BD remittances up, labour markets remain blocked in abroad
Business Report :
Bangladesh’s remittance inflow remains strong for now, but experts warn of potential challenges ahead as several traditional labor markets remain closed and new requirements make it harder for expatriates to work abroad.
At least nine major destinations for Bangladeshi workers, including the UAE and Malaysia, are still closed for recruitment.
Meanwhile, Saudi Arabia, the largest labor market for Bangladeshis, has introduced new skill certification requirements, complicating the process for workers.
Saudi Arabia’s New Requirements
8.13 lakh workers sent abroad between January and September this year, 67.7per cent went to Saudi Arabia.
However, all workers now need a “Takamul” certificate, which proves they have passed a skills test. Previously, general laborers such as cleaners did not need the test.
The certification costs about $50 (around Tk 6,100) per worker and involves a long and complicated appointment and processing system, which many workers and recruiting agents say is burdensome.
Workers also face challenges after arrival, including problems with residence permits, job assignments, and salaries, creating uncertainty and anxiety.
Closed Markets and Limited Progress
Markets like the UAE, Malaysia, and Oman were shut down during the previous government due to corruption allegations and irregularities.
Despite over a year passing since the change in government, none of these markets have reopened.
Stakeholders say discussions with the UAE and Malaysia have been ongoing, but there is no clear timeline for reopening.
Japan Cell Falls Short
The government has set a target to send 100,000 workers to Japan over five years. A special “Japan Cell” was formed to facilitate this, including expanding skill-test sectors and signing agreements with Japanese organizations.
However, in the first nine months, only 962 workers were sent, and 62 recruiting agencies failed to send any workers. The ministry has asked these agencies to explain their failure.
Uncertainty in Malaysia
Last year, 17,000 workers could not go to Malaysia. Of them, 8,000 have been shortlisted for recruitment this year through BOESL, a state-owned recruitment company.
These workers are to be employed in construction and tourism. The process involves training, interviews, medical tests, and demand letters from Malaysian employers.
Stakeholders’ Concerns
Experts say Bangladesh needs more expatriates each year to sustain economic growth. However, the slowdown in recruitment and the closure of key markets could create long-term problems for the remittance sector.
Former BAIRA official Mohammad Fakhrul Islam has urged the government to personally intervene, strengthen diplomatic engagement, and ensure efficient staff are appointed to open new labor markets.