(Naypyidaw, 16th) With Western sanctions and civil war severely impacting official finances, Myanmar’s military government has turned remittances from overseas workers into the largest source of foreign currency for the country through new mandatory remittance regulations.
According to internal data from Myanmar cited by Bloomberg, the country received a total of US$5.6 billion (about RM22.2 billion) in overseas remittances last year, accounting for about 38% of total foreign currency inflow—significantly higher than the US$670 million in 2022.
This surge mainly stems from a new compulsory regulation issued by the military government in 2024: overseas workers are required to remit at least 25% of their personal income through officially designated bank channels. The remittance records are linked to passport renewals and overseas employment eligibility, effectively tying international fund flows to financial institutions connected to the military government, and to some extent filling the gap in external capital caused by sanctions and conflict.
Although the military chief Min Aung Hlaing assumed the presidency last month in an attempt to stabilize an economy battered by civil war, Myanmar’s economic pressures remain heavy: inflation hovers at a high of about 30%, and last year foreign direct investment fell to just US$83 million. Against this backdrop, access to foreign currency is essential for the military government’s continued operation, as the military still needs to pay in US dollars for basic imports such as fuel, medicines, and food.
Verisk Maplecroft's chief Asia analyst, Justin Yu, pointed out that as the authorities continue to face pressures on foreign exchange liquidity and the balance of payments, large amounts of overseas remittances are providing a crucial 'lifeline' to the tightly controlled banking system.
Labor and rights groups say these regulations are enforced through intermediary agencies and embassy networks, with employment agencies often requiring migrant workers to sign regular remittance agreements; if remittances stop, families back home may face pressure from the authorities or intermediaries.
Thai rights activists say Myanmar workers in Thailand are required to remit at least 2,500 baht (about RM308) per month, and sometimes even more than 25% of their wages. Myanmar authorities also levy income taxes on overseas workers.
The banking system is also alleged to profit from the process. Rights activists say banks initially exchanged remittances at rates below the market rate to covertly gain extra profits; while the official rate has recently moved closer to the market rate, easing the losses for workers, these foreign currencies are still funneled into financial systems under official control.
Freeman, a Myanmar researcher at Amnesty International, pointed out that refusing to issue or extend passports on broad national interest or administrative grounds could constitute a violation of personal freedom of movement and the right to earn a living. He called on the authorities to revise or revoke the relevant policies.
The International Labour Organization has also warned that such harsh measures might backfire and push more workers toward illegal, informal remittance channels, thereby weakening regulation and the ability to protect workers’ rights.
Although the military chief Min Aung Hlaing assumed the presidency last month in an attempt to stabilize an economy battered by civil war, Myanmar’s economic pressures remain heavy: inflation hovers at a high of about 30%, and last year foreign direct investment fell to just US$83 million. Against this backdrop, access to foreign currency is essential for the military government’s continued operation, as the military still needs to pay in US dollars for basic imports such as fuel, medicines, and food.
Verisk Maplecroft's chief Asia analyst, Justin Yu, pointed out that as the authorities continue to face pressures on foreign exchange liquidity and the balance of payments, large amounts of overseas remittances are providing a crucial 'lifeline' to the tightly controlled banking system.
Labor and rights groups say these regulations are enforced through intermediary agencies and embassy networks, with employment agencies often requiring migrant workers to sign regular remittance agreements; if remittances stop, families back home may face pressure from the authorities or intermediaries.
Thai rights activists say Myanmar workers in Thailand are required to remit at least 2,500 baht (about RM308) per month, and sometimes even more than 25% of their wages. Myanmar authorities also levy income taxes on overseas workers.
The banking system is also alleged to profit from the process. Rights activists say banks initially exchanged remittances at rates below the market rate to covertly gain extra profits; while the official rate has recently moved closer to the market rate, easing the losses for workers, these foreign currencies are still funneled into financial systems under official control.
Freeman, a Myanmar researcher at Amnesty International, pointed out that refusing to issue or extend passports on broad national interest or administrative grounds could constitute a violation of personal freedom of movement and the right to earn a living. He called on the authorities to revise or revoke the relevant policies.
The International Labour Organization has also warned that such harsh measures might backfire and push more workers toward illegal, informal remittance channels, thereby weakening regulation and the ability to protect workers’ rights.