State labour exporter posts record profit on surge in Jordan RMG hiring

Bangladesh Overseas Employment and Services Limited (BOESL) posted a record profit last fiscal year, bolstered by a significant number of worker deployments to the readymade garment sector in Jordan – the state-owned manpower exporter's top market since 2011. 

This achievement came despite a 50% decline in recruitment in South Korea, BOESL's second-largest market, according to an annual report of the company released last week. 

In FY24, its revenue grew by 13% year-on-year to reach Tk78.87 crore and the profit surged by 12.7% to Tk48.65 crore.

The number of overseas employment placements by BOESL remained almost unchanged, with 15,558 workers deployed in FY24 compared to 15,294 in the previous year.

In the last fiscal year, BOESL sent 11,502 semi-skilled garment workers to Jordan, marking a 93% increase from the previous year. 

Apparel factories in Jordan are seeking thousands of skilled workers, offering attractive salaries. Currently, 42 garment companies in Jordan hire workers through BOESL with monthly salaries of Tk30,000-35,000. 

Additionally, Jordanian companies cover the flight and other charges.

BOESL deployed 3,019 workers to South Korea in FY24, down from 6,749 the previous year. 

Each migrant worker bound for South Korea paid a Tk34,000 service fee to BOESL. Additionally, it charges only $200 for sending female workers to Jordan, with the employer covering the cost.

Why the decline in South Korea?

Bangladesh has fallen short of fulfilling nearly three-fourths of the 2024 South Korean job quota due to reduced demand from employers. South Korea set a record 11,500-job quota for Bangladeshi workers, but by December, only 3,038 Bangladeshis had been employed.

This shortfall is attributed to several factors, including negative perceptions of Bangladeshi workers due to frequent job switching, reduced demand from Korean employers, inadequate market promotion by Bangladesh, language barriers, and cultural issues, according to BOESL officials. 

In 2023, South Korea allocated a quota of 10,000 workers to Bangladesh, but only 4,996 workers were in demand. 

Korea recruits semi-skilled and skilled foreign workers for various sectors, and officials attribute Bangladesh's struggle to meet employers' demand for quality workers to these factors. 

Additionally, reduced demand in Korean export-oriented industries due to the Russia-Ukraine war has contributed to the shortfall. 

BOESL maintains a roster of Korea-bound workers, from which employers select their preferred candidates. Officials familiar with the process told TBS that although the required number of workers are on the roster, employers are placing fewer demand orders. 

Mallick Anwar Hossain, the immediate past managing director of BOESL, recently told TBS that they have received fewer demand orders than the job quota last year. Bangladeshi workers lag behind others in language proficiency, particularly in conversational fluency. While they perform well in language tests, they struggle with speaking skills.  

"Workers usually do not practice after training," said Hossain. "We'll advise private language training centres to motivate workers in this regard." BOESL plans to issue guidelines in January to improve training at these centres. Bangladesh primarily sends semi-skilled workers to South Korea under the Employment Permit System.

BOESL's poor performance

Despite consistently charging some of the lowest fees for overseas employment services, BOESL has played a relatively minor role in Bangladesh's labour migration landscape. 

Since its inception in 1984, the state-run entity has facilitated the overseas employment of only 1.61 lakh workers, while private agencies have sent around 1.6 crore workers abroad during the same period.

ABM Abdul Halim, general manager of BOESL, explained that the organisation focuses on placing skilled and semi-skilled workers, unlike private agencies, which primarily send less-skilled workers to the Middle East. 

"While over 2,000 private agencies collectively send a million workers abroad, BOESL's individual efforts are not insignificant," he added. "We are committed to continuously expanding our reach and sending more workers abroad."

Migration experts and stakeholders praised BOESL for building trust among overseas employers by maintaining an orderly, safe, and systematic recruitment process, in line with its mission to minimise migration costs.

BOESL's exploration of new job opportunities has been hindered by capacity constraints, ineffective marketing strategies, bureaucratic bottlenecks, and a cautious approach to competition. 

Another factor contributing to the higher processing capacity of private recruiters is their involvement in illegal visa trading – the practice of procuring visas from employers through middlemen and selling them to recruiting agencies in source countries like Bangladesh. 

While BOESL adheres to ethical and safe migration practices, it refrains from engaging in such activities. However, BOESL officials told TBS they are actively exploring new markets, with a focus on skilled migration. 

A senior official from the Bureau of Manpower, Employment, and Training told TBS that efforts are underway to make BOESL more active, which would encourage private agencies to reduce their expenses.