| Loading weather...
Sign in Subscribe
Search Articles
Breaking News Breaking
Four Reforms That Could Cut Bangladesh's Malaysia Migration Costs by 50% — And Keep the Corridor Open • Wang Kelian's Mass Graves: The Human Cost of Closing Bangladesh's Legal Migration Corridor to Malaysia • 476,000 Workers Later: Is Bangladesh's Malaysia Migration System Delivering on Its Promises? • Six Things Bangladesh Must Do Before Malaysia Opens Its Labor Market Again •
Four Reforms That Could Cut Bangladesh's Malaysia Migration Costs by 50% — And Keep the Corridor Open • Wang Kelian's Mass Graves: The Human Cost of Closing Bangladesh's Legal Migration Corridor to Malaysia • 476,000 Workers Later: Is Bangladesh's Malaysia Migration System Delivering on Its Promises? • Six Things Bangladesh Must Do Before Malaysia Opens Its Labor Market Again •
News Axis
News Trending

Inside the Cost Gap: How Bangladesh's Malaysia Migration Boom Left Workers Paying Far More Than The Expected Fee

Nearly 500,000 Bangladeshi workers legally moved to Malaysia (2022–24) but paid 5–6 lakh BDT each triple the regulated fee. Over 735 unauthorized agencies drove up costs via illegal visa trading outside a 2021 MoU. Despite ministry orders, about 75% of workers have yet to receive refunds.

Axis Report

Axis Report

— 4 min read
Inside the Cost Gap: How Bangladesh's Malaysia Migration Boom Left Workers Paying Far More Than The Expected Fee
Inside the Cost Gap: How Bangladesh's Malaysia Migration Boom Left Workers Paying Far More Than The Expected Fee
Nearly 500,000 Bangladeshi workers who legally migrated to Malaysia between 2022 and 2024 paid 5–6 lakh BDT each to secure employment — three to four times the regulated agency fee — as a gap between a government-to-government recruitment framework and the financial reality on the ground left hundreds of thousands in debt, with roughly 75% of affected workers yet to receive any refund despite ministerial intervention.
  • Malaysia reopened its labor market to Bangladeshi workers on August 8, 2022 — the country's second most important labor market after Saudi Arabia
  • 101 authorized agencies legally sent nearly 500,000 workers over 22 months under a structured government-to-government MoU signed December 19, 2021
  • Over 735 unlisted, unauthorized agencies entered the corridor illegally, driving per-worker costs to 5–6 lakh BDT through illegal visa trading
  • Authorized agencies charged approximately 1–1.5 lakh BDT; the remaining 3.5–4.5 lakh BDT flowed through unregulated channels
  • Only approximately 25% of affected workers have received refunds following ministerial intervention by Dr. Asif Nazrul
~500,000
Workers Migrated (2022–2024)
101
Authorized Agencies
735+
Unauthorized Agencies Identified
~25%
Workers Refunded So Far

A Framework Built for Transparency

Following Malaysia's extended closure of its labor market to Bangladesh, both governments signed a Memorandum of Understanding on December 19, 2021, establishing a regulated recruitment framework. A Joint Working Group meeting on June 2, 2022 confirmed that Malaysia would select Bangladeshi recruiting agencies through an online-based automated system — designed to ensure fairness in both agency selection and quota distribution.
Malaysia initially listed 25 agencies from 1,520 valid license holders submitted by Bangladesh's Ministry of Expatriates' Welfare and Overseas Employment, later expanding to 101 agencies including the state-run BOESL. Quotas were distributed through an Auto Allocation System. Neither the MoU nor the Joint Working Group minutes contained any provision permitting listed agencies to appoint local agents or sub-agencies — rendering any such involvement outside the legal framework.

The Gap Between Framework and Reality

Despite the clearly defined legal structure, more than 1,100 agencies ultimately became involved in the Malaysia migration corridor — far exceeding the authorized 101. Of these, 735 have been identified as unlisted recruiting agencies operating without legal authorization. These agencies liaised directly with Malaysian employers, purchased visas through channels outside the regulatory framework, and deployed local agents to work alongside the authorized quota-holding agencies.
The mechanism operated systematically: unlisted agencies, through employer-side local agents, worked with authorized quota-holding agencies to process visas, e-visas, and BMET clearances for workers outside the legitimate Auto Allocation process. Employers, in many instances, declined to accept workers outside the unlisted agencies' selections. Large sums exchanged between employers and local agents as part of these visa transactions pushed the total migration cost per worker to 5–6 lakh BDT — a burden borne entirely by the workers themselves.

Breaking Down the Cost

Authorized Agency Fees

The 101 authorized agencies charged workers approximately 1–1.5 lakh BDT — their regulated service cost for completing all legally mandated steps including visa processing, BMET clearance, and worker dispatch.

Unregulated Markup

The remaining 3.5–4.5 lakh BDT of the total 5–6 lakh BDT per worker moved through unregulated channels tied to illegal visa trading arrangements — money exchanged entirely outside any formal regulatory framework.

Full Legal Burden on Authorized Agencies

Despite the pressures they faced, all 101 authorized agencies retained full legal responsibility — covering Bangladesh High Commission verifications, medical exams, worker registration, dispatch, and post-arrival wage and benefit oversight in Malaysia.

Refund Compliance Gap

Following ministerial intervention, listed agencies were directed to refund amounts received from unlisted agencies, and unlisted agencies were told to refund workers directly. To date, only approximately 25% of affected workers have received any refund.

Timeline: Bangladesh–Malaysia Labor Corridor

December 19, 2021

Bangladesh and Malaysia sign the MoU establishing a structured, transparent recruitment framework through a limited number of authorized agencies.

June 2, 2022

Joint Working Group meeting confirms agency selection via an online automated system. Selection draws from a pool of 1,520 valid license holders.

August 8, 2022

Malaysia's labor market officially reopens for Bangladeshi workers. Initial listing of 25 agencies later expands to 101, including BOESL.

2022–2024

Nearly 500,000 workers migrate legally through authorized agencies. Simultaneously, 735+ unlisted agencies operate outside the legal framework, with per-worker costs reaching 5–6 lakh BDT.

May 31, 2024

Formal recruitment phase concludes. Malaysia rises from 8th to 4th place in remittance contributions to Bangladesh. Refund compliance remains at approximately 25%.

What the Numbers Mean for Workers

For the workers at the center of this story, the financial exposure was significant. A migration cost of 5–6 lakh BDT — often financed through loans against land or family savings — represents years of anticipated earnings. The refund shortfall means that for approximately 75% of affected workers, the excess costs paid above the regulated agency fee remain unrecovered, even after the corridor formally closed in May 2024.
Malaysia's rise from 8th to 4th place in remittance contributions to Bangladesh during this period reflects the scale of the workforce that moved through the corridor. The bilateral framework, built around the 2021 MoU and the Auto Allocation System, succeeded in moving nearly half a million workers into formal, wage-paying employment — a significant outcome that now exists alongside an unresolved question of financial redress for those who paid far above the regulated cost to get there.

Source: NewsAxis

Comments

More to Read