Malaysian Labour Market: Who backed controversial MoU to benefit syndicate?

The foundation stone of syndication in sending Bangladeshi workers to Malaysia is rooted in the controversial and one-sided memorandum of understanding (MoU) signed between the two nations.

This faulty MoU is now benefiting the 25-agency gang, trampling the rights of workers, and depriving more than a thousand other licenced recruiters.

Under the “Responsibilities of the Government of Malaysia” section in the MoU, clause (v) reads, “The Government of Malaysia shall select BRA automatically through the online system from the list provided by the Government of the People’s Republic of Bangladesh.”

This clause violates Bangladeshi law. According to the Bangladesh Competition Act 2012, it is mandatory to allow all legal and qualified recruiting agencies to work in the sector, which also safeguards Bangladesh’s interests.

A number of experts and stakeholders say this particular clause was added to the MoU deliberately, undermining the law of the land on open competition.

They also pointed out that the local recruiters are licenced by Bangladesh, so matters such as the selection and moderation of agencies involved in sending workers to Malaysia should definitely fall onto the shoulders of the Bangladesh government.

Stakeholders raised questions as to why the MoU handed this key responsibility to the Malaysian government and a foreign private firm.

The Foreign Workers Centralised Management System (FWCMS) online system is operated by BESTINET SDN BHD, which is owned by Bangladeshi-origin Malaysian Dato Seri Amin. The involvement of a controversial firm and syndication will pave way for widespread corruption.

CR Abrar, chair of Bangladesh Civil Society for Migrants, said on the issue, “Certainly the inclusion of this kind of clause created debate surrounding the possibility of a conspiracy. How is the inclusion of this kind of clause possible in this MoU?

“We do not know how it was scrutinised and who was responsible. It will not be rational to support this syndicate using a particular clause in the MoU as an excuse, because a MoU is not a legally binding document.”

He continued, “This move will not benefit either the workers or the recruiting agencies. Who is this process [syndication] benefiting? This is an issue connected to countless workers, so it should be placed at Parliament for the sake of those workers.

What are the key issues with the MoU?

The MoU has no mention of 25 licences. Besides, the stakeholders have spoken strongly against any discrimination in the licences, as the status of all such licences is the same in Bangladesh.

All valid recruiters have taken the licence following every government regulation and paying lakhs of Taka as fees. There is no category among the manpower recruiters. The ministry concerned takes punitive and legal actions against any agency found to have violated laws.

Stakeholders raised questions as to why the Bangladesh government gave the right of selecting recruiters to the Malaysian government. The move was taken despite the Bureau of Manpower Employment and Training (BMET) having all the performance related info of any agency.

Stakeholders say the Malaysian government has no info about those agencies except their names. So, under what criteria the Malaysian government selected the 25 agencies? Has the Malaysian authority ever sought details from the government about the track records of the 25 recruiters? Or any authority of the Malaysian has ever investigated the offices and other infrastructure facilities of the selected recruiter? What are the criteria on which the Malaysian government has picked up 25 recruiters among more than 1500 valid labour recruiters?

Furthermore, stakeholders said the responsibility should be rested on the government of Bangladesh when it comes to recruiters’ selection for sending labour to Malaysia.

Most of these 25 agencies have no prior experience in the field, and some are yet to send even a single worker abroad.

Stakeholders point out that the Bangladesh government has made a huge blunder by signing this faulty MoU.

Malaysia has over 500 approved recruiting agencies

After facing much criticism and protests in Malaysia, the country currently has more than 500 approved recruiting agencies (those having the C licence), instead of the previously proposed 25 firms.

Though more than 1,500 recruiting licencees in Bangladesh have been sending workers across the globe, a 25-agency syndicate was formed by the Malaysian government in connivance with a notorious Bangladeshi cartel, consisting of only 1.6 per cent of Bangladesh’s valid agencies.

Among the 25 syndicated agencies, three recruiting agencies are owned by three lawmakers each and one is owned by the wife of an important minister of Bangladesh.

Among these firms, one has the experience of sending only 387 workers so far and another has the experience of sending only 91 workers. Malaysia hires workers from 13 other source countries in a regular process without any syndication.

Sources say, among the 25 syndicates, only one family is about to get three licences for work. Moreover, a minister’s wife and three lawmakers will get licences. Questions have arisen about how the selection was made.

