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Malaysia labour market reopening faces fresh syndicate shadow

Fresh allegations of syndicate activity before the official reopening raise concerns that Bangladesh could repeat past recruitment failures

Anindyo Bhuiyan | Published: Sunday, July 19, 2026
Malaysia labour market reopening faces fresh syndicate shadow

For thousands of aspiring Bangladeshi migrant workers, the reopening of Malaysia's labour market was expected to mark a fresh beginning after years of suspension and controversy. Instead, even before the two governments have completed the formal reopening process, familiar allegations are resurfacing, raising questions over whether the same syndicate that previously dominated worker recruitment is positioning itself to regain control.


Bangladesh and Malaysia governments have held a series of meetings at the prime ministerial and ministerial levels aimed at reopening the labour market through a transparent and accountable recruitment system. The stated objective has been clear: prevent the corruption, excessive migration costs and worker exploitation that led to previous controversies.


Yet multiple sources involved in the migration sector claimed preparations are already underway to collect excessive payments from prospective workers under the guise of administrative procedures, approvals and documentation despite the recruitment process not having officially begun.


Minister's “mistaken” remarks trigger fresh questions

The controversy deepened after Expatriates' Welfare and Overseas Employment Minister Ariful Haque Chowdhury publicly indicated that Malaysia's labour market had reopened before any formal announcement had been made by the two governments.


According to multiple ministry sources, the statement caught many officials by surprise. Several officials told Aviation Express that they had not been aware of any formal decision to reopen the market. Some officials further claimed the minister had been "misled" regarding the status of negotiations with Malaysia.


Although the ministry later issued a cautionary notice clarifying the situation, the minister has not formally withdrawn his earlier remarks.


Sector insiders argued that the confusion created by the announcement provided an opportunity for recruitment networks to become active before any official recruitment framework had been approved.


Aviation Express has learned that passports are already being collected from prospective workers in several rural areas despite the absence of an officially announced recruitment process.


Minister Chowdhury has firmly rejected allegations of syndicate influence. "I will not allow any syndicate in sending workers to Malaysia. As long as I am here, there will be no syndicate. If necessary, I will resign," he said.

However, people working on overseas labour migration said the syndicate is far more experienced and powerful than the minister in this regard. 


Official process still incomplete

Contrary to the impression created by public statements, ministry officials insist the labour market has not yet formally reopened.


Officials said a meeting of the Bangladesh-Malaysia Joint Technical Committee, provided for in the Joint Statement issued after the Prime Minister's visit, must first be held before recruitment procedures can be finalised.


Bangladesh invited Malaysia to hold the meeting in April. Malaysia responded in May, saying a meeting date would be announced after obtaining Cabinet approval.


No date has yet been communicated.


Expatriates’ welfare and overseas employment ministry’s Deputy Secretary Hedayetul Islam Mondal, the ministry's focal point for the Malaysia labour market, said the recruitment flowchart would only be finalised after that meeting.


"Only then will the labour market reopen. Malaysia has not yet informed us when the meeting will be held. Therefore, nothing can be confirmed at this stage," he said.


New System, Old Concerns

Malaysia has informed Bangladesh that all recruitment will be processed through its Foreign Workers Centralised Management System (FWCMS), operated by Bestinet Sdn. Bhd.


Malaysia has also imposed 10 eligibility conditions for Bangladeshi recruiting agencies. While the framework is intended to improve recruitment standards, stakeholders fear it may unintentionally favour agencies with longstanding commercial relationships in Malaysia.


Former Joint Secretary General of the Bangladesh Association of International Recruiting Agencies (BAIRA) Fakhrul Islam warned that the conditions could create fresh opportunities for syndicate influence unless they are reviewed.


Recruitment agencies, migration specialists and labour rights advocates argue that transparency must extend beyond digital platforms to include equal access for qualified agencies and independent oversight of employer selection.


High Costs Continue to Haunt Workers

The Anti-Corruption Commission previously filed cases against 232 individuals associated with 100 recruiting agencies over allegations that workers were charged more than five times the officially approved recruitment fee between 2021 and 2024.


Former migrant worker Abdullah said workers routinely pay Tk 500,000 to Tk 600,000 despite official fees being far lower.


"Even after arriving in Malaysia, many do not receive the jobs they were promised and face various forms of harassment," he said.


British labour rights activist Andy Hall described syndicate-based recruitment as the principal source of corruption in the Bangladesh-Malaysia migration corridor.


He told Aviation Express that the system primarily protects the financial interests of a limited group rather than migrant workers, adding that Bangladeshi workers pay among the world's highest recruitment costs and remain vulnerable to exploitation and forced labour.


Money, Politics and Influence

According to an official at the Ministry of Expatriates' Welfare and Overseas Employment, labour recruitment involves transactions worth billions of taka, creating opportunities for political financing.


Sources connected with the Anti-Corruption Commission also confirmed that allegations involving money laundering and hundi transactions linked to individuals associated with recruiting agencies are under investigation.


Meanwhile, sector insiders alleged that recruitment networks operate simultaneously in Bangladesh and Malaysia. While one group secures employer approvals and visas in Malaysia, another allegedly manages passport collection, medical examinations, BMET clearance, visas, airline tickets and immigration processing in Bangladesh.


The introduction of Malaysia's E-Quota system has not eliminated those concerns. Instead, observers feared influence may simply shift to new stages of the recruitment chain.

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