Malaysia to reopen labour market, syndicate stays but may expand agency list

Highlights:

• Malaysia to retain syndicated recruitment system, citing agency management challenges
• Only 101 Bangladeshi agencies authorised, out of 2,500+ registered
• Syndicate linked to corruption; some charged up to Tk6 lakh, official cap Tk79,000
• Malaysia closed the labour market in June 2024 due to corruption, irregularities

After a year-long closure, Malaysia is expected to reopen its labour market to Bangladeshi workers soon following a two-day joint working group meeting between the two countries, which ended in Dhaka on Thursday (22 May).

According to sources at the expatriates' welfare ministry, the Malaysian delegation – led by Deputy Secretary-General of the Ministry of Human Resources M Shahrin bin Omar – remained firm on continuing the syndicated recruitment system, under which a limited number of Bangladeshi agencies are authorised to send workers.

However, the Malaysian side may expand the current syndicate of 101 recruitment agencies, and those facing legal action over worker exploitation may be dropped, sources said.

Malaysia closed its labour market to Bangladeshi workers in June 2024, citing concerns over corruption and irregularities in the recruitment process.

This limited group of agencies, widely known as the syndicate, has been linked to significant corruption, with some charging up to Tk6 lakh to send a worker, while Bangladesh fixed the cost at Tk79,000 in 2022.

An official present at the joint meeting, speaking to TBS on condition of anonymity, said, "Malaysia wants to hire workers through a limited number of agencies as before. However, the number of agencies may increase this time."

When asked how many more agencies might be added to the current list of 101, he replied, "No final decision has been made on this yet."

"We strongly raised the issue of amending the clauses of the Memorandum of Understanding (MoU) previously signed between the two countries. However, the Malaysian side said it would be difficult for them to manage a larger number of agencies. The delegation did not take a final position on the matter — a decision will be made by their cabinet," the official added.

The meeting also discussed capping migration costs and issuing multiple-entry visas for Bangladeshi workers.

The Bangladesh delegation was led by Neyamat Ullah Bhuiyan, senior secretary of the expatriates' welfare ministry. A record of the discussion was signed following the meeting.

Meanwhile, a scheduled press conference by Lutfey Siddiqi, special envoy for international affairs to the chief adviser, after yesterday's GWG meeting was cancelled.

Earlier on Wednesday, following the opening session of the JWG meeting, Lutfey Siddiqu told reporters that the process of sending Bangladeshi workers to Malaysia will be made fully transparent, with no room for irregularities or discrimination.

"In the first phase, around 8,000 workers who had completed all procedures but could not travel due to the closure of the labour market last year will now be sent," he said, adding that they will be dispatched quickly through Bangladesh Overseas Employment and Services Limited (BOESL) under a government-to-government arrangement.

Siddiqi also noted that due to the large number of recruiting agencies in Bangladesh, the Malaysian government prefers to work with a limited number.

"To ensure transparency, today's [Wednesday] joint working group meeting will discuss possible amendments to the existing memorandum of understanding," he said.

He also clarified that Malaysia has not imposed any conditions regarding the reopening of the labour market.

In 2021, Malaysia allowed only 101 Bangladeshi recruitment agencies to send workers, even though the country has over 2,500 registered agencies.

During a visit to Malaysia on 15 May, Expatriates' Welfare Adviser Asif Nazrul indicated that the market will be reopened for Bangladeshis.

Regarding employment, he said, "We have learned from various sources that Malaysia may take in 1,00,000 to 1,50,000 foreign workers in the next few months. We have been assured by the Malaysian human resources minister that Bangladesh will be given top priority in taking in people. The largest number of people will be taken from Bangladesh."