On condition of anonymity, a former leader of Bangladesh Association of International Recruiting Agencies (BAIRA) said, “Bangladeshi agencies are monitored by the local authorities. So our government knows who are experienced and have adequate infrastructure.

“How would the Malaysian government select recruiting agencies that have a good track record? Did the Malaysian government collect details from Bangladesh on which agencies are capable? We do not have information about such matters.”

CR Abrar, also the executive director of the Refugee and Migratory Movements Research Unit (RMMRU), said, “Malaysia would have accepted our condition of an open market had we waited for two weeks as they have a huge demand for manpower.

“There is a pressure on the Malaysian government from the recruiters to bring workers. So, why did we hurry so much?”

Malaysia backing up ill-motivated efforts

Industry insiders – especially the anti-syndicate alliance of Bangladesh Association of International Recruiting Agencies (BAIRA) – have long been voicing concerns over this move, pointing out that instead of going through one firm, the employers must directly pick recruiters.

Much to the frustration of the local manpower recruiters and backing up the ill-motivated efforts of the 25-agency syndicate, Malaysian Human Resource Minister Datuk Seri M Saravanan on June 2 said his country will decide who the labour recruiters are in Bangladesh.

Saravanan made the remark to journalists after a Joint Working Group meeting with his Bangladeshi counterpart Expatriates’ Welfare and Overseas Employment Minister Imran Ahmad in Dhaka, adding that the mechanism for hiring workers from Bangladesh however will come into effect after the Malaysian cabinet meeting approval.

When reporters asked him whether there would be a syndicate of recruiters, or an open-for-all model would be adopted for sending labourers to Malaysia, he said, “Usually, the receiving country decides about the agencies. We will do this according to the decision of our cabinet.”

Speaking to reporters at the ministry after his meeting with Saravanan, Imran Ahmed said, “Bangladesh has 1,520 officially recognised recruiting agencies, and we have already sent this list to the Malaysian government. But, selection is their [Malaysia] right, and they will exercise it.

The U-Turn of Imran

Malaysian Human Resource Minister M Saravanan in a letter on January 14 urged his Bangladeshi counterpart Minister for Expatriates’ Welfare and Overseas Employment Imran Ahmad to initiate the process of sending workers to Malaysia through 25 Bangladesh Recruitment Agencies (BRA).

Imran, however, rejected the proposal of Saravanan for the sake of transparency and creating opportunity for all local valid labour recruiters.

“I want to reiterate that, Bangladesh is always in favour of transparent, fair and safe migration, as per relevant charters of International Labour Organisation(ILO), our Competition Act 2012 by keeping the opportunities open to all the valid licensed Bangladeshi Recruiting Agencies (BRA) as mentioned in Chapter C (v) and C (vi) of Appendix B of the MOU,” reads the letter of Imran.

“According to the provision, the Government of Malaysia shall select BRA automatically through the online system from the list provided by the government of Bangladesh, and Government of Malaysia shall ensure transparency and fairness in the selection and distribution of quota.”

On December 19 last year, Bangladesh and Malaysia signed the MoU.

Stakeholders have said Imran was managed by an influential quarters.

When asked, Barrister Shamim Haider Patwary MP told The Business Post, “The Government of Bangladesh has agreed to the condition that the Malaysian Government has included in the MoU on selecting recruiting agencies. That’s where the problem originated. This problem would not have arisen if the Government of Bangladesh had not agreed to their condition.”

He said, “Past experience says that syndicate system is not good. Only a few people profit from it, while most people are deprived of the system.”

Bangladesh Association of International Recruiting Agencies (BAIRA) former Secretary-General Shamim Ahmed Chowdhury Noman told The Business Post, “We saw on social media that the Malaysian Minister of Human Resources has clearly said that according to the memorandum it’s the responsibility of Malaysian authority to select licences. The minister said clearly that their cabinet will decide who will work and who will not from Bangladesh. That means that in the signed MoU, this authority was given to Malaysia’s government. That was proven by the Malaysian minister’s statement also. In that case, we have nothing to say. If a ministry gives such authority to another ministry, then nothing remains to be said.”

He said, “The ministry that gave us licences, they know what are the degrees of competence among us. Who has the capability and who has not? Malaysia’s government shouldn’t be aware about the state of our licences. A big question remains here. How would Malaysia’s government know what’s the status of our licences? About who possesses how much capability?