Our challenges regarding remittance growth

This slide in remittance has been blamed on lower recruitment of workers for projects in the oil-rich Middle East

It was reported in our media and also by the Bangladesh Bank in the first week of January, 2016 that the flow of inward remittance into Bangladesh had crossed the US$15 billion-mark last calendar year. Bangladeshi expatriate workers have remitted $15.31 billion in 2015, marking a 2.47 per cent growth over that of the previous calendar year. It may be recalled that in 2011, it was $12.16 billion, in 2012- $ 14.17 billion, in 2013- $13.83 billion and in 2014-$ 14.94 billion. It was also stated that Bangladeshi migrant workers in Saudi Arabia, the UAE, Qatar, Oman, Bahrain, Kuwait, Iran and Libya together had sent home $9.072 billion (almost 60 per cent of the total) last fiscal year- an increase of 8 per cent year-on-year. This happened despite lack of depreciation of our local currency against the US Dollar which was in contrast to what was happening in India and Pakistan.
The Bangladesh Bank sources also reported that remittances from Bangladeshi nationals in November and December last year had been $1.14 billion and $ 1.31 billion respectively. It was also pointed out that 34 exchange houses set up 1123 drawing arrangements across the globe to facilitate this process of transfer. The maximum remittance came through private commercial banks. This dynamics has apparently been consistent with a series of measures introduced by the Bangladesh Bank to encourage the expatriate Bangladeshis to send their hard-earned money through the formal banking channel, instead of the illegal ‘hundi’ system.
The Refugee and Migratory Movements Research Unit (RMMRU) in a report published at that time also indicated that 538,667 Bangladeshi workers had gone abroad with jobs till the end of December, 2015. This number was 35 per cent higher than that of 2013.
The remittance figure has however marked a slide since last December, 2015. Figures released by the Bangladesh Bank in the beginning of March pointed out that remittance inflow had reduced in January to $1.15 billion and then to $1.13 billion in February, 2016. This meant that year-on –year, there had been 4.2 per cent lower receipts in February and 7.23 per cent less in January, 2016. Despite this however, the total remittance inflow in the current fiscal year- 2015-16 till the end of February has reached $9.77 billion. This has meant that remittances received for a similar period in 2014-15 was 1.51 per cent higher.
This slide in remittance has been blamed on lower recruitment of workers for lesser projects in the oil-rich Middle East. Low global oil prices appear to have acted as a catalyst within this equation. Two other factors have also played significant roles in reducing the recruitment of workers from Bangladesh and consequently remittance- first the continuing instability and violence that has manifested itself in Iraq, Syria, Lebanon, Libya, Yemen and Tunisia. This dynamics has reduced the possibility of infrastructure development through the construction sector (which normally employed most of the expatriate population). The second element associated with the reduction of remittance in Dollar terms appears to be because of the devaluation of individual currencies against the US Dollar in Australia, the UK, Canada, Singapore and Malaysia.
It would also be interesting to also note here another important statistic that caught the media’s attention at the end of January, 2016. The Ministry of Expatriates Welfare and Overseas Employment reported that over the last seven years (during the administration of the current government), the overseas employment sector had witnessed the departure of 3.432 million workers for work abroad. This included hundreds of thousands of skilled and semi-skilled workers that also included female workers. It was also underlined that these last seven years had seen total remittance to Bangladesh by our expatriate workers crossing $ 92 billion.
Relevant authorities in different branches of our public as well as private sector have been following the evolving scenario within this nationally important sector with care. Efforts are also being taken at different levels to expand and increase the availability of skilled and semi-skilled workers – both male and female. This is being done to replicate what is being done in Sri Lanka, the Philippines and different parts of India.
In this age of globalization, there is growing awareness that vocational training has become a must if we are to continue and compete within this paradigm. The middle class and the upwardly mobile population in the Middle East, Southeast Asia and the Far East will need a growing number of electricians, car mechanics, healthcare workers, plumbers, computer repair mechanics as well as workers adept at mechanized agriculture and pisciculture.  It is this realization that has persuaded our tertiary sector working with expatriate potential to set up 71 vocational training centres and four Institutes of marine technology in different parts of Bangladesh. It is being anticipated that the number of vocational training centers will be expanded at the Upazilla level and will eventually sprout in 400 such administrative units.
