Tuesday, May 07, 2024
A conspiracy involving a notorious gang targeting the huge labour market in Malaysia by only a 25-syndicate member has once again raised question about the efficacy of the system that has proved to be faulty and non-functional back in 2018, found an analysis of The Business Post.
Dato Seri Amin – syndicate mastermind and owner of the FWCMS – used the online system to embezzle a large amount of cash by taking most of the ten agencies hostage back from 2016 to late 2018, which in turn caused the migration costs to go up several times.
Above one thousand recruiting agencies on Tuesday at a mass gathering threatened to dress up in burial shrouds and hold demonstrations if the 25-member syndicate got the opportunity to send migrant workers to Malaysia.
ALSO READ: Bust syndicate, open labour market for all
If all government approved recruiting agencies had the opportunity to work, irregularities, corruption and migration costs would not have skyrocketed in the sector between 2016 and September 2018. It also would not have been possible to take the agencies hostage, found an analysis of The Business Post.
While the government had directed that workers be sent abroad at minimal costs and with the involvement of most recruiting agencies, but due to the irregularities and corruption in the system, the country could not even send 25 per cent of the targeted 12 lakh workers during the period in question.
In 2016, the labour market began with just ten agencies under the FWCMS online system controlled by BESTINET SDN BHD, but workers’ migration was suspended in September, 2018 due to irregularities, corruption and high migration costs, industry insiders said.
It should be noted that though the system provider was supposed to take 105 ringgits (around Tk 2,100) from Malaysian employer under this method, Bangladeshi-origin Malaysian Dato Seri Amin and his business associate in Bangladesh Ruhul Amin Swapan had hiked the amount by almost fifty times, and embezzled a large amount of money from poor and innocent local workers during the period.
This matter was later covered by a number of local and foreign media. As a result, the then Malaysian government led by Mahathir Mohamad had suspended Dato Seri Amin’s system in September of 2018 due to this syndicate’s systematic corruption.
The Malaysian government had paid service charge to the company as per agreement, but owner of the online system Dato Seri Amin used it as a tool to exploit workers. The same online system provider was the syndicate mastermind also, so he had the key.
Keeping up the trend of greed, a process is now underway to create another 25-agency syndicate under the same system, developed by the same man in question.
Same syndicate’s paws in Malaysia again
The Malaysian labour market remained suspended for nearly three and half years, but due to sincere efforts from the Bangladesh government, the two countries signed a memorandum of understanding (MoU) on December 19, 2021, bringing hope to people.
However, instigated by some people of the so-called syndicate comprised of citizens from both countries, the Malaysian human resources minister sent a proposal to our expatriate welfare and overseas employment minister on January 14, 2022.
The proposal sidestepped the MoU signed by both countries, and spoke in favour of sending workers through a 25-agency syndicate.
In response to the proposal on January 18, 2022, quoting the ILO convention and Bangladesh’s Competition Act, Expatriate Welfare and Overseas Employment Minister Imran Ahmed MP in a letter said the Bangladesh government cannot provide the job to a handful of agencies, bypassing laws of the land and the MoU signed between Dhaka and Kuala Lumpur.
Under the Competition Act, Bangladesh must provide equal opportunity to all recruiting agencies with valid licence. The letter further mentioned that Bangladesh seeks a transparent, free of irregularities and safe migration process.
He also proposed holding working committee meetings participated by both countries to finalise the process of sending workers. Different quarters from home and abroad lauded the stance of Bangladesh’s Expatriate Welfare and Overseas Employment minister.
Impossible for 1.6% recruiting agencies to send 15-20 lakh workers
When there is a projected demand for 15 lakh to 20 lakh migrant workers, how is the involvement of 25 agencies, majority of whom are incompetent, in this process is practical to take the load?
Around 1,500 recruiting licencees in Bangladesh have been sending workers across the globe, so why is it necessary to create a 25-agency syndicate, which is only 1.6 per cent of the valid recruiting licencees?
Why more than 98 per cent of the recruiting agencies are being left out? This will prevent Bangladesh from sending the lion’s share of workers, and fully utilising the golden opportunity.
Considering the circumstances, the effort to send a large number of workers, through inept agencies that are 1 per cent of the sector, is quite illogical and impossible.
80% syndicate agencies incompetent, inexperienced
Taking a look at the business records of 25 agencies under the syndicate will reveal that only 5-6 of them have the capability to successfully send workers to Malaysia. So, the plan to send 15-20 lakh workers through 80 per cent inept and inexperienced agencies is bizarre and unreal.
Bangladesh will never be able to achieve full performance in sending workers while using only 25 agencies. If we consider adding 500 more agencies, the participation will still be only 33 per cent, and around 67 per cent of the recruiting agencies will be left out, industry insiders said.
Besides, it will not be possible for the country to send this large number of workers ensuring transparency, using a system that is illogical, improvident, and rigged with corruption, which is established by the same people who created the previous syndicate.
