Malaysia

Alarm sounded to Malaysian, Bangladeshi PMs on migrant worker syndicates

Both leaders received an anonymous letter that raises the possibility issue can stifle competition  

Updated 4 years ago · Published on 05 Feb 2022 2:00PM

Alarm sounded to Malaysian, Bangladeshi PMs on migrant worker syndicates
An anonymous letter addressed to the prime ministers of Malaysia and Bangladesh and leaked to the media appears to say that the Malaysian government reserves the right to cancel the implementation of the project, and that Putrajaya is not liable for any costs borne by appointed companies. – Screen grab pic, February 5, 2022

JOHOR BARU – Fresh concerns have erupted in relation to the recruitment of migrant Bangladeshi workers to Malaysia by syndicates controlling the market.

An anonymous letter addressed to the prime ministers of Malaysia and Bangladesh and leaked to the media has raised a red flag on the creation of syndicates which could possibly stifle competition. 

The letter makes reference to two Malaysian companies allegedly involved in the hiring of Bangladeshi workers. 

Attached with the letter were correspondence from a few years back between a firm and the Home Ministry over the development of a management system for foreign workers.

The correspondence appears to say that the government reserves the right to cancel the implementation of the project, and that Putrajaya is not liable for any costs borne by appointed companies.

In 2018, Nepali Times had reportedly alleged that some companies were involved in scams related to fees for visas and biometric screenings.

Further, the letter claims that only in 2018, when Pakatan Harapan (PH) seized Putrajaya, the syndicates’ operations were curbed.

“By then, close to 300,000 Bangladeshi workers were hired through this syndicate and had to pay high fees of up to RM20,000 per person,” the letter alleged. 

It added that in the past, an old but very well-known syndicate had crippled and tainted the whole hiring process.

It was also pointed out that in September 2019, the Bangladesh Association of International Recruiting Agencies emphasised that the old system of hiring foreign workers in Malaysia must not be brought back as it is tainted by “corruption, monopoly and unfair practises”.

Referring to the Competition Act 2010 which strictly prohibits any horizontal or vertical agreements between companies which restrict competition, the letter said Putrajaya’s expectation to involve 25 Bangladeshi recruitment agents supported by 250 agencies could allow syndicates to control the market and stifle competition. 

It was only last month that Malaysia and Bangladesh signed a memorandum of understanding on the recruitment of Bangladeshi workers for a period of five years. 

The Vibes has contacted the Bangladeshi High Commission over the matter to query if the upcoming hiring of foreign workers could see the creation of syndicates either here or in Bangladesh, and is currently awaiting their reply. – The Vibes, February 5, 2022

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