Market Overview of the Money Remittance Market in Southeast Asia (SEA)
The SEA region has high remittance flow, with the latest publication from the World Bank showing that it contributed % or $ billion of the world’s total remittance of $ billion in 2014.
Overall, the SEA region has large inbound remittance, which constituted $56.8 billion or almost% of the total SEA remittance of $ billion in 2014.
Two countries with largest remittance flow in SEA, namely the Philippines and Vietnam collectively contributed to more than half of the region’s total remittance.
In terms of inter-region remittance outflow from SEA, the 3 largest remittance recipients are from Asia-Pacific, while most of the inflow came from North America and the Middle Eastern countries. China and India are the largest recipients of inter-region remittance from the SEA region, as migrants from these two countries fill up domestic jobs in the SEA region. Meanwhile, US is the largest source country for remittance into the SEA region due to a large population of Filipinos and Vietnamese in the country.
Indonesia received the highest remittance from within SEA countries reflecting the high number of Indonesians working abroad in the region. A majority of the Indonesian remittance inflow was from Malaysia and Singapore where many Indonesian are working in due to their proximity.
The top remittance corridors for SEA countries in 2014 are the US—Philippines, US—Vietnam, and UAE—Philippines routes. In terms of intra-region corridor, Malaysia—Indonesia was the largest route in 2014.
The two largest corridors, namely the US—Philippines and US—Vietnam routes are attributed to long-standing ties between these two countries and high migration of Filipinos and Vietnamese to the US since the World War II. The UAE—Philippines route has grown tremendously in recent years, as the economic expansion in the Middle East has led to a high demand for overseas workers in UAE.
About this report
The study outlines the key trends in the migration and remittance market in Southeast Asia. The Philippines and Vietnam together contribute to more than half of the region's remittances. North America and the Middle East are the top regions remitting funds into Southeast Asia, while China and India are the two largest recipients of remittance from Southeast Asia. The market provides attractive opportunities for investors in the near future during the period 2015–2018.
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