Hundi operators rule the roost in S'pore
Monday, 18 October 2010
Munima Sultana
Bangladeshis living in Singapore are increasingly using "unofficial" channel to remit money home, throwing the business of remittance exchange houses into trouble.
Among three money transfer houses, state-owned Agrani Exchange has been leading the business, but the rest are finding it hard to survive.
Officials of exchange houses said their business fell during the last couples of months, as remittance market was hit by job retrenchment and "rampant" hundi business in Singapore.
Bangladesh High Commission and workers said since the construction of Casino in Singapore is over, jobs in the construction and shipping sectors have remained tight.
However, officials of exchange houses said the trend of use of unofficial channel (hundi) has increased in recent months due to the gap between the hundi and bank rates.
An official of an exchange house said since workers send usually Singapore dollar 500 per month, they consider the rate and speedy delivery of money.
Agrani Exchange controls almost 80 per cent of Bangladeshi workers' remittances, channeled from the city state through the banking system.
"We're also paying high price for hundi operations," said an official of Agrani Exchange.
But Prime Exchange of Prime Bank Ltd and Balaka Exchange of National Bank Ltd said they are struggling hard to stay in business.
Officials of private exchange houses, however, admitted it takes longer time to send workers' money home because of the partner banks' negligence to process remittances quicker.
Many say hundi is rampant in Singapore as medical tourists and businessmen rely largely on the informal payment system.
Bangladeshi political refugees staying in Singapore also prefer to get money through hundi.
"How can a person pay thousands of dollars in a Singaporean hospital?" asked one patient who requested not to disclose his identity.
According to Bangladesh High Commission in Singapore, 120,000 Bangladeshis reside in the country, 80 per cent of them are workers.
Officials of exchange houses affiliated to private banks said hundi business could not be controlled in a country like Singapore without the government interventions on the distribution channel.
The country received $182 million in 2009-10 fiscal year from Singapore, which was Tk 165 million a year ago.
Bangladeshis living in Singapore are increasingly using "unofficial" channel to remit money home, throwing the business of remittance exchange houses into trouble.
Among three money transfer houses, state-owned Agrani Exchange has been leading the business, but the rest are finding it hard to survive.
Officials of exchange houses said their business fell during the last couples of months, as remittance market was hit by job retrenchment and "rampant" hundi business in Singapore.
Bangladesh High Commission and workers said since the construction of Casino in Singapore is over, jobs in the construction and shipping sectors have remained tight.
However, officials of exchange houses said the trend of use of unofficial channel (hundi) has increased in recent months due to the gap between the hundi and bank rates.
An official of an exchange house said since workers send usually Singapore dollar 500 per month, they consider the rate and speedy delivery of money.
Agrani Exchange controls almost 80 per cent of Bangladeshi workers' remittances, channeled from the city state through the banking system.
"We're also paying high price for hundi operations," said an official of Agrani Exchange.
But Prime Exchange of Prime Bank Ltd and Balaka Exchange of National Bank Ltd said they are struggling hard to stay in business.
Officials of private exchange houses, however, admitted it takes longer time to send workers' money home because of the partner banks' negligence to process remittances quicker.
Many say hundi is rampant in Singapore as medical tourists and businessmen rely largely on the informal payment system.
Bangladeshi political refugees staying in Singapore also prefer to get money through hundi.
"How can a person pay thousands of dollars in a Singaporean hospital?" asked one patient who requested not to disclose his identity.
According to Bangladesh High Commission in Singapore, 120,000 Bangladeshis reside in the country, 80 per cent of them are workers.
Officials of exchange houses affiliated to private banks said hundi business could not be controlled in a country like Singapore without the government interventions on the distribution channel.
The country received $182 million in 2009-10 fiscal year from Singapore, which was Tk 165 million a year ago.