Malaysia is making strides to strengthen its semiconductor industry, with plans to recruit Bangladesh’s skilled workers, according to Shabbir A Khan, President of the Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI). Speaking at a press briefing in Dhaka, Shabbir underscored Malaysia’s growing semiconductor sector and the escalating need for proficient labor. Semiconductors, vital components in modern electronics, are essential for conducting electricity under specific conditions.
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Representatives from Malaysia Digital Economy Corporation (MDEC) emphasized the substantial investments pouring into Malaysia’s semiconductor industry, exceeding $300 billion, driving the demand for skilled engineers.
Efforts to formalize cooperation between Bangladesh and Malaysia were also on the agenda, with talks of establishing a Memorandum of Understanding (MoU) to facilitate the integration of Bangladeshi engineers into Malaysia’s semiconductor sector.
Semiconductor Industry and Its Functions
A semiconductor is a crucial component in electronics, possessing unique electrical properties essential for computers and various devices. These substances, typically solid elements or compounds, conduct electricity under specific conditions while resisting it under others. They regulate electrical currents in devices like diodes, integrated circuits (ICs), and transistors, fundamental to modern electronics. Semiconductors occupy a middle ground between conductors and insulators, modulating conductance. Their conductive properties can vary based on factors such as applied current, voltage, or exposure to radiation.
Semiconductors feature crystalline structures formed from atoms bonding in layers, particularly in the valence shell. Understanding semiconductor functionality requires knowledge of atomic structure and electron behavior. While conductors typically have one electron in their valence shell, semiconductors typically have four, facilitating the formation of crystalline structures critical in semiconductor fabrication, often utilizing silicon crystals.
Huge Job Scope for Bangladeshi Engineers
Bangladeshi semiconductor engineers have great opportunities of bagging high-paying jobs in Malaysia as the country’s semiconductor industry flaunts an investment as huge as US$ 300 billion. Shabbir A Khan, president of the Bangladesh-Malaysia Chamber of Commerce and Industries (BMCCI), expresses that the limited remittance contribution of the approximately 1.5 million Bangladeshis working in Malaysia due to their engagement in low-level jobs. Khan underscored the significant opportunity for Bangladeshi engineers in Malaysia’s semiconductor sector, urging a concerted effort to cultivate skilled manpower to capitalize on this potential
Furthermore, the disparity in earnings between semiconductor engineers and general workers in Malaysia, noting that a semiconductor engineer could potentially earn as much as 500 general workers annually. Regarding education, he expressed concern over the majority of Bangladeshi students in Malaysia being enrolled in conventional subjects, emphasizing the importance of pursuing fields that align with industry demands.
Khan also drew attention to statistics from the Bangladesh Bureau of Statistics (BBS) indicating the SME sector’s contribution to Bangladesh’s GDP, which stood at 22.4% in FY20. Additionally, he pointed out the substantial trade gap between Malaysia and Bangladesh, with Malaysia exporting products worth approximately $4 billion to Bangladesh compared to Bangladesh’s exports of only $300 million.
Recognizing the necessity of fostering stronger people-to-people connections, Khan stressed the imperative of bolstering bilateral relations between Bangladesh and Malaysia. He highlighted Malaysia’s dominant position among ASEAN countries in trade and suggested Bangladesh could serve as a gateway to the region.
Is Malaysia becoming the first choice for Bangladeshi workers?
In terms of labor migration, Saudi Arabia has historically been the preferred destination for Bangladeshi workers. However, in a surprising development, Malaysia attracted the highest number of migrant workers in May (2023).
According to data from the BUREAU of Manpower, Employment, and Training (BMET), Malaysia hired 35,190 workers in May this year, marking a significant increase since the resumption of hiring Bangladeshi workers in August last year after a three-and-a-half-year hiatus. In contrast, Saudi Arabia recruited 29,667 workers from Bangladesh in May (2023).
Labor recruiters attribute this shift to Malaysia’s offering of a more competitive salary structure compared to the oil-rich Gulf country. Additionally, the similar weather conditions between Malaysia and Bangladesh contribute to Bangladeshi workers’ eagerness to work there.
Md Tipu Sultan, the joint secretary of the Bangladesh Association of International Recruiting Agencies (Baira), explained, “A Bangladeshi worker in Saudi Arabia receives a minimum salary of 800-1000 Saudi Riyal (approximately Tk23,000-28,000), while in Malaysia, the minimum salary is 1,500 Malaysian Ringgit (Tk35,000). Therefore, with the Malaysian labor market reopening, Bangladeshi workers naturally gravitate towards it.”
It is noted, a decline in the number of workers going to Saudi Arabia through his agency, with many opting for Malaysia instead. However, this trend might not last long, as Malaysia has imposed restrictions on new foreign workers, only allowing those previously approved to enter the country.
High Migration Costs Still a Concern
High migration costs remain a significant concern for Bangladeshi workers seeking opportunities in both Malaysia and Saudi Arabia.
Despite the expatriates’ welfare ministry setting the migration cost at Tk79,000 for workers bound for Malaysia, a worker who preferred not to disclose their identity informed TBS that they had to pay over Tk4 lakh to the recruiting agency.
Similarly, while the government has fixed the migration cost at Tk1.65 lakh for workers bound for Saudi Arabia, many workers report having to pay approximately Tk3-4 lakh for migration expenses.
Currently, only 100 Bangladeshi recruiting agencies are permitted to send workers to Malaysia, operating under an approval system established by the destination country, often referred to as a syndication system.
Migration experts such as the Refugee and Migratory Movements Research Unit (RMMRU) attribute the high migration costs to what they describe as a “corrupt syndication system” in place for sending workers to Malaysia.
