Malaysia agrees to take 200,000 workers from end of September
Malaysia will take 200,000 Bangladeshi workers in phases from the end of September over six months, plus another 10,000 workers at zero migration cost, LGRD State Minister Mir Shahe Alam confirmed today (August 30). A day ago, Health Minister Sardar Md Sakhawat Hossain said that the two countries’ friendly relationship has only grown stronger since PM Tarique Rahman’s visit in June and called on Malaysia to increase imports of Bangladeshi goods.
In a Nutshell:
- Health Minister Sakhawat Hossain made these remarks at the “Towards a Stronger Bangladesh Malaysia Partnership” event organised by the Bangladesh Malaysia Chamber of Commerce and Industry on August 29.
- Malaysian High Commissioner Shuhuda Othman also attributed PM Tarique’s recent visit to Malaysia as a factor in stronger bilateral relations.
- During the June visit, PM Tarique Rahman’s meeting with Malaysian Prime Minister Anwar Ibrahim in Putrajaya covered several areas to expand bilateral engagement: Malaysian investment in Bay of Bengal oil and gas exploration; mineral extraction and renewable energy; advancing FTA (Free Trade Agreement) negotiations towards a 2027 deal; Malaysia’s support for Bangladesh’s RCEP bid and ASEAN Sectoral Dialogue Partner status; and wider cooperation in defence, AI, fintech, cybersecurity, semiconductors, halal industries, education and skills development.
- PM Tarique also urged Malaysia to reopen its labour market to Bangladeshi workers, with both sides agreeing to improve recruitment through vetted quotas, credible agencies and transparent processes and to review the existing labour agreement.
- Today (August 30th), LGRD State Minister Mir Shahe Alam confirmed after a meeting between Malaysian High Commissioner Mohd Suhaida Osman and LGRD Minister Abdul Moyeen Kha, that Malaysia will take 200,000 Bangladeshi workers in phases from the end of September within six months, plus another 10,000 workers at zero migration cost.
Context
Malaysia has long been an important economic partner for Bangladesh, particularly as a major destination for Bangladeshi workers, with about 800,000 currently employed there. However, since 2024, Malaysia has restricted the new recruitment of Bangladeshi workers amid reports of exploitation and serious problems in the recruitment system, including excessive fees, debt bondage and workers arriving to find that promised jobs did not exist. During the June 21-22 visit to PM Tarique, opening the labour market to Bangladeshi migrants was therefore one of the key talking points between the two sides. Fast forward to now, there is visible progress in this sector, as Malaysia has confirmed that it will conduct phased migrations of 200,000 Bangladeshi workers from the end of September over six months, plus another 10,000 workers at zero migration costs on special chartered flights through the government-run BOESL. All the same, there are still other areas that need work for the relationship to expand further. Health Minister Shakhawat Hossain’s address to Malaysia to increase imports does not come out of nowhere, as there is still a sizable trade deficit in Malaysia’s favor. In 2025, Malaysia exported $2.35 billion in goods to Bangladesh while importing only $500 million worth of goods from Bangladesh.
Why it matters
What has changed now is that the relationship has shifted from diplomatic commitments to a concrete arrangement for workers to enter Malaysia again. That matters because the previous recruitment system had become a source of abuse, so the new process will show whether the two governments can reopen this important channel without bringing back the problems that led to its restriction.
What we think
As the two countries want the relationship to become a broader economic partnership, Bangladesh will likely continue to use the renewed engagement to push for more access for its exporters and attract Malaysian investment, while keeping worker recruitment transparent and affordable. Health Minister Sakhawat’s call for more Malaysian imports is therefore well placed: a stronger relationship should create opportunities for Bangladesh on both sides of the labour market, as a source of workers and as a supplier of goods.