Malaysia seeks 'rationalisation' of recruiting agencies based on 10 criteria

The Malaysian government has asked Bangladesh to send a list of private recruiting agencies eligible to send workers to Malaysia under a new set of stringent criteria.

In an official letter dated 27 October 2025, Malaysia's Ministry of Foreign Affairs requested the Bangladesh High Commission in Kuala Lumpur to submit by 15 November a list of licensed Bangladeshi recruiting agencies that meet 10 mandatory criteria set by Malaysia's Ministry of Human Resources.

According to the letter, the new selection process aims to "rationalise" the number of licensed private recruitment agencies permitted to facilitate the recruitment and placement of Bangladeshi workers in Malaysia. The ministry said the rationalisation would be carried out "through an objective and merit-based vetting process" to ensure "constructive and ethical labour migration practices" between the two countries.

However, migrant rights campaigners have voiced scepticism, warning that the so-called rationalisation may end up re-establishing a new syndicate under a different name.

They said that it's a move that has reignited concerns over the return of a "syndicate system" in a new form.

"If they apply these criteria objectively, I can only think of a handful of agencies that could comply — and even some of those probably wouldn't," Andy Hall, a migrant worker's rights specialist based in Kuala Lumpur, told TBS.

 "My sense is this is not 'rationalisation' but 'syndication.'"

Strict new criteria

Below are the 10 selection criteria for private recruiting agencies stipulated by Malaysia:

• A minimum of five years' operating license;
• A record of managing at least 3,000 foreign workers in the past three years;
• Experience sending workers to at least three receiving countries;
• A permanent office of at least 10,000 square feet, operating for three years;
• Certificates of good conduct, valid licenses, and proof of lawful operations;
• Five written testimonials from international employers; and
• Agencies must run their own training and assessment centres with accommodation facilities.

Background of controversy

The issue of recruitment syndication has long been contentious in Bangladesh-Malaysia labour migration. Under the previous arrangement, only 100 Bangladeshi agencies were allowed to send workers to Malaysia — a system widely criticised as monopolistic and exploitative.

Rights groups argued that the syndicate inflated migration costs, limited fair competition, and left thousands of other licensed agencies excluded from the process.

While the Malaysian government now insists that the new framework is designed to enhance transparency and ethical recruitment, observers fear that the rigid eligibility criteria may once again favour a small circle of powerful agencies, effectively recreating the same syndicate that was meant to be dismantled.

Shamim Ahmed Chowdhury Noman, former Bangladesh Association of International Recruiting Agencies (Baira) secretary general told TBS, "Something is better than nothing, as they are not willing to change the MoU. Therefore, our ministry should try to ensure transparency in the selection of the BRA [Bangladeshi recruiting agencies] so that there are no grievances among the recruiting agencies."

He did not respond to a question about whether he is happy or not with the new sets of criteria.