Clearing the Air: Key Facts About the 2021 MoU for Bangladeshi Workers' Migration to Malaysia
The main theme of this content is to clarify the facts about Bangladeshi workers' migration to Malaysia under the 2021 MoU between the two countries.
- 101 agencies were listed by the Malaysian government from a pool of 1,520 licensed Bangladeshi recruiters — through a transparent, jointly agreed selection process
- All quotas distributed via Malaysia's Auto Allocation System — making visa purchasing by listed agencies both unnecessary and structurally impossible
- Malaysia's recruitment freeze covers all 15 source countries, confirmed by Home Minister Dato' Seri Saifuddin Nasution Ismail on October 21, 2024
- Listed agencies charged only government-prescribed fees and issued receipts to every worker
- Anti-Corruption Commission investigation in 2017–18 found no evidence of wrongdoing by listed agencies regarding foreign currency transactions
The MoU and the Agency Selection Process — Fact by Fact
Visa Trading: Why It Didn't and Couldn't Happen
Addressing the Six Key Allegations
| Allegation | Verified Fact |
|---|---|
| Listed agencies charged excessive migration fees | Agencies collected only government-prescribed fees and issued written receipts to each worker. All deployed workers are receiving a minimum base salary of 1,500 Malaysian Ringgit (approx. 50,000 BDT/month including overtime) |
| Listed agencies bought and sold visas | Auto Allocation System distributes quotas directly — rendering visa purchasing unnecessary. No evidence found in any investigation |
| Funds were sent to Malaysia illegally | Anti-Corruption Commission conducted a full investigation in 2017–18 and found no evidence against the listed agencies. Case closed |
| Malaysia closed its labor market specifically for Bangladesh | Malaysia's foreign worker cap of 2.5 million was exceeded as of December 31, 2023. All 15 source countries have been subject to the same freeze since June 1, 2024 |
| Agency selection was non-transparent or unfair | Malaysia selected agencies from Bangladesh's official list of 1,520 via an online system — a process jointly agreed upon and documented in Joint Working Group minutes |
| No low-cost or free migration options existed | Under Catharsis International's supervision, 358 workers were sent at zero cost under the Employer Pays Model. BOESL facilitated nearly 2,000 workers at little or no cost |
Malaysia's Freeze: A Global Quota Decision, Not a Bilateral Action
Visa Processing, MEFC, and the Shift to Hiring Companies
MEFC's Exclusive Worker Visa Role
The Malaysian Employment Facilitation Centre (MEFC) was the sole government-authorized channel for processing worker visas. Other approved visa centers were limited to visit and tourist visa processing only — worker visas required MEFC handling.
January 2024 Policy Shift
Following a government directive effective January 2024, visa processing responsibility transitioned from MEFC to the respective hiring companies. MEFC continued to provide technical assistance to the FWCMS system from Dhaka during this transition.
Zero-Cost Migration Model
Under Catharsis International's supervision, several listed agencies facilitated migration for 358 workers at no cost to the workers — all expenses borne by employers under the Employer Pays Model, with recruiting fees received through official banking channels from Malaysia.
800+ Associated Agencies in Practice
Although 101 BRAs were formally listed, over 800 additional agencies participated in the 2022–24 migration phase as employer-approved associates and agents — a fact obscured by the media narrative that frames the process as exclusively limited to 101 firms.
BAIRA Politics and the Misinformation Ecosystem
Bangladesh and Malaysia sign the MoU, establishing the legal and procedural basis for reopening the bilateral labor corridor through a limited, government-selected agency framework.
Joint Working Group meeting finalizes agency selection methodology. Malaysia begins identifying authorized recruiters from Bangladesh's pool of 1,520 licensed agencies via an online transparent system.
Labor corridor officially reopens. Worker migration begins through 101 listed agencies under the Auto Allocation System.
Visa processing responsibility shifts from MEFC to individual hiring companies per Malaysian government directive.
Malaysia's Immigration Department issues circular: all quota-approved workers must enter by May 31, 2024. New quota applications closed for all 15 source countries.
Universal recruitment freeze takes effect. 476,672 Bangladeshi workers have been placed. Malaysia ranks 4th in remittance contributions to Bangladesh, up from 8th.
Malaysian Home Minister publicly confirms freeze applies to all source countries. August 2024 remittances from Malaysia reach $251.9 million USD.
More to Read
The Context of Bangladeshi Workers' Migration to Malaysia, Its Benefits, and the Reopening of the Labor Market
Rising from past fraud, Bangladesh and Malaysia built a digital labor corridor that deployed 476,672 workers in 22 months. Yet, political pressures, associate agencies inflating costs, and unlisted intermediaries now threaten to derail this system designed for transparency and control.
The Opening of the Malaysian Labor Market for Bangladeshi Workers
The Malaysian government is actively considering resuming the recruitment process for workers from all source countries, including Bangladesh.
Lack of Coordination in the Ministry of Expatriates' Welfare and Overseas Employment
As per the agreement (MoU) signed between Bangladesh and Malaysia, a total of 472,476 Bangladeshi workers migrated to Malaysia from August 8, 2022, to May 31, 2024.
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