Southeast Asia’s economy creates both opportunities and challenges for labour migration. People move across borders mainly because of differences in income and job availability, especially between neighbouring countries. Close proximity lowers travel costs and often means shared languages and cultures, which helps migration flow more smoothly. As a result, Singapore and Brunei, classified as high-income countries, along with Malaysia and Thailand, which are upper-middle-income, have become major destinations for migrant workers. Indonesia, also upper-middle-income, is mostly a source country sending workers abroad. Meanwhile, lower-middle-income countries like the Philippines, Myanmar, Cambodia, Laos, and Vietnam send many workers to other countries. Migration patterns vary, with Thai workers moving into Malaysia, but the main hubs remain Thailand, Malaysia, and Singapore, each attracting workers from different countries.
This article reviews labour migration in Southeast Asia and examines policies in the countries that receive migrant workers, as well as regional efforts led by ASEAN. Governments in the region are trying to better manage migration, reduce abuse, and fight forced labour—issues that violate human rights and can lead to trade sanctions. ASEAN aims to integrate skilled labour markets across member states and has recently focused more on protecting and reintegrating low-skilled workers. However, problems remain, especially due to labour brokers who profit from workers and increase their risk of exploitation. The article ends by discussing the challenges and opportunities for improving labour migration in the region.
Economic and demographic factors shape labour migration in Southeast Asia. Higher-income countries tend to have more migrants as a share of their population. From 1990 to 2010, Singapore, Malaysia, and Thailand saw big increases in migrant workers, and since then, these workers have become a stable part of the labour force. Singapore and Brunei rely most heavily on migrant labour because of their wealth and smaller populations. Malaysia and Thailand attract migrants due to better job opportunities and wage differences with neighbouring countries.
Data on labour migration is limited and uneven across countries, partly because collecting reliable data is difficult. The International Labour Organisation (ILO) gathers data from censuses, labour surveys, and work permit records, but undocumented migrants are often missing from official numbers. Some estimates try to fill this gap, but transparency varies. For example, Singapore shares only total migrant numbers without detailed breakdowns. Despite these issues, it’s clear that about nine million migrant workers lived in Singapore, Malaysia, and Thailand in 2019. Migrants make up 3 to 14 percent of the workforce in these countries, depending on how undocumented workers are counted. The Covid-19 pandemic caused a drop in work permits in 2020, but numbers have since recovered.
Women make up a minority of migrants in most countries, except in Vietnam and Singapore, where many women work in domestic and service jobs. In Malaysia, migrant workers are mostly men filling manual, routine, and sometimes dangerous jobs in manufacturing, construction, and agriculture. The main countries sending workers vary: Malaysia’s migrants mostly come from Indonesia, Myanmar, and the Philippines, plus significant numbers from South Asia. Thailand’s migrants mainly come from Myanmar, Cambodia, and Laos. Brunei’s migrant workforce includes Indonesians, Malaysians, and Filipinos.
Geographic closeness plays a major role. Thailand’s porous borders with Cambodia, Laos, and Myanmar lead to informal and sometimes illegal migration, which increases risks for workers. Singapore, Malaysia, and Brunei attract migrants with higher wages, better living conditions, and widespread English use. Shared culture and language also encourage Indonesian workers, especially to Malaysia. However, Indonesia’s growing economy and problems in formal migration channels have reduced the number of Indonesian workers in Malaysia, while irregular migration continues.
Most migrant workers have low education levels and hold low-skilled jobs, especially in Malaysia and Thailand. Over 60 percent of migrants in Malaysia and over 90 percent in Thailand have only basic schooling, much higher than local populations. This leads to big wage gaps, with migrants earning 38 to 45 percent less than locals. Migrants are mostly found in elementary or routine jobs, while non-migrants are more likely to hold skilled or professional roles. Brunei, in contrast, attracts a larger share of high-skilled foreign workers.
Structural and policy factors strongly influence migration flows. Southeast Asian countries are changing economically and demographically, affecting labour supply and demand. In lower-income countries, young populations and few job opportunities push workers to migrate. In Malaysia and Thailand, many low-paying, labour-intensive jobs remain unattractive to locals, creating demand for migrant workers. Advanced economies like Singapore focus more on service jobs, including domestic work.
Policy frameworks vary. Singapore’s small size and strong administration help regulate migrant labour, protecting workers better despite some gaps in wage and social insurance rules. It also attracts high-skilled migrants globally. Malaysia and Thailand have introduced laws to manage migration and fight forced labour, but irregular migration and exploitation persist. Both countries also do not recognize refugees, leaving many asylum seekers vulnerable. Labour brokers play a key role across the region. These intermediaries recruit workers but often charge high fees, trap workers in debt, and expose them to forced labour. Corruption and weak enforcement worsen the problem. Workers may enter legally but become undocumented after losing jobs or fleeing abuse.
ASEAN has worked since the 2000s to coordinate migration policies. The 2007 Cebu Declaration aimed to protect migrant workers and encourage cooperation between sending and receiving countries. However, it excluded undocumented migrants, limiting its impact on irregular migration and trafficking issues. The ASEAN Forum on Migrant Labour brings together governments, activists, and trade unions to discuss worker rights, fair recruitment, and access to justice.
ASEAN’s integration efforts focus mainly on skilled labour. Mutual Recognition Agreements (MRAs) cover professions like engineering, nursing, and tourism, allowing workers to have their qualifications recognized across countries. But implementation has been slow and uneven, with little progress in adding new professions. The ASEAN Qualifications Reference Framework (AQRF) seeks to align education and skill levels regionally, potentially improving worker mobility, but adoption remains limited.
Bilateral agreements between countries are common, but they can create inconsistent standards and strengthen vested interests. Malaysia plans to review its agreements, aiming for more unified and fair migration policies.
Looking ahead, ASEAN faces several challenges. The goal of freer movement for skilled workers remains distant, especially amid global economic uncertainty and growing focus on protecting domestic jobs. Malaysia is promoting skills development in 2025 to build a stronger workforce. The AQRF could help facilitate skilled migration if it gains traction.
Better regional standards are needed to prevent countries from competing by exploiting workers. Geographic closeness and shared culture will continue to support migration flows, especially from Myanmar, Cambodia, and Laos to Thailand. The political crisis in Myanmar has increased irregular migration, worsening worker conditions. Strengthening legal protections, reducing migration costs, and improving data collection are key priorities.
Ending exploitative labour brokerage systems would be a major step forward. Though difficult, countries with strong diplomatic and economic ties have a better chance to reform recruitment. ASEAN’s plan to set guidelines against forced labour could mark important progress. Whether this momentum will rise under Malaysia’s leadership in 2025 remains to be seen.
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