Old worries stay as KL reopens labour market

Costs, departure procedures remain unclear; 25 agencies retain control

Malaysia’s labour market has reopened to Bangladeshi workers after more than two years, but the control of key recruitment procedures by 25 selected agencies has revived fears of a return to the system that saddled migrants with exorbitant costs.

The Ministry of Expatriates’ Welfare and Overseas Employment yesterday announced the resumption of recruitment, allowing approved agencies to process applications and prospective workers to undergo medical examinations.

However, the ministry provided no details on recruitment costs, departure dates or the formalities workers must complete.

The government also said Malaysia had agreed in principle to recruit 10,000 workers at zero cost, without specifying the eligibility criteria or selection process.

Experts and agency owners say the arrangement fails to address longstanding concerns over transparency, excessive costs and the dominance of a few agencies.

Migration specialist Asif Munier warned that unclear eligibility criteria for the zero-cost jobs could raise false hopes among prospective workers, while continued reliance on selected processing agencies raised concerns about a recurrence of past irregularities.

An agency owner registered with Malaysia’s Foreign Workers Centralised Management System told The Daily Star, on condition of anonymity, that workers will have to pay at least Tk 5 lakh. “Though the government is expected to set the migration cost at around Tk 86,000 this year, but considering the situation right now, they will have to pay at least Tk 5 lakhs.”

During the 2022–2024 recruitment period, workers spent an average of Tk 5.44 lakh to secure jobs in Malaysia against the government-fixed cost of Tk 78,990, according to a survey by the US-based non-profit Verité.

Malaysia suspended new recruitment from Bangladesh on May 31, 2024, following allegations of irregularities and excessive costs. At least 16,970 Bangladeshis were unable to enter Malaysia before the deadline despite obtaining government clearance and completing other formalities.

Under the new arrangement, Malaysia has approved 25 private agencies and the state-run Bangladesh Overseas Employment and Services Limited (BOESL) as the main processing agencies, leaving 312 other recruiting agencies dependent on them for key procedures.

The 25 agencies and BOESL will process e-visas and issue no-objection certificates required for clearance from the Bureau of Manpower, Employment and Training (BMET).

The ministry said the arrangement would encourage wider participation, competition and accountability while preserving recruiting agencies’ independence.

It said Malaysian authorities had selected the agencies according to their own eligibility criteria under the existing bilateral memorandum of understanding (MoU). Bangladesh had earlier submitted a list of 423 recruiting agencies for consideration and sought broader participation.

However, Mohammed Fakhrul Islam, former joint secretary general of the Bangladesh Association of International Recruiting Agencies, alleged that the government had effectively revived the previous system dominated by a limited number of agencies.

He said the 312 agencies would still depend on the 25 selected agencies for essential visa processing, effectively reducing them to sub-agents.

“The only difference is that the 312 agencies will now be able to obtain BMET clearance under their own licences. Otherwise, the system remains largely unchanged,” he told The Daily Star.

Fakhrul criticised the selection process, questioning why all legitimate and qualified recruiting agencies had not been allowed to participate.

He also questioned the government’s failure to establish a mechanism to regulate migration costs.

“Who will decide how much workers have to pay? Will the recruiting agencies themselves determine the amount?” he asked.

RECRUITMENT PROCESS STILL UNCLEAR

Despite yesterday’s announcement, agency owners said it remained unclear when medical examinations, visa processing and other formalities could begin.

KM Mobarak Ullah Shimul, owner of Abed Air Travels and Tours, said Malaysian employers had secured worker allocations, but Bangladeshi agencies still lacked clear guidelines on medical examinations, calling visas and government clearance, creating a gap between employers’ expectations and recruitment arrangements.

He warned that prolonged uncertainty could jeopardise Malaysia’s demand for at least two lakh Bangladeshi workers.

Shimul said the government had also yet to fix migration costs, taking into account airfare, processing charges and exchange rate fluctuations.

Agency owners earlier said around 350 Malaysian employers had applied for worker quotas, with more than 6,000 positions already allocated. Some demand letters had also been sent to the Bangladesh High Commission in Kuala Lumpur for attestation.

On September 29, the mission attested a demand for 28 workers from Malaysian supermarket chain NSK Trade City.

Another agency owner warned that some job allocations had already expired due to delays, and further setbacks could prompt employers to recruit from other countries.

The owners urged the government to allow zero-cost and regular private-sector recruitment to proceed simultaneously. One suggested offering financial incentives for zero-cost recruitment instead of imposing additional charges on Malaysian employers already covering workers’ travel and other recruitment expenses.

Meanwhile, the ministry said medical examinations would initially be conducted at centres on Malaysia’s existing approved list, excluding those identified as controversial or linked to past irregularities.

Representatives from Malaysia’s health, human resources and home ministries would later visit Bangladesh to inspect medical facilities before finalising a new list.

The government also pledged to prevent any single centre from monopolising medical examinations and take action against facilities violating regulations.

QUESTIONS OVER ZERO-COST RECRUITMENT

Asif Munier welcomed the resumption of recruitment but said key questions concerning worker protection remained unanswered.

He urged the government to clarify whether the 10,000 zero-cost jobs were intended for new applicants or workers who had previously paid but failed to travel.

“Without clear eligibility criteria, the announcement could encourage unrealistic expectations among jobseekers,” he added.

Munier also questioned whether the arrangement involving 25 processing agencies and 312 recruiting agencies differed substantially from the previous system.

Simply increasing the number of participating agencies would neither guarantee transparency nor prevent exploitation without effective monitoring and accountability mechanisms, he said.

He called for greater scrutiny of the agency selection process to address potential conflicts of interest and avoid repeating past controversies.

Munier also stressed that Bangladesh should ensure Malaysia respected its concerns and the interests of Bangladeshi workers rather than merely accepting recruitment terms set by Kuala Lumpur.

An official announcement from Malaysia confirming the arrangements would also help resolve uncertainty over their implementation, he said.

With the existing bilateral MoU, signed in December 2021, set to expire this December, Munier called for a legally binding agreement clearly defining both countries’ responsibilities and accountability.