Revival of old syndicate feared as Malaysia imposes new migration terms

Allegations have emerged that Malaysia's latest recruitment requirements for foreign worker agencies could revive the old "syndicate" system that once dominated Bangladesh's labour market.

According to sector insiders, Malaysia's 10 new mandatory conditions for recruiting agencies have effectively restricted participation to a select few well-connected operators, raising fears of renewed market monopolisation.

Agencies fear that meeting these "unreasonable criteria" will increase operational costs, potentially raising migration expenses to Tk8-10 lakh.

While Nepal has formally rejected the new Malaysian requirements, Bangladesh's Expatriates' Welfare Ministry is being accused of playing a contradictory role, offering assurances of an official objection while simultaneously issuing the required "Good Conduct Certifications" to agencies.

Around 282 Bangladeshi agencies had received such certification from the Bureau of Manpower, Employment and Training (BMET).

The BMET has accepted applications from recruiting agencies after relaxing four of the 10 conditions set by the Malaysian government for worker recruitment. Among those who collected certificates were recruiting agencies accused in various lawsuits and those associated with the previous Malaysia syndicate. Amid criticism, some of these certified agencies were summoned to the ministry for interviews yesterday and the rest will be interviewed today.

The new criteria, introduced through a letter sent by Malaysia's Ministry of Foreign Affairs to the Bangladesh High Commission in Kuala Lumpur on 28 October, require agencies to have at least five years of valid licence, handled 3,000 foreign workers in the past five years, sent workers to at least three countries, a good conduct certificate, no record of forced labour or trafficking, ownership of a training centre, and a 10,000 sq ft permanent office maintained for at least three years.

At present, to renew a BMET licence, an agency must send at least 200 workers annually and maintain a minimum office space of 600 sq ft.

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According to the Expatriates' Welfare Ministry, agencies from Bangladesh, India, Nepal, Pakistan and Myanmar will be selected following these unified standards.

Malaysia has asked Bangladesh to submit by 15 November a list of eligible agencies meeting these standards.

The adviser Asif Nazrul has requested Malaysia in a letter on 4 November to relax at least three of the 10 conditions imposed on recruiting agencies interested in sending workers to Malaysia.

Sawqat Ali, personal secretary to Adviser Asif Nazrul, told TBS, "Bangladesh has sought relaxation from the conditions of recruiting agencies having handled at least 3,000 foreign workers in the past five years, owning a training centre, and maintaining a permanent office space of at least 10,000 square feet for the past three years."

In response to the question of why a letter was issued to relax the conditions while the agencies were simultaneously being given certificates based on Malaysia's conditions, he said, "We must continue working at the same time. We do not yet know what Malaysia's response will be."

Concerns over cost and syndicate allegations

Recruiting agencies in Bangladesh argue that the conditions are unrealistic and exclusionary, warning that compliance will raise migration costs for workers excessively.

Former BAIRA joint secretary Mohammad Fakhrul Islam said, "In the last three years, workers migrated to Malaysia for a maximum of Tk6.5 lakh. But if agencies are forced to build training centres and maintain 10,000 sq ft offices, their costs will increase sharply – and they will inevitably pass that burden on to workers."

He cautioned: "My concern is that the cost could go up to Tk8-10 lakh."

Altab Khan, a BAIRA member who previously filed a case against the 100-agency syndicate, said, "Not even 1% of agencies can meet these unreasonable requirements. Some are already showing fake offices to obtain certification."

"Only the syndicate-affiliated agencies could have sent a thousand workers per year," Altab said, referencing the condition of sending 3,000 workers in the last five years. He further warned: "Not even 1% of agencies can meet these unreasonable conditions. We know some are securing the certificate with fake offices."

He alleged that the conditions were influenced by those seeking to form a cartel. He pointed the finger at Amin Noor, a Malaysian citizen of Bangladeshi descent, as a ringleader.

Former BAIRA secretary general Shamim Ahmed Chowdhury Noman and a member of the earlier 100-agency syndicate, however, rejected allegations of a renewed cartel.

"This is not a syndicate," he insisted. "Malaysia has introduced uniform criteria for five countries, including Bangladesh. The issue should be viewed in an international context, not as a conspiracy against Bangladesh."

Noman added, "If the government relaxes some of the terms, more agencies will be able to participate, and the process of sending workers can proceed smoothly."

Regarding the reissuance of good conduct certificates to agencies who were previously under the old Malaysia syndicate and had legal cases against them, a senior BMET official told TBS, on condition of anonymity, "We issued the certificates based on the information provided by the agencies, as long as they meet the criteria set by Malaysia. Now, the ministry will carry out further verification and make the final authentication."

Ministry's divided stance

On 29 October, the expatriates' welfare ministry stated that it would request Malaysia to enlist all Bangladeshi agencies fulfilling the criteria. Agencies were asked to apply by 7 November with prescribed documents.

However, during a meeting with former BAIRA leaders on 3 November, Adviser Asif Nazrul assured that Bangladesh would officially object to Malaysia's conditions.

Attempts to reach Adviser Asif Nazrul and Secretary Neyamat Ullah Bhuiyan were unsuccessful.

BMET Additional Director General (Training) and BAIRA administrator Md Ashraf Hossain told TBS, "Recruiting agencies have presented their views to the ministry on this issue. The government will do what is best for the labour market."

BAIRA member Altab criticised the ministry's stance. "If the ministry is issuing certificates by relaxing the conditions, then why did it write a letter to Malaysia again?"

Unrealistic demands

Former BAIRA secretary general Noman criticised the criteria as "impractical for most Bangladeshi agencies", particularly the requirement for a 10,000 sq ft office and a dedicated training centre.

"The government already operates over a hundred technical training centres that have long been used for worker preparation," he said. "If every agency must now build its own centre, these technical training centres will become redundant, costs will rise exponentially, and workers will bear the brunt."

Independent migrant rights specialist Andy Hall, based in Kuala Lumpur, described the "Good Conduct" and "ethical" certification requirements as particularly problematic.

"It would be difficult for any source country to objectively establish these standards," he told TBS. "In practice, agencies might simply pay corrupt officials to obtain these certificates. Ironically, the largest agencies – those sending the most workers – are often the least ethical and most exploitative. These developments are deeply concerning."