In a similar positive vein, the government is also encouraging the setting up of institutions in the major cities where those desiring to go abroad will be able to receive training courses in languages- English, French, German, Italian, Arabic, Persian, Korean, Malaysian, Chinese and Japanese. Some representatives in the private sector are also running centres where training is being provided in – welding, maintenance and repairs of electrical devices, pipe-fitting and rod binding (necessary for the construction sector). Male and female personnel who have already passed their College entrance examinations are also taking special training in medical/nursing centres on how to take care of elderly people who might need healthcare. It has been noted by analysts that there is great scope for employment in this last sector not only in the Middle East but also in different parts of Southeast Asia and the Far East. It has also, very correctly been underlined by then that entering into this sector would require a professional ability to carry out expected healthcare and also ability to speak English.
Those associated with this sector have however drawn the attention of our authorities, very correctly to a disturbing and unacceptable scenario that has been manifesting itself over the last few years within this economy-segment. The Wage Earner’s Welfare Board under the Ministry of Expatriates’ Welfare and Overseas Development towards the end of January, 2016 released the following data pertaining to the receiving of bodies of our expatriate workers in our different international airports after their deaths abroad. In 2005, it was 1248, in 2006- 1402, in 2007- 1673, in 2008- 2098, in 2009- 2315, in 2010- 2560, in 2011- 2585, in 2012- 2878, in 2013- 3076, in 2014- 3335 and in 2015- 3375. It has been noted in the media that the untimely death of 26,545 persons over the last eleven years was something that needed attention of the Bangladeshi authorities both at home and by our diplomatic Missions abroad. A holistic probe needs to be carried out and the challenges identified so that there is a reduction in this unfortunate trend.
 The government also needs to set up a trust fund whose interest can then be used to assist family members of these unfortunate expatriates to overcome their loss. This should also apply for the family members of those who lose their lives due to human trafficking. There has to be severe punishment of those involved in human trafficking but there also has to be some sort of financial support for members of the bereaved family.
It would be appropriate at this point to refer here to the growth of female workers being recruited particularly in Qatar. There has been an overall increase in recruitment of Bangladeshis by this country unlike that of other Gulf States. In 2015, Qatar hired 123,956 workers including 8642 female workers. This was an increase over 2014 when 6452 female workers were recruited. It has also been announced in the beginning of March this year that the Qatar authorities are going to raise the minimum salary of female workers from Bangladesh by another 300 Riyals (approximately $75). This is a hopeful sign.
On the other hand we have also read media reports published earlier this month that there will be a clamp-down and suspension in the issue of granting fresh visas to Bangladeshi nationals by the UAE. This, in its own way, will impede the growth of further recruitment of expatriate workers from Bangladesh. One can only hope that differences and concerns related to this issue will be sorted out, sooner than later, by our authorities through discussion with the UAE Ministry of the Interior.  
Similarly, we have the unresolved sensitive question of recruitment of Bangladeshi workers by Malaysia. A MOU was signed on 18 February, 2016 on the basis of a G2G Plus equation but our hopes were deflated due to evolving circumstances. The very next day, implementation of the agreement was put on hold by Kuala Lumpur. This agreement was directed at bringing about an accountable process so that work-seekers would not face extortion from middlemen. The Master Builders Association Malaysia (MBAM), its apex trade body in the construction sector, has already on 4 March, 2016 urged the Malaysian government to lift its suspension of foreign workers intake. They have pointed out that this will affect their progress regarding project completion by the agreed date. I hope that this development will persuade the Malaysian authorities to review their decision in a pragmatic manner before the end of this year.
In the meantime the London-based BMI Research belonging to the Finch Group has commented that slowdown in remittance growth due to low oil prices and poor economic growth in the Middle East might exert a downside pressure on the Taka leading to its weakening against the US Dollar. That is possible but we will have to be resilient and absorb these developments. We have challenges, but they exist so that we can overcome them. We have come a long way from 1976 when less than 7000 persons went abroad for work. We have grown and found diverse new destinations. We have to be patient and we will succeed.

