The Real Picture of Bangladeshi Workers' Migration to Malaysia
Published: 12 Sep, 2024 | Bangla Version
The Real Picture of Bangladeshi Workers' Migration to Malaysia
Published: 12 Sep, 2024 | Bangla Version
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Published: 12 Sep, 2024 | Bangla Version
Malaysia is Bangladesh's second-largest labor market. After halting recruitment in 2008, Malaysia resumed hiring Bangladeshi workers in 2012 under a government-to-government (G2G) agreement. Despite initial limitations, a G2G Plus agreement in 2016 facilitated private agencies to send 278,000 workers to Malaysia. A 2021 memorandum reopened the labor market, resulting in nearly 470,000 Bangladeshis being employed there. Malaysian employers offer relatively better wages, boosting Bangladesh’s remittance income significantly. Malaysia also implemented an online allocation system to control recruitment through authorized agencies. Both governments aim to maintain discipline and streamline processes for further success in the labor market.
After Saudi Arabia, Malaysia is recognized as the second-largest labor market for Bangladeshi migrant workers. However, the Malaysian government had halted the recruitment of workers from Bangladesh since 2008. Following persistent efforts, a memorandum of understanding (MoU) was signed between the two governments in 2012. This agreement stipulated that workers would be sent to Malaysia through a government-managed system, referred to as the G2G program. Initially, the Malaysian government issued demand letters for 30,000 workers. In response, approximately 1.4 million workers registered with the Bureau of Manpower Employment and Training (BMET).
Under this arrangement, Malaysian employers were expected to cover the costs of airfare and other related expenses. However, there was minimal interest from Malaysian employers in recruiting workers from Bangladesh under this program. Consequently, between 2012 and 2016, only about 8,000 workers were able to migrate to Malaysia.
During this period, the absence of significant legal migration routes led many workers to attempt illegal entry into Malaysia via Thailand. Many faced harassment, unimaginable hardships, and, in some cases, even death along the way. The G2G system struggled to succeed due to the lack of interest from private employers in Malaysia and the absence of involvement from private agencies in both countries.
In response to these challenges, a new G2G Plus agreement was signed between Bangladesh and Malaysia in 2016. Under this agreement, approximately 278,000 workers migrated to Malaysia through private recruiting agencies in 2017-18. The wages and working conditions under this program were satisfactory, and there were no complaints from the Bangladeshi workers. However, misinformation spread by a few agencies and competitors from neighboring countries led the Malaysian government to suspend this program in March 2019.
Subsequently, after a thorough investigation by a high-level committee, Malaysia’s then-Minister of Human Resources, M. Kula Segaran, presented a report to the Malaysian Parliament on December 5, 2019, stating that no evidence of the allegations was found. He also expressed Malaysia’s interest in resuming the recruitment of workers from Bangladesh. As a result, through the active efforts of both governments and the cooperation of key leaders from BAIRA (Bangladesh Association of International Recruiting Agencies), a new Memorandum of Understanding (MoU) was signed on December 19, 2021.
Under this MoU, the Malaysian government decided to recruit workers from Bangladesh through a select number of Bangladesh Recruiting Agencies (BRA). Initially, the Ministry of Expatriates' Welfare and Overseas Employment expressed a preference for keeping the recruitment process open to all agencies. Accordingly, the ministry submitted an updated list of renewed recruiting agencies to the Malaysian Ministry of Human Resources. However, to maintain discipline in foreign worker recruitment, prevent unhealthy competition, curb the buying and selling of visas, control migration costs, and establish accountability for agencies, the Malaysian government remained firm in its decision to recruit Bangladeshi workers through a limited number of agencies.
