25-5-2024 (KUAAL LUMPUR) The Anwar Ibrahim government’s ambitious initiative to reform migrant worker recruitment policies, particularly those involving Bangladeshi nationals, is encountering significant opposition from industry stakeholders and some civil servants who favour maintaining the status quo.
Sources within the government disclosed that the resistance is primarily coming from Bestinet Sdn Bhd, a private firm with substantial connections to Malaysia’s political elite, which has been mired in controversy. The Home Ministry plans to replace Bestinet’s proprietary IT system, currently managing the inflow of foreign labour into Malaysia, citing a previous government review that identified widespread abuse and mismanagement.
Bestinet’s contract to operate the Foreign Workers Centralised Management System (FWCMS), the sole platform used by Malaysia’s Immigration Department for visa applications from 15 countries, expires at the end of this month. The company, led by founder Mohamed Amin Abdul Nor, and allied labour agents are reportedly lobbying the Anwar administration to secure a new multi-year extension for the FWCMS concession.
The government intends to introduce a new IT portal, developed over the past year, aiming to make the foreign labour recruitment process more transparent, cost-effective, and less reliant on intermediaries. Home Minister Saifuddin Nasution Ismail has yet to comment on the matter, but a senior advisor indicated that it would be discussed in a forthcoming Cabinet meeting before Prime Minister Anwar makes a final decision.
Securing the FWCMS extension is crucial for Bestinet, a key player in Malaysia’s multi-billion-ringgit foreign labour recruitment sector. The company reported a net profit of RM85.04 million (US$18 million) at the end of 2022, a significant increase from the previous year’s RM704,432.
For the Anwar administration, the stakes are equally high. Malaysia, an export-dependent economy, relies heavily on migrant labour, which constitutes about 30% of the workforce. When including undocumented workers, this figure may rise to around 38%, or 5.5 million individuals. The recruitment sector has faced domestic and international criticism for collusion among politicians, enforcement agencies, recruitment firms, and exploitative employers. This has led to Malaysia being ranked alongside China and North Korea for its poor efforts in combating human trafficking by the US State Department.
Since December, Malaysia has seen an influx of Bangladeshi workers drawn by fraudulent job offers. Rights groups estimate their numbers could be in the tens of thousands. Last month, United Nations experts criticised the Malaysian government over the situation of these workers, highlighting the exploitation by criminal networks between Malaysia and Bangladesh.
In response, Bestinet defended its FWCMS system, stating that due diligence through FWCMS could prevent such issues. The company claims that the system provides transparency and traceability, reducing exploitation risks.
Bestinet’s history is not without controversy. In 2018, it faced allegations of benefiting from Nepali workers’ fees, leading to a temporary suspension of its operations by the Malaysian government. However, it was cleared of wrongdoing the following year. In May 2023, the Malaysian Anti-Corruption Commission (MACC) arrested several government officials and raided Bestinet in connection with a corruption investigation, although no outcomes have been reported so far.
Home Minister Saifuddin has expressed dissatisfaction with the current recruitment system. During a visit to Bangladesh last year, he acknowledged the need to eliminate graft and improve the system. The government plans to replace the FWCMS with a new platform that minimises third-party involvement and matches labour supply with demand more effectively.
Charles Santiago, a former Member of Parliament involved in the reform committee, emphasised the urgency of overhauling the system to end Bestinet’s dominance. Labour activist Andy Hall, who has extensively studied Malaysia’s migrant labour issues, echoed this sentiment, describing the situation as bordering on slavery.
Santiago advocates halting the acceptance of Bangladeshi workers until the recruitment process is adequately reformed. He noted that the current system is plagued by exploitation, with multiple layers of agents and brokers involved.
Further challenges loom for Malaysia, with the upcoming US State Department’s annual Trafficking in Persons (TIP) Report. Failure to address these issues could result in Malaysia being downgraded to Tier 3, risking sanctions. Malaysia was previously downgraded to Tier 3 in 2021 and 2022, leading to export bans on several companies, including glove manufacturers and plantation giants. These bans have since been lifted.
The TIP Report is a critical assessment that monitors global trafficking trends and evaluates government efforts in prosecution, protection, and prevention.
