Recruiters warn of new syndicate bid ahead of Malaysia labour market reopening

Published : Wednesday, 19 August, 2026 at 10:59 PM

Special Correspondent

File Photo

Bangladesh’s recruiting agency owners have alleged that a group of local and foreign intermediaries is trying to form a new syndicate involving only 25 agencies ahead of the expected reopening of Malaysia’s labour market for Bangladeshi workers.

They claimed that each agency is allegedly being asked to pay Tk 17 crore, or around RM5 million, for inclusion in the proposed syndicate. If introduced, the system could leave nearly all of the country’s around 2,000 licensed recruiting agencies without access to the Malaysian market, they warned.

The allegations were made at a press conference at a Dhaka hotel on Wednesday under the banner of members of the Bangladesh Association of International Recruiting Agencies (BAIRA). Former BAIRA Senior Vice President Md Reaz Ul Islam presided, while former Joint Secretary General Fakhrul Islam presented the keynote.

Former Joint Secretaries General Akbar Hossain Manju and M.A. Salam and agency owner Altaf Hossain also spoke.

The recruiters demanded immediate reopening of the Malaysian labour market through a transparent, low-cost and syndicate-free process, with equal opportunities for all qualified agencies.

Fakhrul Islam alleged that individuals linked to previous syndicates, including Ruhul Amin Swapan and Dato Seri Aminul Islam Bin Abdun Noor, were attempting to influence the recruitment process through the proposed arrangement. He claimed Tk 17 crore was being sought from each agency seeking to join the 25-member group. With this estimation, Tk 425 crore would be laundered through hundi this time.

The recruiters warned that repeating restricted recruitment models could again increase migration costs and encourage middlemen, irregularities and illegal financial transactions.

They recalled that Malaysia’s recruitment of Bangladeshi workers was initially handled by only 10 agencies in 2016 before the market was suspended in 2018. It reopened in 2022 with 25 agencies and was later expanded to 101. Malaysia stopped receiving Bangladeshi workers again in 2024 amid allegations of irregularities and high migration costs. The previous system also drew concerns from the International Labour Organization (ILO) and International Organization for Migration (IOM), they said. The government has since cancelled 49 recruiting agency licences over alleged irregularities.

The recruiters also questioned the selection of 423 agencies under 10 criteria reportedly set during the interim government. They said 260 agencies met seven criteria and 163 met six, and questioned why the relaxed criteria were not formally disclosed and why nearly 2,000 legally operating agencies were not given equal opportunity to apply.

They expressed concern over reports that a new system could involve only 25 agencies, with allegations of a RM5 million entry payment and a possible RM5,000 syndicate charge per worker. They demanded an impartial investigation into the allegations.

If Malaysia insists on limiting the number of agencies, the recruiters proposed that Bangladesh Overseas Employment and Services Limited (BOESL), the state-owned recruiting agency, operate as a One Stop Service Centre, allowing all licensed agencies to process workers through BOESL as sub-agents or under its supervision. They said this would enable the government to monitor the entire recruitment process.

They also called for amendments to the Bangladesh-Malaysia recruitment mechanism, particularly provisions allowing Malaysian authorities to select Bangladeshi recruiting agencies. Other proposals included creating a transparent worker database through the Bureau of Manpower, Employment and Training (BMET), providing migration financing through Probashi Kallyan Bank in instalments, and strengthening government monitoring to keep recruitment costs reasonable.

The recruiters appealed to Prime Minister Tarique Rahman to pursue the government’s target of creating overseas employment opportunities for 10 million citizens over the next five years by involving all qualified and experienced agencies rather than favouring a small group.

“Malaysia’s labour market must be reopened at low cost and through a transparent process for all legitimate recruiting agencies,” they said, warning that a new syndicate could raise workers’ migration costs, encourage middlemen and illicit transactions, and undermine confidence in Bangladesh and Malaysia’s overseas employment systems.

-HIS