Economy
Record 1.3m Bangladeshi Workers Go Abroad in 2023, Remittance Growth Sluggish
Bangladesh achieved a record high in sending workers abroad in 2023, surpassing the previous year by 15%, driven by the reopening of the Malaysian market and expanded quotas in Saudi Arabia. The Bureau of Manpower, Employment, and Training (BMET) reported that 1.3 million workers found employment in 137 countries, marking a substantial increase from the 1.135 million recorded in 2022. Notably, remittance growth remained modest, with a mere 3% year-on-year increase in 2023.
The robust surge in Bangladeshi workers migrating overseas showcased a disconnect as remittances stagnated around $22 billion over the last two years. Malaysia, reopening its labor market after a four-year hiatus, emerged as the second-largest employer of Bangladeshi workers globally, following closely behind Saudi Arabia. The increased quota for Bangladeshi workers in Saudi firms, raised from 25% to 40% in 2021, significantly contributed to enhanced hiring opportunities.
Saudi Arabia led in recruiting the highest number of workers in 2023, reaching approximately 498,000, constituting around 38% of Bangladesh’s total foreign employment. The roles primarily included construction workers, cleaners, masons, plumbers, and drivers. Despite the success story, challenges arose as workers, especially in Oman, Saudi Arabia, and Malaysia, faced difficulties due to fake job offers and higher migration costs compared to government-fixed rates.
The remarkable achievement in overseas employment had a positive aspect with a surge in non-traditional destinations. Italy became the largest non-traditional destination, recruiting workers for agriculture, hospitality, and manufacturing. The UK and South Korea also joined as major employers, reflecting a diversification in migration patterns.
The increase in non-traditional destinations contributed to a 22% rise in skilled worker migration, surpassing the 2022 mark. However, unskilled migration continued to dominate, constituting 50% of total foreign jobs. Skilled migration accounted for approximately 25%, with professions such as drivers, caregivers, domestic staff, and hospitality personnel leading the way.
Migration experts and bankers attribute the disparity between overseas employment and remittances to the prevalence of low-skilled occupations, the use of illegal money transfer channels (hundi), and fraudulent job offers. Despite challenges, recruiting agencies emphasized their adherence to legitimate demand, emphasizing the multiple stages of review and verification undertaken before workers are sent abroad.
BMET officials acknowledged the small number of workers facing challenges in securing employment abroad compared to the overall migrant population. The government’s efforts to diversify migration patterns and address discrepancies in remittance growth are anticipated to shape future policies in the overseas employment sector.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