Due to the lack of effective progress even six months after the signing of the MoU, the Ministry of Expatriates' Welfare and Overseas Employment of Bangladesh, in coordination with Malaysia's Ministry of Human Resources, organized a Joint Working Group meeting in Dhaka. Following this meeting, Malaysia's Minister of Human Resources, Datuk Seri M. Saravanan, announced the immediate resumption of worker recruitment from Bangladesh. Initially, it was agreed to begin by sending workers through 25 selected Bangladesh Recruiting Agencies (BRAs), with plans to increase the number of agencies in the next phase after evaluating all relevant factors. Subsequently, this number was expanded to 101 agencies, including the government-owned Bureau of Manpower, Employment and Training (BOESL). Additionally, around 1,300 recruiting agencies, as part of the associated agencies and supply chain, became involved in sending workers to Malaysia.
Following the Joint Working Group meeting on June 2, 2022, although Malaysian employers obtained the necessary government approvals for worker recruitment and submitted demand letters to the Bangladesh High Commission in Malaysia, there were delays in attesting these letters due to indecision. As a result, many employers became frustrated and dissatisfied, eventually opting to recruit workers from neighboring Nepal instead of Bangladesh.
However, after the Ministry of Expatriate Welfare and Overseas Employment, the Bangladesh High Commission in Malaysia, and BMET integrated the Malaysian government's system and initiated the online verification of demand letters, the migration of workers to Malaysia commenced in August 2022. Malaysian employers also became increasingly proactive in recruiting Bangladeshi workers. As a result, within the allocated quota, a total of 472,476 workers have already migrated to Malaysia.
To discourage the buying and selling of visas under the existing memorandum of understanding, the Malaysian government has implemented an online-based auto-allocation system for the panel-approved Bangladesh Recruiting Agencies (BRAs). It is noteworthy that many agencies outside the panel-approved BRAs, along with certain expatriates and intermediaries, are involved in visa buying and selling. They acquire authorization letters from the respective recruiting companies and arrange to send workers through the allocated BRAs. As a result, the involvement of nearly 1,300 recruiting agencies outside the panel-approved BRAs in marketing and supply chain (worker selection) management has significantly increased the costs associated with migration.
This situation has led to a lack of transparency and accountability within the recruitment process, ultimately placing an additional financial burden on workers and undermining the integrity of the migration system. Addressing these challenges requires stricter regulatory measures and enhanced collaboration between the relevant authorities to ensure that the recruitment process remains fair, efficient, and cost-effective for all parties involved.
Under the memorandum of understanding signed in December 2021, the goodwill and active efforts of both governments have successfully facilitated the recruitment of nearly 450,000 workers to Malaysia. These agencies have played a crucial role in addressing unemployment issues among a significant number of youths and contributing to the country's foreign currency earnings.
According to Malaysian labor laws, the current minimum salary for Bangladeshi workers is 1,500 ringgit, and with overtime, their earnings amount to approximately 50,000 taka, nearly double compared to what workers typically earn in the Middle East. Moreover, the opening of the Malaysian labor market has significantly reduced migration costs for Bangladeshis seeking employment in Saudi Arabia and other Gulf countries.
The Malaysian government has also implemented measures to prevent illegal employment of individuals entering the country on visit visas, thereby increasing demand for workers who migrate through legal channels. In fact, the Malaysian government is committed to ensuring the welfare of migrant workers entering the country on valid work visas, which further enhances the appeal of legal migration for Bangladeshi workers.
Under the Employers Pay Model, commonly referred to as Zero Cost Migration, the government sector’s BOESL, along with several private recruiting agencies, has successfully arranged employment for over 2,000 workers in Malaysia without any financial burden on the employees. In this migration process, workers incur no expenses; instead, employers cover all costs, including tickets, visas, medical fees, insurance, BMET clearance, and all expenses related to work permits in Malaysia.
The Malaysian government has set a deadline for all quota-receiving workers from Bangladesh and 14 other source countries to enter the country by May 31, 2024. In this context, the dedicated efforts of the Ministry of Expatriate Welfare and Overseas Employment, alongside the leaders of the recruiting agencies, have facilitated the arrangement of additional charter flights. However, the Malaysian government has temporarily suspended the recruitment of workers from Bangladesh and the 14 source countries, with plans for new recruitment to occur after verifying sector-based demand.
