Why Do Migrant Workers Intend to Extend Their Stay in Host Countries? The Case of Bangladeshi Workers in Malaysia's Manufacturing Sector

Abstract

This article explores various factors resulting in temporary migrant workers' decisions to extend their stay in host countries by means of a case study of Bangladeshi factory workers in Malaysia. The employment mediation and passage fees paid to brokers and agents by Bangladeshi workers are very large compared with general living standards in Bangladesh. These large sums are increasing steadily as the number of persons desiring to work overseas increases. Malpractice by brokers and agents causes Bangladeshi workers to overestimate the amount of remittances they can send home, and hence they pay higher mediation and passage fees to brokers or agents. From a humanitarian point of view, the Government should strictly regulate the activities of agents and brokers and provide accurate information to those who plan to work in Malaysia. Statistical analysis suggests that the lower real remittances fall below the expected amounts, and the lower real wages are, compared with passage and mediation fees, the more will Bangladeshi workers wish to extend their stay. These facts imply that if future Bangladeshi migrant workers to Malaysia have the correct information about income levels and living expenses in Malaysia, and hence mediation and passage fees become cheaper, the likelihood of their intending to extend their stays will be much lower.