Malaysia’s New Hiring Rules Leave Bangladeshi Agencies Struggling

The recruitment of foreign workers from Bangladesh and several other countries to Malaysia has remained suspended since May 31 last year. Despite multiple rounds of discussions to reopen the labor market, no concrete progress has been made. However, under the existing memorandum of understanding, Malaysia has introduced new conditions for determining the number of recruiting agencies allowed to participate in the hiring process.

On October 28, Malaysia’s Ministry of Foreign Affairs sent official letters to the embassies of Bangladesh, Nepal, India, and Myanmar outlining these new criteria.

According to the letter, recruiting agencies wishing to take part in the Malaysian worker recruitment process must meet 10 mandatory requirements. These include: at least five years of experience, a proven record of sending workers to at least three countries, documentation of sending a minimum of 3,000 workers, having their own training facilities, maintaining a 10,000-square-foot office, letters of endorsement from five international employers, and assurance of having no involvement in human trafficking or financial crimes.

The new conditions have left many recruiting agencies stunned. Most claim they are unable to meet the stringent requirements. One agency owner, speaking on condition of anonymity, said:

“The conditions are very tough. Many agencies don’t have such large offices, and some have pending cases against them. The ministry should consult with us before making such decisions.”

Malaysia’s labor market has been closed multiple times in the past. It was first suspended in 2008, reopened in 2016, and again halted in 2018 due to corruption allegations. A new memorandum of understanding was signed in 2021, allowing the recruitment process to resume in August 2022. However, the last batch of workers was sent on May 31, 2023.

Although around 17,000 workers were left waiting, Malaysian authorities have since selected 7,823 of them, and their deployment process is currently underway.

Initially, 25 recruiting agencies were authorized under the Malaysia-Bangladesh agreement, but the number was later increased to 101. With the newly imposed conditions, the number may now be reduced again.

British labor rights activist Andy Hall commented:

“If these conditions are applied impartially, very few agencies will qualify. This might be another attempt to control the recruitment syndicate in Malaysia.”

Bangladesh’s Ministry of Expatriates’ Welfare and Overseas Employment has not yet issued any official response. However, ministry officials say the matter is being reviewed with high importance.