Bangladesh and Malaysia have agreed to deepen cooperation on labor migration, trade and investment as Prime Minister Tarique Rahman used his visit to Kuala Lumpur to press for the reopening of Malaysia’s labor market to Bangladeshi workers.
Malaysia has historically been Bangladesh’s fourth-largest manpower export destination, but the market remains closed to Bangladeshi workers because of allegations of syndicates, corruption and other irregularities in the recruitment process. More than 600,000 undocumented Bangladeshi workers are currently living in Malaysia, with some facing imprisonment.
During the visit, Rahman urged the Malaysian government to reopen the labor market, ensure safe working conditions and reduce migration costs for Bangladeshi workers. Expatriates and labor-sector observers said they want any reopened market to be free from syndicates and open to all valid recruitment agencies.
“We expatriates want the Malaysian labor market to be opened very soon, and we hope it will be a syndicate-free labor market,” one Bangladeshi expatriate said.
An analyst said workers’ rights must be protected if the market reopens, and that all legitimate recruiting agencies should have equal opportunity to send workers.
The visit also produced a major trade commitment, with Bangladesh and Malaysia agreeing to sign a free trade agreement by 2027. Analysts said the deal could help reduce Bangladesh’s trade deficit with Malaysia, remove tariff and non-tariff barriers, and increase Bangladeshi exports.
Business leaders also pointed to opportunities for Malaysian industries that are shutting down to relocate to Bangladesh. Such a move, they said, could bring investment into Bangladesh, allow companies to serve the domestic market and create opportunities to re-export goods back to Malaysia.
“If we can relocate some Malaysian industries that are shutting down to Bangladesh, investment will come to Bangladesh, they will be able to produce for Bangladesh’s large market, and they can re-export those products to Malaysia,” one businessman said, adding that the free trade agreement is important for that reason.
Bangladesh and Malaysia issued a 33-point joint statement during the visit, pledging to expand cooperation in nine areas, including technology, education, energy and defense.
News 24 reporter Hossain Shahadat said the visit marked a broad effort to strengthen ties between the two countries across labor, trade and strategic sectors.