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Old devils eye new syndicate in Malaysian labour market

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Reza Mahmud :

Dishonest recruiters previously involved in forming a syndicate in the Malaysian labour market-and allegedly siphoning off thousands of crores of taka-are reportedly attempting to re-establish their dominance, according to industry sources.

Stakeholders have raised alarms that the same vested interests are lobbying within both the Bangladeshi and Malaysian governments to form another syndicate, potentially monopolising the market once again.

The alleged motive behind this renewed attempt is to control the migration process, compelling aspirant workers to use only a select few agencies, who would impose inflated charges far exceeding government-set migration fees.

Mohammad Fakhrul Islam, former Joint Secretary-General of the Bangladesh Association of International Recruiting Agencies (BAIRA) and Managing Partner of Human Resource Development Center, told The New Nation: “The same individuals responsible for the previous Malaysian labour market syndicate are now actively conspiring to form a new one. This risks
forcing migrant workers to pay exorbitantly high fees, undermining fairness for our remittance earners.”

He warned that the formation of such a syndicate would cast a shadow over the government led by Chief Adviser Professor Dr Muhammad Yunus, who has earned public trust by promising transparency and equal opportunity.
According to sources, the price of entry into this alleged new syndicate has risen dramatically, with figures reaching Tk 14 crore per agency, up from Tk 5 crore in the previous scheme.

Government officials confirmed that Expatriates’ Welfare Adviser Asif Nazrul will travel to Kuala Lumpur on 15 May for a key meeting on this matter. A follow-up session is scheduled for 21 May in Dhaka, with Malaysian officials expected to attend.

Concerns have intensified amid reports that some senior officials at the Ministry of Expatriates’ Welfare and Overseas Employment are expressing support for such syndicate-based operations. BAIRA members have warned that should the syndicate be reinstated, it would victimise thousands of workers by charging illegal migration fees.

The previous syndicate had reportedly charged workers up to Tk 6 lakh, vastly exceeding the official rate of Tk 78,990 set by the government. This led to widespread allegations of corruption and labour exploitation.

Industry experts and recruiting agency representatives stressed that reopening the Malaysian labour market is critical at this juncture. With most traditional labour destinations now closed, the sector is overwhelmingly reliant on Saudi Arabia for employment opportunities. BMET (Bureau of Manpower, Employment and Training) data indicates that nearly all current manpower exports are directed to the Saudi market.

They noted that Malaysian companies are also eager to resume hiring Bangladeshi workers but are facing bureaucratic delays. Stakeholders urged the government to resolve these issues swiftly.

At a recent consultation event hosted by the Bangladesh Civil Society for Migrants (BCSM), BAIRA leaders strongly advocated for an end to syndicate practices. They called on Professor Dr Yunus to use his influence and close ties with Malaysian Prime Minister Anwar Ibrahim to publicly denounce any move to reintroduce a syndicate-based recruitment system.

“If the government allows a syndicate to control the Malaysian labour market once again, it will have to answer to the people. It risks severely damaging the country’s international reputation,” BAIRA members stated.
BAIRA member Mohammad Ishaq further alleged that past syndicate members laundered billions of taka to Malaysia, funds extorted from impoverished workers.

“They are falsely claiming that a syndicate-based system will lead to higher remittances. This is a deceptive narrative to legitimise corruption,” he said.
In 2021, Malaysia controversially limited recruitment operations to just 100 Bangladeshi agencies, despite there being over 2,500 licensed agencies in Bangladesh. That move was widely criticised for creating a cartel and excluding legitimate operators.

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