TDS Desk:

Japan expressed its interest in supporting Bangladesh’s infrastructure projects with loans, including expanding the metro rail network and building new airports, at a recent meeting on development assistance.

Additionally, Japan is also looking to recruit skilled workers from Bangladesh.

The meeting, held at the Economic Relations Division (ERD), was a Bangladesh-Japan Official Development Assistance Policy Dialogue.

A Japanese delegation conveyed Tokyo’s need for skilled workers in various fields, including agriculture. To address this need, the country proposed investing in vocational training programmes in Bangladesh, with participation from Japanese private companies.

The Bureau of Manpower, Employment and Training (BMET) responded positively to Japan’s interest in recruiting Bangladeshi workers. BMET committed to establishing two dedicated training centres. Training at these centres would be designed to meet the specific needs and curriculum requirements outlined by Japan.

The Bangladesh delegation at the policy dialogue was led by ERD Secretary Md Shahriar Kader Siddiky. The Japanese delegation, comprising 20 members, was headed by Kusakabe Hideki, deputy assistant minister at the Ministry of Foreign Affairs.

RECRUITMENT STATISTICS, FUTURE PLANS

Due to Japan’s ageing population and worker shortages, the country has expressed interest in recruiting skilled workers from Bangladesh.

Recognising this potential, stakeholders have underscored the importance of equipping Bangladeshi workers with the skills needed for the Japanese labour market. This could lead to increased foreign currency earnings for Bangladesh.

To address its demographic challenges, the Japanese government has decided to expand its “specific skilled worker” visa programme. As reported by Asia News in April, this expansion will include four new sectors and allow approximately 820,000 foreign workers in Japan by the 2028 fiscal year.

BMET reports that over 900 Bangladeshi workers were recruited by Japan last year.

Furthermore, several Japanese private companies have expressed interest in recruiting skilled workers from Bangladesh. An 11-member delegation representing various companies met with Expatriates’ Welfare and Overseas Employment State Minister Shofiqur Rahman Choudhury on June 9th to discuss this proposal.

METRO RAIL, AIRPORT EXPANSION

To facilitate further development and create new job opportunities, Japan has also shown interest in supporting Bangladesh’s infrastructure projects.

ERD reports that Japan has granted preliminary approval for a loan to extend Metro Rail Line-6. Additionally, Japan has proposed investments to expand the Metro Rail network to Gazipur, Munshiganj and Narayanganj districts.

The Motijheel to Kamalapur section of Line-6, funded by Japan, is already operational. Work on the extension is expected to be completed by June of next year.

Dhaka Mass Transit Company Limited plans to expand the Metro Rail network to connect Dhaka with the surrounding districts, including Gazipur, Narayanganj, Munshiganj, Manikganj, and Narsingdi. Narayanganj city is expected to be connected by Line 2 by 2030.

Gazipur and Munshiganj districts will be linked by Lines 1 and 6, while Narsingdi and Manikganj districts will be served by the Northern Route of Line 5. Line-5 South and Line-4 will be extended from Narayanganj to Bhulta and Kanchpur, respectively.

Furthermore, Japan has expressed interest in providing flexible loans to support the construction of new airports in Bangladesh.

JAPAN REJECTS REDUCED INTEREST RATES PROPOSAL

During the Policy Dialogue meeting, Bangladesh requested a reduction in interest rates on their loans. However, the Japanese delegation explained that interest rates are determined regionally, and adjustments cannot be made for individual countries.

The interest rate on loans provided by the Japan International Cooperation Agency has increased to 1.7% since October 2023. Japan reviews these rates periodically on the basis of prevailing market conditions.

From April to March of FY22 interest rates were increased from 0.7% to 1.2%.

Despite this, Japan has provided Bangladesh with a significant amount of financial support since the country’s emergence. This support totals $28.3 billion in loans and grants.

Several major infrastructure projects in Bangladesh have been made possible by Japanese funding, including the expansion of Hazrat Shahjalal International Airport, the Matarbari deep sea port, the Jamuna rail bridge, and the development of the Chattogram-Cox’s Bazar highway.