Recruitment agencies from 4 countries raise concerns over Malaysia ‘syndicate’ system

Recruitment agencies from Bangladesh, Nepal, Pakistan and Myanmar have jointly raised concerns over syndicates, monopoly control and “special privileges” for a limited number of firms under Malaysia’s foreign worker recruitment system.

In a joint statement on Thursday, they called for equal access, transparency and fair competition for all legitimate recruitment agencies in the four countries.

The statement was signed by Dik Bahadur Khatri, president of the Nepal Association of Foreign Employment Agencies; Reaz-Ul-Islam, former senior vice president of the Bangladesh Association of International Recruiting Agencies; Myo Thant, chairman of the Myanmar Overseas Employment Agencies Association; and Sayed Rahmat Ali Shah, chairman of the Pakistan Overseas Employment Promoters Association.

The representatives said they had “serious concerns” about Malaysia’s Foreign Worker Centralised Management System, particularly restrictions that allow only a select group of agencies access to recruitment opportunities.

“We fully support digitalisation, transparency, efficiency and responsible recruitment systems. However, no digital platform or recruitment system should become a means of creating syndication, monopoly or exclusive control over the recruitment of migrant workers,” the statement said.

They argued that thousands of licenced and legally operating recruitment agencies in worker-sending countries should have “equal, transparent and non-discriminatory access to legitimate recruitment opportunities”.

“A system that gives preferential or exclusive access to a limited number of agencies can undermine the principles of fair competition, transparency and ethical recruitment while potentially increasing costs and limiting choices for both employers and migrant workers,” the statement said.

The groups called on the Malaysian government to review the FWCMS and ensure that recruitment opportunities are distributed through an open and competitive system.

They also urged Malaysia to ensure that no monopoly or syndicate is created, that all qualified and licenced agencies are treated fairly, and that the rights and welfare of migrant workers remain a central priority.

The statement also called for recognised recruitment agency associations from worker-sending countries to be consulted “meaningfully” over the system.

The agency leaders said their position was not against Malaysia or digital recruitment, but was instead “a collective call for transparency, accountability, equal opportunities and freedom from monopolistic recruitment processes”.

Concerns over a recruitment “syndicate” resurfaced recently after Malaysia approved 25 agencies to send workers following a prolonged pause in worker visas.

Recruitment agencies in Bangladesh have since demanded that the market be opened to all eligible firms.