Malaysia Oversight

New hiring conditions will perpetuate monopoly, ex-MP warns

By FMT in November 7, 2025 – Reading time 3 minute
New hiring conditions will perpetuate monopoly, ex-MP warns


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As Malaysia’s labour market prepares to reopen to Bangladeshi workers, the government has imposed 10 new conditions on recruitment agencies.
PETALING JAYA:

Former Klang MP Charles Santiago has questioned ‘s new set of 10 conditions for Bangladeshi recruitment agencies, warning that some of the stringent requirements could instead entrench monopolistic practices.

Santiago pointed out that the requirement for each recruitment agency to have a permanent office of a minimum area of 10,000 sq ft is simply unfeasible for many smaller yet ethical businesses.

Consequently, he said, smaller businesses would be edged out by larger and richer agencies that controlled the trade.

“Those who can actually fulfill that requirement are, in reality, the big players. So those who controlled the industry before will also continue to monopolise (under the new conditions),” he told FMT.

Santiago, however, welcomed the condition to ban recruitment agencies that had violated labour laws or committed any financial crime and illegal immigration activities in the past.

Separately, migrant rights activist Adrian Pereira described these new conditions as “superficial” and urged to instead address Malaysia’s labour recruitment system, such as the lack of enforcement of the zero-recruitment-fee law.

“How can we even continue recruiting foreign workers if we can’t reform our own laws? There is also the risk of cartels and syndicates being formed in line with these 10 criteria,” he told FMT.

Bar collection of fees, protect workers

Santiago, who chairs the Asean Parliamentarians for Human Rights (APHR), said should instead bar employment agencies from collecting fees from migrant labourers, and establish a worker protection system to reform the industry.

“Agencies should have clear channels for workers to air their grievances and provide feedback, as well as remediation processes, not just large buildings. Real reform starts with how workers are treated.

“Implementing the ‘employer pays’ principle is the key because that’s where most of the workers get caught,” he said, referring to an approach where employers pay all costs associated with recruitment.

If Putrajaya hoped to shake up the industry, Santiago added, it should pivot to expanding the system rather than imposing stringent requirements to pare down the number of qualified agencies.

He also suggested that all agencies be screened regularly for political links and integrity to ensure that none have political ties that could unfairly benefit their businesses.

“You don’t want the new rules to secure the same oligarchy,” he added.

The 10 conditions 

On Oct 30, Dhaka-based bdnews24 reported that Putrajaya had imposed 10 conditions on recruitment agencies as the Malaysian labour market prepares to reopen to Bangladeshi workers.

Recruitment agencies must have:

(i) at least five years of satisfactory experience in conducting activities after obtaining a licence

(ii) evidence of sending at least 3,000 workers abroad in the last five years

(iii) experience in sending workers and engaging employees in at least three different destination countries in the last five years

(iv) a valid licence from all relevant authorities in Bangladesh for training, assessment, recruitment, and employment abroad

(v) a certificate of good conduct from the appropriate authority of the country

(vi) no record of being involved in forced labour, human trafficking, violation of labour laws, extortion, money laundering or any other financial crime and illegal immigration activities

(vii) its own training and assessment centre with comprehensive facilities

(viii) certificates of satisfactory performance for immigration activities issued by five separate international employers

(ix) a permanent office with a minimum area of 10,000 sq ft, which has been operating for at least three years; and,

(x) evidence of having legally and systematically followed the conditions of the recruitment process of destination countries (including Malaysia) in the past.

On Aug 19, home minister Saifuddin Nasution Ismail announced that the government agreed to reopen applications for foreign workers quotas for the agriculture, plantation, and mining sectors, following a freeze lasting more than two years.



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