Malaysia scam: Agencies directed to refund money to workers by 18 July

The Ministry of Expatriates' Welfare and Overseas Employment on Thursday (4 July) said recruiting agencies have been given 15 days to refund money to workers who could not fly to Malaysia within the specified timeframe. 

A probe committee formed by the ministry has found all 100 private recruiting agencies, collectively known as the syndicate, responsible for the failure of 17,000 workers to join their workplaces in Malaysia.

State Minister for Expatriate Welfare and Overseas Employment Shofiqur Rahman Choudhury said as per the recommendation of the committee, already the agencies have been directed to return money of the affected workers by the 18 July deadline.

The state minister was briefing reporters during a press conference at the expat ministry regarding the latest situation of the Malaysian labour market.

The Malaysian authorities had allowed these 100 private recruiting agencies to send workers from Bangladesh. However, due to mismanagement and corruption in the recruitment process, the agencies failed to send approximately 17,777 workers before the 31 May deadline set by Malaysia.

During the press conference, the state minister said, "The investigation committee's findings revealed that some agencies failed to send 10 workers, some 50, some 500, and some 400 workers. Therefore, all these agencies bear some level of responsibility."

He further said they had sat with Baira on Wednesday to discuss these issues. 

"All agreed that, based on evidence, the amounts taken from individuals will to be refunded within the next 15 days," he added.

Shofiqur Rahman also emphasised that the recruiting agencies have to refund the total migration costs paid by the workers by 18 July.  "Otherwise, legal action will be taken against the responsible agencies," he said, adding that Baira will oversee the process of refunding money to the affected workers.

The minister further mentioned that efforts will be made to prioritise the affected workers for future employment opportunities in Malaysia or other countries, based on the recommendations of the investigation committee. 

According to the expats ministry, if any recruiting agency refuses to refund the affected workers' money, Baira will inform the ministry, which will then take the necessary legal action.

Since the reopening of the labour market in August 2022, Malaysia had allocated a quota of over 532,000 for Bangladeshi workers. Out of this, 476,000 workers were able to reach their destination. 

However, around 17,777 workers could not fly as the recruiting agencies failed to provide tickets before the deadline, according to the report submitted by the committee last week.

The state minister noted that in some cases, the employers in Malaysia delayed issuing demand letters. Also, many workers received their visas late. "Our main objective is to refund the workers' money and ensure their employment, whether in Malaysia or another country," he added.

Malaysia will not hire workers from Bangladesh until they declare a new quota. A joint working group meeting will be held by the end of this month to address the issue.

"We will discuss our issues with them. We hope the Malaysian labour market will reopen soon. When it does, those who couldn't go earlier will be given priority," said the state minister.