Malaysia is a significant source of remittances for Bangladesh due to the vast number of migrant workers. In FY 2021–22, FY 2022–23, FY 2023–24, and FY 2024–25, remittance inflows from Malaysia totaled USD 1.02 billion, USD 1.12 billion, USD 1.60 billion, and USD 2.80 billion, respectively. USD 260 million was received in July and USD 270 million each in August and September of the current fiscal year 2025–2026.

A sizable portion of Bangladeshis are living in Malaysia illegally in addition to those with legitimate documentation. The country’s immigration department regularly detains these people during operations. Bangladeshis who are lawfully residing have also become uneasy and afraid as a result of this. These conclusions were drawn during a recent trip to the nation.

According to Malaysian media reports, 182 Bangladeshis were arrested in November alone. Earlier, 377 were detained in a single operation in September. In nearly every operation conducted by the Malaysian immigration department, Bangladeshis are among those arrested. Those detained are later deported.

A Bangladeshi holding a senior position at a Malaysian technology company, who spoke to Media on condition of anonymity, said, “You will find Bangladeshis everywhere. About half of them may be undocumented. Because of this, those of us who have been living here for a long time with our families feel embarrassed. We even face questions at our workplaces. Yet, if people could be sent legally with proper training, much higher earnings would be possible.”

In the last week of November, a group of Bangladeshi workers from Cumilla were met near the Sultan Abdul Samad Jame Mosque area in Kuala Lumpur. They told Media that they still had not found jobs. Each of them had spent BDT 500,000 through brokers to come to Malaysia. They are trying to find work at factories outside the capital.

Tasneem Siddiqui, founding chair of the Refugee and Migratory Movements Research Unit (RMMRU) in Dhaka, said, “Instead of symbolic manpower exports, initiatives should be taken to regularize undocumented Bangladeshis. Malaysia has granted such legalization before. This would increase the flow of remittances to the country. If the labor market is again handed over to syndicates, workers will not be able to actually take up jobs. The government must make the right decisions.”

Bangladesh’s overseas labor migration began in 1976. In 1978, the first 23 workers went to Malaysia. A formal manpower recruitment agreement between Bangladesh and Malaysia was signed in 1992. From 1990 to 2023, the export of Bangladeshi workers to Malaysia increased steadily. In 2023 alone, a record 351,683 Bangladeshis went to Malaysia. The labor market was closed on May 31, 2024, but was later reopened under various conditions.

Bangladeshis work in Malaysia’s construction, industrial, agricultural, and service sectors. They now make up the largest share 37 percent of all foreign workers in Malaysia. As of the end of June this year, 803,332 Bangladeshis had valid work permits, according to a report by the Malaysian newspaper The Star.

However, Bangladeshis living in Malaysia say the actual number is nearly double. Many entered on student visas and never returned. According to a report by the International Organization for Migration (IOM), up to 2024, 2.5 million people entered Malaysia on travel visas and did not return to their home countries; 38 percent of them were Bangladeshis.

The housing business is booming across Kuala Lumpur, Penang, and other states, creating high demand for construction workers. The service and manufacturing sectors are also expanding. Both documented and undocumented Bangladeshis work largely in these sectors. Because Malaysia has a fixed minimum wage, many employers hire undocumented workers to reduce costs—Bangladeshis make up the largest share of such labor.

Malaysia’s minimum wage is 1,700 ringgit per month, equivalent to about BDT 51,000. Workers are required to work eight hours a day and 45 hours a week. In addition, up to four hours of overtime per day is allowed. There is strong demand for workers in construction, factories, palm plantations, electrical work, plumbing, painting, supermarkets, and other sectors.

Under the “Malaysia My Second Home” (MM2H) program, which offers the opportunity to establish a second residence in Malaysia, Bangladeshis now rank fourth. By 2024, 3,604 Bangladeshis had joined the program. A five-year visa is available with an investment of BDT 36 million, while higher investments qualify for a 20-year visa. The key condition is investment in the housing sector, further boosting Malaysia’s real estate business.

Due to short distance, relatively low cost, and cultural similarities, Malaysia remains one of the top destinations for Bangladeshi workers. In 2022, 50,090 Bangladeshis went to Malaysia; in 2023, 351,683; and in 2024, up to the ban, 93,632. By May of the current year, 2,486 Bangladeshis had gone to Malaysia.