Facts on Manpower Export to Malaysia
Published: 20th September 2024 | Bangla Version

Background:

Although informal migration of workers to Malaysia started in 1978, the formal migration of Bangladeshi workers began in 1992 through an agreement between Bangladesh and Malaysia. However, due to various irregularities after the signing of the agreement, the labor market for Bangladeshi workers was repeatedly closed and reopened. After 2008, Malaysia imposed a long-term ban on Bangladeshi workers due to severe irregularities and criminal activities.

It is noteworthy that from the signing of the agreement in 1992 until 2008, private recruiting agencies exclusively operated and controlled this labor market. However, widespread irregularities such as passport fraud, tampering, providing incorrect information, illegal immigration of criminals, flaws in the manual immigration process, workers absconding from employers, exploitation by fraudulent agents, and illegal employment through travel visas led to Malaysian authorities and employers losing interest in hiring Bangladeshi workers.

Additionally, some Malaysian employers collaborated with Bangladeshi recruiting agencies to recruit a significantly higher number of workers than required for certain companies, leading to mass unemployment among workers upon arrival in Malaysia. Since Malaysia is a much larger country than Bangladesh, and many factories are located in remote areas, the analog system of government approvals and processes at the time made effective control of these issues difficult for the relevant authorities.

As a result, irregularities increased significantly, and thousands of workers, deprived of salaries and accommodations, flocked to Kuala Lumpur. Some gathered at the premises of the Bangladesh High Commission, protesting and demanding their rights, while others started living under bridges and in open fields across the city and surrounding areas. This caused public dissatisfaction in Malaysia regarding Bangladeshi workers. Consequently, the Malaysian government completely shut down its labor market for Bangladeshi workers from March 10, 2009, to 2012.

2012 to 2016:
After prolonged discussions and high-level decisions between the two governments, Malaysia agreed to resume hiring Bangladeshi workers in 2012 but showed interest only in government-to-government recruitment. In this context, a Memorandum of Understanding (MoU) was signed between the two governments in 2012, known as the G2G system.

Malaysia initially issued a demand letter for 30,000 workers, and the Bangladesh government registered about 1.4 million workers through BMET. The process required employers to bear the cost of airfare and other expenses. However, Malaysian employers showed little interest in hiring workers through this system. As a result, from 2012 to 2016, only about 8,000 workers successfully migrated to Malaysia. The lack of employer interest rendered the G2G system ineffective.

Despite limited official migration, many Bangladeshis attempted to migrate illegally via sea routes and through the Thailand border. This led to severe consequences, including sea accidents, arrests by Malaysian law enforcement, and unauthorized employment. Many perished at the Thailand-Malaysia border, where mass graves of Bangladeshi migrants were discovered in 2015. These events made Malaysia hesitant to reopen its labor market beyond the limited scope of the G2G system and specific recruiting agencies.

2016 to 2019:
On February 18, 2016, after discussions between the two governments, Bangladesh signed a new MoU allowing a limited number of (10) private recruiting agencies to operate alongside the G2G system. This arrangement was termed G2G Plus.

Malaysia stated that recruiting workers through a government-controlled system and a limited number of agencies would help prevent irregularities, fraud, and excessive costs. It would also enable authorities to monitor and hold the 10 agencies accountable for any violations. Additionally, Malaysia implemented a fully automated online-based digital platform for worker recruitment, known as the Foreign Workers Centralized Management System (FWCMS), which significantly reduced immigration-related irregularities. Between 2017 and 2018, approximately 278,000 workers migrated to Malaysia through private recruiting agencies.

Although there were no major worker complaints, misinformation from some agencies and competition from neighboring countries led Malaysia to suspend this program in March 2019. In December 2019, Malaysia’s then-Minister of Human Resources, M. Kulasegaran, presented an investigative report in the Malaysian Parliament, which found no substantial evidence supporting the allegations. Malaysia then expressed renewed interest in recruiting workers from Bangladesh.

2021 to 2024:
On December 19, 2021, through active initiatives from both governments and support from BAIRA, a new MoU was signed. Initially, 25 agencies were approved, later expanded to 101, including BOESL under the public sector.

It is important to note that the MoU between the two countries led to protests from unlisted recruiting agencies in Bangladesh, who organized human chains, demonstrations, and sit-ins to disrupt the legal migration process. Consequently, the Ministry of Expatriates' Welfare allowed unlisted agencies to act as associate recruiting agencies.

