In recent months, the number of Bangladeshi workers heading to Malaysia has seen a notable upsurge. However, this surge has given rise to serious allegations against certain recruitment agencies. The accusations include charging excessively high migration costs, surpassing the officially-fixed rates, and engaging in deceptive practices. Authorities are closely monitoring the situation to safeguard the rights of workers and ensure fair migration processes.
During the fiscal year 2022-23, Bangladesh dispatched a total of 228,097 workers to Malaysia, with 178,086 of them leaving during the second half of the fiscal year. Malaysia has traditionally been a popular destination for Bangladeshi workers; however, the opening of this market often correlates with an upsurge in fraudulent activities.
Aims to alleviate the labour crisis
AA Mamun Nasim, the programme coordinator of Ovibashi Karmi Unnayan Program (OKUP), has pointed out that unethical practices in worker migration to Malaysia are occurring due to the syndication of recruiters. He expressed disappointment in the government’s inability to prevent fraud and regulate the actions of recruiters, suggesting a lack of proper initiatives to address the issue.
Malaysia has become the second-largest labour-receiving country for Bangladesh, trailing behind Saudi Arabia, in terms of the number of outbound workers. In the last six months of the recently concluded financial year, Saudi Arabia hired approximately 36% or 226,150 workers, while Malaysia recruited about 29% or 178,086 workers from Bangladesh.
The Bangladesh Association of International Recruiting Agencies (BAIRA) president, Mohammad Abul Bashar, stated that currently, 100 licensed recruitment agencies are enlisted to send workers to Malaysia, with an additional 200-300 recruiters involved in the process. Each recruiter currently has a demand for 1,000 to 1,500 workers.
The labour migration arrangement between Bangladesh and Malaysia is expected to alleviate Malaysia’s labour crisis while providing Bangladeshi workers with employment opportunities abroad. The projected increase in remittances to Bangladesh will likely have a positive impact on the country’s economy, contributing to its economic growth and development. However, it is essential for both governments to ensure that the rights and welfare of the migrant workers are protected and that transparent and fair labour practices are maintained throughout the migration process. Additionally, efforts should be made to address any potential challenges and streamline the migration process to facilitate a mutually beneficial relationship between the two countries.
Unveiling the dark side
The rising incidence of fraud can be attributed to two primary factors: first, the recruiters’ insatiable desire for higher profits and, second, the lack of transparency in the migration processes in both countries.
The data from the Bureau of Manpower Employment and Training (BMET) shows that the outflow of workers started gradually, with an average of around 10,000 workers per month during the August to December period of 2022. However, since January of the same fiscal year, the numbers began to rise steadily, and this trend is predicted to continue in the foreseeable future as per recruiters’ projections.
It is noteworthy that Malaysia began hiring workers from Bangladesh in August 2022 after a four-year hiatus. Nevertheless, the initial outflow was slower due to factors such as syndication among recruiters.
The situation demands close scrutiny and cooperation between both countries’ authorities to tackle the rising instances of fraud and ensure a fair and transparent migration process. By establishing more stringent oversight and regulation, the governments can create an environment where workers’ rights are protected, and unscrupulous elements are held accountable. Additionally, enhancing bilateral communication and information exchange may aid in preventing fraudulent practices and maintaining a mutually beneficial working relationship between Bangladesh and Malaysia.
The outflow of Bangladeshi workers to Malaysia has been marred by exploitative practices and uncertainties, with some recruitment agencies charging exorbitant fees far beyond the officially fixed migration costs. Despite the government’s fixed cost of Tk77,990 for each worker’s migration, many are forced to pay up to Tk500,000, pushing them into financial hardship.
During the initial five months (August to December) of the fiscal year, 49,961 workers managed to secure jobs in Malaysia. However, a troubling pattern emerges as a section of recruiters extract money from jobseekers even before receiving official job demands from employers. In some cases, approvals for 100 workers are granted by the government, but recruiters collect money from 300 workers, promising them employment opportunities. This leaves workers in a state of uncertainty, as they may not receive the promised jobs and are at risk of losing the money they paid.