 Muhammad Zamir, a former ambassador, is an analyst specialised in foreign affairs, right to information and good governance.  He can be reached at [email protected]

 

Our challenges regarding remittance growth

This slide in remittance has been blamed on lower recruitment of workers for projects in the oil-rich Middle East

It was reported in our media and also by the Bangladesh Bank in the first week of January, 2016 that the flow of inward remittance into Bangladesh had crossed the US$15 billion-mark last calendar year. Bangladeshi expatriate workers have remitted $15.31 billion in 2015, marking a 2.47 per cent growth over that of the previous calendar year. It may be recalled that in 2011, it was $12.16 billion, in 2012- $ 14.17 billion, in 2013- $13.83 billion and in 2014-$ 14.94 billion. It was also stated that Bangladeshi migrant workers in Saudi Arabia, the UAE, Qatar, Oman, Bahrain, Kuwait, Iran and Libya together had sent home $9.072 billion (almost 60 per cent of the total) last fiscal year- an increase of 8 per cent year-on-year. This happened despite lack of depreciation of our local currency against the US Dollar which was in contrast to what was happening in India and Pakistan. The Bangladesh Bank sources also reported that remittances from Bangladeshi nationals in November and December last year had been $1.14 billion and $ 1.31 billion respectively. It was also pointed out that 34 exchange houses set up 1123 drawing arrangements across the globe to facilitate this process of transfer. The maximum remittance came through private commercial banks. This dynamics has apparently been consistent with a series of measures introduced by the Bangladesh Bank to encourage the expatriate Bangladeshis to send their hard-earned money through the formal banking channel, instead of the illegal hundi system. The Refugee and Migratory Movements Research Unit (RMMRU) in a report published at that time also indicated that 538,667 Bangladeshi workers had gone abroad with jobs till the end of December, 2015. This number was 35 per cent higher than that of 2013. The remittance figure has however marked a slide since last December, 2015. Figures released by the Bangladesh Bank in the beginning of March pointed out that remittance inflow had reduced in January to $1.15 billion and then to $1.13 billion in February, 2016. This meant that year-on year, there had been 4.2 per cent lower receipts in February and 7.23 per cent less in January, 2016. Despite this however, the total remittance inflow in the current fiscal year- 2015-16 till the end of February has reached $9.77 billion. This has meant that remittances received for a similar period in 2014-15 was 1.51 per cent higher. This slide in remittance has been blamed on lower recruitment of workers for lesser projects in the oil-rich Middle East. Low global oil prices appear to have acted as a catalyst within this equation. Two other factors have also played significant roles in reducing the recruitment of workers from Bangladesh and consequently remittance- first the continuing instability and violence that has manifested itself in Iraq, Syria, Lebanon, Libya, Yemen and Tunisia. This dynamics has reduced the possibility of infrastructure development through the construction sector (which normally employed most of the expatriate population). The second element associated with the reduction of remittance in Dollar terms appears to be because of the devaluation of individual currencies against the US Dollar in Australia, the UK, Canada, Singapore and Malaysia. It would also be interesting to also note here another important statistic that caught the medias attention at the end of January, 2016. The Ministry of Expatriates Welfare and Overseas Employment reported that over the last seven years (during the administration of the current government), the overseas employment sector had witnessed the departure of 3.432 million workers for work abroad. This included hundreds of thousands of skilled and semi-skilled workers that also included female workers. It was also underlined that these last seven years had seen total remittance to Bangladesh by our expatriate workers crossing $ 92 billion. Relevant authorities in different branches of our public as well as private sector have been following the evolving scenario within this nationally important sector with care. Efforts are also being taken at different levels to expand and increase the availability of skilled and semi-skilled workers both male and female. This is being done to replicate what is being done in Sri Lanka, the Philippines and different parts of India. In this age of globalization, there is growing awareness that vocational training has become a must if we are to continue and compete within this paradigm. The middle class and the upwardly mobile population in the Middle East, Southeast Asia and the Far East will need a growing number of electricians, car mechanics, healthcare workers, plumbers, computer repair mechanics as well as workers adept at mechanized agriculture and pisciculture. It is this realization that has persuaded our tertiary sector working with expatriate potential to set up 71 vocational training centres and four Institutes of marine technology in different parts of Bangladesh. It is being anticipated that the number of vocational training centers will be expanded at the Upazilla level and