Every night, a loud husky voice pierces through the hustle and bustle of Malaysia’s downtown Penang, calling attention to the struggles faced by migrant workers. Despite an increase in minimum wage, many find themselves grappling with rising living costs, debt, and the burdens of supporting families back home. This article explores the financial struggles of Southeast Asia's migrant workers, highlighting the challenges that accompany their pursuit of better livelihoods.
In February of next year, the Malaysian government will raise the minimum wage to RM1,700 per month. However, this increase comes amid a backdrop of rising costs. Over the last 11 years, food prices have surged between 3 and 7 percent annually. Rent in the Gulf state has also seen an increase, with rates climbing between 5 and 10 percent each year. For many workers, these escalating costs threaten to undermine their financial stability.
The journey to secure employment abroad often begins with significant financial investments. For instance, one migrant worker spent around 20 million rupiah on a two-month training program and lodging at a facility in Indonesia’s Central Java province. Yet, once they arrive in their host countries, many workers find that half of their salary goes toward supporting their parents back home. This leaves them with just enough to cover basic necessities, such as food and transportation, while sharing cramped living spaces with others.
In Hong Kong, the minimum wage has increased from HK$30 (US$3.86) per hour in 2013 to HK$40 this year—a notable rise of 33.3 percent. Despite these increases, the financial reality remains grim for many. In 2022 alone, migrant workers sent home an estimated US$794 billion, according to World Bank figures. Unfortunately, numerous workers fall prey to brokers and intermediaries who inflate the costs of fees, while loan sharks often charge exorbitant interest rates exceeding 100 percent annually.
Kyaw is one such worker who originally came to Malaysia legally from Yangon in 2017. Due to overstaying his work permit, he now finds himself classified as undocumented. The rising costs of living hit undocumented workers particularly hard; they often face exploitation from employers who pay them below minimum wage or withhold salaries for months at a time. As housing rents nearly doubled over the past decade and food prices rose significantly, these workers’ financial situations worsened.
Migrant workers frequently endure long hours and arduous conditions yet struggle to make ends meet. Many families back home remain unaware of the difficulties their loved ones face abroad. "In our training, we tell the migrants that while they can give money to their family, they must also learn to say no," explains Nasrikah Paidin, a trainer for migrant workers.
This sentiment resonates with many like Ari, who shares her experience of hardship: “It’s becoming tougher and tougher. Many have to look for additional jobs outside work to supplement their incomes.” She recalls days where she could afford nothing but instant noodles, sometimes going without food entirely.
For some, the financial strain is accompanied by emotional tolls. Melinda expressed feelings of despair: “I can only cry sometimes to myself and wonder until when I will be here.” Stories like hers echo throughout the community as many continue to struggle under heavy debts and mounting pressures.
Cathy's experience reflects a similar plight; she lamented that all her salary was consumed by repaying debts. “I had to borrow money from friends and families just to feed myself,” she said, illustrating the cycle of financial dependency that many migrant workers endure.
Rebecca Bustamante, a Filipino businesswoman who once worked as a domestic helper in Singapore and a nanny in Canada during the 1980s and 1990s, provided insights into breaking free from these cycles. “Many migrant workers think that they are destined to be nothing more than domestic helpers or blue-collar workers,” she stated. “But if you really want to give yourself a better future, you need to develop yourself, upgrade your skills and set goals.”
Bustamante emphasizes that there is no secret formula for success; it revolves around setting one’s mind on achievable goals and putting in the effort needed to attain them. “There really is no secret. It’s all about setting your mind to achieving a certain goal and putting in the time and effort to achieve it,” she advises aspiring migrant workers.
The stories of Marvin Rimas highlight the cyclical nature of financial struggle among migrant workers. Upon returning home after years of hard work abroad, many are shocked to discover that their bank accounts are empty. “When these migrant workers come back, they are shocked that there is no money left in the bank," Rimas noted. "So they had no choice but to become migrant workers again.”
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