According to A A Mamun Nasim, the program coordinator of Ovibashi Karmi Unnayan Program (OKUP), there have been reports of workers spending Tk400,000 to Tk500,000 each to migrate to Malaysia. Disturbingly, some workers end up not finding any work in Malaysia, despite the substantial costs incurred.
The syndication of recruiters in highlight
The lack of transparency and accountability highlights the disparity between the government-fixed migration costs and the practical realities faced by the workers. Workers thus find themselves with little choice but to accept the excessive charges imposed by recruiters, as they raise money by selling their assets or borrowing, often pushing themselves into financial hardship.
Addressing these exploitative practices and uncertainties in worker migration requires concerted efforts from both Bangladesh and Malaysia. The governments should collaborate to enforce regulations, scrutinize recruitment agencies, and ensure that the fixed migration costs are adhered to strictly. Transparent and accountable processes must be established to protect the rights and financial well-being of Bangladeshi workers seeking opportunities in Malaysia. Additionally, support and assistance programs should be available to help workers who fall victim to such exploitative practices, providing them with a safety net in times of uncertainty and financial strain.
Reports of charging extra migration costs and some workers not receiving jobs have been communicated verbally to the Ministry of Expatriates’ Welfare and Overseas Employment and the Ministry of Home Affairs. A letter has also been sent to the Ministry of Human Resources and the Prime Minister of Malaysia to seek action in addressing these concerns.
Shahidul Alam, the director general of the BMET, acknowledged that they have heard of workers going to Malaysia and incurring extra migration costs. However, no formal complaints have been received yet. He urged workers to be cautious before proceeding to Malaysia to avoid potential problems.
How Bangladesh-Malaysia worker exchange flourishes?
Malaysia predominantly hires plantation, agriculture, construction, and manufacturing workers from Bangladesh. The current fresh wage structure offers a monthly basic wage of Malaysian Ringgit 1,500 (approximately Tk 36,000) per worker.
Despite the challenges faced by workers, remittances from Bangladeshis working in Malaysia amounted to US$1.12 billion in FY 2022-23 and $1.02 billion in FY 2021-22, as per Bangladesh Bank statistics.
A Memorandum of Understanding on the hiring of Bangladeshi workers was signed between Dhaka and Kuala Lumpur on December 19, 2021. Malaysia had suspended workers’ recruitment from Bangladesh in 2018 due to allegations of high migration costs.
Since 1984, Bangladesh has been sending skilled and unskilled laborers to Malaysia, with a total of 1.06 million workers dispatched between then and 2019. The ongoing challenges underscore the need for closer monitoring and stronger regulatory measures by both the Bangladeshi and Malaysian authorities to ensure the welfare and rights of migrant workers and prevent exploitative practices within the recruitment process.
As per the Bureau of Manpower, Employment, and Training (BMET), approximately 60,000 to 80,000 more migrant laborers are anticipated to be sent from Bangladesh to Malaysia in the upcoming four months. Moreover, Malaysia is expected to hire over 500,000 additional Bangladeshi employees within the next three years, which could potentially lead to $45 billion in remittances from Malaysia to Bangladesh over the next five years. Last year, Bangladeshi remitters already sent $1.09 billion from Malaysia.
The decision to import employees from Bangladesh was a result of extensive negotiations between Malaysia and the government of Bangladesh, prompted by a labour shortage caused by the coronavirus outbreak. During the peak of the pandemic, various sectors in Malaysia, including palm oil plantations and semiconductor manufacturing, suffered due to a labour shortage exceeding one million people. This scarcity of workers posed a significant threat to Malaysia’s economic recovery as businesses had to reject orders and forgo substantial sales. Malaysia heavily relies on foreign labour in factories, plantations, and the service sector, playing a crucial role in the global supply chain.
Currently, Malaysia faces a severe deficit of at least 1.2 million workers across all industrial and service sectors, and the shortage is exacerbated as demand surges with the easing of pandemic restrictions and an influx of export orders.
