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Tapping the potential of Malaysian labour market


Published : 10 May 2023 08:25 PM

The export of labor is the second-largest source of foreign exchange for the nation. The shock of the Covid-19 outbreak has already been managed in a number of nations, particularly those in the Middle East. Additionally, their economy is improving. As a result, there is a growing need for labor. It has been allowed to send roughly 7 lakh workers abroad in the first seven months of the current fiscal year since the relaxation of limitations relating to Covid-19. According to the general evaluation, this is good news for employment. The pressure on the nation's foreign exchange reserves is growing as the price of gasoline and food imports has skyrocketed since the end of the Russo-Ukrainian war.

The increase in labor is welcome at such a time. In the current fiscal year, it could be possible to send more than 1 million workers if this trend of manpower export continues. The top country of immigration for Bangladeshis is Saudi Arabia. United Arab Emirates, Singapore, Oman, Qatar, and Jordan come next. Most of the workers who have been overseas in the previous seven months have gone to Saudi Arabia, the United Arab Emirates, and Oman, three Middle Eastern nations.

In terms of exporting laborers, Malaysia has one of the larger labor markets. That nation comes in second place behind Saudi Arabia. Bangladesh's second-largest labor market is Malaysia.

But this labor market has shrunk for a number of reasons. Due to the Covid-19, numerous factories in Malaysia ceased operating. After Corona's "black chapter" came to a close, various institutions resumed operations. This calls for a sizable workforce. Employers in Malaysia are in need of Bangladeshi workers, which presents a fantastic opportunity for Bangladesh. In light of this, the Malaysian labor market was opened and the process of transferring workers began with the signing of the memorandum of understanding between the two nations in December last year, following a protracted diplomatic effort.

In September 2018, according to a senior member of the Bureau of Manpower Employment and Training (BMET), the labor market in Malaysia was shut down.

In December of last year, the combined efforts of the two countries resumed dispatching employees after a protracted three-year hiatus. The BMET official added that there is no way to cheaply move personnel to the Malaysian labor market. Additionally, if he has a history of involvement in any criminal action, he will not be nominated. In other words, staff need to seem professional.

Recently, Bangladesh has fallen far behind its neighbors in terms of remittance collection due to the global economic downturn, political unrest, various forms of mismanagement, and unfair competition. On the other hand, it was unable to develop a brand-new modern labor market. The agreement to deploy new workers to Malaysia at this time is a new glimmer of hope.

The Bangladesh High Commission in Malaysia has expressed optimism that the new agreement will result in at least 500,000 additional jobs for Bangladeshis over the next two to three years. According to the Bangladesh High Commission, the Bangladesh Embassy is collaborating closely with the Malaysian government to find new employers for Bangladeshi employees so that they won't face discrimination upon their lawful entry into Malaysia.

Previously, Malaysia had forbidden employing people from Bangladesh due to a number of complaints, particularly social issues. The main issue they point to as a societal issue is that a group of working-class Malay girls marrying among Bangladeshi expats in Malaysia and attempting to remain permanently there.

They also raised additional concerns. For instance, unlawful travel and failure to return to the nation after the allotted time has passed, extortion of additional funds from the workers through deception on the part of Bangladesh's manpower exporting agency, etc. The Malaysian government was unable to overlook these inconsistencies and put a stop to Bangladeshi exports of laborers. The income of expatriates could suffer if a significant labor market, like Malaysia, were to close. And at that point, a government effort made it possible for Bangladeshi employees to lately travel to Malaysia. Under government control, 500,000 workers are expected to relocate to Malaysia over the course of five years, but only 9,000 can do so in that time.

The tendency of illegal migration to Malaysia has grown while the rate of sending employees has reduced. In order to combat human trafficking, the Malaysian government has chosen to liberalize the labor market. In Malaysia, there are now 2135 000 foreign employees. Six lakh Bangladeshi workers are employed among them in a variety of occupations. The most is in Indonesia. around 8 lakhs. The location of Bangladesh follows that. More than 5 lakh people work in Nepal as well. Additionally, India has people from Myanmar and Cambodia stationed in Malaysia.

Middle Eastern nations provide the majority of our income from expatriates. However, the Middle Eastern labor markets are no longer what they once were. Every day there is more volatility.

Discrimination against foreign women, including sexual harassment, is on the rise, particularly in Saudi Arabia. While at work, several employees are returning dead. Complications with akama are getting worse. Some businesses underpay employees' salary. Instead of hiring unskilled labor, expatriates are emphasizing the hiring of their own workforce. They do not wish to simply hire new employees because of these reasons. Remittance income from Middle Eastern nations is consequently beginning to decrease. The Malaysian labor market should be preserved in this situation. Everyone hopes that Bangladesh's potential labor market won't be shut down.


Indrajit Kumar is an educator and freelance researcher