Bangladesh’s Professor Yunus urges Singapore to help recover laundered funds and cut migration costs

DHAKA, BANGLADESH: Professor Muhammad Yunus, the Chief Advisor to Bangladesh’s Interim Government, urged Singapore to help recover billions of dollars illicitly transferred from Bangladesh and to cooperate in reducing the financial burden of migration for Bangladeshi workers.

The call was made during a meeting with Singapore’s Ambassador to Bangladesh, Derek Loh, on Sunday (10 November) at Yunus’s office in Dhaka.

During the one-hour discussion, Yunus emphasized the need for full cooperation from Singapore in recovering funds that were allegedly siphoned off from Bangladesh to several countries, including Singapore.

“A lot of money was siphoned off from Bangladesh to many countries, including Singapore,” Yunus said, stressing that these funds could help bolster Bangladesh’s economic recovery.

Migration costs also discussed

In addition to the financial repatriation request, Yunus called for a reduction in the cost of recruitment for Bangladeshi workers migrating abroad.

He proposed a collaborative model with Singapore to lower recruitment fees, which would enable overseas workers to send more money home to their families.

“We need full cooperation from Singapore,” Yunus reiterated during the meeting.

Ambassador Loh expressed Singapore’s willingness to support these efforts, echoing Yunus’s sentiment on reducing migration costs.

He suggested that Bangladesh digitalise its overseas recruitment system to reduce human trafficking and exploitation risks, making the process safer for workers.

Loh also shared Singapore’s desire to collaborate with Bangladesh on eliminating rent-seeking behaviour in the recruitment process.

Trade and investment cooperation

The meeting also covered other areas of bilateral cooperation, including trade, investment, and development.

Francis Chong, Senior Director at Singapore’s Ministry of Trade and Industry, noted that Bangladesh had proposed a Free Trade Agreement (FTA) with Singapore in 2021, and a feasibility study had already been completed.

Both sides are now discussing the scope for launching negotiations on a formal trade deal.

Loh further highlighted Singapore’s expertise in water treatment and waste energy management, offering to share this knowledge with Bangladesh.

The ambassador also proposed joint collaboration between the food agencies of both countries.

Foreign policy and regional relations

On the foreign policy front, Yunus discussed his interim government’s efforts to strengthen relations with regional neighbours.

He expressed his ambition to revive the South Asian Association for Regional Cooperation (SAARC) and sought Singapore’s support for Bangladesh’s bid to become a sectoral dialogue partner of the Association of Southeast Asian Nations (ASEAN).

Loh responded positively, indicating Singapore’s willingness to back the proposal.

Yunus also underscored his government’s commitment to building strong relations with both Western and Eastern allies.

“We don’t distinguish between east and west. We have to build bridges everywhere,” he said, pointing out the diplomatic efforts underway since the interim government took office following the resignation of former Prime Minister Sheikh Hasina in August.

Professor Yunus assumed leadership of the interim government in early August 2024, following the sudden resignation of Sheikh Hasina after weeks of violent protests against her regime.

Hasina, who had ruled Bangladesh for 15 years, fled the country after a brutal crackdown on protests led by students, which resulted in nearly 100 deaths.In his new role, Yunus is focused on restoring peace and preparing the country for new elections.

The Nobel laureate, known for his pioneering work in microcredit and poverty reduction through Grameen Bank, has pledged to steer the country towards stability after the political turmoil.

Money laundering and illicit financial flows

One of the major challenges facing Bangladesh is the large sums of money illicitly transferred out of the country.

Transparency International Bangladesh’s Executive Director Iftekharuzzaman stated on 2 November that an average of US$12–15 billion is illegally laundered annually.

He pointed to previous cases, such as the successful repatriation of US$9.3 billion from Singapore in 2013, as a precedent for recovering stolen funds through mutual legal assistance.