In Southeast Asia, remittances are among the driving factors for countries’ gross domestic product (GDP) figures. 

When migrant workers send part of their earnings home, the ripple effect sustains families and communities, keeping stoves lit, groceries bought and children in school.

Governments often celebrate these workers as “modern-day heroes.” 

In Indonesia, they are known as *pahlawan devisa, *or “foreign exchange heroes.”

Yet while the money provides stability for households, it also reveals how dependent many regional economies have become on income earned abroad. 

Remittances Numbers in Southeast Asia

In the Philippines, remittances sent by Overseas Filipino Workers (OFWs) reached USD 38.34 billion in 2024 — about 8.3 per cent of GDP, one of the highest shares globally. 

Among cash remittances, the United States accounted for roughly 41 per cent, making it the largest single source.

The story of Filipino migrants in the States dates back decades (as early as the 1900s), when the Philippines was an American colony and many Filipinos moved for education and work, especially after the Second World War.

Because of this long migration history, the US has one of the largest Filipino diasporas in the world, with more than 4 million people of Filipino descent, many of whom still send money to parents or relatives back home.

Indonesia, Southeast Asia’s most populous nation, recorded USD 16.04 billion in remittance in 2024, roughly 1.15 per cent of its GDP.

Vietnam followed closely with roughly USD 16 billion, while Thailand received nearly USD 10 billion during the same period, according to World Bank Data.

Not all remittances pass through official systems. Many migrant workers continue to send money through friends, travelers, or informal networks such as *hawala *and hundi, meaning the true total is likely higher than what is recorded. 

The Rise of Digital Remittances

These remittances move across the globe through a maze of systems. Traditional bank transfers remain common, but digital wallets and mobile apps have transformed how money moves across borders.

Platforms like GCash, Wise, and Western Union’s digital services allow workers to transfer funds instantly, while newer digital banks such as Revolut offer better exchange rates than traditional options. 

A 2025 Visa survey found that 74 per cent of Filipino senders now use digital remittance apps, and 66 per cent of Filipino receivers rely on the same. 

Across the Asia-Pacific region, over 70 per cent of respondents said digital apps are their preferred channel for sending or receiving money.

But convenience comes with a cost. 

The World Bank’s Remittance Prices Worldwide report shows that sending USD 200 costs an average of 6 per cent in fees. 

For millions of migrant workers, those fees can translate into billions in lost household income globally each year. 

A Fragile Economy

Globally, the total value of remittances reached about USD 905 billion in 2024, according to World Bank figures, with USD 685 billion coming from middle- to low-income economies. 

At least 60 countries that record remittances equal to 3 per cent or more of their GDP, which includes Southeast Asian nations like the Philippines, Cambodia, and Vietnam.

Such dependence can be both a sign of resilience and vulnerability. 

The higher the share of remittances in a country’s GDP, the more it suggests that many citizens must seek work abroad. 

Exchange rate swings can quickly change the value of what families receive in local currency. Economic downturns or tightening immigration policies in host countries can slow the flow of money home. 

When so much of national income depends on external labour markets, it can blunt domestic urgency to create better jobs at home or address structural weaknesses that push workers to leave in the first place. 

Shifting from Survival to Sustainability

Governments across the region are beginning to realise that remittances cannot serve as a permanent pillar of growth. 

Several initiatives aim to convert short-term inflows into longer-term investment. 

In the Philippines, the state-run Overseas Filipino Bank, allows overseas workers to invest in government bonds directly from abroad. 

In Indonesia, banks such as BRI and Mandiri provide special savings accounts and small-business loans for returning migrant workers, encouraging them to use remittance earnings to start businesses at home. 

Still, such measures can only succeed if domestic economies generate quality jobs and accessible credit.