Business Day

Myanmar’s coup cuts off remittance lifeline

• Migrants’ families struggle to survive after sending money home becomes a problem

- Beh Lih Yi and Nanchanok Wongsamuth /Thomson

Since arriving in Thailand a few years ago, Myanmar migrant worker Own Mar Shwe had been sending money home every month for her family to buy food and medicine. That has come to an abrupt halt.

Like millions of Myanmar migrants who work abroad and send their earnings back home to dependants, the February 1 coup has cut a lifeline for her family, with bank and remittance services heavily disrupted.

“I’m concerned about how my family will get through each day,” Own Mar Shwe said by phone from Samut Sakhon, a Thai seafood hub south of the capital, Bangkok.

She usually sends 6,000 baht ($200) a month from working at a shrimp market, paying a broker who uses Wave Money, a digital payment service, to transfer the money to stores in Myanmar where her relatives pick up the payments.

She has not been able to do so since the military ousted the elected government of Nobel laureate Aung San Suu Kyi a month ago, imposing internet curbs and prompting mass street protests and workers’ strikes across Myanmar.

“I don’t know what to do,” said the mother of three, expressing worries for her 76-year-old mother, who is sick and relies on remittance­s to buy medicine.

More than 4-million Myanmar migrants from a population of about 54-million work overseas in industries ranging from manufactur­ing and agricultur­e to domestic work, UN data shows. Their top two destinatio­ns are Thailand and Malaysia.

Many of them are the breadwinne­rs for their families, sending back remittance­s that amounted to $2.4bn in 2019, or more than 3% of the country’s GDP, World Bank figures show.

Hundreds of thousands of people have rallied across Myanmar since the coup, with at least 31 people killed.

Many businesses have been closing to show support for the anti-coup movement or allowing their employees to attend protests during work hours. Bank services are irregular, with some branches closed, others reducing operations and limiting withdrawal­s.

The disruption­s have led to a number of banks and financial firms abroad suspending their money transfer services to Myanmar or advising clients to put the transfer plan on hold, citing potential delays.

A check with a branch of Thailand’s Kasikornba­nk in Bangkok as well as the Western Union and Internatio­nal Money Transfer outlets in the Malaysian capital, Kuala Lumpur, confirmed this. Another Thai bank, Siam Commercial Bank, said its transfer service was still up and running.

Western Union, the world’s largest money transfer firm, has said it “cannot provide a definitive time frame” on when its service to Myanmar might resume, according to a post on its website on February 19.

“Remittance­s are hugely important to keep families going in countries of origin,” said Nicola Piper, a professor of internatio­nal migration at the Queen Mary University of London, who studies Asian labour migration.

“The current situation, the combined Covid-19 and political crisis, would most likely have a huge impact on the livelihood­s of families left behind.”

 ?? /Reuters/File ?? Payment pending: Siam Commercial Bank in Bangkok, Thailand, says its transfer service is still running. However, other money transfer outlets have suspended their service.
/Reuters/File Payment pending: Siam Commercial Bank in Bangkok, Thailand, says its transfer service is still running. However, other money transfer outlets have suspended their service.

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