ALSO READ: Pro-syndicate meeting turns anti-syndicate assembly on Malaysian labour market
According to sources, among the 1,500 government approved agencies, 400-500 have the experience to send workers to Malaysia. If those 500 agencies indirectly depend on the 25 as sub-agencies, they will not have direct gateway (system access).
This issue will cause unhealthy competition, irregular transactions, and increase corruption and migration costs. Besides, it is disgraceful for an agency – which has the same category of licence and deposited more than lakh taka to the government – to act as a sub-agency for another peer recruiter.
Malaysia has more than 513 approved recruiting agencies
The agencies have to be allowed to work equally and competitively in both countries in a 1:1 ratio. If 513 Malaysian recruiting agencies (those having the C licence) work with only 25 agencies in Bangladesh, the 1:21 work ratio will be illogical and unacceptable.
According to the Bangladesh Competition Act 2012, it is compulsory to allow all legal and qualified recruiting agencies to work considering our country’s interests.
Which country’s govt will select qualified recruiting agencies in Bangladesh?
The Bangladesh government or the ministry concerned has issued licences to the recruiting agencies in this country. The recruiters have paid their caution money here and are being monitored by this country.
Enforcing laws and controlling on their activities are done by the Bangladesh. Considering these, how and using what criteria will Malaysia select recruiting agencies in Bangladesh?
What are the selection criteria and how the selection will be done?
Bangladesh is responsible for fixing the criteria and doing the selection, and that is what it should be. What criteria has the Malaysian government followed? Have they officially collected any information about qualified agencies from Bangladesh government?
Have they checked the previous records of the agencies? Have they checked who the owners of the agencies are, what their backgrounds are, how their offices are, whether their offices have facilities, and whether they have enough experience in sending workers on a large scale?
What basis have they used to determine the quality of the recruiting agencies in Bangladesh?
Workers cannot be sent for all sectors if the syndicate is formed
Malaysia’s big companies in different sectors, including electronics, garments, hand gloves, plantation, manufacturing, and security, have the obligation to appoint foreign workers at zero migration cost as per the international migration rules.
If the syndicate comprising 25 agencies is constituted, Malaysia’s Responsible Business Alliance (RBA), which comprises companies that recruit workers at zero migration cost and by paying service charges, will not be able to hire workers from Bangladesh like before due to high migration cost. Bangladesh will thus face losses.
In this case, Bangladesh will lose a major portion of employment opportunity in these sectors – which is around 50 per cent of Malaysia’s aggregate demand for workers – and this will cause the country to face massive losses.
Bangladesh will lose work, while corruption and migration costs will rise
Employers of Malaysia will lose interest in recruiting from here and will hire workers through the open system from other countries as there will be long queues and a long time needed when they will input thousands of demand letters into the systems.
By taking advantage of this opportunity, there will be huge corruption and illegal transactions in the name of facilitating the system. As a result, migration costs will increase and the government will not be able to send workers at a low cost.
Why does Malaysia want to re-introduce the syndicate system when the Mahathir government cancelled the Dato Seri Amin system in September 2018 due to corruption in the syndicate system?
Bangladesh government is also capable of creating an alternative system
As far as we know, the Malaysian government is developed in the IT sector. So, could they not create an alternative system? The Bangladesh government is also capable of creating an alternative system.
Overall, two systems could be introduced in a competitive way through inclusive participation from both countries at least on the basis of discussions. The Malaysian employers will then select the proposed system they will deem good and will work in a transparent manner. The proposed mechanism will ensure the Competition Act properly applied and implemented.
Discrimination between Bangladesh and 13 other countries
It is undignified to send workers from Bangladesh through a syndicate while Malaysia hires workers from 13 other source countries in regular ways without syndication. For other countries, migration cost is much lower as employers can choose recruiting agencies themselves.
Like the 13 other source countries, we think it is a matter of the Bangladesh government itself to decide how many agencies will be selected and the selection criteria. So, while selecting legal and qualified agencies, the Malaysian government deciding solely to select 25 agencies is illogical and unacceptable.
Migration costs
Migration cost in Bangladesh is high only because of the syndicate system. In other countries, all recruiting agencies participate in sending workers due to the open market policy. As a result, migration costs fall in a competitive way.
If a worker pays high migration costs, he cannot recoup the expense even in three years after going abroad. This means the money laundered even before a worker goes abroad does not come back in the form of remittance even in three years.
If the syndicate is formed, corruption will begin and the government will not be able to keep its promise of sending workers at low cost. Migrants will be forced to pay high fees and be deceived.
The government will have a crisis of confidence in the people. If the syndicate can start a syndication system by exerting unethical influence, they will form syndicates to send workers to other countries, including Saudi Arabia, which will harm the manpower export sector and the country as a whole. Various crimes, including money laundering, will take place.
Above all, the objective and guideline made in line with the prime minister’s announcement to send 1,000 workers from each upazila at low cost can never be implemented through the syndicate.
ALSO READ: Tk1,000 crore transacted to form syndicate for Malaysian labour market
