The Actual Facts of Bangladeshi Workers' Migration to Malaysia Under the 2021 Memorandum of Understanding (MoU)
Misinformation about the Bangladesh–Malaysia 2021 MoU has sparked widespread confusion, threatening agencies, government bodies, and the labor market. NewsAxis examines the facts behind the allegations
A wave of misinformation circulating in Bangladeshi media — targeting agency selection procedures, alleged visa trading, inflated migration fees, and the supposed selective closure of Malaysia's labor market against Bangladesh — is distorting public understanding of a regulated, government-supervised migration framework and risking serious damage to the future of one of the country's most critical labor corridors. The actual facts, drawn from official bilateral agreements and government records, present a markedly different picture from the narratives currently in circulation. From agency enlistment to visa processing, every stage of the Bangladesh–Malaysia worker migration process has operated under joint governmental oversight — and the suspension of worker intake applies equally to all 15 source countries, not Bangladesh alone.
- 101 agencies were enlisted by the Malaysian government — not Bangladesh — from 1,520 valid license holders submitted by the ministry
- Quotas were auto-allocated through Malaysia's FWCMS system; listed agencies had no need to purchase visas from employers
- 476,672 Bangladeshi workers successfully migrated to Malaysia from August 8, 2022 to May 31, 2024
- Malaysia's recruitment freeze applies to all 15 source countries; the 2.5 million foreign worker ceiling is nearly full
- Malaysian Home Minister confirmed on October 21, 2024 that the recruitment ban remains in effect until further notice
- Bangladesh rose from 8th to 4th in remittance rankings to Malaysia; August 2024 alone saw USD 251.9 million in remittances
- 358 workers were sent under a Zero Cost Migration model; BOESL sent nearly 2,000 workers at low or no cost
Fact #1: The 101 Agencies Were Chosen by Malaysia, Not Bangladesh
Following the MoU signed on December 19, 2021, a Joint Working Group meeting between the Ministry of Expatriates' Welfare and Overseas Employment of Bangladesh and Malaysia's Ministry of Human Resources was held on June 2, 2022. A key decision of that meeting was that the Malaysian government — not Bangladesh — would take responsibility for selecting recruiting agencies, drawing from a limited pool.
Out of 1,520 valid licenses submitted by the Bangladesh ministry, the Malaysian government initially enlisted 25, later expanding to 101 licenses in total, including the state-owned BOESL. The selection was Malaysia's sovereign prerogative under the agreed framework — not a product of lobbying, favoritism, or any irregular process on the Bangladeshi side.
Fact #2: Listed Agencies Did Not Buy or Sell Visas
Under Malaysia's Foreign Workers Centralized Management System (FWCMS), worker recruitment quotas are distributed automatically among the 101 enlisted agencies through the Auto Allocation System. Demand letters are attested by the Bangladesh High Commission on the basis of these allocated quotas, followed by ministry recruitment approvals, medical examinations, and e-visa issuance — all within a structured, automated pipeline.
Because quotas were assigned directly by the Malaysian government through the Auto Allocation System, the enlisted agencies had no mechanism or incentive to purchase visas from Malaysian employers. The Auto Allocation System was specifically designed by both governments to eliminate visa trading and close the pathway to high-cost informal visa procurement.
Key Facts at a Glance
No Excessive Migration Fees
Listed agencies collected only government-approved migration fees and issued receipts to every worker. Workers joined employers as per guidelines and are receiving a minimum basic salary of 1,500 Ringgit, with total wages and allowances reaching approximately BDT 50,000 per month including overtime.
No Money Sent Abroad
Listed agencies and their owners are not involved in visa trading or transferring funds to Malaysia. A prior Anti-Corruption Commission investigation in 2017–18 found no evidence against the listed agencies on this matter. Recruitment charges under the current MoU have been received through official banking channels.
Freeze Covers All 15 Countries
Malaysia's Immigration Department circular of March 1, 2024 applied to all 15 source countries — not Bangladesh specifically. The freeze stems from the 2.5 million foreign worker ceiling set by Malaysia's Economic Planning Unit being nearly reached, as confirmed by Home Minister Dato' Seri Saifuddin Nasution Ismail on October 21, 2024.
Zero Cost Migration Exists
Under the supervision of Catharsis International, 358 workers were sent to Malaysia entirely free of charge through the Employers Pay Model. BOESL has additionally sent nearly 2,000 workers at low or no cost — directly contradicting claims that all agencies charge maximum fees.
Malaysia's Recruitment Freeze: The Full Picture
Malaysia's Economic Planning Unit, operating under the Ministry of Finance, had set a national ceiling of 2.5 million foreign workers. By December 31, 2023, quota allocations had already exceeded this limit, prompting the government to halt all new quota applications across every source country. The Immigration Department's March 1, 2024 circular required all workers under already-issued quotas to enter Malaysia by May 31, 2024 — after which recruitment from all 15 countries, including Bangladesh, was suspended.
Malaysian Home Minister Dato' Seri Saifuddin Nasution Ismail publicly addressed media speculation about a reopening on October 21, 2024, clarifying that the foreign worker employment quota remains nearly full and that the recruitment ban will stay in effect until further notice. The suspension is a structural policy decision, not a bilateral sanction against Bangladesh.
Visa Processing and the Role of MEFC
The Malaysian government has mandated that worker visa processing be conducted exclusively through the Malaysian Employment Facilitation Centre (MEFC). Other authorized visa centers are permitted to handle visit and tourist visas only — not worker visas. From January 2024, following a government decision, responsibility for visa processing has been progressively transferred from MEFC to the respective recruiting companies. MEFC has provided technical support for FWCMS operations from Dhaka throughout this transition.
Internal Industry Disputes Are Distorting the Public Record
While 101 agencies hold direct Malaysian government enlistment, more than 800 agencies have functioned as associated and approved agents of employers during the 2022–2024 period. This broader participation has created competitive tensions within the sector. In the context of business competition and upcoming BAIRA elections, members have been making allegations against each other in service of factional interests — resulting in incidents of physical confrontations at BAIRA executive committee meetings and vandalism at the BAIRA office itself.
These internal disputes have fed a cycle of inaccurate media reporting that, if left uncorrected, risks undermining not just the reputations of compliant agencies but the entire future of Bangladesh's access to the Malaysian labor market. Accurate, evidence-based reporting on the migration process is essential to protecting the livelihoods of hundreds of thousands of current and prospective migrant workers.
| Claim in Circulation | Verified Fact |
|---|---|
| Agencies were selected by Bangladesh irregularly | Malaysian government selected 101 agencies from 1,520 submitted licenses |
| Listed agencies bought/sold visas | Quotas auto-allocated via FWCMS; no need or mechanism to purchase visas |
| Agencies charged inflated migration fees | Only government-approved fees collected; receipts issued to all workers |
| Malaysia closed its market specifically to Bangladesh | Freeze applies to all 15 source countries; ceiling of 2.5M workers reached |
| Agencies sent money to Malaysia illegally | ACC investigation (2017–18) found no evidence; payments via banking channels |
| No low-cost migration options exist | 358 workers sent under Zero Cost Model; BOESL sent ~2,000 at low/no cost |
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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