UK Remittances Surge 55%, Malaysia Inflows Drop 23%

Major shifts have unfolded across Bangladesh’s inward remittance landscape, where traditional labor hubs face dynamic transformations alongside rapid growth from Western nations. According to official data released by Bangladesh Bank, the nation recorded $9.38 billion ($9,384.93 million) in total remittance receipts during the April-June quarter of the 2025-26 fiscal year. While this quarterly performance represents a slight 5.62% decline compared to the $9.94 billion ($9,943.28 million) registered in the preceding January-March period, it marks a robust year-on-year growth rate of 9.84% compared to the same period in the 2024-25 fiscal year, reflecting strong broader momentum.

Saudi Arabia continues to retain its longstanding position as the premier source of overseas earnings for Bangladesh, contributing $1.64 billion ($1,639.39 million) during the April-June quarter. This massive volume accounted for 17.47% of all inward financial transfers received by the country during the three months. Although inflow from the Gulf kingdom dropped marginally by 1.81% on a quarter-on-quarter basis compared to the preceding $1.67 billion, annual growth remained solidly positive at 9.75%. The country’s labor reliance on the Kingdom remains remarkably high, with 79,916 out of 160,283 total outbound workers, nearly 50%, migrating to Saudi Arabia during this quarter.

Concurrently, the United Kingdom emerged as the second-largest overall source of remittance, delivering a remarkable surge of 55.40% year-on-year to hit $1.56 billion ($1,558.74 million) during the April-June window. This expansion represents a sharp jump from the $1.00 billion ($1,003.07 million) recorded in the corresponding quarter of the prior fiscal year, while also reflecting an 8.29% quarterly gain. This performance secures the UK’s position as the fastest-growing Western market for inward transfers, commanding a 16.61% share of total remittances entering the country.

The United Arab Emirates maintained its status as the third-largest single source market, channeling $1.17 billion ($1,170.67 million) into Bangladesh during the same April-June timeframe. Inflows from the UAE posted double-digit gains on both annual and quarterly fronts, expanding by 12.23% year-on-year and jumping 16.20% relative to the January-March figure. The country accounted for 12.53% of the total remittance inflows during this quarter, underscoring strong financial resilience and active participation from non-resident Bangladeshi workers based across the Emirates.

In contrast, remittance flows originating from the United States presented a mixed outcome characterized by positive annual movement but immediate quarterly contraction. The US generated $811.42 million in remittances during the April-June period, representing 8.65% of the overall national quarterly total. While this volume marked a mild 2.36% increase compared to the exact same quarter in the 2024-25 fiscal year, it simultaneously experienced an 11.50% decline compared to the preceding quarter, indicating a temporary slowdown in recent transaction volumes from American channels.

The most substantial downward shift occurred in Malaysia, where remittance inflows plummeted by nearly 23% year-on-year to reach $701.23 million during the April-June quarter. A year prior, inflow from the Southeast Asian labor hub stood at $911.60 million, meaning the latest figure marks a steep 22.96% annual contraction. On a quarterly comparison, Malaysia recorded an even sharper drop of 26.29% from the $951.28 million received between January and March, dragging down the wider performance of the Asia-Pacific regional cluster.

Driven largely by the sharp contraction in Malaysia, total remittances from the broader Asia-Pacific region dropped by 7.72% year-on-year and fell 18.50% quarterly to reach $1.21 billion ($1,206.70 million). Despite this broader regional decline, Singapore posted strong growth, bringing in $411.07 million with a year-on-year increase of 26.97%, though it dipped 1.72% quarter-on-quarter. Meanwhile, inflows from Japan contracted across all metrics, dropping 12.39% year-on-year and 21.35% quarter-on-quarter to settle at $19.70 million.

European Union member states and neighboring European nations demonstrated a generally upward trajectory during the period, led notably by Italy and the United Kingdom. Inflows from Italy rose to $518.75 million during the April-June quarter, reflecting a 9.39% annual increase and a modest 2.44% quarterly gain. Germany contributed $39.30 million over the same period, experiencing a 6.18% year-on-year drop but achieving an 8.25% quarter-on-quarter recovery, reinforcing Europe’s growing prominence in Bangladesh’s external income balance.

Across the broader Middle Eastern labor belt, individual Gulf countries displayed mixed performance trends beyond Saudi Arabia and the UAE. Remittances from Oman reached $516.64 million, rising 2.93% annually despite an 11.23% quarterly drop. Kuwait generated $461.40 million (up 9.35% year-on-year), and Qatar yielded $402.87 million (up 12.74% year-on-year). Conversely, Bahrain recorded a steep 24.45% annual decline to $172.62 million, even as it edged up 1.30% compared to the previous quarter.

From a macro-regional standpoint, the Gulf region dominated the national landscape, accounting for $4.37 billion ($4,368.98 million) or 46.55% of all incoming transfers during the April-June quarter. European Union countries collectively contributed $2.12 billion ($2,116.79 million) or 22.56%, while the Asia-Pacific region generated $1.21 billion ($1,206.70 million) or 12.86%. Australian inflows saw a significant annual surge of 45.97% to reach $74.71 million, though quarterly receipts fell by 4.17%.

Taking the broader perspective of the entire 2025-26 fiscal year, total inward remittances to Bangladesh reached an impressive aggregate of $35.59 billion ($35,589.98 million), marking a strong 17.35% growth over the previous year. Gulf nations accounted for $16.24 billion ($16,240.82 million) of the annual total, led by Saudi Arabia’s $5.84 billion and the UAE’s $4.25 billion. Meanwhile, EU countries delivered $7.28 billion annually, including $5.07 billion from the UK, demonstrating how shifting global migration and banking channels are reshaping foreign currency streams.