Malaysian minister refutes Bloomberg report on new foreign worker recruitment system
Malaysian Human Resources Minister Datuk Seri R. Ramanan has refuted a Bloomberg report that claims Malaysia is planning to adopt a new foreign worker recruitment system developed by Bestinet Sdn Bhd, a company founded by Aminul Islam.
Describing the Bloomberg report titled, "Malaysia Plans to Use Tycoon Amin’s New Migrant Worker System" as “unverified and inaccurate”, Ramanan said he had not tabled any such proposal to the Cabinet, according to Malaysian newspaper The Star.
For all latest news, follow The Daily Star's Google News channel. “It is shocking to me that they seem to know more about the proposed system than I do. I have not tabled anything to the Cabinet, yet they are able to explain it in detail,” he said during a dialogue session with the Concorde Club at Wisma Bernama in Kuala Lumpur today.
The latest development come as Dhaka and Kuala Lumpur last week agreed to expedite the reopening of Malaysia’s labour market for Bangladeshi workers.
The market was closed on May 31, 2024 following allegations of labour oversupply and corruption in the recruitment system.
During a meeting in Putrajaya between Labour and Expatriates’ Welfare Minister Ariful Haque Choudhury and Malaysian Human Resources Minister Dato’ Sri Ramanan Ramakrishnan, the Malaysian side introduced a technology-driven labour recruitment system for all source countries, including Bangladesh.
According to a joint statement, the system is aimed at ensuring zero-cost migration in line with International Labour Organization guidelines.
“The system would ensure that employers bear the full cost of recruitment, resulting in zero cost to workers, in line with the Employer Pays Principle under the guidelines of the International Labour Organization (ILO),” it said.
Bloomberg reported today that the recruitment system Malaysia is planning to adopt was developed by Bestinet Sdn Bhd. Citing six people familiar with the matter, it said the software is marketed as enabling companies to hire workers directly, bypassing middlemen who charge excessive fees.
The system, known as the Universal Recruitment Advanced Platform or Turap, would feature a digital portal where employers can sign up and recruit workers, the report added.
In January of this year, Bloomberg published an investigation into what it described as endemic corruption in Malaysia’s recruitment of migrant workers from Bangladesh. Aminul Islam has denied contributing to high recruitment fees and said he has devoted his life to assisting migrant workers.
Representatives for Ramanan, Malaysia’s Prime Minister’s Office and Bestinet did not respond to Bloomberg’s requests for comment.
Bloomberg also reported that Bestinet already operates the Foreign Workers Centralised Management System (FWCMS), which Malaysia uses to manage parts of its recruitment process, particularly involving Bangladesh. The system includes modules such as worker health checks and insurance, and also involves recruitment agents.
In an interview with Bloomberg in July last year, Aminul said he was not responsible for how the system is used, referring to officials who approve bogus applications or agents who overcharge workers.
In 2024, Bangladesh police asked Malaysia to stop using FWCMS and sought Aminul’s extradition, alleging he played a key role in a system that “fraudulently extorted” workers, the report said.
Malaysia’s Home Minister Saifuddin Nasution Ismail said in October last year that police were in contact with their Bangladeshi counterparts. Aminul has not been extradited or charged.
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