Malaysia Labour Market: 25 Agencies Spark Fresh Syndication Fears

Malaysia’s decision to reopen its labour market to Bangladeshi workers through a list of only 25 recruiting agencies has sparked fears that the controversial syndication system could return, potentially increasing migration costs and leaving workers vulnerable to exploitation.

Malaysia’s Foreign Workers Centralized Management System (FWCMS) published the list of 25 approved Bangladeshi agencies on Friday, but did not explain the criteria used to select them.

The move has revived concerns over the recruitment model used during earlier labour drives, when Malaysia allowed a limited group of Bangladeshi agencies to recruit and deploy workers. The system was later accused of encouraging syndicates and monopolistic practices, with allegations of corruption ultimately contributing to the closure of Malaysia’s labour market to Bangladeshi workers.

Fakhrul Islam, former joint secretary general of the Bangladesh Association of International Recruiting Agencies (BAIRA), told the Daily Sun that many of the selected agencies were relatively unknown and lacked the infrastructure, manpower, experience and capacity required to handle large-scale recruitment.

He alleged that some agencies could be acting as fronts for influential syndicate members, allowing them to operate recruitment activities through other offices.

Fakhrul also claimed that members of the previous syndicate or their associates remained influential, while the vast majority of recruiting agencies had been excluded from the process. He warned that such an arrangement could once again push up migration costs for ordinary workers.

He further cautioned that renewed allegations of corruption or fraud could prompt Malaysia to shut its labour market again and damage Bangladesh’s reputation internationally.

Agencies under scrutiny

The Daily Sun visited or contacted 14 of the 25 agencies on the new list and found several links to individuals or agencies associated with the previous recruitment process.

Al-Aqaba, owned by Jubo Dal Vice-President Atikur Rahman Biswas, was not included in the list. However, Mangrove Career, owned by his wife Sabiha Sultana, was selected. The two agencies reportedly share the same address at Shatabdi Centre on Inner Circular Road in Fakirapul.

Similarly, while the agency owned by former Awami League leader Abdul Hai was excluded, his wife Laila Arzuman Banu’s United Gulf Service was included.

A-Plus International, owned by the proprietor of Golden Arrow—an agency involved in the previous 25-agency syndicate—also appears on the latest list.

Other agencies under scrutiny include Motherland Overseas, owned by Monir Ahmed, who is accused in a case involving attacks on recruiting agency owners opposed to syndication; Chandpur International Limited, owned by Mohammad Shahjalal; and Earth Smart Bangladesh Limited, owned by Mahfuzur Rahman.

Concerns over the old recruitment model

People involved in the sector, including an owner of one of the selected agencies, claimed that each agency had paid Tk5 crore as a “contribution” to secure a place on the list. They are allegedly expected to pay another Tk12 crore, although the amount would reportedly be adjusted when workers are deployed.

During the 2022 recruitment process, agencies reportedly paid Tk1,15,000 per worker to obtain permission to send workers to Malaysia.

Expatriates’ Welfare Minister Ariful Haque Chowdhury said Malaysia had not formally communicated the list to Bangladesh. He said the government had written to Malaysia seeking clarification about how the 25 agencies were selected.

The minister noted that the list came through FWCMS, a platform operated by a private company, and therefore could not be treated as an official government-to-government communication while negotiations between Bangladesh and Malaysia were ongoing.

He also said the existing memorandum of understanding between the two countries remains valid until December and that worker deployment must follow the rules currently in place.

FWCMS is operated by Malaysian private company Bestinet, whose chief executive, Dato’ Aminul Islam bin Abdul Noor, is a Malaysian citizen of Bangladeshi origin.

Bestinet was also involved in MiGRAAM, a system used for registering medical examinations of workers travelling to Malaysia. In Bangladesh, MiGRAAM was controlled by Ruhul Amin Swapan, owner of Catharsis International and a former BAIRA secretary general. Swapan has been living abroad since August 5.

Following allegations of irregularities in the previous Malaysia recruitment process, the current government cancelled the licences of 49 recruiting agencies, including Catharsis International.

Ovibashi Karmi Unnayan Program (OKUP) Chairperson Shakirul Islam said workers ultimately bear the cost whenever syndicates emerge. He said job shortages at home leave aspiring migrant workers vulnerable to exploitation by unscrupulous groups.

He also noted that Malaysia’s labour market had been closed four times previously and said there had been expectations that the syndication system would end under the new government. Instead, he argued, political influence and syndication appeared to remain concerns despite the cancellation of licences of 49 agencies.

Agencies demand an open market

Twenty recruiting agency owners and former BAIRA leaders on Sunday voiced concern that limiting Malaysia-bound recruitment to only 25 agencies could encourage monopolistic practices and revive syndication.

They questioned why Malaysia’s labour market should be restricted to 25 agencies when Bangladesh has around 2,500 government-licensed recruiting agencies.

They demanded an end to the monopoly system, equal access for all legitimate and qualified agencies, reasonable migration costs and the introduction of a One Stop Service through government-run Bangladesh Overseas Employment and Services Limited (BOESL).

Meanwhile, Bangladesh Jamaat-e-Islami Secretary General and former MP Mia Golam Porwar accused a section of the government of attempting to hand over the Malaysian labour market to a syndicate. He warned that a return to the previous system could once again force workers to pay excessive recruitment fees.

Previous recruitment crisis

Bangladesh and Malaysia signed a memorandum of understanding in 2021 for the recruitment of Bangladeshi workers. Bangladesh initially submitted a list of 1,500 agencies, from which Malaysia selected 25.

The agreed migration cost was Tk78,990 per worker. However, a Malaysian labour organisation later found that workers paid an average of Tk5.44 lakh after syndicate contributions and visa-related expenses were included.

Between August 2022 and May 2024, around 4.76 lakh Bangladeshi workers travelled to Malaysia, many at significantly higher costs than officially approved. A large number reportedly failed to receive the jobs they had been promised.

Amid allegations of widespread irregularities, Malaysia closed its labour market to Bangladeshi workers on May 31, 2024. The market has remained closed since then.

Around 17,000 Bangladeshi workers who had completed the required procedures were left unable to travel after the closure.