CNI News
6 Sept 2022
Service fees for jobs in Thailand, Malaysia and Japan have almost doubled due to appreciation of foreign currencies against the Kyat, overseas employment agencies told the CNI.
As service fees for jobs in Malaysia and Japan are paid in the US dollar, which closed at MMK 3,550 recently, the service fees have almost doubled.
Although service fees for jobs in Thailand can be paid in the Baht, which is also appreciating against the Kyat and recently hit MMK 100 per Baht, service fees for jobs in Thailand have also risen twice as much as before.
Managing Director Daw Myat Hayman Lin told the CNI, “In the past, the Baht exchange rate was about MMK 60. Now, it has risen to MMK 100. Service fees approved by the government of Thailand is Baht 6,000 per person which was MMK 360,000 previously. Now, it has risen to MMK 600,000. As all foregin currencies are appreciating against the Kyat, service fees for jobs in Thailand and Malaysia have risen. Value of foreign currencies depends on their exchange rates against the US dollar. So, all foreign currencies are appreciating against the Kyat. MMK 10,000 is equal to Baht 100 at present. As we have to work resting on exchange rates, it is not convenient for workers as well as our agencies.”
Myanmar citizens preparing to go abroad are seen at the airport. (Getty Image)
Service fees for working in Malaysia and Japan hit MMK 3.2 million per person and MMK 8 million per person respectively.
As workers for Malaysia and Japan are sent by air, they have to pay for their air tickets in the US dollar or the Kyat equivalents of the US dollar.
Currently, it is difficult to buy the US dollar in the market because no one wants to sell the green buck. So, workers are forced to pay for their air tickets in Kyat and suffer exchange rate losses.
Director Ko Nay Oo of Naytic Asia Agency told the CNI, “There is no problem with appreciating foreign currencies. The real problem is the huge gap between the official exchange rate and market exchange rates. As long as the gap exists, we will have problems in buying air tickets and paying service fees. If the official exchange rate and market exchange rates were the same, there would be no problem. The government cannot sell the US dollar to the market. So, it is very difficult to buy the US dollar even if we pay MMK 4,000 for one US dollar. The government sells the US dollar only to those who are close to it.”
Myanmar workers waiting to go to work in Thailand on 25th May, 2022. (Information Sheet)
As Malaysian companies have not sent new demand letters and it takes a long time to work in Japan because it is necessary to study Japanese and only a few jobs in Japan are offered to Myanmar, most workers are jostling for jobs in Thailand.
Daw Myat Hayman Lin told the CNI, “All workers are trying to go to Thailand, which traditionally employs a large number of Myanmar workers without any educational requirements. All Myanmar workers who are strong enough to work can go to Thailand. Moreover, the two countries have land links and share the same nature. It is easy to go to Thailand.”
Although service fees have nearly doubled, there is no shortage of Myanmar workers who want to work abroad, according to overseas employment agencies.
Despite the doubling costs, incomes of Myanmar workers who earn foreign currencies in other countries have risen in terms of the Kyat.
