Malaysia’s labor market once again trapped in the grip of syndicates

Due to allegations of corruption and irregularities by syndicates, Malaysia’s labor market for Bangladeshi workers remains closed. After more than a year, Malaysia has hinted at reopening the market for Bangladeshi workers. Recently, the Malaysian Ministry of Human Resources sent a letter instructing to submit a list of recruiting agencies by November 7, attaching 10 specific conditions. However, migration experts fear that these conditions could once again hand over control of the market to the same old syndicate.

They believe this decision is intended to maintain the old syndicate, and the listed conditions could legally legitimize its activities. Malaysia has long been a popular destination for Bangladeshi workers due to its favorable wages, comfortable climate, and higher living standards.

Currently, nearly one million Bangladeshis are employed in various sectors in Malaysia. Just over a year ago, about 450,000 workers traveled there on calling visas. However, due to allegations of corruption and irregularities, Malaysia closed its labor market for Bangladeshis on May 31 last year. Despite several meetings, the interim government has not yet been able to reopen the market.

To prevent the market from falling back into the hands of syndicates and to keep it open to all recruiting agencies, Bangladesh’s Ministry of Expatriates’ Welfare and Overseas Employment held several meetings with the Malaysian government. After long discussions, Malaysia recently revisited the issue but imposed 10 conditions on agencies willing to send workers. These include a minimum of five years of satisfactory operation, proof of sending at least 3,000 workers, experience in sending workers to three different countries, and a permanent office space of 10,000 square feet.

Manpower exporters say most agencies will not be able to meet these conditions. Previously, only the syndicate-linked agencies managed to send more than 3,000 workers. Many experienced agencies may also fail to meet the new requirements. Moreover, determining office size is a matter for the Bangladeshi government, not Malaysia. They claim these conditions were designed under the influence of the old syndicate, and government intervention is urgently needed.

Fakhrul Islam, former Joint Secretary of the Bangladesh Association of International Recruiting Agencies (BAIRA), said most of Malaysia’s new conditions are unrealistic. In Bangladesh, an agency does not need a 10,000-square-foot office; the government approves agencies with offices as small as 600 square feet. Even the Malaysian agencies that recruit workers do not have such large offices. “No other country in the world has such requirements. This will only increase migration costs and revive the previous syndicate. They used to operate illegally; now they are trying to legalize their control,” he added.

Earlier, in 2018, Malaysia suspended worker recruitment from Bangladesh over corruption allegations. After three years, in December 2021, the labor market reopened through a new memorandum of understanding. In August 2022, 100 approved recruiting agencies resumed sending workers. The last batch of workers left on May 31 last year, after which the market has remained closed. Source: bd protidin

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