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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 •
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735 Unauthorized Agencies Hijacked Bangladesh's Malaysia Labour Corridor — and Workers Paid BDT 6 Lakh for It

After Saudi Arabia, Malaysia has long been Bangladesh’s most important labor market, which reopened on August 8, 2022, after being closed for an extended period.

Staff Correspondent

Staff Correspondent

— 4 min read
Thousands of Unauthorized Recruiting Agencies’ Illegal Visa Trade: Skyscraper
Thousands of Unauthorized Recruiting Agencies’ Illegal Visa Trade: Skyscraper
While 101 authorized recruiting agencies legally sent nearly 500,000 Bangladeshi workers to Malaysia between 2022 and 2024, a parallel shadow network of over 735 unlisted agencies operated illegally — purchasing visas, inflating migration costs to 5–6 lakh BDT per worker, and covertly controlling a process they had no legal right to participate in.
  • Malaysia reopened to Bangladeshi workers on August 8, 2022 — the country's second most important labor market after Saudi Arabia
  • Nearly 500,000 workers migrated through 101 authorized agencies over 22 months, lifting Malaysia from 8th to 4th place in remittance contributions
  • Over 1,100 agencies were involved in reality — including 735 unauthorized recruiting agencies and middlemen
  • Unlisted agencies drove single visa costs to 5–6 lakh BDT through illegal visa trading with employers
  • Only approximately 25% of affected workers have received refunds despite ministerial intervention
~500,000
Workers Sent (2022–2024)
101
Authorized Agencies
735
Unauthorized Agencies Identified
5–6 Lakh BDT
Inflated Per-Worker Cost

How the Legal Framework Was Designed

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

The Shadow Network: 735 Unlisted Agencies and How They Operated

Despite the clearly defined legal framework, over 1,100 agencies became involved in the Malaysia migration corridor — far exceeding the authorized 101. Of these, 735 have been identified and verified as unlisted recruiting agencies operating without legal authorization. These agencies bypassed regulations entirely, liaising directly with Malaysian employers, purchasing visas through illegal channels, and deploying local agents to exert control over the authorized agencies that held quota allocations.
The mechanism was systematic: unlisted agencies, through employer-side local agents, coerced authorized quota-holding agencies into processing visas, e-visas, and BMET clearances for workers they had selected — not workers chosen through the legitimate Auto Allocation process. Employers refused to accept workers outside the unlisted agencies' selections, effectively holding the authorized agencies hostage to an illegal parallel system. Large sums of money were exchanged between employers and local agents as part of these visa transactions, pushing the total cost of a single worker's migration to 5–6 lakh BDT.

The Cost Anatomy: Where the Money Went

Listed Agency Fees

Authorized agencies that received quotas through the Auto Allocation System charged workers approximately 1–1.5 lakh BDT — their legitimate service cost for completing all legally mandated steps in the migration process.

Unlisted Agency Markup

The remaining 3.5–4.5 lakh BDT of the total 5–6 lakh BDT per worker was pocketed by unlisted agencies through illegal visa trading arrangements with Malaysian employers — money transferred outside any regulatory framework.

Visa Purchase Transactions

Unlisted agencies purchased visas directly from employers and resold access to workers, creating a black market layer atop the formal government-to-government recruitment system, inflating costs borne entirely by migrant workers.

Refund Shortfall

Following ministerial intervention by Dr. Asif Nazrul, listed agencies were directed to refund amounts received from unlisted agencies, and unlisted agencies were told to refund workers. Only approximately 25% of affected workers have received any refund to date.

Legal Obligations Carried Entirely by Authorized Agencies

Despite the coercion they faced, the 101 authorized agencies bore full legal responsibility for the entire migration pipeline. Their obligations under both governments' regulations included Bangladesh High Commission verifications, Ministry recruitment approvals, worker registration, medical examinations, visa processing, BMET clearance, worker dispatch to Malaysia, and ensuring that workers received regular wages and benefits upon arrival. In cases where workers returned early due to health or personal reasons, authorized agencies also had to manage compensation and related matters — liabilities that unlisted agencies never shared while profiting from the process.
To manage workers introduced by unlisted agencies, authorized agencies were required to execute formal legal undertakings making the unlisted agencies accountable for resolving issues related to their own referred workers — a legal safeguard that has proven difficult to enforce in practice.

Timeline of the Malaysia Labor Corridor (2021–2024)

December 19, 2021

Governments of Bangladesh and Malaysia sign the MoU, establishing the legal framework for structured worker recruitment through a limited number of authorized agencies.

June 2, 2022

Joint Working Group meeting confirms that Malaysia will select agencies via a transparent online system. Agency selection begins from a pool of 1,520 valid license holders.

August 8, 2022

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

2022–2024

Nearly 500,000 workers migrate legally. Simultaneously, 735+ unlisted agencies illegally enter the process, driving up costs and corrupting the visa allocation mechanism through employer collusion.

May 31, 2024

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

Media Campaigns and Sector-Wide Impact

Many unlisted agencies are co-owned by individuals who simultaneously held partnerships within the authorized 101 agencies — enabling them to profit from illegal visa transactions while publicly criticizing the limited agency selection framework. Media campaigns launched by these actors have generated negative attention toward the entire manpower export sector, distorting public understanding of a process in which authorized agencies operated lawfully under significant external pressure. Observers have noted that competitive dynamics surrounding BAIRA leadership elections have also contributed to the escalation of these campaigns.
These false narratives risk damaging the bilateral framework that enabled nearly half a million workers to access formal, wage-paying employment in Malaysia — and could jeopardize Bangladesh's position in any future reopening of that labor market.
Source: Joint Working Group Meeting Minutes — Ministry of Expatriates' Welfare and Overseas Employment (Bangladesh) & Ministry of Human Resources (Malaysia), June 2, 2022

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