The Actual Facts of Bangladeshi Workers' Migration to Malaysia Under the 2021 Memorandum of Understanding (MoU)
Published: 21 October, 2024 | Bangla Version
Published: 21 October, 2024 | Bangla Version
Misinformation spread through media about the migration process of Bangladeshi workers to Malaysia—such as agency selection, visa trading, inflated migration fees charged by listed agencies, and the closure of Malaysia's labor market specifically for Bangladeshis—has created misunderstandings about the listed agencies, relevant Malaysian government departments, and employers. Consequently, concerns have arisen that the future migration process for Bangladeshi workers to Malaysia could be adversely affected. The actual facts regarding these issues are as follows:
To reopen the closed labor market, the governments of Bangladesh and Malaysia signed a Memorandum of Understanding (MoU) on December 19, 2021. Under this MoU, a Joint Working Group meeting between the Ministry of Expatriates' Welfare and Overseas Employment of Bangladesh and the Ministry of Human Resources of Malaysia was held on June 2, 2022. Based on the decisions of this meeting, it was decided to commence the migration process, where the Malaysian government would recruit workers through a limited number of recruiting agencies and take responsibility for the agency selection.
In this context, out of the 1,520 valid licenses sent by the Ministry of Expatriates' Welfare and Overseas Employment of Bangladesh, the Malaysian government initially enlisted 25 licenses and subsequently included a total of 101 licenses, including the state-owned BOESL. From August 8, 2022, to May 31, 2024, the enlisted agencies successfully facilitated the migration of 476,672 Bangladeshi workers to Malaysia.
Under the Foreign Workers Centralized Management System (FWCMS) established by the Malaysian government, quotas for worker recruitment are allocated automatically among 101 recruiting agencies through the Auto Allocation System. Based on the allocated quotas, demand letters are attested by the Bangladesh High Commission, and recruitment approvals are issued by the Ministry. Following this, workers undergo medical examinations, and calling visas and e-visas are obtained. Subsequently, after receiving BMET's exit clearance, the workers are sent to Malaysia. Since the 101 enlisted agencies were allocated quotas through the Auto Allocation System by the Malaysian government, there was no need for them to purchase visas from Malaysian employers.
The enlisted agencies have sent workers to Malaysia following the rules, regulations, and prescribed procedures of both countries. All workers sent by the enlisted agencies have joined their employers as per the guidelines and are doing well. These workers are receiving a minimum basic salary of 1,500 Ringgit, along with overtime, amounting to approximately 50,000 Bangladeshi Taka per month in wages and allowances. The enlisted agencies have collected only the government-approved migration fees and have not charged any additional amounts. Receipts for the collected fees have been provided to each worker.
The listed agencies have not engaged in visa trading or received any money from other agencies for any reason, nor have they sent any funds to Malaysia. Each listed agency has facilitated the migration process for workers under its allocated quota by collecting the required migration fees and ensuring their deployment to Malaysia.
According to the approval of the Economic Planning Unit under the Ministry of Finance of Malaysia, the maximum ceiling for foreign workers in the country is 2.5 million. As of December 31, 2023, the quota allocated for the recruitment of foreign workers exceeded this limit, leading the Malaysian government to halt new quota applications for all source countries. A circular issued by Malaysia's Immigration Department on March 1, 2024, stated that all workers under issued quotas must enter Malaysia by May 31, 2024. Consequently, from June 1, 2024, the recruitment of workers from all 15 source countries, including Bangladesh, has been suspended.
In response to various media reports regarding the reopening of Malaysia's labor market, Malaysian Home Minister Dato' Seri Saifuddin Nasution Ismail clarified the matter in an announcement on October 21, 2024. He stated that the quota of 2.5 million foreign workers approved by Malaysia's Economic Planning Unit is nearly full. Under these circumstances, the recruitment ban on foreign workers will remain in effect until further notice.
(Source: https://www.nst.com.my/news/nation/2024/10/1122976/saifuddin-freeze-foreign-worker-employment-quota-continue)
Therefore, the suspension of foreign worker recruitment applies not only to Bangladesh but to all 15 source countries.
The listed agency or its owners are not involved in the buying and selling of visas from Malaysia or in sending money to that country. Previously, in 2017-18, after receiving a complaint regarding this matter, the Anti-Corruption Commission conducted a thorough investigation and announced the conclusion of the investigation, stating that no evidence was found against the listed agency at that time. Under the existing memorandum of understanding, Malaysia has improved its position from 8th to 4th in terms of remittance received due to the contributions of migrant workers, and the amount of remittance received in August 2024 alone was 251.9 million US dollars.
Like other Gulf and Middle Eastern countries, the Malaysian government allows a specific number of 101 recruiting agencies to send workers. The governments of both countries have introduced the Auto Allocation System to stop the buying and selling of visas, thereby closing the pathway to purchasing visas at high prices. Following the government procedure, from August 8, 2022, to May 31, 2024, 476,672 workers have been employed in Malaysia.
The Malaysian government only approves worker visa processing through the Malaysian Employment Facilitation Centre (MEFC). Other authorized visa centers are permitted to process visas such as visit/tourist visas, excluding worker visas. However, according to government decisions, starting from January 2024, the responsibility for visa processing will be transferred from MEFC to the respective recruiting companies. MEFC has assisted FWCMS with technical work from Dhaka.
In this regard, it is noteworthy that under the supervision of Catharsis International, arrangements have been made to send 358 workers to Malaysia completely free of charge (Employers Pay Model / Zero Cost Migration) through several listed recruiting agencies, and the recruiting company has borne all immigration costs. These agencies have received recruitment charges from Malaysia through banking channels. Additionally, BOESL has also sent nearly two thousand workers to Malaysia at low or no cost.
In fact, although 101 BRAs are listed by the Malaysian government, more than 800 agencies have currently (2022-24) been given the opportunity to export manpower as associated and approved agents of the employers. However, in light of business competition and the future elections of BAIRA, members of BAIRA are making allegations against each other to serve the interests of their respective groups or panels. There have been incidents of attacks during important meetings of the executive committee of BAIRA, and vandalism has occurred at the BAIRA office.
For the sake of the manpower export sector and foreign employment, accurate information needs to be disseminated in the media, as any false information or reports could have a negative impact on the entire labor market.