In this context, it is noteworthy that the Malaysian government's Economic Planning Unit has set the maximum ceiling for foreign workers in the country at 2.5 million. According to Malaysian statistics, by May 31, 2024, the total number of workers, both old and new, is expected to reach 2.6 million. However, the number of workers in the manufacturing, construction, and services sectors has exceeded the target, while there remains a significant shortfall in the agriculture and plantation sectors. In light of this, it is anticipated that the Malaysian government will introduce new rules and regulations to resume recruitment in these sectors.
Additionally, it is important to mention that in Malaysia and other countries, family members of outgoing workers, expatriates, and established individuals residing in the host country often engage in the local buying and selling of visas. This process has remained somewhat opaque from the outset. Furthermore, since workers typically do not approach registered agencies directly and instead incur costs through relatives, neighbors, local influential individuals, unauthorized agencies, and various middlemen, the cost of migration increases. The absence of transactions through banking channels and the lack of a digitized system have hindered the establishment of a reliable financial framework in this sector.
Under the current memorandum of understanding between Bangladesh and Malaysia, the Malaysian labor market reopened to Bangladeshi workers in August 2022 after a prolonged hiatus. Since then, nearly 450,000 workers have secured employment there up until May 31, 2024. Due to the higher salaries and benefits offered in Malaysia compared to Gulf countries—where the minimum wage is set at 1,500 ringgits, equivalent to approximately 40,000 Bangladeshi Taka—workers are able to recover their migration expenses within six months of employment. Subsequently, they typically remit earnings equivalent to five to ten years’ worth of income back to Bangladesh, thereby benefiting themselves and significantly contributing to the national economy.
According to data from the Bangladesh Bank, the remittance amounts received from Malaysia for the fiscal years 2021-22, 2022-23, and 2023-24 were approximately 1,021.85 million, 1,125.90 million, and 1,744.40 million US dollars, respectively. This reflects a remarkable growth rate of about 71% in remittance inflows for the fiscal year 2023-24 compared to 2021-22.
The influx of new workers to Malaysia since August 2022 has contributed to this positive trend in remittances, resulting in Malaysia rising from the 8th to the 5th position globally in terms of remittance receipts. Below are the statistics regarding the number of workers migrating to Malaysia since 2012, along with the corresponding remittances sent back home since the fiscal year 2011-12:
It is noteworthy that, in the current phase, of the total 1,105,215 workers who have migrated to Malaysia from various source countries, 472,476 are from Bangladesh. This indicates that Bangladesh accounts for 42.70% of the total workforce, while all other countries combined represent 57.30%. Detailed information is provided below in the form of a chart.
After obtaining approval for the recruitment of workers in government and private institutions in the host country, the Ministry grants recruitment permission and BMET clearance based on the recommendations of the Bangladesh mission in that country. Consequently, recruiting agencies send workers to the relevant hiring institutions. However, if the host country’s government approves the recruitment of more workers without adequately assessing actual needs, the workers may encounter difficulties. To address this issue, both governments, along with the Bangladesh mission in the host country, must ensure thorough scrutiny of recruitment approvals before sending workers for overseas employment.
It is important to note that in countries like Singapore, Saudi Arabia, and Kuwait, only a limited number of authorized agencies are permitted to send workers. In contrast, the situation in Malaysia has been marked by various complaints, investigations, and unilateral monitoring, resulting in discriminatory treatment of all parties involved. For a government that enforces reform policies aimed at eliminating discrimination, it would be prudent to adopt a uniform, universal policy applicable to all countries. This would establish principles of equality, enabling recruiting agency members to facilitate greater overseas employment opportunities, thereby significantly contributing to addressing the country's unemployment issue and increasing foreign currency earnings.
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