Is Malaysia becoming the first choice for Bangladeshi workers?

TBS Illustration

When it comes to labour migration, Saudi Arabia has so far been the first choice of Bangladeshi workers but, in an unexpected turn of events, the highest number of migrant workers went to Malaysia in May. 

According to Bureau of Manpower, Employment and Training (BMET) data, Malaysia recruited 35,190 workers in May this year since resuming the hiring of Bangladeshi workers in August last year after a three-and-a-half-year hiatus.

On the other hand, Saudi Arabia recruited 29,667 workers from Bangladesh in May.

Labour recruiters said more workers are going to Malaysia as it is offering a better salary structure than the oil-rich Gulf country.

Aside from the lucrative salary, the weather condition in Malaysia, which is almost similar to that in Bangladesh, is another reason behind Bangladeshi workers' eagerness to go there, they said.

Md Tipu Sultan, the joint secretary of the Bangladesh Association of International Recruiting Agencies (Baira), told The Business Standard, "A Bangladeshi worker in Saudi Arabia gets a minimum salary of 800-1000 Saudi Riyal (approx Tk23,000-28,000) while in Malaysia the minimum salary is 1,500 Malaysian Ringgit (Tk35,000). So, after the opening of the Malaysian labour market, Bangladeshi workers are now naturally leaning towards it."

"On average, 70-80 workers used to go to Saudi Arabia every month through my agency. But recently this number has dropped. Many of these people are going to Malaysia now," said Sultan, also the proprietor of recruiting agency Rajdhani International.

"But, this situation will not last long. Malaysia is not allowing new foreign workers. Those who were approved before are now going to the country," he added.

Malaysia has postponed the quota application and approval for foreign workers in March until further notice is announced later. The country's Ministry of Human Resources approved 11,36,022 employment quotas in six sectors – manufacturing, construction, services, plantation, agriculture, mining, and household service – for foreign workers as of 18 March this year.

Malaysia's Labor Department under the Ministry of Human Resources so far approved the hiring of 4.27 lakh new Bangladeshi workers, with around two lakh workers already in Malaysia. The remaining 2.27 lakh workers are in the process of migrating to the country, according to the Bangladesh High Commission in Malaysia.

Bangladesh High Commission hopes that if this upward trend in migration continues, Malaysia will employ around 500,000 new Bangladeshi workers within the next two-three years.

Malaysia is home to around 10 lakh Bangladeshis, according to an unofficial estimate. The country suspended hiring Bangladeshi workers in September 2018 over allegations of malpractices in the recruitment process and high recruitment costs.

Bangladesh and Malaysia signed a memorandum of understanding (MoU) on 19 December 2021 to open the labour market for Bangladeshi workers.

According to the Bureau of Manpower, Employment and Training, overseas employment rebounded in May as 1.01 lakh Bangladeshi have been employed abroad, a 28% growth from April. 

A total of 5.03 lakh Bangladeshi workers have been recruited by various countries from January to May this year, on average one lakh per month.

Among them, Saudi Arabia recruited the highest 1.86 lakh, followed by Malaysia's 1.36 lakh, Oman's 0.68 lakh, UAE's 0.36 lakh and Singapore's 0.21 lakh.

Before the pandemic, Bangladesh used to send an average of 60,000-70,000 workers abroad monthly. The number plummeted in 2020 but rebounded in 2022 with a record 11.35 lakh workers sent overseas.

Though migration experts emphasised sending more skilled workforces overseas, Bangladesh is still considered the source of unskilled workers in the global labour market.

Bangladeshis get low-paid jobs like cleaners, construction workers, and housemaids in Saudi Arabia. 

Saudi Arabia remains the top destination for Bangladeshi migrants for the past five-six years. Around 28 lakh Bangladeshis are currently working there, according to an unofficial estimate.

Besides, the highest amount of remittance used to come from Saudi Arabia. But the country has recently fallen behind the USA in sending remittances.

Despite having fewer expatriates, the United States has now become the top remittance-providing country for Bangladesh. The number of Bangladeshi workers in the US is slightly higher than two lakh.

High migration costs still a concern

High migration costs are still a concern for Bangladeshi workers who tend to go to both Malaysia and Saudi Arabia. 

Though the expatriates' welfare ministry fixed the cost of Tk79,000, a Malaysia-bound worker, wishing not to be named, told TBS that he had to pay more than Tk4 lakh to the recruiting agency.

Besides, the government fixed Tk1.65 lakh for Saudi-bound workers but many workers claimed that they have to pay around Tk3-4 lakh for migration.

At present, only 100 Bangladeshi recruiting agencies are allowed to send workers to Malaysia as per the approval of the destination country, which is widely known as a syndication system. 

Migration think tanks like the Refugee and Migratory Movements Research Unit (RMMRU) blamed this "corrupt syndication system" for the high migration cost to Malaysia.