A source in the industry said that certain groups were using valid contractor licences issued by the Construction Industry Development Board (CIDB) to facilitate the recruitment of foreign workers for “non-existent” vacancies, especially in the construction sector.
“The higher the value of the project, the more workers they can bring in… even though the jobs don’t actually exist,” the source told FMT, adding that the activity was only discovered after a company involved failed to provide a list of its workers on time.
“Most of them have connections with syndicates in Bangladesh which receive payments of up to RM20,000 for each foreign worker.”
According to the source, the company in question would put Malaysians on its board of directors and as its main shareholders, with the majority registered under the names of their local wives.
“One of the companies has an issued capital of RM1 million, and the owner is only in their 30s.”
Last week, FMT reported that over 90 Bangladeshi workers who came to Malaysia with the promise of jobs had been living in a cramped dormitory for the past four months.
Papsma, the national association of private employment agencies, said the workers were brought into the country by an employer with a CIDB licence.
“This company had approval to bring in 280 foreign workers to work in construction but instead, they ‘outsource’ these workers (to other companies that have insufficient quota),” said Papsma secretary-general Kelvin Cheong.
He said the company’s tactic had been brought to the attention of the human resources ministry following numerous cases of foreign workers being left without jobs.
When asked why Malaysia remained a top destination for Bangladeshi migrants searching for work, Cheong said it was due to the lower fees offered by recruitment agents or syndicates.
He said the policy of the Bangladesh government which encourages its citizens to work abroad by offering special loans also resulted in many from the South Asian country being willing to incur debt in order to change their fortunes.
“They would need to fork out at least RM50,000 (each) to work in Australia, and the same goes for the Arab countries.
“As for the UK or US, the fees can reach up to RM80,000 depending on the type of work involved. That’s why they choose Malaysia – it’s the cheapest,” he said.