Factories and Oil fields: Asian Migrants exploit opportunities all over the world

From the Gulf to Malaysia, between prosperity and precarity: Asia’s Migration networks fuel economies all around the world.

Almost unnoticed by Western observers, Asian economies are becoming increasingly interconnected. While Western media mainly focus on high-tech countries such as Japan, South Korea, and China, migration networks and financial flows (“remittances”) are also emerging, stretching from the USA through Malaysia and Singapore to Saudi Arabia and Qatar. Along these routes, goods, people, and jobs move, forming cross-border labor markets.

A Distinctive Feature of Asia: Many countries in Asia are simultaneously countries of origin and destination for migration. For several states, remittances have become the most important source of foreign currency. Today, an estimated 85 billion US dollars circulate within the region-a sum that far exceeds foreign direct investment. Small Pacific island states like Kiribati, Tonga, or Samoa are particularly dependent on these remittances. 

In East Asia and the Pacific, remittances serve as an anchor of financial stability. Development aid plays little role, and foreign investment fluctuates significantly, rarely offering financial security. At the same time, images of exploitative sweatshops remain etched in the minds of the global public.

The Largest Countries of Origin: India, China, and More

The populous states of Asia are among the world’s most significant countries of origin for migrants. Indians (19 million abroad) and Chinese (11 million) have established global networks. 

The so-called “bamboo network” of Chinese migrants consists of family businesses and entrepreneurs living outside China but maintaining close ties to their homeland. In Malaysia, ethnic Chinese make up as much as 25 percent of the population and wield considerable economic influence. Other Chinese communities can be found in nearly all major cities across the region.

Indian migrants leveraged connections to the British Commonwealth, built businesses in former colonies, and are now present in politics and business in the United Kingdom. 

Classic labor migrants also come from the Philippines, Bangladesh, Pakistan, Indonesia, Vietnam, and Myanmar. Nepalese often work in the hospitality industry or even as mercenaries in the Russian army. Filipinos, whose country was once a US colony, work on US military bases or as seafarers on ships.

Refugee movements also shape Asia. Iran has taken in 3.7 million Afghan refugees, and Pakistan about 2 million. In Bangladesh, around one million Rohingya from Myanmar have found refuge.

The largest recipients of remittances are located in Asia.

Malaysia: A New Home for Migrants

Highly skilled migrants primarily work in the IT sector or in healthcare in the USA, Australia, Japan, Singapore, and the Middle East. Less skilled workers usually find jobs in construction, factories, agriculture, or as domestic helpers. Women often work abroad as caregivers or domestic workers.

Malaysia has experienced significant development in recent years. Alongside Thailand and Indonesia, it has become an important production hub in the region. Singapore, in particular, has relocated labor-intensive activities to Malaysia, creating many jobs for migrants.

Malaysia is highly integrated into the global economy, with an export ratio of 40 percent. The country is considered stable, offers a business-friendly environment, attractive taxes, and legal certainty. The infrastructure is well developed, and the cost of living is low. Malaysia is multiethnic and multilingual, making it easier for migrants from the region-such as Chinese and Indians-to settle in.

Like Thailand and Indonesia, Malaysia’s economy has a strong manufacturing sector, making the country attractive to numerous migrants from the region.

(Source: Weltbank, 2025)

Labour Migration to the Gulf States: Opportunities and Risks

Many Asians are drawn to work in the Gulf States-Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain. These countries primarily offer jobs in construction and the service sector to less-skilled workers. Highly skilled positions are less common among Asian migrants in the region.

Saudi Arabia has become the most important source of remittances after the United States. Each year, approximately 120 billion US dollars flow from Saudi Arabia to migrants’ home countries, with relatively low transfer costs.

These high wages partially compensate for the often very harsh working conditions. Labour rights are severely restricted, working hours are long, and social protection is usually lacking. The economies of the Gulf States and their large construction projects are heavily dependent on oil prices, so a drop in oil prices directly affects migrant workers and their families. As a result, global economic trends have a direct impact on the prosperity of people in Southeast Asia.

A Strong Asian Network

Remittances from East Asia have risen from 10 billion US dollars in 2000 to nearly 100 billion dollars, reflecting broader trends in the world economy. Employment opportunities in the Gulf States are closely tied to oil prices, and export-oriented countries like Malaysia are vulnerable to global crises. 

For example, the US-China trade war has dampened demand for Malaysian electronics, while countries like Thailand have benefited from production shifts out of China, which also influences migration flows. A tourism boom in the Philippines has reduced the urge for Filipinos to migrate, and the World Bank expects only modest growth in remittances to Asia from 2024 onward-even before considering current trade conflicts.

Developments in China remain crucial for many supplier countries, especially as the threat of deflation could flood markets with cheap Chinese products. Some Gulf States have also liberalized family reunification, leading to a decline in remittances.

Migrants are also facing new challenges. Advances in artificial intelligence and robotics threaten to replace many jobs, while wealthy countries are grappling with demographic shortages. Populations in China, Japan, and South Korea are aging rapidly.

Thus, Asian migrants face a wide range of challenges and uncertainties. How they will adapt remains unclear, but so far, they have always found ways to respond.