Why Singapore job market shrinking for Bangladeshis

Skilled labour migration to Singapore will be up against formidable challenges in the coming months as the city-state has curtailed quotas for Bangladeshis and is hiring workers from alternative sources amid declining construction projects.

Labour recruiters have also attributed the quota reduction to declining trust in Bangladeshi workers, as many of them have allegedly been involved in various crimes such as making false insurance claims in the Southeast Asian nation.

They also blamed Bangladesh's poor migration diplomacy for missing out on opportunities in this popular destination for migrants compared to major competitors, such as Myanmar and India.

Regarding the quota reduction, Hassan Ahmed Chowdhury Kiron, secretary general of the Labour Sending Organisations of Singapore, said, "Previously, a firm in Singapore would employ seven Bangladeshi workers against a Singaporean; this year, that ratio has been reduced to five."

He further explained, "Employers have also lost trust in Bangladeshis due to reasons such as false insurance claims and various complaints filed against employers."

Kiron noted that Singapore has of late been recruiting a substantial number of workers from Myanmar and India. He added, "Unfortunately, we are not fully leveraging these opportunities due to our lagging behind in migration diplomacy."

Speaking to The Business Standard, he mentioned that there was a significant demand for workers in Singapore post-Covid, which resulted in a surge in labour migration. However, construction jobs have now decreased, leading to reductions in quotas for Bangladeshi workers.

On average, Singapore hired more than 4,500 workers per month from Bangladesh last year. The number was 3,400 during the first three months of 2024, according to the Bureau of Manpower, Employment, and Training (BMET).

Singapore, which has become one of the top five destinations for Bangladeshi workers over the years, mostly skilled workers in the construction and shipbuilding industries, hired 53,265 workers from Bangladesh last year and a record 64,383 in 2022.

There are nearly 15 lakh migrant workers in Singapore. Coming mostly from India, China, Bangladesh, Indonesia, Myanmar and the Philippines, they make up about a sixth of the total population and are vital to many sectors of the economy: construction, manufacturing, retail and hospitality, sanitation services, marine and petrochemicals, and domestic work, according to Transient Workers Count Too (TWC2), an organisation dedicated to assisting migrant workers in Singapore.

Although the Singapore government does not release a breakdown of nationalities in the foreign workforce, the construction industry appears to be employing a majority of workers from Bangladesh, China and India.

In January 2016, the High Commission of Bangladesh estimated that of the more than 160,000 Bangladeshi nationals in Singapore, over 90% work in the construction and marine industries (TWC2, 2017).

Local recruiters said Bangladeshi workers lag behind in new skill sets as employers now prioritise those who have multiple skill certifications.

Typically, Bangladeshi workers go to Singapore after obtaining skill certification from designated training centres.

The Singapore authorities allowed only six specialised training centres in Bangladesh that provide certifications on around 22 trades, mostly related to the construction sector, operated by responsible private recruiting agencies.

Currently, a centre can take skill tests on 70 workers per month, while the figure was around 200 just after the Covid pandemic.

The recruiting agencies seek permission to take skill tests on more workers per month so that Bangladesh can help raise the number of overseas jobs for its citizens. 

Currently, around 5,000 migrant aspirants to Singapore get certification from these centres each year. However, once a worker gets certification, he is allowed to go to Singapore even after returning home with the same recognition.

Is the construction sector shrinking?

Bangladeshi recruiters claim that demand for construction sector workers has been gradually declining in recent months.       

However, there will still be substantial projects in 2024 in the sector, as per estimates of the Building and Construction Authority (BCA) of Singapore. 

Between $32 billion and $38 billion in construction contracts are expected to be awarded in 2024, the BCA said on 15 January this year.

An estimated $33.8 billion worth of contracts were awarded in 2023, higher than the initial construction demand forecast of between $27 billion and $32 billion, reports The Straits Times.

In 2024, the public sector is expected to contribute about 55% of total demand, which includes several upcoming major public sector projects such as new Build-To-Order flats, contracts for phase two of the Cross Island MRT Line, infrastructure works for Changi Airport Terminal 5, Tuas Port developments, and major road and drainage improvement works.

Rihan Shubho, from Bhola, who has been working in Singapore for about nine years, told TBS, "Around 95% of Bangladeshi workers come to Singapore as construction workers. In the construction sector, they have to bring skill certifications such as plumbing, pipe fitting, welding, electricians, and CCTV installation."

Stating that 90% of Bangladeshi workers are doing well in Singapore, he said, "The rules and regulations are good here. No one from Bangladesh remains unemployed after their arrival."

Another migrant said, "The buildings that are built in Singapore are all multi-storey, ranging from 35 to 70 stories. So there is always a demand for construction work."

Stating that some places are still vacant, he said, "But there will be a time when there will be no demand for construction work. It is already gradually decreasing."

High migration costs are a big concern

Due to its better salary structure than the Middle East and Malaysia, Singapore has become a lucrative destination for Bangladeshi workers.

A Bangladeshi in the construction sector can earn Tk40,000-60,000 on average. The amount is higher on the basis of overtime and skill capacity.

However, the high migration cost, which ranges from Tk8-10 lakh, has become a great concern for newly recruited workers. 

Though certified skilled workers are supposed to pay Tk3-4 lakh as migration costs, they are bound to pay more owing to the lack of proper monitoring and good governance, according to sector insiders.

In addition to skilled migration, there is scope for migrating unskilled workers to Singapore. But those workers have to obtain the skill test in the destination country after having training under the arrangements of employers.

Sector insiders claim that the migration cost is too high in this process, as unskilled workers pay more than workers who have obtained certificates in their home country.

"Many of those who come to Singapore by paying a lot of money often cannot pass the skills test. As a result, they are sent back home, where they fall into deep trouble," Md Rahid, a Bangladeshi currently working in Singapore, told TBS over the phone.

He said it is better not to come to Singapore by spending around Tk10 lakh, adding, "60% of the workers get a salary of Tk40,000-50,000. It is better not to spend so much money on this salary. It is better to go to Europe by spending some more money."

Ali Haider Chowdhury, secretary general of the Bangladesh Association of International Recruiting Agencies (Baira), told TBS, "Some specific agencies, which are recognised by the authorities of both countries, send workers to Singapore. It is true that the cost of immigration there is high. This issue must be looked into."

"The highest cost for fresh workers should not exceed Tk4 lakh," said Kiron of the Labour Sending Organisations of Singapore. "But we don't know how they pay this huge amount of money, as we also hear such allegations."

It is reported that the authorities of both countries have allowed 10 agencies to set up training centres to send workers to Singapore. These agencies have to deposit Tk30 lakh as security with BMET.

However, after getting certification through these agencies, workers can go to Malaysia through any other legitimate agency.

Those who are sending workers to Singapore without depositing security are creating various crises in the labour market, including high immigration costs, said sector insiders. They are of the opinion that if all agencies willing to send workers to Singapore are required to post security, order will be restored here.