The main theme of this content is to clarify the facts about Bangladeshi workers' migration to Malaysia under the 2021 MoU between the two countries. It addresses misinformation around the selection of recruiting agencies, visa trading, and migration fees, which has led to misunderstandings regarding the Malaysian government’s labor policies and the agencies involved. The MoU led to the official listing of 101 Bangladeshi agencies authorized by the Malaysian government to recruit workers. These agencies operate transparently through Malaysia’s Foreign Workers Centralized Management System (FWCMS) and do not engage in visa trading. The Malaysian government has also halted new worker intakes from all source countries, not just Bangladesh, as the foreign worker quota has been met. Additionally, certain agencies have facilitated cost-free worker migration through employer-sponsored models. The content emphasizes the need for accurate information to prevent disruption in the labor migration process.
Due to the spread of misinformation in the media regarding the selection of agencies, the sale and purchase of visas, excessive migration fees charged by listed agencies, and the closure of the Malaysian labor market exclusively for Bangladeshi workers, misunderstandings are arising about the listed agencies, relevant Malaysian government departments, and employers. Consequently, there is concern that the migration process to Malaysia for Bangladeshi workers may face obstacles in the future. The actual information on these matters is as follows:
To reopen the previously closed labor market, Bangladesh and Malaysia signed a Memorandum of Understanding (MoU) on December 19, 2021. Under the terms of this MoU, and following a decision reached in the Joint Working Group meeting held on June 2, 2022, between Bangladesh's Ministry of Expatriates' Welfare and Overseas Employment and Malaysia’s Ministry of Human Resources, it was agreed that Malaysia would receive workers through a limited number of recruiting agencies, with the selection of agencies overseen by the Malaysian government. Accordingly, from 1,520 licensed agencies recommended by Bangladesh’s Ministry of Expatriates' Welfare and Overseas Employment, the Malaysian government initially listed 25 licenses, later expanding to a total of 101, including the public sector BOESL. These listed agencies successfully facilitated the migration of 476,672 workers to Malaysia from August 8, 2022, to May 31, 2024.
Under Malaysia’s Foreign Workers Centralized Management System (FWCMS), quotas for hiring workers are automatically allocated among 101 recruiting agencies through the Auto Allocation System. Following the allocation, the High Commission of Bangladesh authenticates the demand letters, and upon approval from the Ministry, medical checks, calling visas, and e-visas are processed for the workers. Once the Bureau of Manpower, Employment, and Training (BMET) issues the final exit clearance, workers are sent to Malaysia. Since the 101 listed agencies receive quotas directly from Malaysia's Auto Allocation System, there is no need for them to purchase visas from Malaysian employers.
The listed agencies have followed the rules and procedures set by both countries to facilitate the migration of workers to Malaysia. All workers deployed by these agencies have joined their employers as per the standard procedures and are reportedly in good condition. These workers receive a minimum base salary of 1,500 Malaysian Ringgit, amounting to approximately 50,000 BDT per month, including overtime pay. The agencies have adhered to the government-prescribed migration fees and have not collected any additional amounts. Each worker has been provided with a receipt for the payments made.
The listed agencies did not receive funds from, or send funds to, any other agency for visa purchases or any other purpose in Malaysia. Each listed agency independently managed the necessary migration fees allocated to its designated quota of workers and facilitated their migration to Malaysia accordingly.
As per the approval of the Economic Planning Unit under Malaysia’s Ministry of Finance, the maximum ceiling for foreign workers in Malaysia is 2.5 million. Statistics show that, as of December 31, 2023, the quota limit for foreign recruitment had been exceeded, prompting the Malaysian Government to close new quota applications for all source countries. In a circular issued on March 1, 2024, Malaysia’s Immigration Department announced that workers under the existing quotas must enter Malaysia by May 31, 2024. Consequently, since June 1, 2024, the entry of workers from all 15 source countries to Malaysia has been halted.
In response to various media reports about reopening the Malaysian labor market, Malaysian Home Minister Dato' Seri Saifuddin Nasusn Ismail clarified on October 21, 2024, that the foreign worker quota, approved by the Economic Planning Unit, was nearly filled. As such, the recruitment freeze on foreign workers will remain in effect until further notice. (Source: NST)
Therefore, the recruitment suspension applies to all 15 source countries, not just Bangladesh.
The listed agencies and their owners are not involved in the purchase or sale of visas from Malaysia, nor in sending funds to the country. Previously, in 2017-18, following a related complaint, the Anti-Corruption Commission conducted a thorough investigation and concluded that there was no evidence of wrongdoing by the listed agencies, thus closing the investigation. Under the current Memorandum of Understanding, Malaysia has risen from the 8th to the 4th position in terms of remittance contributions, with remittances totaling $251.9 million USD in August 2024 alone.
Similar to policies in other Gulf and Middle Eastern countries, the Malaysian government authorizes a specific number of 101 recruiting agencies to send workers. To prevent the sale and purchase of visas, both governments introduced the Auto Allocation System, thereby closing off avenues for inflated visa prices. Following the official protocol, a total of 476,672 workers were successfully employed in Malaysia from August 8, 2022, to May 31, 2024.
The Malaysian government authorizes the Malaysian Employment Facilitation Centre (MEFC) to handle only worker visa processing. Other approved visa centers are permitted to process visit and tourist visas but not worker visas. However, following a government directive, since January 2024, visa processing responsibilities have shifted from MEFC to the respective hiring companies. MEFC in Dhaka has provided technical assistance to the FWCMS system.
Notably, under the supervision of Catharsis International, several listed recruiting agencies facilitated the migration of 358 workers to Malaysia at no cost to the workers (Employers Pay Model / Zero Cost Migration). The hiring companies covered all migration expenses, and the recruiting fees were paid to these agencies via banking channels from Malaysia. Additionally, BOESL has arranged for the migration of approximately two thousand workers to Malaysia at little or no cost.
In reality, while the 101 Bangladesh Recruiting Agencies (BRAs) are listed by the Malaysian government, over 800 additional agencies have also been given the opportunity to export manpower to Malaysia in the current phase (2022-24) as approved associates and agents by employers. However, due to business competition and the upcoming BAIRA elections, BAIRA members are making allegations against each other to further the interests of their respective groups or panels. This competition has led to incidents, including an attack during a key BAIRA executive committee meeting and vandalism at the BAIRA office. For the benefit of the manpower export sector and overseas employment, accurate information needs to be shared with the media, as any misinformation or incorrect reports could negatively impact the entire labor market.