As a result, in addition to the 101 listed recruiting agencies recognized by the Malaysian government, an additional 735 unlisted agencies, along with approximately 1,100 legal and illegal agents, became involved in visa trading and supply chain control. Although the 101 listed agencies received their worker quotas through auto allocation and did not need to engage in visa trading, the involvement of 1,100 unlisted agencies and agents led to increased immigration costs.

The governments of Bangladesh and Malaysia signed a Memorandum of Understanding (MoU) on December 19, 2021, to reopen the closed labor market. Under this MoU, a Joint Working Group meeting was held on June 2, 2022, between the Ministry of Expatriates’ Welfare and Overseas Employment of Bangladesh and the Ministry of Human Resources of Malaysia. It was decided that the Malaysian government would select a limited number of agencies from the list to be provided by the Ministry of Expatriates’ Welfare and Overseas Employment through an online transparent process.

Evidence:

• Points C. 5 and 6 on page 28 of the MoU.

• Agreed Minutes of the Joint Working Group meeting.

In this context, out of all 1,520 valid licenses sent by the Ministry of Expatriates’ Welfare and Overseas Employment, the Malaysian government initially listed 25 licenses and later included a total of 101 licenses, including BOESL of the government sector. Therefore, the allegation of syndicate formation is not true. Rather, these agencies were listed for sending manpower to Malaysia according to the decisions and procedures adopted by the governments of both countries.

Through the Auto Allocation System of the Malaysian government’s designated FWCMS, quotas for worker recruitment were automatically allocated among 100 recruiting agencies. In line with these allocated quotas, demand letters attested by the Bangladesh High Commission, and after obtaining employment permission from the ministry, medical tests, calling visas, and e-visas for the workers are arranged. Subsequently, after receiving the BMET’s exit clearance, the workers are sent to Malaysia. Since the listed agencies (Panel BRA) received quotas through the Auto Allocation System, there was no need to purchase visas from Malaysian employers. Instead, the workers allocated under this system were sent to Malaysia following the prescribed procedures.

A sample of the allocated quota is provided.

All listed agencies have charged the government-prescribed migration costs and have not taken any additional money. Receipts for the amounts taken, along with their commitments, have been provided to the workers.

The listed agencies have not received or sent any money to other agencies for visa trading or any other reasons. The 100 private agencies listed have collected migration fees for their respective quotas of workers.

We believe that members are accusing each other due to business competition and the upcoming BAIRA elections. There have been incidents of attacks during BAIRA executive committee meetings and vandalism in the office. It is crucial to disseminate accurate information in the interest of the manpower export sector and overseas employment, as incorrect news can adversely impact the entire labor export market.

The Malaysian government has temporarily stopped recruitment of workers from Bangladesh and 14 other source countries starting from June 1, 2024. This decision was made because of the fact that the number of quotas issued by the Malaysian government already exceeded the total target of 2.5 million foreign workers approved by the Economic Planning Unit. It is noteworthy that the Malaysian Immigration Authority, in a circular dated March 1, 2024, deadline was set as for the entry of foreign workers with allocated quotas from all source May 31, 2024.

Evidence: The latest announcement regarding the management of foreign workers’ entry.

Multiple Malaysian media reports have stated that there are no plans to extend the deadline beyond May 31 for the entry of foreign workers.

For example: “Entry Of Foreign Workers: No Plans For Extension Of May 31 Deadline.”

The allegation of a huge amount of money being laundered through the Malaysian labor market cycle is not true. No approved agency is involved in buying or selling visas from Malaysia or sending money there. The listed agencies have been allocated quotas automatically by the Malaysian government, so there was no need to purchase visas. There is no allegation that any worker has paid more than the government-determined cost.

It should be noted that unapproved intermediaries purchased visas from recruiting agencies without approval, using dummy demand letters and powers of attorney to gain control over the supply and selection of workers. As a result, listed agencies were forced to accept workers from the selected representatives of the recruiters and acted only as processing agents. Since the listed agencies are not directly involved in worker’s selection, control over migration costs falls to the unauthorized agencies. They took advantage of this by charging up to 500,000 BDT, and in some cases, even more, for migration costs.

Unauthorized agencies try to shift the blame for money laundering onto authorized agencies to conceal their own practices of taking excessive money from workers and engaging in visa trade.

Samples of Unauthorized Agency Dummy Demand Letters and Powers of Attorney:

• Human Resource Development Center (HRDC RL-452): After purchasing visas from the employer, unauthorized powers of attorney and dummy demand letters were issued.

