MANPOWER EXPORT: CORRUPTION RUNS DEEP – PART I, Syndicates tighten their grip on Malaysia’s labour market

Rampant corruption is crippling Bangladesh’s overseas employment sector—particularly in Malaysia—putting at risk one of the country’s biggest sources of foreign currency.

Although Bangladesh sends more than one million workers abroad each year, migrants continue to fall prey to syndicates that impose exorbitant fees, manipulate recruitment processes, and exploit workers at every stage.

Government data shows that while 14.9 million Bangladeshis are officially employed across 176 countries, the number of active migrant workers is likely just over 10 million. For three straight years, overseas migration has crossed the one-million mark annually. In 2024 alone, 1,011,856 workers went abroad—the third-highest figure on record—but 95% of them travelled to just five destinations: Saudi Arabia, Malaysia, Qatar, Singapore, and the UAE. No new labour markets have opened, and several existing ones are shutting their doors due to persistent corruption.

The impact has already become visible. In January 2025, 97,873 workers migrated, dropping to 62,442 in February—a fall of nearly 20%. This decline is linked to the closure of three major markets: Malaysia, Oman, and the UAE. Reduced recruitment from Saudi Arabia and Qatar, along with Bahrain’s shutdown, has deepened the crisis.

Malaysia, in particular, has become emblematic of the sector’s dysfunction. More than 350,000 Bangladeshi workers went there in 2023, but the market has remained closed since June 2024. Fewer than 100,000 workers managed to migrate last year. The shutdown stems largely from widespread corruption. The Anti-Corruption Commission (ACC) has moved to file six cases against 11 individuals—including owners and officials from six recruitment agencies—accused of embezzling and laundering Tk525.22 crore. They allegedly charged several times more than the government-approved migration cost from 3,331 workers bound for Malaysia. The decision was announced on 6 November by ACC Director General Md Akhter Hossain.

Those accused include Ruhul Amin of Amin Tours & Travels; Shamim Ahmed Chowdhury Noman of Sadia International; Md Iqbal Hossain and Md Badruddoza Chowdhury of Imperial Resource Ltd; Md Moniruzzaman and Md Alamgir Kabir of RRC Human Resource Service Ltd; and several officials from Thanex International Ltd.

Investigations found that the agencies collected up to five times the official migration fee of Tk78,990, in clear violation of BMET and BAIRA rules, abusing their authority and engaging in illegal recruitment.

In September, the ACC had already approved 13 other cases against 31 individuals from 13 companies for siphoning and laundering Tk1,159.82 crore under the guise of sending workers to Malaysia. The CID is conducting a separate probe into the syndicate, and has frozen Tk500 crore in assets linked to alleged ringleader Ruhul Amin Swapon—who reportedly amassed Tk8,000 crore “overnight” through extortion. Insiders say those charged so far represent only a fraction of the larger network, and the real masterminds remain untouched.

Until 31 May last year, Malaysia allowed workers to be recruited through 100 agencies—commonly known as the “syndicate.” Thousands of applicants who completed paperwork on time were unable to fly because agencies failed to arrange flights. Since then, recruitment has been suspended, though a limited number of workers are now being sent through a special G-to-G scheme.

Prospective migrants reportedly paid Tk150,000 to the syndicate, with medical-test corruption pushing total costs to Tk400,000–500,000 per worker. Since Malaysia reopened its labour market in August 2022, 476,672 Bangladeshis have migrated. But around 18,000 workers were left stranded due to lack of air tickets, agent negligence, or other issues.

Malaysia remains Bangladesh’s fourth-largest labour market, and the government is trying to revive it. On 14 May, Adviser Dr Asif Nazrul and Special Envoy Lutfe Siddique met Malaysian officials, raising hopes of a reopening. The next steps hinge on the Bangladesh–Malaysia Joint Working Group, which will decide worker quotas and sectoral allocations.

However, the syndicate issue has once again come into focus. Recruiting agencies remain divided, with many alleging that syndicate-linked groups push migration costs far beyond the actual expense. Illegal agencies and powerful brokers continue to fuel exploitation in Malaysia-bound recruitment.

Migration experts say Bangladesh’s troubled history with Malaysia’s labour market is long and recurring. As RMMRU Chairperson Tasneem Siddiqui warns:

“If Malaysia’s labour market reopens with syndicates still in place, the problems will never be resolved permanently.”