Why only 25 agencies for Bangladeshi workers?

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Justification for Limiting Bangladeshi Recruitment Agencies Remains Unexplained

Human Resources Minister Datuk Seri M. Saravanan's decision to restrict the recruitment of Bangladeshi workers to only 25 agencies has drawn significant criticism and calls for clarification from a Member of Parliament and migrant worker advocacy groups. While the minister has stated that this measure aims to curb exploitation and prevent past recurrences of worker abandonment, the specific rationale and selection process for these agencies remain undisclosed. Concerns have been raised about potential monopolies, vested interests, and the effectiveness of this approach in addressing broader issues of migrant worker welfare.
Concerns Over Alleged Monopolisation and Vested Interests

Concerns have been voiced that the selected 25 Bangladeshi recruitment agencies are allegedly controlled by a single individual, identified as Datuk Seri Mohd Amin Abdul Nor. Amin is also the founder of Bestinet, the company responsible for managing Malaysia's Foreign Workers Centralised Management System (FWCMS). This alleged control has led to accusations of monopolisation of Bangladeshi worker recruitment, a situation that has been previously linked to restrictive practices. Activists, such as Mahi Ramakrishnan of Beyond Borders, have questioned whether vested interests are at play in the selection of these specific agencies and if substantial profits are being generated by them.
Minister's Rationale for Limiting Agencies

Minister Saravanan has defended the limitation on the number of agencies by citing a past incident in 2008 where approximately 100,000 Bangladeshi workers were allegedly cheated and left stranded in Kuala Lumpur. The minister posits that a restricted number of agencies will prevent unscrupulous parties from exploiting migrant workers. However, the precise mechanisms by which limiting agencies will achieve this and the evidence supporting this causal link have not been elaborated upon. Furthermore, the minister's assertion that Amin is not involved in worker recruitment has been stated, with Bestinet issuing a similar clarification.
Questions Regarding Fee Collection and Alternative Solutions

Advocacy groups have highlighted a critical gap in the minister's stated powers. While Saravanan has warned Malaysian employers against collecting fees from Bangladeshi workers upon their arrival, he has acknowledged a lack of authority to prevent Bangladeshi agents from charging substantial fees before workers depart their home country. It is understood that these pre-departure fees often amount to thousands of ringgit, contributing to debt bondage for migrant workers. In light of this, questions have been raised about the necessity of recruiting more foreign workers when the country has existing refugee and undocumented migrant populations, a point echoed by the Malaysian Employers Federation's proposal to legalise their employment.
Criticism of Anti-Competitive Practices and Lack of Transparency

The restriction on the number of recruitment agencies has been criticised as an anti-competitive measure that could foster practices such as forced labour, according to Adrian Pereira of the North-South Initiative. Pereira argues that limiting recruitment companies hinders competition and prevents entities with demonstrably better, International Labour Organization (ILO) compliant practices from participating. To date, the Ministry of Human Resources and Minister Saravanan have not publicly disclosed the names of the 25 selected Bangladeshi agencies, nor the specific criteria used in their selection process, fueling further calls for transparency.

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Why only 25 agencies for Bangladeshi workers?

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