAL REMITTANCES; GOVERNMENT AGENCIES; GROSS DOMESTIC PRODUCT; GROSS NATIONAL INCOME; HEALTH CARE; HIGH LEVELS OF REMITTANCES; HOME AFFAIRS; HOME COUNTRY; HOST COUNTRIES; HOUSEHOLD WELFARE; HUMAN RIGHTS; IDENTIFICATION REQUIREMENTS; ILLEGAL MIGRANTS; ILLEGAL MIGRATION; IMMIGRANT; IMMIGRATION; IMMIGRATION STATUS; IMPACT OF REMITTANCES; IMPORTANCE OF REMITTANCES; INCOMES; Indonesia; INDUSTRIALIZATION; INFORMAL CHANNELS; INFORMAL ECONOMY; INFORMAL FLOWS; INFORMAL REMITTANCE; INFORMAL REMITTANCES; INFORMAL TRANSFER; INFORMAL TRANSFERS; INFORMED CHOICES; INSTITUTIONAL CAPACITY; INTERNATIONAL BANK; INTERNATIONAL MIGRANT; INTERNATIONAL ORGANIZATION FOR MIGRATION; INVESTMENT OF REMITTANCES; ISSUE OF GENDER; JOB-SEEKERS; LABOR FORCE; LABOR SHORTAGES; LANGUAGE PROFICIENCY; LEGAL PROTECTION; LEGAL STATUS; LIVING CONDITIONS; LOAN REPAYMENTS; LOCAL GOVERNMENTS; MACROECONOMIC DEVELOPMENT; Malaysia; MARRIED WOMEN; MIGRANT; MIGRANT FLOWS; Migrant remittances; MIGRANT WORKER; MIGRANT WORKERS; MIGRATION; MIGRATION DATA; MIGRATION PROCESS; MINISTRY OF HEALTH; MONEY REMITTANCES; MONEY TRANSFER; MONEY TRANSFER OPERATORS; MONEY TRANSFERS; MOTHER; NUMBER OF MIGRANTS; OFFICIAL DEVELOPMENT ASSISTANCE; OVERSEAS MIGRANTS; POLICY FORMULATION; POLICY FRAMEWORK; POLITICAL CHANGE; POPULATION GROWTH; POVERTY ALLEVIATION; POVERTY REDUCTION; PREGNANCIES; PRESIDENTIAL DECREE; PUBLIC AWARENESS; PUBLIC KNOWLEDGE; RECIPIENT COUNTRIES; RECIPIENT COUNTRY; REGULATORY FRAMEWORK; REGULATORY FRAMEWORKS; RELIGIOUS INSTITUTIONS; REMITTANCE; REMITTANCE AMOUNT; REMITTANCE CHANNELS; REMITTANCE CORRIDOR; REMITTANCE CORRIDORS; REMITTANCE DATA; REMITTANCE DISTRIBUTION; REMITTANCE FLOWS; REMITTANCE INFLOWS; REMITTANCE MARKET; REMITTANCE OUTFLOWS; REMITTANCE PROCESS; REMITTANCE SENDERS; REMITTANCE SERVICE; REMITTANCE SERVICE PROVIDERS; REMITTANCE SYSTEMS; REMITTANCE TRANSFER; REMITTANCE TRANSFERS; REMITTANCES; ROLE OF GENDER; RURAL AREAS; RURAL BANK; RURAL COMMUNITIES; SAVINGS FROM MIGRATION; SAVINGS INSTRUMENTS; SEND MONEY; SEND MONEY HOME; SERVICE PROVIDERS; SEXUAL ABUSE; SOCIAL DEVELOPMENT; SOCIAL PRESSURE; SOCIAL STATUS; SOCIAL WELFARE; SPECIFIC INCENTIVES; SPONSORS; TECHNICAL ASSISTANCE; TERRORIST; TRANSFER CHANNELS; TRANSFER COSTS; TRANSFER FEES; TRANSFER MECHANISMS; TRANSFER MONEY; TRANSFER OF REMITTANCES; TRANSFER PROCESS; TRANSFER SYSTEMS; TRANSPORTATION; UNDOCUMENTED MIGRANT; UNDOCUMENTED MIGRANTS; UNDOCUMENTED WORKERS; UNION; URBAN AREAS; USE OF REMITTANCES; VULNERABILITY; WORK EXPERIENCE; WORKER REMITTANCES; WORKERS REMITTANCES; WORKFORCE; WORLD POPULATION; East Asia and Pacific; Southeast Asia; Malaysia; Asia; Indonesia; MIGRANT; MIGRATION; REMITTANCE; DISSEMINATION; REMITTANCES; LEGAL STATUS; SERVICE PROVIDERS; UNDOCUMENTED MIGRANT; MIGRANT WORKERS; UNDOCUMENTED MIGRANTS
• ISBN: 0821375776; 9780821375778
• DOI: 10.1596/978-0-8213-7577-8

In Malaysia, Indonesian migrants are showing an increasingly clear preference for informal transfer mechanisms compared to their counterparts in other countries. A little less than half of all Indonesian migrants overseas—thought to be around 2 million—are working in Malaysia. An increasing number of migrants are women, and the corridor is also marked by a high number of undocumented migrants. Despite the increasing flows of migrants, only about 10 percent of the estimated flow of remittances into Indonesia from Malaysia is transferred through the formal system. The extent of the preference for the informal sector is unique in this corridor. Indonesian migrants in other countries are using the formal sector far more than the migrants in Malaysia. In addition, Indonesian women and undocumented migrants in Malaysia especially find formal sector transfers either hard to access or inappropriate for their needs. To this end, the study assists policymakers’ efforts to increase the impact of remittances on economic development and poverty reduction in Indonesia and to investigate options for attracting more migrants to use the formal financial sector. The report provides a descriptive overview of the Malaysia–Indonesia remittance corridor and suggests policy avenues for improving access to formal remittance transfer channels; increasing the transparency of the flows and the cost structure; and facilitating remittance transfers, particularly for undocumented and female migrant workers.