Zero-Cost Recruitment Policy for Malaysia: Hope on the Horizon, But Doubts Linger
Experts urge dismantling of syndicate control and malpractices in labour migration system to make the new policy a success.
Malaysia's announcement of a zero-cost recruitment policy for foreign workers has sparked cautious optimism among labour migration experts, even as deep concerns persist over implementation — given the Bangladesh-Malaysia labour corridor's long and troubled history.
The two governments declared in a joint statement on April 8 that employers would bear the full cost of worker recruitment, leaving migrants with zero financial burden. The announcement aligned with the Employer Pays Principle enshrined in guidelines by the International Labour Organization (ILO).
The statement followed a bilateral meeting between Bangladesh's Labour and Expatriates' Welfare Minister Ariful Haque Choudhury and Malaysia's Human Resources Minister Sri Ramanan Ramakrishnan in Putrajaya, Malaysia.
Experts Welcome Move, But Urge Caution
While labour migration experts have broadly welcomed the declaration, they warn that serious questions remain unanswered — and that past failures cast a long shadow over the new initiative.
Their concerns are grounded in recent experience. Between 2022 and 2024, Bangladeshi migrants reportedly paid between Tk 5 lakh and Tk 6 lakh each to secure jobs in Malaysia, despite the government-fixed cost being just Tk 79,000. During this period, Malaysian authorities had approved 101 Bangladeshi recruiting agencies to facilitate migration. Around 450,000 Bangladeshis were recruited before the programme was abruptly suspended on May 31, 2024, amid allegations of widespread malpractice and an oversupply of workers in the Malaysian market.
Prof CR Abrar, former executive director of the Refugee and Migratory Movements Research Unit at Dhaka University, noted that adherence to the ILO's Employer Pays Principle has long been a central demand of migrant workers and rights campaigners — one that has never been fulfilled.
"Multiple layers of intermediaries have consistently driven recruitment costs to excessive levels," he said.
Abrar also pointed out that Malaysia previously operated an IT-based system — the Foreign Workers Centralized Management System (FWCMS) — between 2022 and 2024, yet problems such as inflated costs, worker oversupply, and exploitation continued unabated.
"How can we be sure that the same problems will not recur?" he asked.
A Pattern of Market Closures Since 1992
Abrar's concerns are reinforced by the decades-long track record of the Bangladesh-Malaysia labour migration corridor, which began formal recruitment in 1992. Following allegations of irregularities and labour abuses, the market was first shut down in 1997. Since then, a recurring cycle has taken hold — the market reopens, only to close again within a few years.
Between 1992 and 2024, the corridor opened and closed five times, drawing intense scrutiny both at home and abroad. In some instances, international buyers suspended imports from Malaysian companies accused of exploiting Bangladeshi workers.
Legal Cases and Reputational Damage
Last year, multiple cases were filed against Bangladeshi agents over allegations of human trafficking and money laundering linked to the Malaysia labour trade. In response, Azman Mohd Yusof, Secretary-General of Malaysia's Human Resources Ministry, wrote to Bangladesh's Expatriates' Welfare Ministry on April 23, stating that such allegations had damaged Malaysia's international reputation.
The joint statement between the two governments also acknowledged this. It noted: Malaysia emphasised the need to address actions that may harm its global image, while Bangladesh reaffirmed its commitment to the rule of law, due process, accountability, and timely justice. Both sides also discussed ongoing cases related to human trafficking conducted under the guise of legitimate worker recruitment.
Prof Abrar, however, pushed back on Malaysia's concern over its reputation, arguing that the only way to restore it is through accountability — not by shielding those responsible.
"Malaysia's reputation can only be restored by punishing those responsible and dismantling the exploitative system," he said.
Agency Selection Criteria Under Scrutiny
Mohammad Harun-Al Rashid, a researcher specialising in Malaysia-bound labour migration, pointed out that Kuala Lumpur selected 10 agencies in 2016–18 and 101 agencies in 2022–24, deeming all of them "qualified" — yet the criteria for qualification were never clearly defined.
He noted that Malaysia introduced new conditions for recruiting agencies last year, which he described as deeply problematic. In a letter to the Bangladesh High Commission in Kuala Lumpur on October 27, Malaysia's Foreign Affairs Ministry outlined requirements that include:
- A minimum of five years of operational experience
- A record of managing at least 3,000 foreign workers over the past three years
- Deployment of workers to at least three destination countries
- A permanent office spanning at least 10,000 square feet, maintained for three years
- Valid licences and certificates of good conduct
- Submission of five references from overseas employers
- Dedicated training, assessment centres, and accommodation facilities
Rashid argued these stringent conditions will inevitably push migration costs higher, contradicting the very goal of the zero-cost policy.
"Any agency with a valid licence and the capacity to communicate with employers and handle documentation should be considered qualified. Whenever an agency is accused of corruption, it should be investigated and punished if found guilty," he said. "While Malaysia speaks of reducing migration costs, it sets conditions that are likely to raise them."
New Digital Platform Raises Fresh Questions
A new controversy has emerged around a proposed digital recruitment system. On April 16, Bloomberg reported that Malaysia plans to adopt a new platform developed by Bestinet Sdn Bhd — a company founded by Aminul Islam, a Bangladeshi-born Malaysian businessman also known as Dato Amin.
The system, dubbed the Universal Recruitment Advanced Platform (TURAP), is marketed as a tool to allow companies to hire workers directly, bypassing middlemen who typically charge excessive fees.
But experts remain sceptical. Bestinet had previously developed the FWCMS — operational between 2022 and 2024 — a period widely regarded as one of the most corrupt in the history of Bangladesh-Malaysia labour migration, allegedly controlled by a syndicate with links to political elites in both countries.
"This sounds great, but what does past experience tell us?" Harun said.
He clarified that under the ILO's Employer Pays Principle, employers are responsible for all migration-related costs — including document processing, visa fees, medical examinations, and travel. Migrant workers should only bear the cost of their own passports, which are personal documents.
"The governments of both countries must hold accountable those responsible for past abuses in the recruitment sector. Otherwise, meaningful change will remain elusive," Harun added.
— News Axis Report