Malaysia labor market reopens but workers face Tk 8 lakh costs

Malaysia will soon reopen its labor market, but workers see little to celebrate. Manpower export stakeholders said a worker may need up to Tk 8 lakh to migrate - even though international labor policy requires employers to bear all recruitment costs.

In 2024, US-based labor rights research organization “Verité” conducted research on the recruitment costs and loans of Bangladeshi workers in Malaysia. The organization’s research report said getting a job in Malaysia costs an average of around Tk 5,44,000.

Out of this, government fees account for Tk 78,990, syndicate fees account for Tk 1,07,000, middlemen take Tk 1,60,000-2,00,000, extra visa fees amount to Tk 1,00,000, and other expenses - including airfare and processing - account for Tk 98,000.

Although according to official estimates, the cost was Tk 1,500 for BMET registration, Tk 2,500 for the Wage Earners’ Welfare Board, Tk 5,000 for passport fees, Tk 5,000 for medical tests, Tk 50,000-1,00,000 for agency service charges, and other expenses - including visa processing - accounted for Tk 10,000-15,000.

However, in reality, 7 to 8 times more than the total official fee of Tk 78,990 was taken. Verité’s research showed that 96 percent of Bangladeshi workers fall into a debt trap to arrange this money and 82 percent of workers had to take loans from two or more places.

International Labour Organization (ILO) said, “No recruitment fee or related cost should be charged to or borne by a worker or jobseeker.” All expenses will be borne by the employer or the company.

However, workers bound for Malaysia, recruiting agencies, and migration experts fear that for the labor market about to reopen in Malaysia, the cost per person could reach up to Tk 8 lakh.

Agamir Somoy spoke with several young men from Brahmanbaria, Feni, Rangpur, and Lalmonirhat who wish to go to Malaysia. They are worried about the additional migration costs caused by syndicates.

Ronok Islam from Lalmonirhat added that there is financial pressure on his family. He thought he would try to go when the Malaysian labor market opens and spoke with several recruiting agencies in Nayapaltan, Dhaka. However, he was disappointed after hearing about the expenses. Ronok said, “It is not possible for me to give Tk 7-8 lakh.”

Malaysia is the second-largest remittance-sending country for Bangladesh after Saudi Arabia. Around 20 lakh Bangladeshi workers are working in the country. In 1990, the first official agreement between Bangladesh and Malaysia was signed. Since then, Malaysia has suspended recruitment from Bangladesh four times.

While suspensions in 1997 and 2009 were due to financial and economic recessions, the Malaysian labor market was suspended in 2018 and 2024 over allegations of syndicates, corruption, and excessive fees.

As part of the process to open the Malaysian labor market, on 21 August, the digital platform for Malaysia’s foreign worker recruitment management, Foreign Workers Centralized Management System (FWCMS), published a list of 25 recruiting agencies from Bangladesh.

According to information from the Ministry of Expatriates’ Welfare, Malaysia selected 25 agencies from a list of 423 agencies prepared by Bangladesh. 312 agencies were designated as associate agencies, which will work under the main 25 agencies.

Immediately after the release of the list, leaders of the Bangladesh Association of International Recruiting Agencies (BAIRA) alleged that this is no ordinary list, but rather a well-planned syndicate.

BAIRA leaders said behind these 25 agencies are several influential individuals positioned at the center of the government. However, unlike previous times, recruiting agencies belonging to ministers, MPs, or major influential figures are not out front this time. Instead, there are name-only agencies with little experience in sending manpower to Malaysia.

Among these 25 agencies, four face cases at the Anti-Corruption Commission (ACC) on charges of human trafficking and forging fake documents. These are - Goodness Services, General Trading Company, Rifa International, and Valley Trade International.

Inquiries revealed that 17 out of the 25 agencies have no experience sending workers to Malaysia. Satkhira International sent a total of only 111 people abroad in the last three years. Bhaluka Overseas and Bangladesh One Overseas sent 235 and 270 people, respectively.

Sheikh Nazrul, owner of Satkhira Express, claimed that he also sent workers to Malaysia last time, though through another agency. This time, he applied following government rules. He claimed he did not engage in any lobbying.

Last time, Greenland Overseas, belonging to the late Abdul Hai, was a member of the syndicate. However, United Gulf Services, which is on the list, is owned by Abdul Hai’s wife, Laila Arjuman Banu.

When the number given on the agency’s website was called, her brother Nazrul Islam Swapon answered. He claimed that their business is separate. He asserted that they have no relationship with the syndicate and made it onto the list strictly on merit.

However, a press release from the Ministry of Expatriates’ Welfare said the screening and selection of agencies was carried out by a high-level joint committee formed in coordination with various ministries and the Anti-Corruption Commission of Malaysia.

BAIRA leaders alleged that these are dummy agencies. Behind them are influential individuals holding various responsibilities in the government. BAIRA co-founder and former senior vice president Reaz Ul Islam added, “Due to this year’s syndicate, the migration cost per worker will be Tk 7.5-8 lakh.”

Who holds the main control of the syndicate?

Aminul Islam bin Abdul Noor is a Malaysian citizen of Bangladeshi origin. He is the founding director of Bestinet, which operates Malaysia’s FWCMS. His representative in Bangladesh is former BAIRA secretary general Ruhul Amin Swapon.

In January 2026, US-based media organization Bloomberg published an investigative report on the Bangladeshi labor market in Malaysia. According to the report, Aminul controls the key to Malaysia’s foreign labor management. And Swapon, also the owner of Catharsis International, collected syndicate fees.

Aminul faces cases of human trafficking and money laundering in Bangladesh. Meanwhile, Swapon has been hiding abroad since the fall of the Awami League during the July uprising 2024. His agency’s license has been revoked, cases against him are ongoing, and the ACC is also investigating.

BAIRA’s former joint secretary general Fakhrul Islam charged, “We have been repeatedly saying the owner of FWCMS and his partners are the ringleaders of this syndicate. A handful of individuals or institutions are controlling this labor market time and again.”

Expatriate Welfare Secretary Md Mokhtar Ahmed told the media on Wednesday that the government is working to prioritize and reopen the suspended labor market in Malaysia through a transparent process. He called upon everyone to remain alert so that no middlemen can take advantage of this opportunity.

However, Mokhtar added, “We will only evaluate FWCMS or Bestinet when that country’s government clarifies the mechanism through which they will recruit our people. So far, we have received no instructions of any kind from the Malaysian government.”

Controversy over ‘associate’ agencies

Each of the 25 agencies has been assigned 10 associate agencies. Meanwhile, 62 associate agencies have been placed with the state-run organization BOESL. However, these 312 associate agencies cannot send workers without the approval of the main agencies or BOESL.

Agamir Somoy spoke with the owners of at least 10 associate agencies. Some of them said they will not work as associate agencies. Others said they know nothing about this matter.

BOESL Executive Director (Joint Secretary) Md Shawkat Ali told Agamir Somoy that nothing has been informed to them by the ministry, nor do they know anything from Malaysia. Associates are assigned alongside BOESL in the FWCMS software. They cannot understand how these associates will work with them.

BRAC Associate Director Shariful Hasan told Agamir Somoy, “Worker interests and protection mean nothing here. Rather, by holding workers hostage, some people are making a business out of money there. Such a syndicate cannot persist here year after year. I believe this is an acid test for the government.”