will eventually sprout in 400 such administrative units. In a similar positive vein, the government is also encouraging the setting up of institutions in the major cities where those desiring to go abroad will be able to receive training courses in languages- English, French, German, Italian, Arabic, Persian, Korean, Malaysian, Chinese and Japanese. Some representatives in the private sector are also running centres where training is being provided in welding, maintenance and repairs of electrical devices, pipe-fitting and rod binding (necessary for the construction sector). Male and female personnel who have already passed their College entrance examinations are also taking special training in medical/nursing centres on how to take care of elderly people who might need healthcare. It has been noted by analysts that there is great scope for employment in this last sector not only in the Middle East but also in different parts of Southeast Asia and the Far East. It has also, very correctly been underlined by then that entering into this sector would require a professional ability to carry out expected healthcare and also ability to speak English. Those associated with this sector have however drawn the attention of our authorities, very correctly to a disturbing and unacceptable scenario that has been manifesting itself over the last few years within this economy-segment. The Wage Earners Welfare Board under the Ministry of Expatriates Welfare and Overseas Development towards the end of January, 2016 released the following data pertaining to the receiving of bodies of our expatriate workers in our different international airports after their deaths abroad. In 2005, it was 1248, in 2006- 1402, in 2007- 1673, in 2008- 2098, in 2009- 2315, in 2010- 2560, in 2011- 2585, in 2012- 2878, in 2013- 3076, in 2014- 3335 and in 2015- 3375. It has been noted in the media that the untimely death of 26,545 persons over the last eleven years was something that needed attention of the Bangladeshi authorities both at home and by our diplomatic Missions abroad. A holistic probe needs to be carried out and the challenges identified so that there is a reduction in this unfortunate trend. The government also needs to set up a trust fund whose interest can then be used to assist family members of these unfortunate expatriates to overcome their loss. This should also apply for the family members of those who lose their lives due to human trafficking. There has to be severe punishment of those involved in human trafficking but there also has to be some sort of financial support for members of the bereaved family. It would be appropriate at this point to refer here to the growth of female workers being recruited particularly in Qatar. There has been an overall increase in recruitment of Bangladeshis by this country unlike that of other Gulf States. In 2015, Qatar hired 123,956 workers including 8642 female workers. This was an increase over 2014 when 6452 female workers were recruited. It has also been announced in the beginning of March this year that the Qatar authorities are going to raise the minimum salary of female workers from Bangladesh by another 300 Riyals (approximately $75). This is a hopeful sign. On the other hand we have also read media reports published earlier this month that there will be a clamp-down and suspension in the issue of granting fresh visas to Bangladeshi nationals by the UAE. This, in its own way, will impede the growth of further recruitment of expatriate workers from Bangladesh. One can only hope that differences and concerns related to this issue will be sorted out, sooner than later, by our authorities through discussion with the UAE Ministry of the Interior. Similarly, we have the unresolved sensitive question of recruitment of Bangladeshi workers by Malaysia. A MOU was signed on 18 February, 2016 on the basis of a G2G Plus equation but our hopes were deflated due to evolving circumstances. The very next day, implementation of the agreement was put on hold by Kuala Lumpur. This agreement was directed at bringing about an accountable process so that work-seekers would not face extortion from middlemen. The Master Builders Association Malaysia (MBAM), its apex trade body in the construction sector, has already on 4 March, 2016 urged the Malaysian government to lift its suspension of foreign workers intake. They have pointed out that this will affect their progress regarding project completion by the agreed date. I hope that this development will persuade the Malaysian authorities to review their decision in a pragmatic manner before the end of this year. In the meantime the London-based BMI Research belonging to the Finch Group has commented that slowdown in remittance growth due to low oil prices and poor economic growth in the Middle East might exert a downside pressure on the Taka leading to its weakening against the US Dollar. That is possible but we will have to be resilient and absorb these developments. We have challenges, but they exist so that we can overcome them. We have come a long way from 1976 when less than 7000 persons went abroad for work. We have grown and found diverse new destinations. We have to be patient and we will succeed. Muhammad Zamir, a former ambassador, is an analyst specialised in foreign affairs, right to information and good governance. He can be reached at [email protected]