• Time International (RL-2539): After purchasing visas from the employer, unauthorized powers of attorney and dummy demand letters were issued.

Some unauthorized agencies notarize powers of attorney and presented them to listed agencies, pressuring employers to accept workers through them. On one hand, they are involved in visa trade, preparing and presenting all documents irregularly through the employer. On the other hand, they directly control the supply of workers. However, these unauthorized agencies promise the listed agencies to follow all rules and regulations.

Previously, in 2017-18, after receiving a complaint on this matter, the Anti-Corruption Commission conducted a thorough investigation and concluded that the allegations were unfounded.

In this case, the opinions of most listed agencies were not reflected. Instead, it is believed that some agencies are trying to bypass allegations of collecting excessive money from workers through post-business and pre-election propaganda.

In this regard, it is noteworthy that after the publication of the report by Daily Prothom Alo, Malaysia’s Scoop Online News Portal published a report citing the statement of Mr. Azam Baki, the head of the Malaysian Anti-Corruption Commission.

The summary of Tan Sri Azam Baki’s statement is presented below:

Like other Gulf and Middle Eastern countries, the Malaysian government allows a specific number of 100 recruiting agencies to send workers. Both governments have implemented an Auto Allocation System to prevent the buying and selling of visas, thereby closing the path to purchasing visas at high prices.

The Real Reason for Increased Migration Costs:

The involvement of approximately 1,100 unlisted intermediaries and unauthorized agencies in this process, using dummy demand letters and powers of attorney from employers, has led to increased migration costs. These unauthorized agencies have no legal right to be involved in worker migration.

Evidence: A media statement from Malaysia’s Human Resources Minister, Datuk Seri M. Saravanan, is presented on this matter. Additionally, two relevant videos published on YouTube are provided for verification: Video 1 and Video 2.

These are two completely separate entities. Bestinet Sdn. Bhd is a Malaysian company that operates following Malaysian government regulations. It has an authorized branch office in Bangladesh in the name of MEFC.

On the other hand, Bestinet Bangladesh Ltd. is a company registered in Bangladesh. The ownership, management rules, and business nature of these two companies are entirely different.

The statement mentioned in the report, “There is no relationship between Malaysia’s Bestinet and Bangladesh’s Bestinet. They are two separate companies. Aminul Islam has relinquished his partnership as there was no business in Bangladesh,” is correct. 

The Malaysian government authorizes the Malaysian Employment Facilitation Centre (MEFC) to process only worker (employment) visas. Other authorized visa centers are allowed to process various categories of visas, including worker visas, visit/tourist visas, medical visas, and student visas.

However, according to a government decision in Malaysia, from January 2024, the responsibility for visa processing was given to the respective recruiting companies instead of MEFC.

It is worth mentioning that Catharsis International has arranged to send approximately 400 workers to Malaysia completely on free of cost (Employers Pay Model / Zero Cost Migration). The hiring company has borne all migration expenses and has also paid the recruiting charges to our agency through banking channels from Malaysia. 

Under the Memorandum of Understanding (MoU), if the practice of appointing agents through Power of Attorney by intermediaries or employers is eliminated, and the responsibility for selecting workers and completing the entire process is entrusted to the agencies authorized by the Malaysian government, migration costs could be reduced by at least 60%.

Repeated investigations by agencies like the Anti-Corruption Commission (ACC) or law enforcement agencies against listed agencies within the country, or continuous media defamation, negatively affects Malaysian employers, leading them to show interest in other source countries. As a result, the migration process for Bangladeshi workers to Malaysia gets obstructed.

According to the Allocation of Business by the Government of Bangladesh, the Ministry of Expatriate Welfare and Overseas Employment, which is responsible for regulating all matters related to the manpower export sector, can eliminate the current instability in the sector by providing necessary cooperation to the recruiting agencies under existing laws. This will ensure that the Malaysian labor market will soon be reopened to Bangladeshi workers.

"Investigation or media defamation against legitimate and listed agencies negatively impacts recruitment in the destination country, which disrupts the migration process for workers. This, in turn, harms foreign employment and remittance flows, and also damages the manpower export sector. If investigations related to the migration process for Bangladeshi workers in Malaysia are suspended and necessary cooperation is provided to the agencies, the instability in the sector will decrease, and the labor market will be reopened. This will reduce migration costs and increase foreign employment and remittance flows."

Based on positive discussions and recommendations from experienced businesspeople, taking effective measures and engaging in productive discussions with the Malaysian government can help facilitate employment opportunities for Bangladeshi workers.